OVERVIEW OF TRICAN Full service, Canadian pressure YEAR TO DATE MARCH 31, 2016 pumping company Revenue by Service Line Market leader in Canada 3% 3% 2% 2% 440,000 HP available fracturing 26% capacity Completions Tools…
CANADA
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 market…
CANADA Strong safety record Technical advantage in Canadian market which pays off in downturn Numerous engineers embedded in client offices MVP FracTM system Geological and reservoir services integrated into frac designs…
GEOGRAPHIC COVERAGE Horn River FORT NELSON HIGH LEVEL Shale British Columbia Alberta Saskatchewan Manitoba Montney FORT ST. JOHN Shale RED EARTH GRANDE PRAIRIE Duvernay Shale WHITECOURT HINTON NISKU LLOYDMINSTER…
CANADA EQUIPMENT Current Canadian fleet 440,000 fracturing HP 55 Cementing units Canadian HP Growth 38 N2 Pumpers 500,000 450,000 19 Acid Units 400,000 16 Coil Units 350,000 300,000 250,000 50% of equipment parked during…
CANADA - FIRST QUARTER Utilization and activity low and choppy in Q1 March very slow due to early breakup Pricing down 6% sequentially in Q1 2016 9
CANADA - OUTLOOK Q2 2016 slow due to normal spring breakup and commodity prices with improved year-over-year operating income Poor visibility at this time on Q3 2016 Customers will confirm programs in May and June for Q3…
CANADA - SECOND HALF COST SAVINGS Parked additional equipment for upcoming quarters Approximately 50% of equipment parked Closed Medicine Hat and Drumheller locations Variable costs reduced 6-8% Fixed costs reduced 20-25…
GETTING THROUGH THE DOWNTURN
GETTING THROUGH THE DOWNTURN Improve balance sheet Keep utilization high and costs low in remaining operations Reduce fixed costs as business centralizes to Canada Maintain customer relationships Provide differentiating…
POSITIVES AFTER THE DOWNTURN Strong earnings on reduced cost structure as utilization and pricing improve Mid-cycle EBITDA from Canada (2014): 226 million Peak EBITDA from Canada: 465 million Competitive landscape changing…
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 Canada Separating ourselves through technology, safety, service…
COMPLETION TOOLS
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…
SALE OF U.S. BUSINESS
SALE OF U.S. BUSINESS Sold to Keane Group on March 16 Approximately 267 million (CAD) cash 10% retained ownership in Keane Potential 20% upside from certain economic interests upon Keane liquidity event Total transaction…
U.S. SALE - STRATEGIC RATIONALE Covenant relief and strengthened balance sheet puts Trican in a strong position to weather the downturn Fair deal in this market with upside in Keane interest Retained ownership allows us to…
U.S. SALE - STRATEGIC RATIONALE Keane intends to continue to grow the business to be a major player in the U.S. market Trican has a 2-year non-compete and first right to purchase the business should we decide to re-enter the…
INNOVATION
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…
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
POST USA BALANCE SHEET Outstanding Senior Notes - Post Strategy 167 million drawn on 303 70,000,000 million revolving credit facility 60,000,000 303 million revolving credit 50,000,000 facility is committed until 2018…
COVENANT RELIEF Amended covenants put Trican in a strong position to ride out the downturn All financial covenants eliminated until Q3 2016 Leverage covenant of 5x and interest coverage of 2x will start in Q3 and will be…
COVENANT RELIEF LTM calculations will not commence until Q2 2017 Normalized covenant of 3x Debt/EBITDA by Q1 2018 Equity cure provision allows us to apply 50% of any equity raise towards EBITDA in covenant calculations…
CASH FLOW Managing cash flow and liquidity a key focus in 2016 Dividend suspended until financial performance improves Total capital spend in 2016 expected to be less than 20 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 Strong Canadian business that generates industry leading…
SUMMARY Number of Outstanding Shares (as of April 30, 2016): 149 million Average Daily Volume (one month period): 689,221 (as of April 30, 2016) Directors/Officers Ownership: 2.0% (approx. - diluted basis) Market Cap: 260…
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