ex99_1.htm

Precision Drilling Trust
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		September 30,			December 31,
(Stated in thousands of Canadian dollars)		2009			2008

ASSETS
Current assets:
Cash and cash equivalents		$	177,529		$	61,511
Accounts receivable			266,307			601,753
Income tax recoverable			8,612			13,313
Inventory			9,108			8,652
			461,556			685,229
Income tax recoverable	(note 4)		58,055			58,055
Property, plant and equipment, net of accumulated depreciation			3,065,370			3,243,213
Intangibles			3,681			5,676
Goodwill			772,199			841,529
		$	4,360,861		$	4,833,702

LIABILITIES AND UNITHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	138,992		$	270,122
Distributions payable			–			20,825
Current portion of long-term debt	(note 5)		43,363			48,953
			182,355			339,900
Long-term liabilities			26,994			30,951
Long-term debt	(note 5)		795,560			1,368,349
Future income taxes			700,016			770,623
			1,704,925			2,509,823
Contingencies	(note 9)

Unitholders’ equity:
Unitholders’ capital	(note 3)		2,770,708			2,355,590
Contributed surplus			3,223			998
Retained earnings (deficit)			132,112			(48,068	)
Accumulated other comprehensive income	(note 6)		(250,107	)		15,359
			2,655,936			2,323,879
		$	4,360,861		$	4,833,702
See accompanying notes to consolidated financial statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Precision Drilling Trust

CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (DEFICIT) (UNAUDITED)

		Three months ended September 30,						Nine months ended September 30,
(Stated in thousands of Canadian dollars, except per unit amounts)		2009			2008			2009			2008

Revenue		$	253,337		$	285,639		$	911,379		$	766,842
Expenses:
Operating			143,059			154,323			522,411			416,308
General and administrative			24,539			12,496			74,582			48,793
Depreciation and amortization			30,378			22,798			102,549			60,559
Foreign exchange			(63,486	)		(2,626	)		(105,055	)		(3,751	)
Finance charges	(note 8)		29,396			2,288			112,947			6,571

Earnings before income taxes			89,451			96,360			203,945			238,362
Income taxes:	(note 4)
Current			5,216			2,121			13,380			6,818
Future			12,539			11,890			3,977			21,190
			17,755			14,011			17,357			28,008

Net earnings			71,696			82,349			186,588			210,354
Retained earnings (deficit), beginning of period			60,416			(96,196	)		(48,068	)		(126,110	)
Distributions declared			-			(49,046	)		(6,408	)		(147,137	)


Retained earnings (deficit), end of period		$	132,112		$	(62,893	)	$	132,112		$	(62,893	)
Earnings per unit:	(note 10)

Basic		$	0.26		$	0.61		$	0.77		$	1.56
Diluted		$	0.25		$	0.61		$	0.75		$	1.56
See accompanying notes to consolidated financial statements

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
	Three months ended September 30,					Nine months ended September 30,
(Stated in thousands of Canadian dollars)	2009			2008		2009			2008
Net earnings	$	71,696		$	82,349	$	186,588		$	210,354
Unrealized loss recorded on translation of assets
and liabilities of self-sustaining operations
denominated in foreign currency		(154,590	)		-		(265,466	)		-
Comprehensive income (loss)	$	(82,894	)	$	82,349	$	(78,878	)	$	210,354
See accompanying notes to consolidated financial statements

PRECISION DRILLING TRUST

Precision Drilling Trust
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
	Three months ended September 30,						Nine months ended September 30,
(Stated in thousands of Canadian dollars)	2009			2008			2009			2008

