Canada vs Rest of the World Where to allocate capital Peters & Co Conference September 17, 2015 IT'S ABOUT PERFORMANCE IT'S ABOUT PERFORMANCE 1
Why Invest In Trinidad Trinidad has: High quality fleet Diversified operations Solid plan for the downturn; well positioned for the rebound International expansion opportunities Improved liquidity IT'S ABOUT PERFORMANCE 3
Canada vs the Rest of the World Where to allocate capital What opportunities are available Risk vs reward Long term strategy Diversification Future growth opportunities IT'S ABOUT PERFORMANCE 4
Changing Global Demands Growing recognition of high performance equipment world wide International market has seen the advances in performance in North America International customers now willing to invest in technology Increasing…
International Expansion Takes Time Trinidads international expansion has followed a disciplined, strategic plan Initial expansion into the US (2005) Added operations in Mexico (2008), Chile (2009), built a barge rig in Indonesia and…
Trinidads Geographic Diversity Canada 82 rigs US 70 rigs 2 barges Saudi* 4 rigs Mexico* 6 rigs UAE 1 rig Rig Manufacturing Innovation & Design IT'S ABOUT PERFORMANCE * Rigs operating under the JV included at 100…
Understand the Risks Understand and evaluate all the risks Geo-Political Customer Currency IT'S ABOUT PERFORMANCE 8
Be Prepared Build customer partnerships In-country knowledge is critical Labour laws, suppliers, logistics Understand the operating cost structure It will likely cost more and take longer than you expect Make sure the returns make…
Its All About Performance Start as you mean to go on Performance Performance Performance IT'S ABOUT PERFORMANCE 10
North American & Trinidad Update
North American Industry Update Recent decrease in oil prices slowed momentum Canada activity increased after break-up, but remains weak compared to prior years US activity stalled, new opportunities on hold until longer-term…
Industry Active Rig Counts North American activity at or below previous lows Volatility impacting E&Ps budgeting ability Cost structure being re-set across the industry Canadian Industry Active Rig Count US Industry Active Rig Count…
CanElson Acquisition Update Effective date August 11, 2015 Overwhelming approval from shareholders 95% approval from 60% of all outstanding shareholders Issued 88.7 million shares and 50 million in cash Total shares outstanding now…
Benefits of CanElson Combination Greater scale and resources to capitalize on opportunities Larger, more diverse fleet with industry-leading activity Savings through increased scale and operating efficiencies Expanded management…
Trinidads North American Operations Active in key plays Key Operating Areas Typically higher than industry activity levels Customers waiting to Liard Montney Oil Sands Duvernay Lloyd Heavy Oil Cardium Frobisher commit to rigs…
Trinidads International Operations Joint venture with Key Operating Areas Halliburton(1) (60/40 Split) Combines customer relationships and Mexico Saudi operational excellence UAE Growing international joint venture contribution…
HAL Joint Venture Saudi Four rigs currently operating in Ghawar field 2015 is first full year of operations Costs lowering as operations grow Drilling efficiencies have improved 40% increase in well delivery performance from first…
HAL Joint Venture Mexico Construction of new builds complete Three rigs working; one in transit, receiving standby New builds performance exceeding expectations In Mexico, we completed drilling the first well using rigs from our…
Joint Venture International Growth Strong performance leads to opportunities: Replace existing rigs as they roll off contract Supply high performance rigs for new projects Can be new builds or existing Trinidad rigs Potential…
Short Term Plan for the Downturn
Consistent Industry Outperformance Trinidads rigs are more active Canadian Utilization Rates US Average Active Rig Count TDG US US 70% 65 Trinidads US 2,800 Trinidads Canadian Utilization 60 Average Active Rig Count 60% 55 2,400 50…
Reduced Cost Structure Highly variable cost structure Field labour fluctuates with activity Lower overhead costs Reduction in salaried headcount Wage rollbacks Cost reduction strategies with suppliers Reduced capital budget…
Customer Backed Growth We only build rigs under long-term contracts Approximately 35% of fleet on long-term contract Approximately 1.5 years average term remaining IT'S ABOUT PERFORMANCE 24
Improved Liquidity Lower leverage following CanElson acquisition Funds available on credit lines Pro Forma Q2 2015 Debt/EBITDA at 1.85(1) times Outstanding debt largely non-covenant debt Can use CanElsons trailing 12 months in…
Long Term Strategy
Future Growth Opportunities When market conditions improve Trinidad has: Expertise, customer base and track record to capture North American market share A good vehicle for international growth through its joint venture Independent…
Long Term Debt Plan Long term leverage target of 1.5 times debt/EBITDA Review ways to lower leverage Grow EBITDA base Reduce future capital budgets, pursue only high return projects Sell additional assets to the JV (40% of value…
Diversification Benefits Trinidad Strategic customer partnerships bring new opportunities Less reliance on any one operating area Less seasonality, currency risk, market risk International lessons learned have strengthened the…
APPENDIX IT'S ABOUT PERFORMANCE IT'S ABOUT PERFORMANCE 30
1000, 585 8 Avenue S.W. Calgary, AB, Canada T2P 1G1 T 403.265.6525 Email: investorstrinidaddrilling.com www.trinidaddrilling.com IT'S ABOUT PERFORMANCE IT'S ABOUT PERFORMANCE 33
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