BANK OF AMERICA MERRILL LYNCH 2011 GLOBAL ENERGY CONFERENCE November 14 - 16, 2011 Miami, Florida TSX Listing : TCW Trican Well Service Ltd. 2900, 645 - 7th Avenue SW Calgary, Alberta T2P 4G8 Tel: (403) 266-0202 Fax: (403)…
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 14% USA Canada 54% Russia and International Recently entered Australian market…
TRICAN STRENGTHS
TRICAN STRENGTHS Large, world-wide pressure Fracturing HP Growth pumping company 1,000,000 886,750 HP current fracturing 800,000 capacity 600,000 At end of 2011: 400,000 999,900 HP fracturing capacity 200,000 77…
STRENGTHS FULL SERVICES Service Line % of Revenue Fracturing 77.3% Cementing 11.2% Coiled Tubing 4.0% Nitrogen 4.2% Acidizing & Specialty 2.1% Chemicals Industrial & Pipeline 0.8% Services Geological Services 0.3% Environmental…
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…
AREAS OF OPERATION Canada United States Russia Kazakhstan Algeria Australia 8
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 18 1Q 2008: 59,500 per frac 16 YTD 2011: 194,333 per frac 14 12…
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 Strong activity in remainder of 2011 and 2012 Duvernay, Alberta Bakken growth in 2012 Not seeing any pullback in 2012 activity from recent economic conditions Will watch capital budgets closely in upcoming…
CANADA - PRICING Market remains undersupplied Canadian Pricing Levels in 2011 and forecast to be tight 45% supply in 2012 40% 35% 30% Significant price increase in 25% third quarter 20% 15% 10% Price increases for…
CANADA GROWTH - 2011 2011 Capital Program - 215 M 117 Million expansion capital Canadian HP Growth 62,500 HP additional frac capacity 4 crews 450,000 400,000 5 Cementing units 350,000 Acidizing and Nitrogen 300,000…
GEOGRAPHIC COVERAGE Marcellus Shale: 2 crews Current: USA HP: 494,500 Adding 75,000 HP to USA: (3 crews) MILL HALL in 2011 Marcellus Shale PENNSYLVANIA Philadelphia Pittsburgh 17
USA OUTLOOK - 2011 Strong demand driving high utilization for remainder of 2011 Additional capacity built to date absorbed in the market Dry gas areas slowing down 70% of existing equipment contracted for two or three…
USA - PRICING Activity remains very high US Pricing Levels in Marcellus, Eagle Ford, 90.0% Oklahoma and Permean 80.0% 70.0% 60.0% Pricing flat for the 50.0% remainder of 2011 40.0% 30.0% 20.0% Will closely watch…
USA GROWTH - 2011 US HP Growth 800,000 2011 Capex: 360 Million 700,000 600,000 265 Million: expansion capital 500,000 33 Million: infrastructure 400,000 300,000 61 Million: maintenance 200,000 100,000 Fracturing…
USA GROWTH Continue expanding geographically Focus on oil and liquids rich gas areas Growth in other service lines Separate ourselves with technology Opening new Houston research facility in Q4 21
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 76% Deep Coiled Tubing 11% Cementing 8%…
STRENGTHS IN RUSSIA Management team that understands Russia 97% Russian work force Strong customer relationships Focus on separating ourselves with technology Opened R&D Center at Gubkin University Operational…
RUSSIA - OUTLOOK 2011 contracts on target Activity remains high with year over year improvements 2012 contract bidding just starting Long-term growth in Russia Desire to increase oil production Eastern Siberia Gas wells…
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 27
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 driven by new LNG…
FINANCIAL OVERVIEW
HISTORIC REVENUE PERFORMANCE Revenue (Cmm) 31
FINANCIAL RESULTS Nine Months Ended Sept. 30, 2011 Comparison* 2011 2010 % Change Revenue 1,615,433 1,044,074 55% Operating Income 417,229 222,632 87% Net Income 223,786 94,781 136% Earnings per share: - Basic 1.54 0.70 120% -…
PROJECTED 2012 CAPITAL BUDGET 678 million; 216 million committed 576 million: North America 102 million: International Russia, Saudi Arabia and Australia 537 million: Expansion capital 104 million: Infrastructure 37 million:…
BALANCE SHEET STRENGTH As at October 31 Cash & Available 600 Million Debt Long Term Debt to 34% Equity Long Term Debt to 0.81 times Trailing Cash Flow Substantial room on Yes our debt covenants 2012 Capital Budget 678…
INVESTMENT ADVANTAGES Growth stock ROCE Strong management team 45.00% 40.00% Capital disciplined strong 35.00% 30.00% balance sheet 25.00% Future growth opportunities 20.00% 15.00% Decline in worldwide…
SUMMARY Number of Outstanding Shares (as of October 31): 146.7 million (basic) (approx.) 153.0 million (diluted, monthly, weighted avg.) (approx., estimated) Average Daily Volume (30 day period): 1,051,573 (mo. ended October…
BANK OF AMERICA MERRILL LYNCH 2011 GLOBAL ENERGY CONFERENCE November 14 - 16, 2011 Miami, Florida TSX Listing : TCW Trican Well Service Ltd. 2900, 645 - 7th Avenue SW Calgary, Alberta T2P 4G8 Tel: (403) 266-0202 Fax: (403)…
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