Cash provided by (used in):
Operations:
Net earnings	$	71,696		$	82,349		$	186,588		$	210,354
Adjustments and other items not involving cash:
Long-term compensation plans		4,786			93			2,914			1,790
Depreciation and amortization		30,378			22,798			102,549			60,559
Future income taxes		12,539			11,890			3,977			21,190
Amortization of debt issue costs and
debt settlement		7,056			-			30,119			-
Foreign exchange on long-term monetary items		(67,321	)		(23	)		(118,319	)		(40	)
Changes in non-cash working capital balances		(39,186	)		(113,866	)		226,270			(32,847	)
		19,948			3,241			434,098			261,006
Investments:
Business acquisitions		-			(15,519	)		-			(15,519	)
Purchase of property, plant and equipment		(14,198	)		(75,457	)		(179,443	)		(130,269	)
Proceeds on sale of property, plant and equipment		2,428			1,879			10,257			5,325
Change in income tax recoverable		-			-			-			(55,148	)
Changes in non-cash working capital balances		1,741			7,598			(20,147	)		10,669
		(10,029	)		(81,499	)		(189,333	)		(184,942	)
Financing:
Increase in long-term debt		-			126,836			408,893			220,517
Repayment of long-term debt		(6,567	)		-			(887,605	)		(108,559	)
Financing costs on long-term debt		(674	)		-			(21,628	)		-
Distributions paid		-			(49,046	)		(27,233	)		(167,258	)
Issuance of trust units, net of issue costs		(533	)		-			413,223			-
Change in non-cash working capital balances		(431	)		-			-			-
Change in bank indebtedness		-			-			-			(14,115	)
		(8,205	)		77,790			(114,350	)		(69,415	)
Effect of exchange rate changes on cash and
cash equivalents		(4,164	)		-			(14,397	)		-
Change in cash and cash equivalents		(2,450	)		(468	)		116,018			6,649
Cash and cash equivalents, beginning of period		179,979			7,117			61,511			-
Cash and cash equivalents, end of period	$	177,529		$	6,649		$	177,529		$	6,649
See accompanying notes to consolidated financial statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Precision Drilling Trust

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts are stated in thousands of Canadian dollars except unit numbers)

NOTE 1. BASIS OF PRESENTATION

These interim financial statements for Precision Drilling Trust (the “Trust”) were prepared using accounting policies and methods of their application consistent with those used in the preparation of the Trust’s consolidated audited financial statements for the year ended December 31, 2008 except as noted below. These interim financial statements conform in all material respects to the requirements of generally accepted accounting principles in Canada for annual financial statements with the exception of certain note disclosures. As a result, these interim financial statements should be read in conjunction with the Trust’s consolidated audited financial statements for the year ended December 31, 2008.

Effective January 1, 2009 the Trust adopted new Canadian accounting standards relating to goodwill and intangible assets (Section 3064). This new section establishes standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new section did not have an impact on the consolidated financial statements.

Precision has a combination of equity based incentive compensation plans outstanding, some of which are settled in trust units and others that are settled in cash. Compensation cost associated with equity settled plans is recorded at fair value and expensed over the instruments vesting period. Under Precision’s option plan the fair value of the option grant is calculated at the date of grant using the Black-Scholes option pricing model and that value is recorded as compensation expense over the grant’s vesting period with an offsetting credit to contributed surplus. Forfeitures are estimated on the date of grant. Under the non-management director trust unit plan the fair value is based on the trading price of a Precision unit on the date of grant. Compensation cost associated with cash settled compensation plans is recorded at intrinsic value over the instruments vesting period. Intrinsic value is determined by the unit price at the period end applied to the units that have vested under the plan. The associated liability is included in accounts payable or long-term liabilities as appropriate.

NOTE 2. SEASONALITY OF OPERATIONS

The Trust has operations that are carried on in Canada which represent approximately 38% (2008 – 85%) of consolidated total assets as at September 30, 2009 and 45% (2008 – 86%) of consolidated revenue for the nine months ended September 30, 2009. The ability to move heavy equipment in Canadian oil and natural gas fields is dependent on weather conditions. As warm weather returns in the spring, the winter’s frost comes out of the ground rendering many secondary roads incapable of supporting the weight of heavy equipment until they have thoroughly dried out. The duration of this “spring break-up” has a direct impact on the Trust’s activity levels. In addition, many exploration and production areas in northern Canada are accessible only in winter months when the ground is frozen hard enough to support equipment. The timing of freeze up and spring break-up affects the ability to move equipment in and out of these areas. As a result, late March through May is traditionally the Trust’s slowest time.

