ITS ABOUT PERFORMANCE Corporate Presentation November 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
Canadian Industry Update Slower ramp up in third quarter, weaker commodity prices led to more cautious development plans Current industry active rig count at 370, 26% below 2011 levels Demand remains solid for high spec rigs…
United States Industry Update Rig count lowering in US, current active rig count at 1806, down 10% from 2011 levels Increasing competition in active plays; leveling of demand in Permian and Eagle Ford Customers demanding increasing…
Canadian Operations Growing operations Seven rigs added in 2012 New SAGD exposure Horn River 1 Rig Seal Growing Duvernay interest 2 Rigs Montney 13 Rigs Oil Sands Some USA softness in shallower CANADA market 1 Rig Duvernay…
US and International Operations Bakken 2 Rigs More stable revenue, less Niobrara 7 Rigs seasonality Drilling Mississippian Lime Current (68 Rigs) Trinidad activity at 80- 93% Cleveland/Tonkawa Sands 1 Rig 85% 3 Rigs…
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. 85% oil or liquids-rich targets % of total US Industry…
Well-Positioned, Flexible Fleet Play Current(1) Q3 Q3 Q3 Adaptable equipment provides 11 10 08 more stable revenue Bakken 2 7 7 6 Rigs moved to oil and Cardium 4 12 8 0 liquids-rich plays Horn River 1 1 1 1 Duvernay 6 0 0 0 New…
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 22% 22% < 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 15
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 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3…
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 2011 2012F Canada US International IT'S ABOUT PERFORMANCE 18
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 &…
Improved Stability, Lower Volatility High spec rigs drive strong consistent EBITDA margins Solid contract base provides more protected EBITDA and margins during industry cycles 21
Capital Structure Debt structure provides currency balance, natural hedge to US operations Extended maturities Growing financial flexibility Credit Facility Available Outstanding Expiry Q3 2012 Revolver C200m C104m Dec 2015 US100m…
Debt Reduction Strategy Firm commitment to lowering debt levels Continue to balance growth opportunities with debt repayment Leverage targets clearly achievable (times) Total debt/ Adjusted EBITDA 3.5 3.0 2.5 2.0 1.5 1.0 0.5…
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 26
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…
Q3 2012 Highlights Increased revenue from Q3 11 and Q2 12 due to higher dayrates, partly offset by lower operating days Adjusted EBITDA 68m, up from Q2 12 and consistent with Q3 11 Gross margins in line with Q2 12 but down from Q3…
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 Efficiency Capabilities1 First Entry Current Days to Drill Typical Well 65 40 Cost of Rig 2 1,462,500 900,000 3 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…
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 36
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
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