Long-Term Debt Guarantors

12 Months Ended

Dec. 31, 2021

Long Term Debt Guarantor Disclosure [Abstract]

NOTE 27.

LONG-TERM DEBT GUARANTORS

Precision Drilling Corporation (Parent) issued registered unsecured senior notes in 2017 and 2021 which are fully and unconditionally guaranteed by certain U.S. and Canadian subsidiaries (Guarantor Subsidiaries) that also guaranteed the Senior Credit Facility. These Guarantor Subsidiaries are directly or indirectly wholly-owned by the Parent. The following is a description of the terms and conditions of the guarantees with respect to the unsecured senior notes for which Precision is the Parent issuer and Guarantor Subsidiaries (Obligor Group) provides a full and unconditional guarantee.

As at December 31, 2021, Precision had $946 million principal amount of unsecured senior notes outstanding, $440 million due in 2026 and $506 million due in 2029, all of which is guaranteed by the Guarantor Subsidiaries.

The Guarantor Subsidiaries jointly and severally, fully, unconditionally, and irrevocably guarantees the payment of the principal and interest on the unsecured senior notes when they become due, whether at maturity or otherwise. The guarantee is unsecured and ranks senior with all of the Guarantor Subsidiaries’ other unsecured obligations.

The Guarantor Subsidiaries will be released and relieved of its obligations under the guarantees after the obligations to the holders are satisfied in accordance with the applicable indentures.

Summarized Financial Information

The following tables include summarized financial information for the Obligor Group on a combined basis after elimination of (i) intercompany transactions and balances within the Obligor Group; (ii) equity in earnings from investments in the

non-guarantor

subsidiaries; and (iii) intercompany dividend income.

Statements of Loss



	Parent and Guarantor Subsidiaries
	2021			2020
Revenue	$	844,619		$	752,794
Expenses		690,149			548,991
Earnings before income taxes, loss (gain) on redemption and repurchase of unsecured senior notes, loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		154,470			203,803
Net loss		(171,030	)		(144,086	)

Statements of Financial Position



	Parent and Guarantor Subsidiaries
	2021		2020
Assets
Current assets	$	219,013	$	227,265
Property, plant and equipment		1,909,951		2,085,460
Other non-current assets		79,033		79,104



	Parent and Guarantor Subsidiaries
	2021		2020
Liabilities
Current liabilities	$	200,784	$	123,472
Long-term debt		1,106,794		1,236,210
Other non-current liabilities		87,411		86,303

Excluded from the statements of loss and statements of financial position above are the following intercompany transactions and balances that the Obligor Group had with the

non-guarantor

subsidiaries:



	Parent and Guarantor Subsidiaries
	2021		2020
Assets
Accounts receivable, intercompany	$	34,373	$	35,500
Short-term advances to affiliates		11,686		13,359



	Parent and Guarantor Subsidiaries
	2021		2020
Liabilities
Accounts payable and accrued liabilities, intercompany	$	33,820	$	25,374
Long-term advances from affiliates		128,606		89,830