NOTE 3. UNITHOLDERS’ CAPITAL

(a)	Authorized – unlimited number of voting Trust units

– unlimited number of voting exchangeable LP units

(b)	Units issued:

Trust units	Number		Amount

Balance, December 31, 2008		160,042,065	$	2,353,843
Issued on retraction of exchangeable LP units		32,021		369
Issued for cash on February 18, 2009		46,000,000		217,281
Issued pursuant to private placement		35,000,000		70,181
Issued upon the exercise of rights on June 4, 2009		34,441,950		103,326
Unit issue costs, net of related tax effect of $1.9 million		-		(10,489	)
		275,516,036	$	2,734,511
Warrants issued pursuant to private placement		-		34,819
Balance September 30, 2009		275,516,036	$	2,769,330

PRECISION DRILLING TRUST

Exchangeable LP units	Number			Amount

Balance, December 31, 2008		151,583		$	1,747
Redeemed on retraction of exchangeable LP units		(32,021	)		(369	)
Balance, September 30, 2009		119,562		$	1,378

Summary	Number			Amount
Trust units		275,516,036		$	2,769,330
Exchangeable LP units		119,562			1,378
Unitholders’ capital		275,635,598		$	2,770,708

On April 22, 2009 the Trust issued 15,000,000 purchase warrants pursuant to a private placement. Each warrant is exercisable into a unit of the Trust at a price of $3.22 per trust unit for a period of five years from the date of issue.

NOTE 4. INCOME TAXES

Currently, the Trust incurs taxes to the extent that there are certain provincial capital taxes or state franchise taxes, as well as taxes on any taxable income, of its underlying subsidiaries. Future income taxes arise from the differences between the accounting and tax basis of the Trust’s and its subsidiaries’ assets and liabilities.

The provision for income taxes differs from that which would be expected by applying statutory Canadian income tax rates. A reconciliation of the difference at September 30 is as follows:

	Three months ended September 30,						Nine months ended September 30,
	2009			2008			2009			2008

Earnings before income taxes	$	89,451		$	96,360		$	203,945		$	238,362
Federal and provincial statutory rates		29	%		30	%		29	%		30	%
Tax at statutory rates	$	25,941		$	28,908		$	59,144		$	71,509
Adjusted for the effect of:
Non-deductible expenses		1,644			288			6,372			549
Non-taxable gains		(16,206	)		(501	)		(18,752	)		(959	)
Income taxed at lower rates		(1,388	)		–			(36,812	)		–
Income to be distributed to unitholders,
not subject to tax in the Trust		(202	)		(17,000	)		(2,525	)		(48,569	)
Other		7,966			2,316			9,930			5,478
Income tax expense	$	17,755		$	14,011		$	17,357		$	28,008
Effective income tax rate		20	%		15	%		9	%		12	%

The Trust received Notices of Reassessment in 2008 from a provincial taxing authority related to certain subsidiaries’ taxation years ending in 2001 through 2004. As a result of the notices, the Trust was required to pay $37.7 million in taxes and $20.4 million in assessed interest. The reassessments relate to the treatment of interest in certain provincial tax filings. The Trust is in the process of challenging these reassessments. The Trust anticipates that the dispute will not be resolved within one year and has recorded the amount paid as a long-term receivable. No amounts related to the $58.1 million in reassessments have been expensed.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5. LONG-TERM DEBT
	September 30,			December 31,
	2009			2008

