ex99_2.htm

Exhibit 99.2

CAUTIONARY STATEMENT REGARDING

FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this report, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “propose”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “appears”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

In particular, forward-looking information and statements include, but are not limited to, the following: Precision’s average number of rigs committed under term contracts; Precision’s expected capital expenditures for 2012 and the anticipated uses of capital and the timing of such expenditures including the carry forward to 2013; demand for Super Series rigs; Precision believes it will have opportunities to contract additional new build and upgraded rigs in late 2012 and 2013, although the pace of contract awards is likely to be significantly slower; if low natural gas prices continue, Precision and the North American drilling industry can expect continued weak demand for natural gas drilling; and Precision expects to remain in compliance with the covenants under the Secured Facility and have complete access to credit lines during the remainder of 2012 and for 2013.

These forward-looking information and statements are based on certain assumptions and analysis made by the Corporation in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Corporation’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Corporation’s expectations. Such risks and uncertainties include, but are not limited to: fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services; capital market liquidity available to fund customer drilling programs; availability of cash flow, debt and/or equity sources to fund the Corporation’s capital and operating requirements, as needed; the effects of seasonal and weather conditions on operations and facilities; the existence of competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services; general economic, market or business conditions; changes in laws or regulations; interpretation of tax filing position for prior period transactions; the availability of qualified personnel, management or other key inputs; currency exchange fluctuations; and other unforeseen conditions which could impact the use of services supplied by Precision.

Consequently, all of the forward-looking information and statements made in this report are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Corporation will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Corporation or its business or operations. Readers are therefore cautioned not to place undue reliance on such forward-looking information and statements. Except as may be required by law, the Corporation assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events or otherwise.

Precision Drilling Corporation | 11

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

	September 30,			December 31,
(Stated in thousands of Canadian dollars)	2012			2011


ASSETS
Current assets:
Cash	$	226,841		$	467,476
Accounts receivable		496,304			576,243
Inventory		14,541			7,163

Total current assets		737,686			1,050,882
Non-current assets:
Income tax recoverable		64,579			64,579
Property, plant and equipment		3,334,704			2,942,296
Intangibles		6,923			6,471
Goodwill		362,797			363,646
Total non-current assets		3,769,003			3,376,992

Total assets	$	4,506,689		$	4,427,874



LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	371,161		$	436,667
Income tax payable		42,872			3,786
Total current liabilities		414,033			440,453

Non-current liabilities:
Share based compensation (Note 8)		7,164			11,303
Provisions and other		18,631			16,121
Long-term debt (Note 4)		1,206,425			1,239,616
Deferred tax liabilities		567,515			587,790

Total non-current liabilities		1,799,735			1,854,830


Shareholders' equity:
Shareholders' capital (Note 6)		2,250,819			2,248,217
Contributed surplus		23,468			18,396
Retained earnings (deficit)		85,539			(83,160	)
Accumulated other comprehensive loss (Note 7)		(66,905	)		(50,862	)
Total shareholders' equity		2,292,921			2,132,591

Total liabilities and shareholders' equity	$	4,506,689		$	4,427,874

See accompanying notes to interim consolidated financial statements.

12 | Interim Consolidated Financial Statements

INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

	Three months ended September 30,						Nine months ended September 30,
(Stated in thousands of Canadian dollars, except per share amounts)	2012			2011			2012			2011

Revenue	$	484,761		$	492,944		$	1,506,793		$	1,363,619

Expenses:
Operating		300,396			282,367			916,495			809,266
General and administrative		33,365			24,329			96,532			89,128
Earnings before income taxes, other items and depreciation and amortization		151,000			186,248			493,766			465,225
Depreciation and amortization		76,754			64,504			218,247			180,416
Operating earnings		74,246			121,744			275,519			284,809
Other items:
Foreign exchange		5,277			(34,105	)		5,610			(31,300	)
Finance charges (Note 9)		21,741			34,232			65,480			92,940
Other		–			–			(758	)		–
Earnings before income taxes		47,228			121,617			205,187			223,169
Income taxes: (Note 5)
Current		15,135			38,730			47,160			40,882
Deferred		(7,264	)		(581	)		(10,672	)		16,856
		7,871			38,149			36,488			57,738

Net earnings	$	39,357		$	83,468		$	168,699		$	165,431
Net earnings per share: (Note 10)
Basic	$	0.14		$	0.30		$	0.61		$	0.60
Diluted	$	0.14		$	0.29		$	0.59		$	0.57

See accompanying notes to interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three months ended September 30,						Nine months ended September 30,
(Stated in thousands of Canadian dollars)	2012			2011			2012			2011
Net earnings	$	39,357		$	83,468		$	168,699		$	165,431
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		(53,424	)		96,717			(49,476	)		59,865
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt, net of tax		35,638			(80,034	)		33,433			(62,835	)
Comprehensive income	$	21,571		$	100,151		$	152,656		$	162,461

See accompanying notes to interim consolidated financial statements.

