First Energy Growth Conference November 2013 ITS ABOUT PERFORMANCE
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.…
All Drillers are NOT the Same IT'S ABOUT PERFORMANCE 3
Trinidad is Different Rigs We have the Capital Structure RIGHT Growth Opportunities IT'S ABOUT PERFORMANCE 4
Trinidads Diverse Operations CANADA (1) 62 Drilling Rigs New rig Rig technology and Manufacturing innovation 65 Drilling Rigs Saudi Arabia (2) JV with HAL USA 5 Barge Rigs MEXICO 3 Drilling Rigs (1) Includes one new…
Canadian Activity Ramping Up Industry activity in line with 2012 Dayrates and activity stable for high performance rigs Canadian Industry Active Rig Count 800 600 400 200 0 week week week week week week week week week…
Growing Canadian Operations Seven new rigs in 12/13 Active in key plays LNG development Liard 1 driving new demand USA CANADA Montney 13 Oil Sands 1 Duvernay 5 Viking 2 Cardium 3 AB Bakken 2 Frobisher 5 Includes 2013/2014…
LNG - A Perfect Fit for Trinidad Existing relationships with key LNG players The right equipment and experience Trinidad awarded new build for Liard Basin LNG development IT'S ABOUT PERFORMANCE 8
United States Activity Stable US active rig count stable year to date in 2013 Customers demanding increasing automation and efficiency US Industry Active Rig Count 2400 2000 1600 1200 800 400 0 week week week week week…
Stable Operations in United States Bakken 2 US operations less Niobrara 7 seasonal Drilling (68 Rigs) US activity and Cleveland/Tonkawa 6 93% Haynesville 5 Permian 6 dayrates stabilized CANADA Eagleford 12 Barnett 2…
Joint Venture with Halliburton Aligning with Halliburton makes sense: First look at HAL international opportunities Drilling HAL has international operating experience and (68 Rigs) 93% infrastructure CANADA Trinidad has…
Growing International Exposure Saudi entry; four rigs in mid 2014 (3 upgraded US rigs and 1 new build); future growth anticipated Drilling (68 Rigs) 93% CANADA Mexican rigs currently idle, activity expected to resume in 2014;…
More Rigs that Customers Want 77% of Trinidads Rigs are Modern, High Performance Rigs IT'S ABOUT PERFORMANCE 13
Modern Rigs Save Customers Money High Performance Rigs provide Increased accuracy Improved efficiency Reliable results IT'S ABOUT PERFORMANCE 14
We Build Rigs that Outperform We are drillers, we know: what our customers need what works in the field what will be in demand over the long term IT'S ABOUT PERFORMANCE 15
Consistent Industry Outperformance Trinidads rigs are more active Trinidads Canadian 70% Utilization 60% 60% 40% TDG 50% 20% 40% 0% Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3…
We Live and Breathe Safety Our safety performance is better than the industry and it keeps improving IT'S ABOUT PERFORMANCE 17
Our People Make The Difference High performance, active rigs attract the best people IT'S ABOUT PERFORMANCE 18
Customer Backed Growth We lower our risk by only building rigs under long-term contracts IT'S ABOUT PERFORMANCE 19
Contracts Provide Stability Typically 40 to 60% of our fleet is under contract Fleet under Average term remaining contract (years) 100% 3.0 75% 2.0 50% 1.0 25% 0% 0.0 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 Current…
Solid Capital Structure Capital structure meets our needs Currency balance Extended maturity Financial flexibility Credit Facility Available Outstanding Expiry Q3 2013 Revolver C200m C4m Dec 2016 US100m US0m US Senior Notes (7.…
Debt Reduction Almost Complete Total Debt to EBITDA* (times) 3.56 3.20 3.24 2.86 2.42 1.91 1.92 1.50 2007 2008 2009 2010 2011 2012 Q3-13 Long term target *Based on current debt covenants 22
An Exciting New Era for Trinidad Free cash flow provides many opportunities Upgrade existing rigs Build new rigs, expand operations Alignment with HAL opens new doors Build cash for future cycles Return value to shareholders…
Invest in Trinidad Not all Drillers are the same Trinidad has: The right rigs for today and tomorrow Stability Free cash flow to fund growth Exciting growth opportunities IT'S ABOUT PERFORMANCE 25
APPENDIX www.trinidaddrilling.com
Q3 2013 Highlights Weaker industry demand lead to lower activity, revenue and EBITDA from Q3 2012 Lower margins in Canadian operations due to lower revenue, higher R&M and wage expenses Dayrates and margins stable in the US, activity…
Q3 2013 A Brief Overview FINANCIAL HIGHLIGHTS Three months ended September 30, Ni ne months ended September 30, ( tho usands except share and per share data) 2013 2012 % Cha nge 2013 2012 % Cha nge Revenue 208,692 215,103 (3.0)…
Historical Dayrates Canada Rate Per Operating Day vs Operating Margin Dayrates US Rate Per Operating Day vs Operating Margin Utilization (US) 30,000 50% 30,000 50% 25,000 25,000 40% 40% 20,000 20,000 30% 30% 15,000 15,000 20%…
Consistent Dividend Consistently paid a dividend for past 10 years, throughout industry cycles and economic downturns Sustainable payout level at approx. 10% of 2013 consensus cash flow Current dividend of 0.05 per share per quarter…
Advanced, Deep and Modern Fleet Technically Advanced Fleet Rig Fleet Depth 13% 6% 18% 0 - 5,999ft 6,000- 7,999ft 5% 81% 8,000ft+ 77% Rig Fleet Age 22% 21% < 5 years High performance, high mobility, advanced drilling…
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 34
2500, 700 9 Avenue S.W. Calgary, AB, Canada T2P 3V4 T 403.265.6525 E infotrinidaddrilling.com www.trinidaddrilling.com
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