Secured facility:
Term Loan A	$	330,727		$	489,215
Term Loan B		484,005			489,840
Revolving credit facility		-			107,981
Unsecured facility		-			168,352
Unsecured senior notes
Unsecured convertible notes:		175,000			-
3.75% notes (US$137.5 million)		-			168,413
Floating rate notes (US$124.8 million)		-			152,801
		989,732			1,576,602
Less net unamortized debt issue costs		(150,809	)		(159,300	)
		838,923			1,417,302
Less current portion		(43,363	)		(48,953	)
	$	795,560		$	1,368,349

At September 30, 2009 the amount drawn under the Term Loan A facility consisted of US$288.3 million (December 31, 2008 – US$381.1 million) denominated in US dollars and $21.7 million (December 31, 2008 – $22.5 million) denominated in Canadian dollars. The Term Loan B facility is denominated in US dollars and as at September 30, 2009 US$451.4 million (December 31, 2008 – US$400 million) was outstanding.

During the second quarter Precision entered into an interest rate swap arrangement to fix the libor rate at 1.7% on US$250 million of the Term A-1 facility (with scheduled reductions in the balance through September 2013 to match the reduction in principal balances) and paid US$2.1 million for an interest rate cap of 3.25% on US$350 million of the Term B facilities (with scheduled reductions in the balance through December 2013). The net amount owing under the interest rate derivative contracts is settled quarterly. At September 30, 2009 the change in fair value of these interest rate derivative contracts was estimated to be nominal.

During the second quarter, Precision fully repaid and cancelled the outstanding balance of the unsecured facility and completed syndication of the secured facility.

On April 22, 2009, the Trust completed a private placement of $175 million principal amount of 10% senior unsecured notes (the “Senior Notes”), which have an eight-year term, with one-third of the initial outstanding principal amount payable on each of the 6th, 7th and 8th anniversaries of the closing date of the private placement. The Senior Notes are unsecured and have been guaranteed by the Trust and each subsidiary of the Trust that guaranteed the secured facility. The terms of the Senior Notes contain customary negative and affirmative covenants and events of default.

During the first quarter, holders of 3.75% Notes and Floating Rate Notes representing US$137.5 million and US$124.8 million, respectively accepted the purchase offer made pursuant to change in control provisions in the indenture agreements governing the notes. Precision was required to purchase these notes on March 24, 2009 at the principal balance plus accrued interest.

At September 30, 2009 scheduled principal repayments are as follows:
For the twelve month periods ended September 30,

2010	$	43,363
2011		60,858
2012		74,252
2013		78,716
2014		557,543
Thereafter		175,000

In addition to mandatory scheduled repayments, Precision has the option to prepay the loans under the secured facility generally without premium or penalty.

PRECISION DRILLING TRUST

NOTE 6. ACCUMULATED OTHER COMPREHENSIVE INCOME

Balance, December 31, 2008	$	15,359
Unrealized foreign currency translation loss		(265,466	)
Balance, September 30, 2009	$	(250,107	)

NOTE 7. UNIT BASED COMPENSATION PLANS

(a) Option plan

During the second quarter the Trust implemented a unit option plan under which a combined total of 11,103,500 options to purchase units are reserved to be granted to employees. Of the amount reserved, 1,922,200 options have been granted. Under this plan, the exercise price of each option equals the fair market of the option at the date of grant determined by the weighted average trading price for the five days preceding the grant. The options vests over a period of three years from the date of grant as employees render continuous service to the Trust and have a term of seven years.

A summary of the status of the equity incentive plan as at September 30, 2009 is presented below:

Weighted

Options

Range of

average

Options

Outstanding

exercise price

exercisable

December 31, 2008

–

Granted

1,922,200

5.22 – 5.85

5.64

–

Forfeitures

(26,500

)

5.31 – 5.85

5.38

–

September 30, 2009

1,895,700

5.22 – 5.85

5.65

–

The per unit weighted average fair value of the unit options granted during 2009 was $2.54 estimated on the grant date using the Black-Scholes option pricing model with the following assumption: average risk-free interest rate 2%, average expected life of four years and expected volatility of 56%. Included in net earnings for the three and nine months ended September 30, 2009 is an expense for Unit based compensation of $0.9 million and $1.1 million, respectively.

