CANADA CANACCORD GENUITY GLOBAL RESOURCE CONFERENCE Miami, FL October 16-18, 2012
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…
OVERVIEW OF TRICAN Large, world-wide, full service 2012 REVENUE BY GEOGRAPHY pressure pumping company as of June 30, 2012 International 12% International Russia (majority) Kazakhstan Algeria 37% 51% Canada USA…
TRICAN STRENGTHS
TRICAN STRENGTHS 1,082,000 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…
TRICAN STRENGTHS Our people are our strength 5,791 skilled employees worldwide Hiring and training people are key to growth Total hours of training for new hire orientation and upgrading over the last eight years:…
STRENGTHS FULL SERVICES Service Line % of 2011 Revenue Fracturing 77% Cementing 11% Nitrogen 5% Coiled Tubing 4% Acidizing & Specialty 2% Chemicals Industrial & Pipeline 0.5% Services Geological Services 0.5% 7
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…
AREAS OF OPERATION Canada United States Russia Kazakhstan Algeria Australia 9
CANADA
GEOGRAPHIC COVERAGE Horn River FORT NELSON HIGH LEVEL Shale British Columbia Alberta Saskatchewan Manitoba Montney FORT ST. JOHN Shale RED EARTH Duvernay GRANDE PRAIRIE Shale WHITECOURT HINTON NISKU LLOYDMINSTER DRAYTON…
CANADA Trican Frac Stages Per Well Horizontal Wells Only 19 18 Increase in fracturing jobs / 17 16 Stages Per Well well 15 14 13 12 Majority of activity is on oil or 11 10 liquids-rich gas plays 9 8 7 6 Almost all…
CANADA - OUTLOOK Increase in frac revenue per job 1Q 2008: 59,500 per frac 2Q 2012: 257,900 per frac Frac Revenue per Job 300,000 Rig count down in third quarter 250,000 Activity levels high in Q3 but will 200,000 drop back…
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…
CANADA GROWTH - 2012 Canadian HP Growth 2012 Capex: 128 million 450,000 400,000 92,500 HP 350,000 3 Cementing units 300,000 250,000 5 N2 Pumpers 200,000 150,000 2 Acid Units 100,000 414,000 HP by end of 2012…
USA
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:…
GEOGRAPHIC COVERAGE - FRACTURING Marcellus Shale: 2 crews Bakken Shale: 1 crew MINOT Bakken Current Shale USA HP: 585,000 NORTH DAKOTA MILL HALL Marcellus PENNSYLVANIA Shale 18
USA GROWTH - 2012 US HP Growth 700,000 600,000 Fracturing capacity after 2012 500,000 build: 670,000 HP 400,000 300,000 200,000 Proposed 2012 Capex: 272 100,000 million 0 2007 2008 2009 2010 2011 2012* 100,000 HP (3…
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…
USA OUTLOOK - 2012 Expect guar prices to decline Will focus on cost cutting initiatives 1 new crew started operations in the Bakken in Q3 2 new crews will remain idle until market conditions improve 1 operational crew…
RUSSIA
RUSSIA AND THE FSU Started operations in 2000 Grown to become the largest fracturing company Primarily work on oil wells All work is on 1 or 3 year contracts Services: Fracturing 77% Deep Coiled Tubing 11% Cementing 7%…
RUSSIA AND THE FSU Barents Sea Arctic Shelf Kara (Barents, Pechora, Sea Kara Seas) Timan- Pechora Eastern Siberia Western Siberia Sakhalin Volga-Urals Shelf Northern Caucasus Traditional regions for oil…
2012 EQUIPMENT CAPACITY: RUSSIA & KAZAKHSTAN 16 14 12 10 8 6 4 2 0 Coiled Tubing Nitrogen Cement Frac Crews 109,300 Fracturing HP * Expected equipment capacity at the end of the year based upon approved…
RUSSIA - OUTLOOK Revenue below forecast Customers are behind schedule Increased use of horizontal fracturing Successful implementation of Burst Port (BPS) technology 2012 Capex: 27 million 9 million: expansion capital 12…
INTERNATIONAL
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 28
INNOVATION
INNOVATION Trican focuses on separating itself with technology SRVmaxTM Integrated technical solution Combines geology, microseismic, frac modelling and reservoir modelling Want to assist customer in choosing horizontal…
INNOVATION BPS - Burst Port System Patented tool technology for multi-zone fracturing Replaces perforating Lowers cost and saves time Very successful in Canada Successful introduction to Russia in 2012 EcoClean Fluids…
INNOVATION Water Management Developed new dry-add friction reducers which allows for less fresh water use Introduced water recycling services in Q2 Polar Frac Developed ultra low temperature fracturing fluid for Eastern…
FINANCIAL OVERVIEW
FINANCIAL RESULTS Six months ended June 30 Comparison* 2012 2011 % Change Revenue 1,134,331 956,329 19% Operating Income / (loss) 133,590 223,609 (40%) Net Income / (loss) 38,675 112,502 (66%) Earnings / (loss) per share: - Basic…
FINANCING Long-term notes payable US 325 million o US 95 million of this balance is hedged CA 60 million CA 450 million revolving credit facility US 20 million Russian revolving credit facility 35
PROJECTED 2012 CAPITAL BUDGET 2012 Capital Budget of 450 million Capital Budget (by region) 128 million: Canada 272 million: USA 50 million: International o Australia, Russia and Kazakhstan Capital Budget (by type) 399…
BALANCE SHEET STRENGTH As at June 30 Cash & Available 405 Million Debt Long Term Debt to 25% Capitalization Long Term Debt to 1.04 times Trailing Cash Flow Substantial room on Yes our debt covenants 37
BALANCED GROWTH Dividend increased from 10 to 30 per year Approximately 2.5% yield Implemented share buyback program in March 2012 38
INVESTMENT ADVANTAGES Growth stock ROCE Strong management team 45.00% 40.00% 35.00% Capital disciplined strong 30.00% balance sheet 25.00% 20.00% Future growth opportunities 15.00% Decline in worldwide reservoir…
SUMMARY Number of Outstanding Shares (as of Sept. 28, 2012): 146.5 million 146.8 million (diluted, monthly, weighted avg.) (approx., estimated) Average Daily Volume (28 day period): 759,477 (mo. ended Sept. 28, 2012)…
CANADA CANACCORD GENUITY GLOBAL RESOURCE CONFERENCE Miami, FL October 16-18, 2012
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