ITS ABOUT PERFORMANCE Annual General Meeting May 9, 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.…
Industry Update Activity High Activity levels high, rig count flattening in the US, slightly early spring break up in Canada Labour market tight US Active US rig count down 12% from peak Canadian Active Cdn industry utilization Q1…
Switch to Oil and Liquids Dramatic switch from natural gas drilling to oil and liquids-rich drilling Now approx. 70% is oil or liquids focused in US and Canada % of total % of total drilling US Drilling by Hydrocarbon Target…
Increasing Complexity Drilling becoming more challenging worldwide: Growing need for deep, technically-advanced rigs Horizontal wells today account for: 50% of all wells drilled in the US and Canada Horizontal wells as a % of total…
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…
Geographic Diversification Less seasonal CANADA 61 Drilling Rigs operations provide 20 Coring Rigs more stable revenue USA Broad play and 65 Drilling Rigs commodity 5 Barge Rigs Manufacturing & exposure Technology Industry…
Advanced, Deep and Modern Fleet Technically Advanced Fleet Rig Fleet Depth 5% 15% 19% 0 - 5,999ft 6,0010- 7,999ft 5% 81% 8,000ft+ 77% Rig Fleet Age 20% 33% < 5 years High performance, high mobility, advanced drilling…
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,…
New Build Contracts All new rigs built or major capital enhancements are backed by contracts Pay back of capital investment (generally within term of contract) New build payback 3 4 years Strong record of high performance…
Contracts Provide Security Contracts improve revenue stability and utilization levels; contracts withstood 2008/2009 down turn Contracted fleet ranges 40 60%; currently 65% Average remaining term ranges 1.5 2.5 years; currently 2…
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…
Canadian Operations Solid reputation, top performance and new technology Industry leading utilization rates Horn River Activity strong in specific plays, 3 Rigs Seal oil and liquids a focus Montney 6 Rigs Oil Sands USA…
US and International Operations Bakken 3 Rigs Less seasonal operations, Niobrara 7 Rigs more stable revenue Mississippian ActivityDrilling levels strong high (68 Rigs) Lime 7 Rigs interest93%in oil and NGL-rich plays TX…
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 18
Growth Profile 2012 Growth Two Canadian rigs added (Q1 2012) Four US rigs acquired and refurbished (Q1/Q2 2012) Five new rigs added in Canada (H2 2012, early 2013) Measured growth using free cash flow Capacity to add 10 12 large rigs…
Capital Structure US450m senior notes at 7.875% due Jan 2019 Revolving facility - C200m, US100m due Dec 2015, drawn C82m and US52m at Mar 31, 2012 Total debt of 579m (Net debt 421m) at Mar 31, 2012 Structure provides: Currency…
Financial Update Continue to balance growth opportunities with debt repayment Free cash flow expected to allow for measured growth while lowering leverage Total debt to EBITDA target: < 2.0:1 times in the short term, Plus/minus…
Lowering Debt, Growing Fleet Net Debt (million) Land Rig Count 800 140 120 600 100 80 400 60 200 40 20 0 0 2006 2007 2008 2009 2010 2011 2012F Net Debt New Rigs Added Note: Net Debt defined as long-term debt plus current…
The Road Ahead Ongoing growth of high performance fleet Consistent improvement to drilling technology Contracts re-signed at higher rates, full impact through 2012 Continued focus on debt reduction through debt repayment and EBITDA…
Invest in Trinidad Strong track record of value-adding 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
Q1 2012 Modern fleet and contracts provide competitive advantage High demand drives strong utilization and dayrates Increased gross margins and net earnings Financial flexibility improved IT'S ABOUT PERFORMANCE 27
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…
Key Technological Advances Automation Pipe Handling, Iron Roughneck Top Drive Automated pipe handling automates Trinidads patented design provides increased moving drill pipe and other tubulars to and torque and ability to perform at…
Well-Positioned, Flexible Fleet Play Current(1) Q3 11 Q3 10 Q3 08 Adaptable Bakken 4 7 7 6 equipment Cardium 7 12 8 0 Horn River 3 1 1 1 New high demand Montney 11 14 11 13 plays emerging Barnett 2 6 6 6 Ongoing move to Eagle Ford 23 9…
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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