(b) Officers and employees

During the second quarter Precision introduced two new unit based incentive plans to replace the Performance Saving Plan and the Long-Term Incentive Plan. Under the Restricted Trust Unit incentive plan units granted to eligible employees vest annually over a three year term. Vested units are automatically paid out in cash in the first quarter of the year following vesting at a value determined by the fair market value of the units as at December 31 of the vesting year. Under the Performance Trust Unit incentive plan units granted to eligible employees vest at the end of a three year term. Vested units are automatically paid out in cash in the first quarter following the vested term at a value determined by the fair market value of the units at December 31 of the vesting year and based on the number of performance units held multiplied by a performance factor that ranges from zero to two times. The performance factor is based on Precision’s returns compared to a peer group. Included in net earnings for the three and nine months ended September 30, 2009 is an expense of $2.9 million (2008 – $nil) and $5.3 million (2008 – $nil), respectively.

Certain liabilities under the Performance Savings Plan continue to exist as eligible participants were able to elect to receive a portion of their annual performance bonus in the form of deferred trust units (“DTUs”). These notional units are redeemable in cash and are adjusted for each distribution to unitholders by issuing additional DTUs based on the weighted average trading price on the Toronto Stock Exchange for the five days immediately following the ex-distribution date. All DTUs must be redeemed within 60 days of ceasing to be an employee of Precision or by the end of the second full calendar year after receipt of the DTUs. A summary of the DTUs outstanding under this unit based incentive plan is presented below:

Deferred Trust Units	Outstanding

Balance, December 31, 2008		83,435
Issued, including as a result of distributions		211,156
Redeemed on employee resignations and withdrawals		(17,156	)
Balance, September 30, 2009		277,435

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As at September 30, 2009 $2.0 million is included in accounts payable and accrued liabilities for outstanding DTUs. Included in net earnings for the three and nine months ended September 30, 2009 is an expense of $0.5 million (2008 – $0.9 million expense recovery) and $0.8 million (2008 – $0.2 million), respectively.

The Trust has a Unit Appreciation Rights (“UAR”) plan. Under the plan eligible participants were granted UAR’s that entitle the rights holder to receive cash payments calculated as the excess of the market price over the exercise price per unit on the exercise date. The exercise price of the UAR is reduced by the aggregate unit distributions paid or payable on Trust units from the grant date to the exercise date. The UAR’s vest over a period of five years and expire ten years from the date of grant. No amounts relating to the UAR plan have been recorded as compensation expense or accrued liability as at September 30, 2009 as the intrinsic value of the awards is nil.

In 2007 the Trust instituted a Deferred Signing Bonus Unit Plan for its Chief Executive Officer. Under the plan 178,336 notional DTUs were granted on September 1, 2007. The units are redeemable one-third annually beginning September 1, 2008 and are settled for cash based on the Trust unit trading price on redemption. The number of notional DTUs is adjusted for each distribution to unitholders by issuing additional notional DTUs based on the weighted average trading price on the Toronto Stock Exchange for the five days immediately following the ex-distribution date. As at September 30, 2009 $0.5 million is included in accounts payable and accrued liabilities for the outstanding DTUs. Included in net earnings for the three and nine months ended September 30, 2009 is an expense of $0.2 million (2008 – $1.5 million expense recovery) and an expense recovery of $0.4 million (2008 – $1.0 million expense), respectively.

