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Precision Drilling Corporation CEO Discusses Q3 2010 Results - Earnings Call Transcript

Our comments today will also include statements reflecting Precision's views about events and their potential impact on the Corporation's business, operations, structure, balance sheet and financial results, which are forward-looking statements. There are risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking information and statements. Please see our press release and other regulatory filings for more information on forward-looking statements and these risk factors.

Rob McNally will begin today's call with a brief overview of the third quarter operating results and our capital expenditure plans. Kevin Neveu will then provide a drilling operations update and our outlook going forward. Doug Strong will follow Kevin with a brief overview of the completions and production segment and after that we will open the call up for questions.

Before I turn it over to Rob I would like to comment that we are pleased with the quality results of this quarter despite the overhang in the market of low natural gas prices. Oil and liquids rich natural gas drilling in service activity are driving results for precision in both the Unites States and Canada. Our comments today will reinforce that and provide examples of the importance of oil in the markets today.

Rob over to you.

Rob McNally

Thanks, David. As David mentioned, Precision had a very solid quarter. We reported net earnings of $61 million or $0.21 per diluted share on revenues of $359 million for the third quarter. These results do include an $18 million foreign exchange gain which equates to about $0.05 per share relating to our debt being primarily US dollar denominated.

Our Q3 2010 EBITDA was $113 million, which represents a 31% increase over the $86 million achieved in the third quarter of 2009. The improved third quarter results primarily reflect increased utilization. Activity levels have increased meaningfully with the continuation of positive momentum building from the beginning of the year.

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