OVERVIEW OF TRICAN YEAR TO DATE SEPTEMBER 30, 2015 Large, North American, full service Revenue by Geography pressure pumping company 44% 56% 1,083,500 HP available fracturing USA capacity Canada 87 Cement & 37 Acid…
INTERNATIONAL Closed sale of Russian business for 195 million CDN Includes first tranche of working capital adjustment Sold for 6.4x 2014 EBITDA Closed Saudi Arabia and Australia as scale not large enough to sustain…
OVERVIEW OF TRICAN 577,000 HP (53% of equipment) Historical Fracturing HP parked since 2014 1,400,000 35% parked in Canada 1,200,000 62% now parked in USA 1,000,000 Equipment parked whole and not 800,000 scavenged…
COMPETITIVE ADVANTAGES Strong safety record 2015 YTD injury frequency rate of 1.07 Operational performance Efficiency saves clients money Technology MVP Frac TM TriVert Diverting Agent Lightweight cements Recycled…
CANADA 7
CANADA Trican is the largest pressure pumper in Canada Trican offers full services in Canadian market which balances revenue and profitability Large cementing market share Strong market share in other services Canadian…
CANADA Technical advantage in Canadian market which pays off in downturn 20% of fracturing work in 2014 done with MVP frac Geological and reservoir services integrated into frac designs Lightweight cement blends Numerous…
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 EQUIPMENT Canadian HP Growth Current available Canadian fleet 500,000 450,000 440,000 fracturing HP 400,000 350,000 55 Cementing units 300,000 250,000 38 N2 Pumpers 200,000 150,000 19 Acid Units 100,000…
CANADA - OUTLOOK 35% of equipment parked during 2015; anticipate keeping remaining equipment highly utilized 85% of remaining equipment committed to year-end Parked equipment ring fenced and ready to go to work when…
CANADA - OUTLOOK Customer base strong have had market share improvements Cost cutting measures have substantially improved second half results; still working on additional cost savings Strong activity in October and November…
CANADA COST CUTTING Product Costs Largest element of cost structure Have achieved 10-15% reduction People Have reduced Canadian employee base by 45% Total salary and benefits cost reduced by 57% Expected annual fixed cost…
USA 15
GEOGRAPHIC COVERAGE - FRACTURING MINOT Bakken Marcellus Mid-Con Utica Barnett SHAWNEE Current Active US Crews SPRINGTOWN Oklahoma: 2 crew ODESSA Marcellus: 4 crews HOUSTON Current Active HP: 217,500 Permian…
USA OUTLOOK Pricing stabilizing - down approximately 30% from peak Shut down 2 fracturing crews in Texas in October resulting in additional cost savings Cost savings of approximately 4 million per quarter Expect to operate…
USA OUTLOOK Anticipate a slowdown in December Anticipate Q1 2016 activity to be strong on committed crews based on current customer plans Will continue to monitor customer programs and adjust equipment up or down…
US - COST CUTTING Product costs Have achieved 15-25% reduction to date People Have reduced employee base by 60% Salary reductions of 10% on remaining employees Expected annual fixed cost reductions of 76 million Equipment…
CORPORATE - COST CUTTING People Costs Salary and benefits reductions - Salary reductions of 10% - Temporary suspension of certain benefits Reduced Corporate employee base by 40% Total annualized cost reductions of 24…
COMPLETION TOOLS 21
COMPLETION TOOLS Operations in Norway, Russia, USA and Canada Offer multistage frac tools, completion and intervention tools for both open hole and cemented installations Competitive advantage with patented completion system…
GETTING THROUGH THE DOWNTURN 23
GETTING THROUGH THE DOWNTURN Size operations to current activity levels Lower costs Keep utilization high on activated equipment Work for the right customers Maintain equipment Provide differentiating safety, efficiency…
STEPS TO MANAGE THE DOWNTURN Sell Russia, Kazakhstan, and spare international equipment in closed regions Maximize profitability and cash flow from remaining operations Canada doing well Still working on improving U.S.…
POSITIVES AFTER THE DOWNTURN Strong earnings on reduced cost structure as utilization and pricing improve Competitive landscape changing Baker-Halliburton merger will create opportunities in all of our markets U.S.…
POSITIVES AFTER THE DOWNTURN Sand per Stage Substantial completions 400,000 350,000 backlog 300,000 Currently estimating over 250,000 200,000 4,500 drilled but 150,000 uncompleted wells in the 100,000 US market 50,000…
COMING OUT OF THE DOWNTURN We will focus on: Being on the leading edge of cost and operational efficiencies Achieving cost advantages through size and scale in active regions Separating ourselves through technology, safety,…
INNOVATION 29
INNOVATION Trican focuses on separating itself with technology Technology must reduce /BOE for our customers or lower our costs MVP FracTM Patented chemical solution that reduces proppant settling in slick water fracs Strong…
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…
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 34
DEBT STRUCTURE Current outstanding and available debt at November 20, 2015 368 million in fixed rate notes payable - 147 million due by April 2016 201 million drawn on revolving credit facility 225 million in cash and…
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 approximately 30 million No expansion initiatives will be…
INVESTMENT ADVANTAGES Trading substantially below book value Significant earnings potential on existing assets High leverage on low cost structure coming out of downturn Low capital expenditures in 2015 and 2016 Free cash flow…
SUMMARY Number of Outstanding Shares (as of October 30, 2015): 148.9 million Average Daily Volume (one month period): 1,068,527 (as of October 30, 2015) Directors/Officers Ownership: 2.0% (approx. - diluted basis) Market…
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