(d) Non-management directors

In 2007 a deferred trust unit plan was established for non-management directors. Under the plan fully vested deferred trust units are granted quarterly based upon an election by the non-management director to receive all or a portion of their compensation in deferred trust units. Distributions to unitholders declared by the Trust prior to redemption are reinvested into additional deferred trust units on the date of distribution. These deferred trust units are redeemable into an equal number of Trust units any time after the director’s retirement. A summary of deferred trust units outstanding under this unit based incentive plan is presented below:

	Number
	Outstanding

Balance, December 31, 2008		54,543
Granted		199,065
Issued as a result of distributions		2,051
Balance, September 30, 2009		255,659

Included in net earnings for the three and nine months ended September 30, 2009 as unit based compensation with a corresponding increase in contributed surplus, is $262,000 (2008 – $256,000) and $1.1 million (2008 – $691,000), respectively.

NOTE 8. FINANCE CHARGES
The following table provides a summary of the finance charges:
	Three months ended September 30,						Nine months ended September 30,
	2009			2008			2009			2008

Interest:
Long-term debt	$	21,794		$	2,367		$	80,262		$	6,711
Other		635			12			2,856			111
Income		(89	)		(91	)		(290	)		(251	)
Amortization of debt issue costs		7,056			–			20,220			–
Loss on settlement of unsecured facility (note 5)		–			–			9,899			–
Finance charges	$	29,396		$	2,288		$	112,947		$	6,571

PRECISION DRILLING TRUST

NOTE 9. CONTINGENCIES

The business and operations of the Trust are complex and the Trust has executed a number of significant financings, business combinations, acquisitions and dispositions over the course of its history. The computation of income taxes payable as a result of these transactions involves many complex factors as well as the Trust’s interpretation of relevant tax legislation and regulations. The Trust’s management believes that the provision for income tax is adequate and in accordance with generally accepted accounting principles and applicable legislation and regulations. However, there are a number of tax filing positions that can still be the subject of review by taxation authorities who may successfully challenge the Trust’s interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by the Trust and the amount owed, with estimated interest but without penalties, could be up to $395 million, including $58 million recorded as a long-term receivable.

NOTE 10. PER UNIT AMOUNTS

The following tables reconcile the net earnings and weighted average units outstanding used in computing basic and diluted earnings per unit:

	Three months ended September 30,				Nine months ended September 30,
	2009		2008		2009		2008

Net earnings – basic	$	71,696	$	82,349	$	186,588	$	210,354
Impact of assumed conversion of convertible debt,
net of tax		–		–		1,723		–
Net earnings – diluted	$	71,696	$	82,349	$	188,311	$	210,354
Weighted average units outstanding		275,636		125,758		233,119		125,758
Effect of rights offering		–		9,007		8,236		9,007
Weighted average units outstanding – basic		275,636		134,765		241,355		134,765
Effect of trust unit warrants		7,335		–		4,227		–
Effect of stock options and other equity
compensation plans		218		36		155		27
Effect of convertible debt		–		–		5,195		–
Effect of rights offering		–		3		456		2
Weighted average units outstanding – diluted		283,189		134,804		251,388		134,794

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11. SEGMENTED INFORMATION

The Trust operates primarily in Canada and the United States, in two segments; Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, procurement and distribution of oilfield supplies, camp and catering services and manufacture, sale, and repair of drilling equipment. Completion and Production Services includes service rigs, snubbing units, wastewater treatment units, and oilfield equipment rental.

	Contract		Completion and
	Drilling		Production		Corporate			Inter-segment
Three months ended September 30, 2009	Services		Services		and Other				Eliminations			Total

Revenue	$	216,391	$	38,738	$	-			$	(1,792	)	$	253,337
Segment profit (loss)		60,484		4,536		(9,659	)			-			55,361
Depreciation and amortization		25,610		3,714		1,054				-			30,378
Total assets		3,721,044		399,172		240,645				-			4,360,861
Goodwill		660,060		112,139		-				-			772,199
Capital expenditures		11,862		501		1,835				-			14,198

	Contract		Completion and
	Drilling		Production		Corporate			Inter-segment
Three months ended September 30, 2008	Services		Services		and Other				Eliminations			Total