Precision Drilling Corporation | 13

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

	Three months ended September 30,						Nine months ended September 30,
(Stated in thousands of Canadian dollars)	2012			2011			2012			2011
Cash provided by (used in):
Operations:
Net earnings	$	39,357		$	83,468		$	168,699		$	165,431
Adjustments for:
Long-term compensation plans		3,830			1,144			15,057			15,156
Depreciation and amortization		76,754			64,504			218,247			180,416
Foreign exchange		5,886			(34,204	)		6,092			(31,696	)
Finance charges		21,741			34,232			65,480			92,940
Income taxes		7,871			38,149			36,488			57,738
Other		(320	)		1,350			1,279			(1,070	)
Income taxes paid		(2,741	)		(108,655	)		(7,315	)		(111,166	)
Income taxes recovered		271			154			613			400
Interest paid		(7,181	)		(7,307	)		(49,964	)		(32,646	)
Interest received		656			347			1,560			782
Funds provided by operations		146,124			73,182			456,236			336,285
Changes in non-cash working capital balances		(84,941	)		(52,901	)		42,733			(22,370	)
		61,183			20,281			498,969			313,915
Investments:
Business acquisitions, net of cash acquired		–			(59,709	)		(25	)		(92,886	)
Purchase of property, plant and equipment		(238,650	)		(219,676	)		(681,407	)		(398,370	)
Proceeds on sale of property, plant and equipment		5,011			4,610			13,820			8,694
Changes in income tax recoverable		–			108,176			–			–
Changes in non-cash working capital balances		11,295			27,427			(62,410	)		10,637
		(222,344	)		(139,172	)		(730,022	)		(471,925	)
Financing:
Repayment of long-term debt		–			–			–			(175,000	)
Premium paid on settlement of unsecured senior notes		–			–			–			(26,688	)
Debt issue costs		(2,855	)		(8,946	)		(2,855	)		(13,304	)
Debt facility amendment costs		(149	)		–			(149	)		(1,134	)
Increase in long-term debt		–			381,520			–			581,520
Issuance of common shares on the exercise of options		185			961			1,490			2,100
Changes in non-cash working capital balances		–			–			–			(746	)
		(2,819	)		373,535			(1,514	)		366,748

Effect of exchange rate changes on cash and cash equivalents		(7,523	)		39,275			(8,068	)		35,576
Increase (decrease) in cash and cash equivalents		(171,503	)		293,919			(240,635	)		244,314
Cash and cash equivalents, beginning of period		398,344			207,226			467,476			256,831
Cash and cash equivalents, end of period	$	226,841		$	501,145		$	226,841		$	501,145

See accompanying notes to interim consolidated financial statements.

14 | Interim Consolidated Financial Statements

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(Stated in thousands of Canadian dollars)	Shareholders’ capital		Contributed surplus			Accumulated other comprehensive loss (Note 7)			Retained earnings (deficit)			Total equity
Balance at January 1, 2012	$	2,248,217	$	18,396		$	(50,862	)	$	(83,160	)	$	2,132,591
Net earnings for the period		–		–			–			168,699			168,699
Other comprehensive income for the period		–		–			(16,043	)		–			(16,043	)
Share options exercised (Note 6)		2,372		(882	)		–			–			1,490
Issued on redemption of non-management directors DSUs		221		(221	)		–			–			–
Issued on waiver of right to dissent by dissenting unitholder		9		(3	)		–			–			6
Share based compensation expense (Note 8)		–		6,178			–			–			6,178
Balance at September 30, 2012	$	2,250,819	$	23,468		$	(66,905	)	$	85,539		$	2,292,921

(Stated in thousands of Canadian dollars)	Shareholders’ capital		Contributed surplus			Accumulated other comprehensive loss			Retained earnings (deficit)			Total equity
Balance at January 1, 2011	$	2,244,417	$	11,266		$	(46,220	)	$	(276,637	)	$	1,932,826
Net earnings for the period		–		–			–			165,431			165,431
Other comprehensive loss for the period		–		–			(2,970	)		–			(2,970	)
Share options exercised		3,198		(1,098	)		–			–			2,100
Issued on redemption of non- management directors DSUs		384		(384	)		–			–			–
Share based compensation expense		–		6,426			–			–			6,426
Balance at September 30, 2011	$	2,247,999	$	16,210		$	(49,190	)	$	(111,206	)	$	2,103,813

See accompanying notes to interim consolidated financial statements.

