ITS ABOUT PERFORMANCE DAHLMAN ROSES OIL SERVICE AND DRILLING CONFERENCE November / December 2011
Forward Looking Information Certain information in this document is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events.…
Industry Update Activity High Activity levels high, busy winter season expected in Canada, US activity remains strong US Active US rig count down 9% from peak Canadian Active Cdn industry utilization 37% YTD Sep 10 Rig Count Rig Count…
Switch to Oil and Liquids In early 2007 drilling was largely natural gas focused 85% of drilling in the US and 70% in Canada Now more 50% is oil or liquids focused in both countries % of total % of total drilling US Drilling by…
Increasing Complexity Drilling becoming more challenging worldwide: Growing need for deep, technically-advanced rigs Horizontal wells today account for: 50% of all wells drilled in the US 40% of all wells drilled in Canada Horizontal…
Drilling Industry Update Activity levels high; no pull back witnessed to date Significant switching to oil and liquids-rich targets Unconventional technique improves economics of growing number of plays Labour market becoming tight…
About Trinidad Drilling Technically advanced, high performance equipment High level of contracted rigs Diversified, well-positioned operations Strong growth record Enterprise Value(1) - 1.6B; TSX listed - TDG (1) Enterprise…
Advanced, Deep and Modern Fleet Technically Advanced Fleet Rig Fleet Depth 5% 15% 0 - 5,999ft 20% 6,0010- 7,999ft 5% 81% 8,000ft+ 75% Rig Fleet Age 20% 33% < 5 years High performance, high mobility, advanced drilling…
Why Technology Matters Improved performance More precise control of drilling speed, weight on bit Better control of up-hole and down-hole conditions Improved efficiency, production on-stream more consistently and more quickly Less…
Drilling Efficiency Saves Money Trinidad's Capabilities in Haynesville First Entry Current Days to Drill Typical Well 65 40 1 Cost of Rig 1,462,500 900,000 2 Ancillary Equipment 2,193,750 1,350,000 Total Well Savings 25 Days…
Why Technology Matters Improved safety Automation reduces human error, removes crew from high risk areas and duties Less incidents reduces downtime, improves efficiency Better crew attraction and retention IT'S ABOUT PERFORMANCE…
A Continued Focus on Safety TRIF 6.00 5.00 4.00 3.00 2.00 1.00 0.00 TRIF Total Recordable Injury Frequency, 12 month corporate rolling average 12
Why Technology Matters Less environmental impact Automated moving systems allow multiple wells to be drilled from one pad, significant downtime reduction Flexible engines reduce emissions and operating cost; natural gas, bifuel,…
Moving Systems Reduce Downtime IT'S ABOUT PERFORMANCE 14
New Build Contracts All new rigs built or major capital enhancements are backed by contracts Pay back of capital investment (generally within term of contract) New build payback 3 4 years Enhancements payback more quickly Strong…
Contracts Provide Security Contracts improve revenue stability and utilization levels; contracts withstood 2008/2009 down turn Contracted fleet ranges 40 60%; currently 60% Average remaining term ranges 1.5 2.5 years; currently 2…
Industry Outperformance Canadian Utilization Rates US Active Rig Count (Change from 10/3/08) 70% Trinidads Canadian 60% Utilization TDG 60% 40% 50% 20% 40% 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 30% -20% 08 08 08 09 09 09 09…
Geographic Diversification Less seasonal CANADA 59 Drilling Rigs operations provide 20 Coring Rigs more stable revenue USA Broad play and 69 Drilling Rigs commodity 5 Barge Rigs Manufacturing & exposure Technology Industry…
Canadian Operations Solid reputation, top performance and new technology Industry leading utilization rates Activity strong in specific plays, oil a focus Horn River 2 Rigs USA Activity levels high going CANADA into winter…
US and International Operations Bakken 3 Rigs Less seasonal operations, Niobrara more stable revenue 7 Rigs ActivityDrilling levels strong high (68 Rigs) interest93%in oil and NGL-rich plays Haynesville 2011 - One new build;…
Well-Positioned, Flexible Fleet Play Q3 11 Q3 10 Q3 08 Gas plays more Bakken 7 7 6 stable than market Cardium 12 8 0 expected Horn River 1 1 1 Montney 14 11 13 New high demand Barnett 6 6 6 plays emerging Eagle Ford 9 2 0 Adaptable…
Strong Track Record of Growth Land Rig Count 140 120 100 80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012F Canada US International IT'S ABOUT PERFORMANCE 22
Growth Profile Measured growth using free cash flow 2011 Three US rigs added (incl. two from 2010 program) Two Canadian rigs added Four US rigs acquired and refurbished 2012 Five new rigs added (US two/Canada three) May add more…
Capital Structure US450m senior notes at 7.875% due Jan 2019 Revolving facility - C200m, US100m due Dec 2014, drawn C97m and US43m at Sep 30, 2011 Total debt of 603m (Net debt 450m) at Sep 30 2011 Structure provides: Currency…
Financial Update Continue to balance growth opportunities with debt repayment Free cash flow expected to allow for measured growth while lowering leverage Total debt to EBITDA target: < 2.5:1 times in the short term, < 2.0:1 times…
Lowering Debt, Growing Fleet Net Debt (million) Land Rig Count 800 140 120 600 100 80 400 60 40 200 20 0 0 2006 2007 2008 2009 2010 2011F 2012F Note: Net Debt defined as long-term debt plus current portion of long term…
The Road Ahead Ongoing growth of high performance fleet Consistent improvement to drilling technology Contracts re-signed at higher rates, impact through H2 2011 and 2012 Continued focus on debt reduction through debt repayment and…
Invest in Trinidad History of recognizing and seizing opportunities Strong track record of value-adding growth Market leader in rig technology and innovation Stability through geographical diversification and contracted…
www.trinidaddrilling.com 2500, 700 9 Avenue S.W. Calgary, Alberta, Canada T2P 3V4 T 403.265.6525 F 403.265.4168 E infotrinidaddrilling.com
2011 to Date Deeper fleet and contracts provide competitive advantage Strong demand leads to high utilization, dayrates and gross margins increasing Rig construction providing contract-backed growth Sale of well servicing…
Key Technological Advances Automation Pipe Handling, Iron Roughneck Top Drive Automated pipe handling automates Trinidads patented design provides increased moving drill pipe and other tubulars to and torque and ability to perform at…
www.trinidaddrilling.com 2500, 700 9 Avenue S.W. Calgary, Alberta, Canada T2P 3V4 T 403.265.6525 F 403.265.4168 E infotrinidaddrilling.com
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