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BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd.

Trican Well Service Ltd. · Nov 12, 2012 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 1
    CANADA BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE Miami, FL November 12-14, 2012
  2. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 2
    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…
  3. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 3
    OVERVIEW OF TRICAN Large, world-wide, full service 2012 REVENUE BY GEOGRAPHY pressure pumping company as of September 30, 2012 International 12% International Russia (majority) Kazakhstan Algeria 36% 52% USA Canada…
  4. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 4
    TRICAN STRENGTHS
  5. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 5
    TRICAN STRENGTHS 1,158,150 HP current fracturing Fracturing HP Growth capacity 1,400,000 1,200,000 At end of 2012: 1,000,000 1,197,000 HP fracturing 800,000 capacity 600,000 400,000 92 Cement & 34 Acid Units…
  6. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 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…
  7. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 7
    AREAS OF OPERATION Canada United States Russia Kazakhstan Algeria Australia 7
  8. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 8
    CANADA
  9. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 9
    CANADA Trican Frac Stages Per Well Horizontal Wells Only 18 16 Increase in fracturing jobs / 14 well Average Stages Per Well 12 Majority of activity is on oil or 10 liquids-rich gas plays 8 6 Almost all fracturing…
  10. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 10
    CANADA - OUTLOOK Rig count down in fourth quarter Expect reduced activity in Q4 Activity levels anticipated to bounce back in Q1 2013 New play developments in the Duvernay, Nordegg, Slave Point, Beaverhill Lake and Muskwa…
  11. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 11
    CANADA - PRICING Expect price softening in Canadian Pricing Levels Canada in the second half of 45% 2012 as new equipment enters 40% the market 35% 30% 25% Margins expected to drop as 20% 15% competition increases…
  12. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 12
    CANADA EQUIPMENT - 2012 Canadian HP Growth Expected fleet by end of 2012 450,000 400,000 414,000 fracturing HP 350,000 56 Cementing units 300,000 250,000 38 N2 Pumpers 200,000 150,000 19 Acid Units 100,000 20 Coil…
  13. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 13
    USA
  14. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 14
    GEOGRAPHIC COVERAGE - FRACTURING WOODWARD Woodford Shale Fayetteville Shale Barnett Shale: 1 crew Oklahoma City SEARCY SHAWNEE Haynesville OKLAHOMA Shale: 1 crew Little Rock ARKANSAS Eagle Ford 2 crews DENTON Shale:…
  15. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 15
    GEOGRAPHIC COVERAGE - FRACTURING Marcellus Shale: 2 crews Bakken Shale: 1 crew MINOT Bakken Current Shale USA HP: 670,000 NORTH DAKOTA MILL HALL Marcellus PENNSYLVANIA Shale 15
  16. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 16
    USA EQUIPMENT - 2012 US HP Growth 700,000 600,000 500,000 400,000 Expected fleet by end of 2012 300,000 200,000 670,000 fracturing HP 100,000 0 2007 2008 2009 2010 2011 2012* 25 Cement units USA Cement & Coil…
  17. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 17
    USA PRICING AND MARGINS Pricing off 30-35% in dry gas areas US Pricing Levels Pricing is down in oil and 90.0% liquids areas 80.0% 70.0% 60.0% Margins down due to 50.0% increases in guar, freight, 40.0% R&M, and…
  18. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 18
    USA OUTLOOK - 2012 Guar prices have declined and will positively impact Q4 and 2013 margins Will continue to focus on cost cutting initiatives 1 new crew started operations in the Bakken in Q3 2 new crews will remain idle…
  19. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 19
    RUSSIA
  20. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 20
    RUSSIA - OUTLOOK Revenue below forecast Customers are behind schedule Increased use of horizontal fracturing Successful implementation of Burst Port (BPS) technology 20
  21. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 21
    INTERNATIONAL
  22. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 22
    INTERNATIONAL Algeria Improving market conditions Obtained additional contracts in 2012 on existing equipment Australia Activity increasing throughout 2012 Kazakhstan Very busy Middle East Tendering work for 2013…
  23. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 23
    FINANCIAL OVERVIEW
  24. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 24
    FINANCIAL RESULTS Nine months ended Sept. 30 Comparison* 2012 2011 % Change Revenue 1,727,535 1,615,433 7% Operating Income 204,945 417,229 (51%) Net Income 61,415 223,786 (73%) Earnings per share: - Basic 0.42 1.54 (73%) -…
  25. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 25
    FINANCING Long-term notes payable US 375 million o US 95 million of this balance is hedged CA 60 million CA 500 million revolving credit facility US 20 million Russian revolving credit facility 25
  26. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 26
    PROJECTED 2012 CAPITAL BUDGET Remaining capital expenditures of 150 million to 200 million Have reduced initial capital budget by over 300 million over the last 9 months Expect capital expenditures of 70 million to 90…
  27. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 27
    BALANCE SHEET STRENGTH As at Sept. 30* Cash & Available 309 Million Debt Long Term Debt to 30% Capitalization Long Term Debt to 1.9 times Trailing Cash Flow Substantial room on Yes our debt covenants * The above data does…
  28. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 28
    BALANCED GROWTH Dividend increased from 10 to 30 per year Approximately 2.5% yield Implemented share buyback program in March 2012 28
  29. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 29
    SUMMARY Number of Outstanding Shares (as of Oct. 31, 2012): 146.5 million 146.8 million (diluted, monthly, weighted avg.) (approx., estimated) Average Daily Volume (30 day period): 946,887 (mo. ended Oct. 31, 2012)…
  30. BOFA MERRILL LYNCHS GLOBAL ENERGY CONFERENCE – Trican Well Service Ltd. – slide 30
    CANADA BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE Miami, FL November 12-14, 2012

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