Precision Drilling Corporation | 15

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts are stated in thousands of Canadian dollars except share numbers and per share amounts)

NOTE 1. DESCRIPTION OF BUSINESS

Precision Drilling Corporation (“Precision” or the “Corporation”) is incorporated under the laws of the Province of Alberta, Canada and is a provider of contract drilling and completion and production services primarily to oil and natural gas exploration and production companies in Canada and the United States. The address of the registered office is 800, 525 - 8th Avenue S.W., Calgary, Alberta, Canada, T2P 1G1.

NOTE 2. BASIS OF PRESENTATION

(a) Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and interpretations of the International Financial Reporting Interpretations Committee. These condensed consolidated interim financial statements were prepared using accounting policies and methods of their application consistent with those used in the preparation of the Corporation’s consolidated audited annual financial statements for the year ended December 31, 2011. The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Corporation as at and for the year ended December 31, 2011.

These condensed consolidated interim financial statements were approved by the Board of Directors on October 24, 2012.

(b) Seasonality

Precision has operations that are carried on in Canada which represent approximately 49% (2011 - 50%) of consolidated total assets as at September 30, 2012 and 52% (2011 - 53%) of consolidated revenue for the nine months ended September 30, 2012. 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 Precision’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 Precision’s slowest time in this region.

NOTE 3. BANK INDEBTEDNESS

During the third quarter of 2012, the Corporation arranged a new US$25.0 million facility with a Canadian bank for the issuance of letters of credit and performance and bid bonds to support international operations. As well, Precision increased the borrowing capacity of its existing secured operating facility to $40.0 million from $25.0 million. The Corporation’s US$15.0 million secured operating facility remains unchanged.

16 | Notes to Interim Consolidated Financial Statements

NOTE 4. LONG-TERM DEBT

	September 30,			December 31,
	2012			2011

Secured revolving credit facility	$	-		$	-
Unsecured senior notes:
6.625% senior notes due 2020 (US$650.0 million)		639,405			661,050
6.5% senior notes due 2021(US$400.0 million)		393,480			406,800
6.5% senior notes due 2019		200,000			200,000
		1,232,885			1,267,850

Less net unamortized debt issue costs		(26,460	)		(28,234	)
	$	1,206,425		$	1,239,616

During the third quarter of 2012, the Corporation entered into an amendment to its existing secured revolving credit facility which increased the amount available for borrowing under the facility to $850.0 million and extended the maturity date of the facility to November 17, 2017.

At September 30, 2012 no mandatory principal repayments are required in the next five years.

NOTE 5. INCOME TAXES

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

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Earnings before income taxes	$	47,228		$	121,617		$	205,187		$	223,169
Federal and provincial statutory rates		25	%		27	%		25	%		27	%
Tax at statutory rates	$	11,807		$	32,837		$	51,297		$	60,256
Adjusted for the effect of:
Non-deductible expenses		517			5,112			1,644			6,472
Non-taxable capital gains		(327	)		(66	)		(460	)		(77	)
Income taxed at lower rates		(7,171	)		(10,690	)		(20,010	)		(22,864	)
Taxes related to prior years		1,604			11,006			1,054			11,006
Other		1,441			(50	)		2,963			2,945
Income tax expense	$	7,871		$	38,149		$	36,488		$	57,738

NOTE 6. SHAREHOLDERS’ CAPITAL

Issued
Common shares	Number		Amount

Balance, December 31, 2011		276,081,797	$	2,248,217

Options exercised - cash consideration		234,172		1,490
- reclassification from contributed surplus		-		882

