Skip to main content JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. | Shale Experts
Loading...
Pm

JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd.

Trican Well Service Ltd. · Jul 7, 2015 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 1
    Investor Presentation July 2015
  2. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 2
    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…
  3. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 3
    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…
  4. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 4
    CANADA 5
  5. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 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…
  6. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 6
    CANADA - OUTLOOK 2015 well count expected to be down by roughly 50% compared to 2014 and 37% compared to 2009* Trican activity will not be down the full 50% 35% of equipment expected to remain parked during 2015; anticipated to…
  7. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 7
    CANADA COST CUTTING Product costs Largest element of cost structure Have achieved 10.5% reduction to date Targeting 15-20% reductions to match our pricing declines People Have reduced Canadian employee base by 35% Salary and…
  8. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 8
    USA 9
  9. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 9
    GEOGRAPHIC COVERAGE - FRACTURING MINOT Bakken Marcellus Mid-Con Utica Barnett Current Active US Crews Barnett: 1 crew Eagle Ford: 1 crews SHAWNEE Permian: 2 crews SPRINGTOWN Oklahoma: 1 crew ODESSA Marcellus: 3…
  10. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 10
    USA OUTLOOK U.S. rig count down 53% from peak Pricing stabilizing - down 25% from peak Expect to operate 50% of available equipment over the remainder of 2015 Utilization forecasted to improve in June and July; still need…
  11. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 11
    US - COST CUTTING Product costs Have achieved 12% 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…
  12. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 12
    CORPORATE - COST CUTTING People Costs Salary and benefits reductions Salary reductions of 10% Temporary suspension of certain benefits Reduced Corporate employee base by 15% Total annualized cost reductions of 10m Other…
  13. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 13
    RUSSIA 14
  14. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 14
    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…
  15. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 15
    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%…
  16. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 16
    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…
  17. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 17
    RUSSIA - 2015 Strong technical and operational business Activity up year-over-year; fully utilized Russia/Ukraine conflict has not caused any operational disruptions thus far; will continue to monitor effects of sanctions…
  18. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 18
    INTERNATIONAL 19
  19. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 19
    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…
  20. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 20
    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…
  21. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 21
    AFTER THE DOWNTURN 22
  22. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 22
    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…
  23. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 23
    POSITIVES AFTER THE DOWNTURN Competitive landscape changing Baker-Halliburton merger will create opportunities in all of our markets U.S. competitive landscape will change - Smaller competitors struggling to survive -…
  24. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 24
    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…
  25. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 25
    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…
  26. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 26
    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…
  27. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 27
    INNOVATION 28
  28. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 28
    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…
  29. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 29
    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…
  30. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 30
    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…
  31. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 31
    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…
  32. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 32
    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…
  33. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 33
    FINANCIAL OVERVIEW 34
  34. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 34
    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…
  35. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 35
    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…
  36. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 36
    INVESTMENT ADVANTAGES Significant earnings potential on existing assets Low capital expenditures in 2015 and 2016 Free cash flow Strong Canadian business that historically weathers the storm Strong management team that has…
  37. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 37
    SUMMARY Number of Outstanding Shares (as of June 30, 2015): 148.9 million Average Daily Volume (one month period): 770,221 (as of June 30, 2015) Directors/Officers Ownership: 2.0% (approx. - diluted basis) Market Cap: 618…
  38. JULY 2015 INVESTOR PRESENTATION – Trican Well Service Ltd. – slide 38
    Investor Presentation July 2015

From the store

Browse maps, data & reports in the Shale Experts store