OVERVIEW OF TRICAN YEAR ENDING DECEMBER 31, 2014 Large, international, full service Revenue by Geography pressure pumping company 13% 45% 1,193,000 HP available fracturing USA International Canada capacity 42% 94…
COMPETITIVE ADVANTAGES Customer-focused provider of technical solutions Separate ourselves with technology Named one of Canadas top 100 Corporate R&D spenders in 2012, 2013 and 2014 (by Research Infosource Inc.) Product…
CANADA 5
GEOGRAPHIC COVERAGE Horn River FORT NELSON HIGH LEVEL Shale British Columbia Alberta Saskatchewan Manitoba Montney FORT ST. JOHN Shale RED EARTH GRANDE PRAIRIE Duvernay WHITECOURT Shale HINTON NISKU LLOYDMINSTER DRAYTON…
CANADA Low commodity prices led to weak Q1 results Prices and activity dropped faster than costs Pricing down 10% sequentially in Q1 Parked 35% of total fleet late in Q1 in response to low activity Q1 included 4m of…
CANADA - OUTLOOK 2015 well count expected to be down by 52% compared to 2014 and 37% compared to 2009* Expect weak Q2 results due to breakup and commodity prices Expect additional pricing weakness 35% of equipment expected to…
CANADA COST CUTTING Product costs Largest element of cost structure Have achieved 9% reduction to date Targeting 15-20% reductions to match our pricing declines People Have reduced Canadian employee base by 35% Salary and…
USA Weak Q1 results Included 7m in one-time costs Pricing down 15% sequentially Parked 8 of 16 frac crews in Q1 Continuing to assess active fleet in relation to expected activity levels in 2015 Activity and pricing…
USA OUTLOOK U.S. rig count down 53% from peak Pricing stabilizing Expect to operate 50% of available equipment over the remainder of 2015 Expect weak Q2 results and improved second half results Slight improvements in demand…
US - COST CUTTING Product costs Have achieved 10% reduction to date Targeting 15-20% reductions to match our pricing declines People Have reduced us employee base by 55% Salary reductions of 10% Expected annual fixed cost…
CORPORATE - COST CUTTING People Costs Salary and benefits reductions - Salary reductions of 10% - Mandatory leave without pay program expected to reduce corporate salary costs by 10% - Temporary suspension of certain benefits…
RUSSIA 16
POTENTIAL SALE OF RUSSIA & KAZAKHSTAN Currently involved in negotiations to sell Russia and Kazakhstan pressure pumping business We believe a sale would be in the best interest of shareholders if a fair valuation is obtained…
RUSSIA AND THE FSU Started operations in 2000 One of the largest fracturing companies in Russia Primarily work on oil wells All work is on 1 or 3 year contracts Services: Fracturing 88% Coiled Tubing 6% Cementing 4%…
RUSSIA AND THE FSU ARCTIC SHELF (BARENTS, PECHORA, KARA SEA) Traditional regions for oil production Regions of growth Representative Office NOVY URENGOY Operational Base MOSCOW GUBKINSKY NYAGAN KUEDA RADUZHNY VCNG…
RUSSIA - 2015 Strong technical and operational business Activity up year-over-year Russia/Ukraine conflict has not caused any operational disruptions thus far; will continue to monitor effects of sanctions Ruble decline…
INTERNATIONAL 21
INTERNATIONAL Australia Cement and environmental services Slow 2015 with drop in commodity prices LNG driven gas market Currently bidding on 2015 cement work with large producers Kazakhstan Fracturing services Decline in…
INTERNATIONAL Norway Completion tools only Strong acceptance of completion tool technology in North Sea Market share growth Anticipate stable 2015 demand Middle East Started coiled tubing operations in Q2 2014 Looking to…
AFTER THE DOWNTURN 24
POSITIVES AFTER THE DOWNTURN The importance of the services we provide to the industry Well completions costs (primarily fracturing) represent 50% of total well costs Big North American oil and gas plays cannot be developed…
POSITIVES AFTER THE DOWNTURN Cyclicality of the business Falls quickly but also recovers quickly Current trends are pointing to a 2016 recovery - Production decline rates anywhere from 30% to 70% - Unprecedented North…
POSITIVES AFTER THE DOWNTURN Substantial completions backlog Currently estimating over 4,500 drilled but uncompleted wells in the US market Bodes well for an increase in fracturing demand coming early out of the downturn…
POSITIVES AFTER THE DOWNTURN Tricans reduced cost structure Will allow us to generate substantial earnings growth once demand improves Potential for competitor consolidation Consolidation will be positive for long-term health…
CHANGES TO PRESSURE PUMPING North American pressure pumping market will be very competitive Unlikely to see 1900 active rigs in the U.S. in near future We will focus on: Be on the leading edge of cost and operational…
INNOVATION 30
INNOVATION Trican focuses on separating itself with technology MVP FracTM Patented chemical solution that reduces proppant settling in slick water fracs Strong market acceptance in Canada; MVP FracTM used in 20% of all…
INNOVATION TriVertTM Diverting Agent Can be used in new completions or refracturing treatments Redirects fluid into new sections of the wellbore Contains particles that dissolve with time and temperature Expected to result…
COMPLETION TOOLS Operations in Norway, USA and Canada Offer multistage frac tools, completion and intervention tools for both open hole and cemented installations Competitive advantage with patented completion system that…
TRICAN RESERVOIR SOLUTIONS Geological Solutions Offer unconventional rock analysis, core testing and rock mechanics Reservoir Solutions Reservoir model that integrates geological and frac data to optimize long-term reservoir…
SUSTAINABLE INNOVATION EcoClean Fluids Continuing to expand our line of environmentally friendly fracturing fluids Water Management and Reduction Developed a 100% recycled water crosslinked fluid solution with no mechanical…
FINANCIAL OVERVIEW 36
DEBT STRUCTURE Current outstanding and available debt at March 31, 2015 460 million in fixed rate notes payable - 120m due in April 2016 282 million drawn on revolving credit facility 354 million of cash and available debt…
CASH FLOW Managing cash flow and liquidity a key focus in 2015 Dividend suspended until financial performance improves Total capital spend in 2015 expected to be 40 to 50 million No expansion initiatives will be considered…
INVESTMENT ADVANTAGES Significant earnings potential on existing assets Low capital expenditures in 2015 Free cash flow Strong Canadian business that historically weathers the storm Strong management team that has managed…
SUMMARY Number of Outstanding Shares (as of April 30, 2015): 148.9 million Average Daily Volume (one month period): 2,027,188 (as of April 30, 2015) Directors/Officers Ownership: 2.0% (approx. - diluted basis) Market Cap:…
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