Issued on redemption of non-management directors DSU's		26,337		221

Issued on waiver of right to dissent by dissenting unitholder		840		9

Balance, September 30, 2012		276,343,146	$	2,250,819

Precision Drilling Corporation | 17

NOTE 7. ACCUMULATED OTHER COMPREHENSIVE LOSS

	Unrealized foreign currency translation losses			Foreign exchange gain (loss) on net investment hedge			Accumulated other comprehensive loss
Balance, December 31, 2011	$	(27,987	)	$	(22,875	)	$	(50,862	)
Other comprehensive income (loss)		(49,476	)		33,433			(16,043	)
Balance, September 30, 2012	$	(77,463	)	$	10,558		$	(66,905	)

NOTE 8. SHARE BASED COMPENSATION PLANS

Liability classified plans

	Deferred Share Units			Restricted Share Units(a)			Performance Share Units(a)			Share Appreciation Rights(b)			Non- Management Directors’ DSU(c)		Total
Balance, December 31, 2011	$	762		$	12,529		$	25,250		$	1,693		$	–	$	40,234
Expensed (recovered) during the period		(44	)		3,110			5,997			(1,114	)		580		8,529
Payments		(718	)		(7,557	)		(17,477	)		(1	)		–		(25,753	)
Balance, September 30, 2012	$	–		$	8,082		$	13,770		$	578		$	580	$	23,010

Current	$	–		$	5,188		$	10,080		$	578		$	–	$	15,846
Long-term		–			2,894			3,690			–			580		7,164
Balance, September 30, 2012	$	–		$	8,082		$	13,770		$	578		$	580	$	23,010

(a) Restricted Share Units and Performance Share Units

Precision has two cash settled share based incentive plans for officers and other eligible employees. Under the Restricted Share Unit (“RSU”) incentive plan shares granted to eligible employees vest annually over a three year term. Vested shares are automatically paid out in cash at a value determined by the fair market value of the shares as at the vesting date. Under the Performance Share Unit (“PSU”) incentive plan shares granted to eligible employees vest at the end of a three-year term. Vested shares are automatically paid out in cash in the first quarter following the vested term at a value determined by the fair market value of Precision’s shares at the vesting date and based on the number of performance shares held multiplied by a performance factor that ranges from zero to two times. The performance factor is based on Precision’s share price performance compared to a peer group over the three-year period. For performance shares granted in 2010, Precision’s Board of Directors has the discretion to reduce the plan payout by half if Precision’s average return on capital does not exceed 10% over the three year term.

(b) Share Appreciation Rights

A summary of the activity under the share appreciation rights plan is presented below:

						Weighted
						Average
				Range of		Exercise
				Exercise Price		Price
Share Appreciation Rights	Outstanding			(US $)		(US $)		Exercisable


Outstanding at December 31, 2011		705,688		$	9.26 - 17.92	$	14.83		705,688
Exercised		(721	)		9.26 - 9.59		9.45
Forfeitures		(1,352	)		15.22 - 15.22		15.22

Outstanding at September 30, 2012		703,615		$	9.26 - 17.92	$	14.84		703,615

18 | Notes to Interim Consolidated Financial Statements

Effective January 1, 2012 Precision instituted a new deferred share unit plan for non-management directors whereby fully vested deferred share units are granted quarterly based upon an election by the non-management director to receive all or a portion of their compensation in deferred share units. These deferred share units are redeemable in cash or an equal number of common shares upon the director's retirement. The redemption of deferred share units in cash or common shares is solely at Precision’s discretion. Non-management directors can receive a lump sum payment or two separate payments anytime up until December 15 of the year following retirement. If the non-management director does not specify a redemption date, the deferred share units will be redeemed on a single date six months after retirement. The cash settlement amount is based upon the weighted average trading price for Precision’s shares on the Toronto Stock Exchange for the five days immediately prior to payout.

Equity settled plans

(d) Option plan

A summary of the activity under the option plan is presented below:

Canadian share options	Options Outstanding			Range of Exercise Price		Weighted Average Exercise Price		Options Exercisable
Outstanding as at December 31, 2011		3,267,571		$	5.22 – 14.50	$	8.45		1,008,305
Granted		1,111,800			7.15 – 10.67		10.61
Exercised		(175,043	)		5.85 – 10.44		6.07
Forfeitures		(82,863	)		5.85 – 14.50		10.52
Outstanding as at September 30, 2012		4,121,465		$	5.22 – 14.50	$	9.09		1,922,503

