ITS ABOUT PERFORMANCE Global Hunter Securities June 26, 2012
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.…
Why Trinidad Ability to recognize trends, capture opportunities early Modern, highly-utilized fleet is in demand High contract base provides revenue stability Improved financial flexibility Consistent dividend yield Future growth…
Operations Overview Diversification provides more stable revenue: CANADA Less seasonal operations 61 Drilling Rigs 20 Coring Rigs Broad play and commodity exposure USA 65 Drilling Rigs 5 Barge Rigs Manufacturing & Technology…
Its About Performance Innovative technology Improved performance and safety provide lower well costs Satisfied customers lead to increased market share Revenue and EBITDA Growth IT'S ABOUT PERFORMANCE 5
Industry Update Activity High Activity levels remain strong, rig count flattening in the US, spring break up in Canada New build demand leveling off US Active US rig count down 13% from peak Canadian Active Cdn industry utilization…
Canadian Operations Growing operations Seven rigs added in 2012 New SAGD exposure Horn River 1 Rig Seal 4 Rigs Growing Duvernay interest Montney 12 Rigs Oil Sands 1 Rig Record USA Q1 2012 results CANADA Duvernay 6 Rigs…
US and International Operations Bakken 3 Rigs More stable revenue Niobrara 7 Rigs Growing operations in Drilling Mississippian Lime Niobrara (68 Rigs) 93% and Eagle Ford 7 Rigs Activity levels remain strong Haynesville…
Switch to Oil and Liquids Dramatic switch from natural gas drilling to oil and liquids- rich drilling across North America Flexible equipment Trinidad now drilling approx. 90% oil or liquids-rich targets % of total % of total…
Well-Positioned, Flexible Fleet Play Current(1) Q3 Q3 Q3 11 10 08 Adaptable equipment provides more stable Bakken 4 7 7 6 revenue Cardium 5 12 8 0 Horn River 1 1 1 1 Rigs moved to oil and Duvernay 6 0 0 0 liquids rich plays Montney…
Increasing Complexity Drilling becoming more challenging worldwide: Growing need for deep, technically-advanced rigs More than 50% of all wells drilled in the US and Canada are horizontal Horizontal wells as a % of total 60% 50%…
Advanced , Deep and Modern Fleet Technically Advanced Fleet Rig Fleet Depth 13% 6% 19% 0 - 5,999ft 6,000- 7,999ft 5% 81% 8,000ft+ 77% Rig Fleet Age 20% 35% < 5 years High performance, high mobility, advanced drilling…
Modern Rigs Improve Performance Better control and precision while drilling: AC drawworks, integrated control systems and top drives improve drilling control and monitoring Moving systems reduce time between wells Less likely to…
Automation Improves Safety Lower safety incidents - Iron rough necks, pipe handling systems, rig moving systems Improved efficiency and less unproductive time Better crew retention, better performance IT'S ABOUT PERFORMANCE 14
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 Q4 Q1 30% -20% 08 08 08 09 09…
Our People Make The Difference Attracting and retaining the best More stable utilization provides more stable paychecks Modern equipment and strong safety culture Ongoing training Competency-based training provides career…
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 17
Customer Backed Growth Value-added growth with lower risks All new rigs backed by 3 5 year contracts Pay back of capital investment within 3 4 years Contracts proven through previous downturn Customers are major oil & gas…
High Contract Base Average term Fleet under remaining contract (years) 100% 3.0 90% 80% 70% 2.0 60% 50% 40% 30% 1.0 20% 10% 0% 0.0 YE 2008 YE 2009 YE 2010 YE 2011 Current Contracted rigs - Canada Contracted rigs - US &…
Growth Strategy Current growth Organic growth funded from free cash flow 11 rigs to be added in 2012, 9% increase in fleet size Future growth prospects Opportunities to expand existing North American operations Investigating…
Capital Structure Debt structure provides currency balance, natural hedge to US operations Extended maturities Growing financial flexibility Credit Facility Available Outstanding Expiry Q1 2012 Revolver C200m C82m Dec 2015 US100m…
Debt Reduction Strategy Firm commitment to lowering debt levels Continue to balance growth opportunities with debt repayment Leverage targets clearly achievable Total debt/ Adjusted EBITDA 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0…
The Road Ahead Increasing cash flow generating capacity as fleet grows Remain industry leader through consistent improvement to drilling technology Long-term expansion with increased presence in North America and globally Improved…
Invest in Trinidad Strong track record of value-added growth Modern, highly-utilized fleet Strong customer partnerships High contract base provides revenue stability Future growth opportunities IT'S ABOUT PERFORMANCE 25
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
About Trinidad Drilling Technically advanced, high performance equipment High level of contracted rigs Diversified, well-positioned operations Strong growth record Enterprise Value(1) - 1.3B; TSX listed - TDG (1) Enterprise…
Q1 2012 Overview Modern fleet and contracts provide competitive advantage High demand drives strong utilization and dayrates Record revenue and EBITDA Increased gross margins and net earnings Financial flexibility improved…
Q1 2012 A Brief Overview Q1 Q1 Financial Highlights 2012 2011 % Revenue ( millions) 255.6 224.3 14 Adj EBITDA(2) ( millions) 92.0 69.6 32 Net earnings (loss) ( millions) 34.5 16.0 116 Net earnings (loss) per share (diluted) 0.29…
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…
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…
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,…
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…
Key Technological Advances Automation Pipe Handling, Iron Roughneck Top Drive Automated pipe handling automates Trinidads patented design provides moving drill pipe and other tubulars increased torque and ability to perform to and…
Consistent Dividend Consistently paid a dividend for past 10 years, throughout industry cycles and economic downturns Sustainable payout level at 10% of 2012 consensus cash flow Current dividend of 0.05 per share per quarter…
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
Loading...
