TSX:CFW CALFRAC WELL SERVICES LTD. Investor Presentation August 2014
Company Snapshot TSX Stock Symbol CFW Share Price 20.70 (8/27/2014) Market Capitalization 2.0 billion Quarterly Dividend 0.125 per share Dividend Yield 2.4 percent (8/27/2014) Shares Outstanding 94.4 million (6/30/2014) 30-Day…
Calfracs Size and Scope Fifteen Years of Service 4,700 Employees 1.2 Million Hydraulic Horsepower Sixteen Lab Facilities 450 Primary Suppliers 24 hours ops 7Inth Largest Horsepower (North America) 80% US 30% Canada Revenue…
GROWING OPERATIONAL SCALE 5
Full Service Hydraulic Pressure Pumping Canada Fleet: 17 Fracturing Spreads 384,000 Hydraulic Horsepower 17 Coiled Tubing Crews U.S. Fleet: 15 Fracturing Spreads 660,000 Hydraulic Horsepower Russia Fleet: 18 Cementing Crews 7…
Canadian Operations 7
Canada Update Market Activity One of the Largest Pressure Pumpers by HHP Six largest companies control 85% of the market Exposure to LNG through strong Competitor 5, Calfrac, 18% relationships with a number of key 10% operators…
Canada Key Trends Well count is not the only factor for increasing utilization of Calfracs equipment Market continues to trend towards more stages per well and greater tonnage per stage which positively impacts equipment…
United States Operations 10
United States Update Market Approach Growing U.S. Presence Sustainable and meaningful market share in each operating area Target a contracted status of 70% in the U.S. and an equal mix of oil/gas exposure Growing coiled tubing…
United States Regional Update Highlights Meaningful Market Share (6/30/2014) Fifth Marcellus crew became Mkt. Share Region HHP Crews Rank by active in June 2014 HHP (1) Growing presence in the Eagle Marcellus/Utica 250,750 5 4 Ford…
Latin American Operations 13
Argentina Update Market Activity One of the largest pressure pumping companies in Argentina Argentina Fleet: Multi-year contract win with YPF in 68,000 Hydraulic Horsepower* fall of 2013 8 Cementing Crews 3 Coiled Tubing Crews High…
Mexico Update Market Overview Long-term opportunity with the ongoing reform of the Mexican energy industry Technology Opportunity Latest technological advancement improves Poza Rica play economics Expect 2014 activity levels to…
Russian Operations 16
Russia Update Market Overview and Outlook Horizontal fracturing composed 42% of frac jobs YTD, compared to 32% in the same period last year Operating margins have shown improvement y/y due to higher activity Ongoing geopolitical…
LICENSE TO OPERATE 18
Health, Safety & Environment Excellent HSE Performance HSE Advancements Outperforming industry benchmark Implementation of SandStorm in groups fracturing operations US experience modification rate of 0.7 30% below industry average…
Quality Commitment At Calfrac What is API-Q2 A quality management system that reinforces specific guidelines for safety, environmental and regulatory concerns APIs goal for Q2 is that service companies will need to be certified in…
Supply Chain and Logistics Provide key direction on network optimization Leveraging the supplier landscape to manage growth opportunities Managing infrastructure and storage to enhance service levels North American sand pumped…
PEOPLE WHO MAKE A DIFFERENCE 22
People & Service The Calfrac Team Culture of innovation, growth and continuous improvement Build and maintain strong client relationships at all levels Commitment to employee safety Our Core Values: Energy, Execution, Ethics,…
Calfracs 15th Anniversary Impressive Growth Since Inception In 2014, the Company celebrates its 15th Anniversary 1999 2013 CAGR* Operations began in Medicine Hat, Employees 4 4,300 65% Alberta in 1999 Since inception, the Company…
TECHNOLOGIES THAT WORK IN THE FIELD 25
Technology Commitment Commitment To Continuous Improvement In Technology Develop technologies to: Meet and exceed safety and environmental goals Continually advance our technical expertise Gain a Engineering & Geoscience: Thorough…
STRONG FINANCIAL PERFORMANCE 27
Financial Results (C millions except per share amounts) Income Statement For the Three Months Ended June 30 2014 2013 % Change Revenue 503 289 74 Operating Income 45 16 175 Net Income (12.9) (14.6) 12 Earnings Per Share (Diluted)…
2014 Capex and the Balance Sheet 2014 Capital Program Expanded to 360 mm from 150 mm 120 mm of the spending will occur in 2015 Capex includes 155,000 hhp for delivery in 2015: US 80,000 hhp for two crews Canada 35,000 hhp for…
INVESTMENT ADVANTAGES 30
Investment Advantages Management team with depth and breadth of experience Strong operational backgrounds Global experience History of capital discipline Targeted, strategic investments in equipment and growth Geographic and…
Ian Gillies Manager, Investor Relations 403-218-3422 igilliescalfrac.com www.calfrac.com 32
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