U.S. share options	Options Outstanding			Range of Exercise Price (US $)		Weighted Average Exercise Price (US $)		Options Exercisable
Outstanding as at December 31, 2011		1,886,552		$	4.95 – 15.21	$	8.61		396,188
Granted		851,600			7.14 – 10.74		10.62
Exercised		(59,129	)		4.95 – 10.55		7.30
Forfeitures		(199,883	)		4.95 – 15.21		9.81
Outstanding as at September 30, 2012		2,479,140		$	4.95 – 15.21	$	9.24		963,300

The per option weighted average fair value of the share options granted during 2012 was $4.81 estimated on the grant date using the Black-Scholes option pricing model with the following assumption: average risk-free interest rate 1%, average expected life of four years, expected forfeiture rate of 5% and expected volatility of 59%. Included in net earnings for the three and nine months ended September 30, 2012 is an expense of $1.8 million (2011 - $1.8 million) and $6.2 million (2011 - $5.8 million), respectively.

NOTE 9. FINANCE CHARGES

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Interest:
Long-term debt	$	21,181		$	18,942		$	63,818		$	48,415
Tax settlement and reassessment		-			14,621			-			14,621
Other		14			55			109			101
Income		(641	)		(317	)		(1,621	)		(735	)
Amortization of debt issue costs		1,038			931			3,025			2,462
Loss on settlement of debt facilities		-			-			-			26,942
Debt amendment fees		149			-			149			1,134
Finance charges	$	21,741		$	34,232		$	65,480		$	92,940

Precision Drilling Corporation | 19

NOTE 10. PER SHARE AMOUNTS

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

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Net earnings - basic and diluted	$	39,357	$	83,468	$	168,699	$	165,431


	Three months ended September 30,				Nine months ended September 30,
(Stated in thousands)		2012		2011		2012		2011
Weighted average shares outstanding – basic		276,318		275,999		276,244		275,840
Effect of share warrants		8,897		11,309		9,655		11,224
Effect of stock options and other equity compensation plans		805		1,729		1,025		1,779
Weighted average shares outstanding – diluted		286,020		289,037		286,924		288,843

NOTE 11. SEGMENTED INFORMATION

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

		Contract		Completion and
		Drilling		Production		Corporate		Inter-segment
Three months ended September 30, 2012		Services		Services		and Other		Eliminations		Total

Revenue	$	409,889	$	77,506	$	-	$	(2,634)	$	484,761
Operating earnings		78,421		15,503		(19,678)		-		74,246
Depreciation and amortization		67,659		7,640		1,455		-		76,754
Total assets		3,653,154		522,648		330,887		-		4,506,689
Goodwill		250,658		112,139		-		-		362,797
Capital expenditures		203,527		33,519		1,604		-		238,650


		Contract	Completion and
		Drilling		Production		Corporate		Inter-segment
Three months ended September 30, 2011		Services		Services		and Other		Eliminations		Total

Revenue	$	413,131	$	83,153	$	-	$	(3,340)	$	492,944
Operating earnings		115,792		21,334		(15,382)		-		121,744
Depreciation and amortization		56,158		6,676		1,670		-		64,504
Total assets		3,254,912		454,022		642,590		-		4,351,524
Goodwill		250,630		112,139		-		-		362,769
Capital expenditures*		190,361		23,691		5,624		-		219,676
* Excludes business acquisitions

20 | Notes to Interim Consolidated Financial Statements


		Contract	Completion and
		Drilling		Production		Corporate		Inter-segment
Nine months ended September 30, 2012		Services		Services		and Other		Eliminations		Total

Revenue	$	1,273,136	$	240,854	$	-	$	(7,197)	$	1,506,793
Operating earnings		283,446		49,557		(57,484)		-		275,519
Depreciation and amortization		193,666		21,775		2,806		-		218,247
Total assets		3,653,154		522,648		330,887		-		4,506,689
Goodwill		250,658		112,139		-		-		362,79
Capital expenditures*		592,401		82,960		6,046		-		681,407
* Excludes business acquisitions


		Contract	Completion and
		Drilling		Production		Corporate		Inter-segment
Nine months ended September 30, 2011		Services		Services		and Other		Eliminations		Total

Revenue	$	1,137,640	$	234,960	$	-	$	(8,981)	$	1,363,619
Operating earnings		292,038		51,864		(59,093)		-		284,809
Depreciation and amortization		156,631		18,830		4,955		-		180,416
Total assets		3,254,912		454,022		642,590		-		4,351,524
Goodwill		250,630		112,139		-		-		362,769
Capital expenditures*		342,326		47,382		8,662		-		398,370
* Excludes business acquisitions