Revenue	$	212,567	$	76,701	$	-			$	(3,629	)	$	285,639
Segment profit (loss)(1)		79,389		21,604		(4,971	)			-			96,022
Depreciation and amortization		15,207		6,623		968				-			22,798
Total assets		1,426,832		473,308		73,995				-			1,974,135
Goodwill		172,440		112,139		-				-			284,579
Capital expenditures		68,435		6,066		956				-			75,457

	Contract		Completion and
	Drilling		Production		Corporate			Inter-segment
Nine months ended September 30, 2009	Services		Services		and Other				Eliminations			Total

Revenue	$	791,496	$	127,303	$	-			$	(7,420	)	$	911,379
Segment profit (loss)		221,536		17,411		(27,110	)			-			211,837
Depreciation and amortization		87,007		12,405		3,137				-			102,549
Total assets		3,721,044		399,172		240,645				-			4,360,861
Goodwill		660,060		112,139		-				-			772,199
Capital expenditures		171,769		1,022		6,652				-			179,443

	Contract		Completion and
	Drilling		Production		Corporate			Inter-segment
Nine months ended September 30, 2008	Services		Services		and Other				Eliminations			Total

Revenue	$	547,938	$	228,980	$	-			$	(10,076	)	$	766,842
Segment profit (loss)(1)		203,252		64,277		(26,347	)			-			241,182
Depreciation and amortization		38,817		18,943		2,799				-			60,559
Total assets		1,426,832		473,308		73,995				-			1,974,135
Goodwill		172,440		112,139		-				-			284,579
Capital expenditures		113,247		15,247		1,775				-			130,269
(1) Amounts have been restated to effect the removal of foreign exchange expense which is now excluded from the calculation of segment profit.

PRECISION DRILLING TRUST

A reconciliation of segment profit to earnings from before income taxes is as follows:
	Three months ended September 30,						Nine months ended September 30,
(Stated in thousands of Canadian dollars)	2009			2008			2009			2008

Total segment profit	$	55,361		$	96,022		$	211,837		$	241,182
Add (deduct):
Foreign exchange		63,486			2,626			105,055			3,751
Finance charges		(29,396	)		(2,288	)		(112,947	)		(6,571	)
Earnings before income taxes	$	89,451		$	96,360		$	203,945		$	238,362

The Trust’s operations are carried on in the following geographic locations:

								Inter-segment
Three months ended September 30, 2009	Canada		United States			International		Eliminations			Total

Revenue	$	126,690		$	120,872	$	6,148	$	(373	)	$	253,337
Total assets		1,671,133			2,632,495		57,233		-			4,360,861

								Inter-segment
Three months ended September 30, 2008	Canada		United States			International		Eliminations			Total

Revenue	$	238,596		$	47,152	$	238	$	(347	)	$	285,639
Total assets		1,672,334			296,041		5,760		-			1,974,135

								Inter-segment
Nine months ended September 30, 2009	Canada		United States			International		Eliminations			Total

Revenue	$	410,987		$	484,747	$	18,627	$	(2,982	)	$	911,379
Total assets		1,671,133			2,632,495		57,233		-			4,360,861

								Inter-segment
Nine months ended September 30, 2008	Canada		United States			International		Eliminations			Total

Revenue	$	658,959		$	104,885	$	4,069	$	(1,071	)	$	766,842
Total assets		1,672,334			296,041		5,760		-			1,974,135

NOTE 12. FINANCIAL INSTRUMENTS

(a) Interest rate risk

As at September 30, 2009 approximately 83% of Precision’s $990 million of long-term debt is subject to fixed interest rates after taking into consideration the interest rate derivatives. As a result, Precision is not exposed to significant fluctuations in interest expense as a result of changes in interest rates. Applying a 100 basis points change in interest rates to the long-term debt balance at September 30, 2009, with all other variables held constant, would impact earnings, on a go forward basis by approximately $0.6 million.

