Annual & Special Meeting May 8th, 2014 ITS ABOUT PERFORMANCE
Well Positioned for Growth Trinidad has: In-demand asset base Proven operational expertise Extensive growth opportunities Financial flexibility to support growth IT'S ABOUT PERFORMANCE 3
Growing Diversification Canada1 62 rigs US 5 barges 58 rigs Saudi1 4 rigs Mexico1 Mexico71 rigs 7 rigs Rig manufacturing Innovation & design 1 includes rigs under construction, JV rigs included at 100 percent IT'S…
More Rigs that Customers Want 80% of Trinidads Rigs are Modern, High Performance Rigs IT'S ABOUT PERFORMANCE 5
Consistent Industry Outperformance Trinidads rigs are more active Canadian Utilization Rates US Active Rig Count (Change from 10/3/08) Trinidads Canadian 70% Utilization 60% 60% 40% TDG 50% 20% 40% 0% Q2 08 Q3 08 Q4 08 Q1…
Solid Canadian Operations Active in key plays Broad customer base Liard LNG development 1 Montney 14 Oil driving new demand USA CANADA sands Duvernay 1 5 Viking Cardium 1 4 AB Frobisher Bakken 5 2 Includes 2014 rig…
Canadian Growth - LNG LNG - a perfect fit for Trinidad Existing relationships with key LNG players The right equipment and experience Awarded Liard new build for LNG in 2013 Expect growth late 2014/2015 IT'S ABOUT PERFORMANCE 8
Stable Operations in United States US operations less Bakken 1 Niobrara 3 seasonal Competition easing Cleveland Tonkawa US activity and dayrates CANADA 11 Permian Barnett improving 11 3 Haynesville Eagle Ford 3 Expect…
Demand for Upgraded Equipment Industry shift plays into Trinidads strategy Strong reputation as a high performance driller Upgrades to our fleet maintain market share and marketability Some new build potential for 2014 and…
Trinidad Drilling International - JV provides provides Customer relationships High-performance rigs International know-how Innovative technology Logistical support Operational excellence Infrastructure Rig manufacturing 40%…
Joint Venture First Steps Saudi entry; four rigs in mid 2014 (3 upgraded US rigs and 1 new build) Drilling (68 Rigs) 93% Four new builds for Mexico to be CANADA delivered in late 2014/early 2015 IT'S ABOUT PERFORMANCE 12
JV - Saudi Operations Begin First rig spud last week Second and third rigs in Drilling country and rigging up (68 Rigs) 93% Office space established 200 employees hired to CANADA date IT'S ABOUT PERFORMANCE 13
International Growth Joint Venture More than 100 rigs operating globally for HAL Expect significant portion of new and existing Drilling rigs under JV over coming years (68 Rigs) 93% First look at all HAL international…
Skilled, Safety Focused Crews Our safety performance is better than the industry and keeps improving High performance rigs attract the best people IT'S ABOUT PERFORMANCE 15
Customer Backed Growth We lower our risk by only building rigs under long-term contracts 40% of fleet on long-term contract 1.7 years average term remaining IT'S ABOUT PERFORMANCE 16
Solid Capital Structure Capital structure meets our needs Currency balance, extended maturity and financial flexibility Recent equity offering improves ability to fund growth Credit Facility Available Outstanding Expiry Q1 2014…
Debt Reduction Almost Complete Total Debt to EBITDA* (times) 3.56 3.20 3.24 Excludes 2.86 278m cash on hand at 2.42 quarter end 1.91 1.80 1.91 1.50 2007 2008 2009 2010 2011 2012 2013 Q1-14 Long term target *Based on…
2014 Capital Program Total 2014 capital budget of 315 million New builds and JV related(1) - 135 million LNG new build JV related new builds 5 rigs JV related rig upgrades 3 rigs Upgrades to 30 rigs - 140 million Improve…
An Exciting New Era for Trinidad Free cash flow provides many opportunities Upgrade existing rigs Build new rigs, expand operations Alignment with HAL opens new doors Build cash for future cycles Return value to shareholders…
Invest in Trinidad Trinidad has: The right rigs for today and tomorrow Exciting growth opportunities Financial flexibility to fund growth IT'S ABOUT PERFORMANCE 21
APPENDIX www.trinidaddrilling.com
Canadian Activity As Expected Spring break up activity a little ahead of 2013 Dayrates and activity stable for high performance rigs Canadian Industry Active Rig Count 800 600 400 200 0 week week week week week week…
US Industry Conditions Improving US active rig count beginning to increase Rig mix changing, driving improving conditions US Industry Active Rig Count 2400 2000 1600 1200 800 400 0 week week week week week week week…
Q1 2014 Highlights Drilling margins and dayrates stable in Canada & US Operating income lower due to less active shallow drilling, weaker barge business, lower activity in Mexico partly offset by stronger US dollar Adjusted EBITDA of…
Summary of Results FINANCIAL HIGHLIGHTS For the quarter ended March 31, ( tho usands except share and per share data) 2014 2013 % Cha nge Re ve nue 251,505 247,186 1.7 Re ve nue , ne t of thi rd pa rty cos ts 231,018 227,377 1.6 Ope…
Historical Dayrates Canada Rate Per Operating Day vs Operating Margin Dayrates US Rate Per Operating Day vs Operating Margin Utilization (US) 30,000 50% 30,000 50% 25,000 25,000 40% 40% 20,000 20,000 30% 30% 15,000 15,000 20%…
Consistent Dividend Consistently paid a dividend for past 10 years, throughout industry cycles and economic downturns Sustainable payout level at approx. 10% of 2014 consensus cash flow Current dividend of 0.05 per share per quarter…
Advanced, Deep and Modern Fleet Technically Advanced Fleet Rig Fleet Depth 13% 6% 15% 0 - 5,999ft 5% 6,000- 7,999ft 81% 8,000ft+ 80% Rig Fleet Age 25% 16% < 5 years High performance, high mobility, advanced drilling…
Contracts Provide Stability Typically 40 to 60% of our fleet is under contract Fleet under Average term remaining contract (years) 100% 3.0 75% 2.0 50% 1.0 25% 0% 0.0 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 YE 2013…
Drilling Efficiency Saves Money Trinidad's Efficiency Capabilities1 First Entry Current Days to Drill Typical Well 65 40 Cost of Rig 2 1,462,500 900,000 3 Ancillary Equipment 2,193,750 1,350,000 Total Well Savings 25 Days…
Key Technological Advances Automation Pipe Handling, Iron Roughneck Top Drive Automated pipe handling automates Trinidads patented design provides moving drill pipe and other tubulars increased torque and ability to perform to and…
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