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

								Inter-segment
Three months ended September 30, 2012	Canada			United States		International		Eliminations			Total
Revenue		$	245,978	$	220,601	$	23,194	$	(5,012	)	$	484,761
Total assets			2,194,255		2,049,131		263,303		-			4,506,689

								Inter-segment
Three months ended September 30, 2011		Canada		United States		International		Eliminations			Total

Revenue		$	264,623	$	225,005	$	5,844	$	(2,528	)	$	492,944
Total assets			2,188,474		2,095,250		67,800		-			4,351,524

								Inter-segment
Nine months ended September 30, 2012		Canada		United States		International		Eliminations			Total

Revenue		$	776,994	$	700,264	$	41,008	$	(11,473	)	$	1,506,793
Total assets			2,194,255		2,049,131		263,303		-			4,506,689

								Inter-segment
Nine months ended September 30, 2011		Canada		United States		International		Eliminations			Total

Revenue		$	725,521	$	624,790	$	17,169	$	(3,861	)	$	1,363,619
Total assets			2,188,474		2,095,250		67,800		-			4,351,524

Precision Drilling Corporation | 21

Corporate Information

STOCK EXCHANGE LISTINGS

Shares of Precision Drilling

Corporation are listed on the Toronto

Stock Exchange ("TSX") under the

trading symbol PD and on the New

York Stock Exchange ("NYSE") under

the trading symbol PDS.

Q3 2012 TRADING PROFILE

Toronto (TSX: PD)

High: $9.29

Low: $6.38

Close: $7.73

Volume Traded: 71,493,198

New York (NYSE: PDS)

High: US$9.60

Low: US$6.28

Close: US$7.84

Volume Traded: 113,899,428

TRANSFER AGENT

AND REGISTRAR

Computershare Trust Company of Canada

Calgary, Alberta

TRANSFER POINT

Computershare Trust Company NA

Denver, Colorado

ACCOUNT QUESTIONS

Precision’s Transfer Agent can help

you with a variety of shareholder

related services, including:

• Change of address

• Lost unit certificates

• Transfer of units to another person

• Estate settlement

You can contact Precision’s Transfer Agent at:

Computershare Trust Company of Canada

100 University Avenue

9th Floor, North Tower

Toronto, Ontario

M5J 2Y

Canada

Telephone: 1-800-564-6253

(toll free in Canada and the United States)

1-514-982-7555

(international direct dialing)

Email: service@computershare.com

ONLINE INFORMATION

To receive news releases by email,

or to view this interim report

online, please visit Precision’s

website at www.precisiondrilling.com

and refer to the Investor Relations

section. Additional information

relating to Precision, including the

Annual Information Form, Annual

Report and Management

Information Circular has been

filed with SEDAR and is available

at www.sedar.com.

22 | Corporate Information

CORPORATE INFORMATION

Head Office

Precision Drilling Corporation

800, 525-8th Avenue SW

Calgary, Alberta, Canada T2P 1G1

Telephone: 403-716-4500

Facsimile: 403-264-0251

Email: info@precisiondrilling.com

www.precisiondrilling.com

Directors

William T. Donovan

Brian J. Gibson

Robert J. S. Gibson

Allen R. Hagerman, FCA

Stephen J.J. Letwin

Patrick M. Murray

Kevin O. Meyers

Kevin A. Neveu

Robert L. Phillips

Officers

Kevin A. Neveu

President and Chief Executive Officer

Joanne L. Alexander

Senior Vice President, General Counsel and Corporate Secretary

Niels Espeland

President, International Operations

Doug B. Evasiuk

Senior Vice President, Sales and Marketing

Kenneth J. Haddad

Senior Vice President, Business Development

Robert J. McNally

Executive Vice President and Chief Financial Officer

Darren J. Ruhr

Senior Vice President, Corporate Services

Gene C. Stahl

President, Drilling Operations

Douglas J. Strong

President, Completion and Production Services

Lead Bank

Royal Bank of Canada

Calgary, Alberta

Auditors

KPMG LLP

Calgary, Alberta

Precision Drilling Corporation | 23

Precision Drilling Corporation

Suite 800, 525 – 8th Avenue SW

Calgary, Alberta, Canada T2P 1G1

Telephone: 403.716.4500

Email: info@precisiondrilling.