BARCLAYS CAPITAL 2011 CEO ENERGY-POWER CONFERENCE September 6-8, 2011 New York, NY TSX Listing : TCW Trican Well Service Ltd. 2900, 645 - 7th Avenue SW Calgary, Alberta T2P 4G8 Tel: (403) 266-0202 Fax: (403) 237-7716 Web:…
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 pressure pumping company REVENUE BY GEOGRAPHY Major operating areas International* Canada 15% Canada USA 52% Russia and International Recently entered Australian market…
TRICAN STRENGTHS
TRICAN STRENGTHS Large, world-wide pressure Fracturing HP Growth pumping company 1,000,000 900,000 749,250 HP current fracturing 800,000 700,000 capacity 600,000 500,000 At end of 2011: 400,000 300,000 999,000 HP…
STRENGTHS FULL SERVICES Service Line % of Revenue Fracturing 77.1% Cementing 11.4% Coiled Tubing 4.2% Nitrogen 3.8% Acidizing & Specialty 2.2% Chemicals Industrial & Pipeline 0.9% Services Geological Services 0.3% 6
COMPETITIVE ADVANTAGES Customer-focused provider of technical solutions Separate ourselves with technology Product development is a quick, customer-focused process Strong regional technical teams that understand the…
TRICAN STRENGTHS Our people are our strength - 4,837 skilled employees worldwide Hiring and training people are key to growth Total hours of training for new hire orientation and upgrading over the last seven years:…
AREAS OF OPERATION Canada United States Russia Kazakhstan Algeria Australia 9
CANADA
CANADA Increase in fracturing jobs / well Number Of Intervals Per Well 24 22 Increase in frac revenue per job 20 Number Of Intervals Per Well 1Q 2008: 59,500 per frac 18 16 YTD 2011: 179,000 per frac 14 12 Increase…
CANADA Comparative Canadian Fracturing Revenue per Unit Horsepower 1,200 1,000 C per Average Unit Horsepower 800 600 400 200 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Trican Peer Avg. Source: Raymond…
CANADA - OUTLOOK Pad work and large projects improved second quarter Strong activity in 2011 and 2012 Duvernay, Alberta Bakken growth in 2012 Significant growth through equipment additions 13
CANADA - PRICING Canadian Pricing Levels Market remains undersupplied 30% 25% Small price drop in Q2 20% designed to increase utilization 15% 10% Price increases for the 5% remainder of the year will keep 0% Q2…
CANADA GROWTH - 2011 2011 Capital Program - 215 M 129 Million expansion capital Canadian HP Growth 62,500 HP additional frac 450,000 capacity 4 crews 400,000 5 Cementing units 350,000 Acidizing and Nitrogen 300,000…
GEOGRAPHIC COVERAGE Marcellus Shale: 2 crews Current: USA HP: 430,000 Adding 140,000 HP to USA: (3 crews) MILL HALL in 2011 Marcellus Shale PENNSYLVANIA Philadelphia Pittsburgh 18
USA OUTLOOK - 2011 Strong demand driving high utilization in 2011 Additional capacity absorbed in the market 70% of existing equipment contracted for two or three years Long-term growth area Geographic and service line…
USA - PRICING 80.0% 70.0% Small price 60.0% improvements for 50.0% 40.0% remainder of 2011 30.0% that will cover 20.0% inflation 10.0% 0.0% Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2…
USA GROWTH - 2011 US HP Growth 800,000 700,000 2011 Capex: 360 Million 600,000 500,000 296 Million expansion capital 400,000 300,000 200,000 Fracturing capacity after 2011 100,000 build: 570,000 HP 0 2007 2008 2009…
USA GROWTH Continue expanding geographically Focus on oil and liquids rich gas areas Growth in other service lines Separate ourselves with technology 22
RUSSIA
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 79% Deep Coiled Tubing 10% Cementing 7%…
STRENGTHS IN RUSSIA Management team that understands Russia 97% Russian work force Strong customer relationships Technical advantage in fracturing fluids Opened R&D Center at Gubkin University Operational excellence…
RUSSIA - OUTLOOK 2011 contracts awarded Activity expected to increase by 7% Revenue per job expected to increase by 6% Long-term growth in Russia Desire to increase oil production Eastern Siberia Gas wells 23 million…
ALGERIA
ALGERIA Services offered: Coiled Tubing Nitrogen Pumping Acid Pumping Cementing Improved work programs in 2011 and 2012 Alternative gas supply for Europe Platform for long-term growth 28
AUSTRALIA
AUSTRALIA Acquired company in Q2 based in eastern Queensland Queensland Cement and environmental ROMA services BRISBANE 4 cementing units Platform for growth in growing coal seam gas business 30
INNOVATION
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 Limited to coiled tubing fracturing applications EcoClean Fluids Environmentally friendly…
FINANCIAL OVERVIEW
HISTORIC REVENUE PERFORMANCE Revenue (Cmm) 35
FINANCIAL RESULTS Six Months Ended June 30, 2011 Comparison* 2011 2010 % Change Revenue 956,329 636,309 50% Operating Income 223,609 115,231 94% Net Income 112,502 41,455 171% Earnings per share: - Basic 0.78 0.32 144% - Diluted…
PROJECTED 2012 CAPITAL BUDGET 678 million 102 million to secure build slots on components 576 million: North America 102 million: International Russia, Saudi Arabia and Australia 537 million: Expansion capital 104 million:…
BALANCE SHEET STRENGTH As at June 30 Cash & Available 568 Million Debt Long Term Debt to 36% Equity Long Term Debt to 0.95 times Trailing Cash Flow Substantial room on Yes our debt covenants 2011 Capital Budget 616…
INVESTMENT ADVANTAGES Growth stock ROCE 45.00% Strong management team 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 July 31): 146.1 million (basic) (approx.) 148.3 million (diluted, monthly, weighted avg.) (approx., estimated) Average Daily Volume (30 day period): 522,467 (mo. ended July 31,…
BARCLAYS CAPITAL 2011 CEO ENERGY-POWER CONFERENCE September 6-8, 2011 New York, NY TSX Listing : TCW Trican Well Service Ltd. 2900, 645 - 7th Avenue SW Calgary, Alberta T2P 4G8 Tel: (403) 266-0202 Fax: (403) 237-7716 Web:…
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