CANADA BARCLAYS CAPITAL NORTH AMERICAN SMALL AND MID-CAP ENERGY FORUM April 12, 2012
FORWARD LOOKING STATEMENTS This document contains statements that constitute forward-looking statements within the meaning of applicable securities legislation. These forward-looking statements include, among others, the Companys…
OVERVIEW OF TRICAN Large, world-wide, full service REVENUE BY GEOGRAPHY pressure pumping company International* 12% International Russia (majority) Canada 56% Kazakhstan Algeria 32% USA Australia
TRICAN STRENGTHS
TRICAN STRENGTHS 1,000,000 HP current fracturing Fracturing HP Growth capacity 1,400,000 1,200,000 At end of 2012: 1,000,000 1,239,500 HP fracturing 800,000 capacity 600,000 400,000 96 Cement & 39 Acid Units…
STRENGTHS FULL SERVICES Service Line % of 2011 Revenue Fracturing 77% Cementing 11% Nitrogen 4.5% Coiled Tubing 4% Acidizing & Specialty 2% Chemicals Industrial & Pipeline 1% Services Geological Services 0.5% 6
COMPETITIVE ADVANTAGES Customer-focused provider of technical solutions Separate ourselves with technology Named one of Canadas top 100 Corporate R&D spenders in 2011 (by Research Infosource Inc.) Product development is a…
INNOVATION Trican focuses on separating itself with technology SRVmaxTM Integrated technical solution Combines geology, microseismic, frac modelling and reservoir modelling Want to assist customer in choosing horizontal…
INNOVATION BPS - Burst Port System Patented tool technology for multi-zone fracturing Replaces perforating Lowers cost and saves time Completed over 4,000 stages in Canada Successful introduction to USA in Q3 EcoClean Fluids…
AREAS OF OPERATION Canada United States Russia Kazakhstan Algeria Australia 10
CANADA
CANADA Increase in fracturing jobs / well Trican Frac Stages Per Well - Horizontal Wells 18 17 16 Increase in frac revenue per job 15 Stages Per Well 14 1Q 2008: 59,500 per frac 13 Dec. 2011: 221,000 per frac 12 11 10…
CANADA - OUTLOOK Strong activity in 2012 Majority of activity expected to be oil and liquids New play developments in the Duvernay, Nordegg and Muskwa Will watch effects of low gas prices in coming months Small effect from…
CANADA - PRICING Canadian Pricing Levels 45% Market remains undersupplied 40% 35% in 2012 30% 25% 20% Price increases for the 15% remainder of the year will keep 10% pace with inflation 5% 0% Q1 '09 Q2 '09…
CANADA GROWTH - 2011 Yearly revenue growth through Canadian HP Growth equipment additions 450,000 400,000 350,000 2012 Capex: 183 M 300,000 92,500 HP 250,000 5 Cementing units 200,000 150,000 5 N2 Pumpers 100,000 2…
USA
GEOGRAPHIC COVERAGE - FRACTURING WOODWARD Barnett Shale: 1 crew Woodford Shale Fayetteville Shale Oklahoma City SEARCY SHAWNEE Haynesville Shale: 1 crew OKLAHOMA Little Rock Fayetteville Travelling ARKANSAS DENTON Shale:…
GEOGRAPHIC COVERAGE - FRACTURING Marcellus Shale: 2 crews Current USA HP: 570,000 MILL HALL Marcellus Shale PENNSYLVANIA Philadelphia Pittsburgh 18
USA OUTLOOK - 2012 Haynesville, Barnett, Fayetteville and other dry gas slowing Marcellus strong utilization and contract position Eagle Ford and Permian strong demand 60% of existing equipment contracted through 2012…
USA - PRICING Pricing off 12-20% in dry gas areas US Pricing Levels 90.0% Pricing decreases in some 80.0% oil/liquids regions 70.0% 60.0% Continued shift from gas 50.0% to oil 40.0% 30.0% Start up and equipment…
USA GROWTH - 2012 US HP Growth 800,000 700,000 Fracturing capacity after 2011 600,000 500,000 build: 570,000 HP 400,000 300,000 25% more equipment in 2012 200,000 100,000 vs. 2011 0 2007 2008 2009 2010 2011*…
USA GROWTH Expanding into new regions in 2012 Focus on oil and liquids rich gas areas Growth in other service lines Separate ourselves with technology Opened new Houston research facility in 2011 22
INTERNATIONAL
RUSSIA AND THE FSU Started operations in 2000 Grown to become the largest fracturing company Primarily work on oil wells All work is on 1 or 3 year contracts Services: Fracturing 77% Deep Coiled Tubing 11% Cementing 7%…
RUSSIA - OUTLOOK Expected 10% increase in revenue in 2012 (Rubles) 8% increase in job count 2% increase in revenue per job Price improvements Smaller job sizes Increased cement and coil work Move towards more technical…
RUSSIA - OUTLOOK Increased use of horizontal fracturing Successful implementation of Burst Port (BPS) technology 2012 Capex: 24 million 9 million: expansion capital 12 million: maintenance 3 million: infrastructure…
INTERNATIONAL Algeria Improving market conditions Obtained additional contracts in 2012 on existing equipment Australia Activity increasing throughout 2012 Kazakhstan Very busy Saudi Arabia Tendering work later in…
FINANCIAL RESULTS Year Ended December 31, 2011 Comparison* 2011 2010 % Change Revenue 2,309,647 1,478,345 56% Operating Income 614,524 332,033 85% Net Income 338,636 150,362 125% Earnings per share: - Basic 2.32 1.09 113% -…
PROJECTED 2012 CAPITAL BUDGET 2012 Capital Budget reduced by 96 million to 582 million Capital Budget (by region) 183 million: Canada 348 million: USA 51 million: International o Australia, Russia and Kazakhstan Capital…
BALANCE SHEET STRENGTH As at December 31 Cash & Available 596 Million Debt Long Term Debt to 29% Capitalization Long Term Debt to 1.05 times Trailing Cash Flow Substantial room on Yes our debt covenants 2012 Capital…
BALANCED GROWTH Dividend increased from 10 to 30 per year Approximately 2.0% yield Implemented share buyback program in March 2012 33
INVESTMENT ADVANTAGES Growth stock ROCE Strong management team 45.00% 40.00% 35.00% Capital disciplined strong 30.00% balance sheet 25.00% 20.00% Future growth opportunities 15.00% Decline in worldwide reservoir…
SUMMARY Number of Outstanding Shares (as of Mar. 31, 2012): 147.0 million 147.4 million (diluted, monthly, weighted avg.) (approx., estimated) Average Daily Volume (30 day period): 1,056,785 (mo. ended March 30, 2012)…
CANADA BARCLAYS CAPITAL NORTH AMERICAN SMALL AND MID-CAP ENERGY FORUM April 12, 2012
Loading...
