Corporate Presentation April 2015 IT'S ABOUT PERFORMANCE
Why Invest In Trinidad Trinidad has: Solid operations & future growth opportunities The right equipment More stability Financial flexibility IT'S ABOUT PERFORMANCE 3
Operations Overview Canada 54 rigs US 50 rigs 5 barges Saudi 4 rigs Mexico Mexico41 rigs 7 rigs Rig Manufacturing Innovation & Design Includes rigs under construction, JV rigs included at 100 percent IT'S ABOUT…
Industry & Operations Update IT'S ABOUT PERFORMANCE 5
Canadian Industry Conditions Capex cuts by E&Ps driving lower activity Early break-up conditions Canadian Industry Active Rig Count 800 5 year range 2009 2014 2015 600 400 200 0 week week week week week week week week…
Trinidads Canadian Operations Active in key plays Broad customer base Liard Other YTD activity above 1 Montney 4 47 industry average USA Duvernay 2 Long-term visibility remains unclear Includes rigs under construction…
US Industry Conditions US active rig count lowering All areas feeling the impact dayrates and utilization US Industry Active Rig Count 2500 5 year range 2009 2014 2015 2000 1500 1000 500 week week week week week week…
Trinidads United States Operations Demand slowing across US Bakken 3 Some early termination of contracts Other Some potential for high 26 Mississippi grading Lime Permian 1 Barnett Long-term outlook unclear 11 1…
Trinidad Drilling International - JV Provides: Provides: Customer relationships High-performance rigs International know-how Innovative technology Logistical support Operational excellence Infrastructure Rig manufacturing 40%…
Joint Venture First Steps Saudi entry; four rigs in 2014 (3 upgraded US rigs and 1 new build) Four new builds for Mexico; two delivered in late 2014 and two in 2015 IT'S ABOUT PERFORMANCE 11
JV Operational Update Four Saudi rigs operating Expect four Mexican rigs to be operating in 2015 Learning curve less steep with each incremental rig IT'S ABOUT PERFORMANCE 12
International Growth Joint Venture Halliburton* has projects in 20 countries, with 100 rigs First look at all Halliburton international opportunities, outside North America Trinidad can say no to any deal Capital exposure…
The Right Equipment IT'S ABOUT PERFORMANCE 14
More Rigs that Customers Want Approx. 85% of Trinidads rigs are modern, high performance rigs Average age of 9 years Average depth capacity of 4,500 metres (14,800 feet) IT'S ABOUT PERFORMANCE 15
Growing Importance of Modern Rigs Benefits of high spec rigs US Industry Fleet by Power Source more broadly accepted 100% 90% Efficiency more 80% important with low 70% 60% commodity prices 50% 40% Opportunity to upgrade 30%…
Consistent Industry Outperformance Trinidads rigs are more active Canadian Utilization Rates US Average Active Rig Count TDG US US 70 2000 70% Trinidads Canadian Trinidads US Utilization Average Active Rig Count 1950 60% 60 1900…
More Stability IT'S ABOUT PERFORMANCE 18
Customer Backed Growth We only build rigs under long-term contracts Over 45% of fleet on long-term contract Approximately 1.5 years average term remaining IT'S ABOUT PERFORMANCE 19
Geographic Diversity Increasing diversity 2014 Operating Income by Segment improves stability Growing international joint venture contribution Ability to move rigs within 55% 43% markets increases opportunities 0% 2% US…
Broad Customer Base No concentration of assets Customer Concentration* Broad exposure to basins Customers mostly larger 5% 7% 7 rigs E&P companies 9% 5 rigs 49% 4 rigs 3 rigs 16% 2 rigs 1 rig 14% * Percentage of…
Financial Flexibility IT'S ABOUT PERFORMANCE 22
Solid Capital Structure Currency balance, extended maturity and financial flexibility Net cash on hand at Q4 2014 - 55 m Debt to EBITDA at Q4 2014 1.93x Credit Facility Available Outstanding Expiry Q4 2014 Revolver C200 m C15 m…
2015 Capital Program Complete US new builds Complete Mexico JV rigs Some upgrades / maintenance capital / capital inventory Total 2015 capital - 175 million (1) (1) This figure includes Trinidads 60% portion of JV capital.…
Shareholder Friendly Activities Dividend Current dividend 0.05 per share quarterly Yield of 4.82% (1) Payout of 19% of 2015 cash flow (2) Share Buy Back Program Buy back program started in November 2014 Purchased 4.8 million (3)…
Trinidad is Well Positioned High quality fleet Diversified operations Extensive contract coverage Potential international expansion opportunities Financial flexibility IT'S ABOUT PERFORMANCE 26
APPENDIX IT'S ABOUT PERFORMANCE
Fourth Quarter Financial Highlights Three months ended December 31, For the years ended December 31, ( tho usands except share and per share data) 2014 2013 % Cha nge 2014 2013 % Cha nge Revenue 276,346 224,563 23.1 941,334 845,888…
Historical Dayrates Dayrates Canada Rate Per Operating Day vs Operating Margin Dayrates US Rate Per Operating Day vs Operating Margin (CDN) (US) 30,000 50% 30,000 50% 25,000 40% 25,000 40% 20,000 20,000 30% 30% 15,000 15,000 20%…
Advanced, Deep and Modern Fleet In-demand rigs generate higher dayrates and margins Technically Advanced Fleet Rig Fleet Depth 4% 8% 0 - 5,999ft 13% 6,000- 7,999ft 4% 8,000ft+ 88% 84% Rig Fleet Age 31% High performance,…
A Continued Focus on Safety Total Recordable Incident Rates TRIF 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 TRIF Total Recordable Injury Frequency, 12 month corporate rolling average IT'S ABOUT PERFORMANCE 31
1000, 585 8 Avenue S.W. Calgary, AB, Canada T2P 1G1 T 403.265.6525 Email: investorstrinidaddrilling.com www.trinidaddrilling.com IT'S ABOUT PERFORMANCE
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