(b) Liquidity risk
The following are the contractual maturities of the Trust’s long-term debt obligations as at September 30, 2009:

(Stated in thousands of
Canadian dollars)	2009		2010		2011		2012		2013		Thereafter		Total

Long-term debt	$	6,567	$	52,011	$	60,858	$	78,716	$	239,434		552,146	$	989,732
Interest on
long-term debt(1)		20,684		80,434		76,188		71,566		65,946		69,527		384,345
Total	$	27,251	$	132,445	$	137,046	$	150,282	$	305,380	$	621,673	$	1,374,077
(1) Interest has been calculated based upon debt balances, interest rates and foreign exchange rates in effect as at September 30, 2009.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Precision Drilling Trust

UNITHOLDER INFORMATION

STOCK EXCHANGE LISTINGS	ACCOUNT QUESTIONS
Units of Precision Drilling Trust are listed on the Toronto	Precision’s Transfer Agent can help you with a variety of
Stock Exchange (“TSX”) under the trading symbol PD.UN and	unitholder related services, including:
on the New York Stock Exchange (“NYSE”) under the trading
symbol PDS.	■	Change of address
	■	Lost unit certificates
Q3 2009 TRADING PROFILE	■	Transfer of trust units to another person
	■	Estate settlement
Toronto (TSX: PD.UN)
High: $8.06
Low: $4.69	You can contact Precision’s Transfer Agent at:
Close: $7.16
Volume Traded: 68,925,263	Computershare Trust Company of Canada
	100 University Avenue, 9th Floor, North Tower
	Toronto, Ontario M5J 2Y1
	Canada
New York (NYSE: PDS)
High: US$7.54	Telephone: 1-800-564-6253
Low: US$4.01		(toll free in Canada and the United States)
Close: US$6.63
Volume Traded: 94,931,215		1-514-982-7555
		(international direct dialing)

TRANSFER AGENT AND REGISTRAR	Email: service@computershare.com
Computershare Trust Company of Canada
Calgary, Alberta	ONLINE INFORMATION
	To receive news releases by email, or to view this interim
TRANSFER POINT	report online, please visit the Trust’s website at
Computershare Trust Company NA	www.precisiondrilling.com and refer to the Investor
Denver, Colorado	Relations section. Additional information relating to the
	Trust, including the Annual Information Form, Annual
	Report and Management Information Circular has been
	filed with SEDAR and is available at www.sedar.com.

PRECISION DRILLING TRUST

Precision Drilling Trust

HEAD OFFICE	OFFICERS
Precision Drilling Trust	Kevin A. Neveu
4200, 150 – 6th Avenue SW	President and Chief Executive Officer
Calgary, Alberta, Canada T2P 3Y7
Telephone: 403-716-4500	Joanne L. Alexander
Facsimile: 403-264-0251	Vice President, General Counsel and Corporate Secretary
Email: info@precisiondrilling.com
	David J. Crowley
	President, U.S. Operations
www.precisiondrilling.com
	Kenneth J. Haddad
TRUSTEES	Vice President, Business Development

Robert J. S. Gibson	Darren J. Ruhr
Allen R. Hagerman, FCA	Vice President, Corporate Services
Patrick M. Murray
	Gene C. Stahl
	President, Canadian Operations
DIRECTORS
	Douglas J. Strong
Frank M. Brown	Chief Financial Officer
William T. Donovan
W. C. (Mickey) Dunn	David W. Wehlmann
Brian A. Felesky, CM, Q.C.	Executive Vice President, Investor Relations
Robert J. S. Gibson
Allen R. Hagerman, FCA	LEAD BANK
Stephen J. J. Letwin	Royal Bank of Canada
Patrick M. Murray	Calgary, Alberta
Kevin A. Neveu
Frederick W. Pheasey	AUDITORS
Robert L. Phillips	KPMG LLP
Trevor M. Turbidy	Calgary, Alberta