TSX:CFW CALFRAC WELL SERVICES LTD. Investor Presentation May 2016
Active Rig Counts: North America & International 2,000 800 Number of Active WCSB Land Rigs 1,800 700 1,600 600 1,400 Number of Rigs 1,200 500 1,000 400 800 300 600 200 400 200 100 0 0 1/4/2013 1/4/2014 1/4/2015…
Global Supply/Demand Global oil demand growth continues 10,000 Weekly Lower 48 Oil Production U.S. oil production declines 9,000 accelerating and expected to 8,000 000's Bbls/d continue into 2017 7,000 U.S. inventories…
North American Pressure Pumping Supply Number of competitors decreasing through both bankruptcies and consolidation Supply of horsepower decreasing as a result of cannibalization of equipment, lack of R&M and fleet retirements…
Company Snapshot TSX Stock Symbol: CFW Share Price* 1.68 30-Day Average Volume* 944,500 Market Capitalization* 194.2 million Enterprise Value* 985.8 million Shares Outstanding* 115.6 million Insider Ownership 25% * As at…
Full Service Pressure Pumping As at March 31, 2016 Canada Fleet: 410,000 Horsepower 13 Coiled Tubing Crews U.S. Fleet: 615,000 Horsepower Russia Fleet: 11 Cementing Crews 70,000 Horsepower 5 Coiled Tubing Crews 7 Coiled…
Committed To Safety, Quality And Flawless Execution GLOBALLY DIVERSE OPERATIONS Calfrac Well Services Ltd. 8
Canadian Operations Canada Fleet: 410,000 Horsepower 13 Coiled Tubing Crews Calfrac Well Services Ltd. 9
Canada Market Update Calfrac Market Positioning Market Trends Positioned in key areas of frac demand: Stages per well increasing Montney, Duvernay, Deep Basin, Frac spacing tightening Cardium and Viking Operators refocusing on…
United States Operations U.S. Fleet: 615,000 Horsepower 11 Cementing Crews 5 Coiled Tubing Crews Calfrac Well Services Ltd. 11
United States Market Update Calfrac Market Positioning Market Trends Focus on customers that are financially Stages per well increasing strong and intend to remain active in key plays across the U.S. Frac spacing tightening Target…
Managing The Downturn Service Line Strategy Equipment has been idled when operating margins do not meet the companys return requirements Canada - 50% of horsepower and 9 of 13 coiled tubing units idled U.S. - 60% of horsepower idled…
Workforce & Fixed Cost Optimization Canada Reduced field workforce by 60% from January 1, 2015 Fixed costs down 50% Y/Y Further compensation reductions as of January 1, 2016 Transportation group and the majority of frac and coiled…
Latin America Operations Neuqun, Argentina Frac Operation (2014). Calfrac Well Services Photo Calfrac Well Services Ltd. 15
Argentina Market Update Calfrac Market Positioning Argentina Fleet: One of the largest pressure pumping 108,250 Horsepower companies in Argentina 13 Cementing Crews 7 Coiled Tubing Crews Customer expansion to IOCs and domestic…
Mexico Market Update Calfrac Market Positioning Long-term opportunity due to Mexican energy industry reforms Low oil prices will limit immediate impact Round One tenders are ongoing Market Outlook Limited near-term activity…
Russia Operations Siberia, Russia Frac Crew (2006). Calfrac Well Services Photo Calfrac Well Services Ltd. 18
Russian Operations Russia Fleet: 7 Fracturing Spreads 70,000 Horsepower 7 Coiled Tubing Crews Calfrac Well Services Ltd. 19
Russia Market Update Calfrac Market Positioning Horizontal fracturing in conventional reservoirs is a significant amount of Calfracs activity Small rouble-based pricing increases achieved in 2015 Rouble devaluation has negatively…
Committed To Safety, Quality And Flawless Execution LICENSE TO OPERATE Calfrac Well Services Ltd. 21
Our License to Operate HSE Plan Do Assess Adjust QUALITY Monitor Refine Execute Improve TECHNOLOGY Research Develop Test Refine SUPPLY CHAIN Evaluate Negotiate Finalize Implement Calfrac employee on a Canadian hydraulic…
The Balance Sheet Term Debt US600 mm with an interest rate of 7.5% Matures in 2020 Credit Facilities Recently renegotiated facility structure and covenants Loan facility now 300 mm Facility matures in September 2018 Capital…
Relaxation Of Covenants Funded Debt/EBITDA covenant amendments including two periods of waivers Introduction of Equity Cure: Applicable up to December 31, 2017 Not to exceed the greater of 50% of total EBITDA over the prior…
Amendments To Credit Facility A voluntary reduction in the Credit Facilities commitment from 400 mm to 300 mm Advances under the Credit Facilities will be limited by borrowing base based on North American accounts receivable, cash…
Senior Note Indenture Considerations Offside our Fixed Charge Coverage Ratio (FCCR) but not in breach of covenants or defaults Indenture restricts ability to incur additional debt or make certain restricted payments when offside…
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