First Energy East Coast Energy Conference March 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
Faster Drilling, Proven Results 67% Eagle Ford Shale* faster 30 days to 10 days Improved 25% Haynesville Shale * Drilling 60 days to 45 days faster Results 26% Montney Shale * faster 10m per hr to 13m per hr * Improved spud…
Consistent Industry Outperformance Trinidads rigs are more active Trinidads Canadian 70% Utilization 60% 60% 40% TDG 50% 20% 40% 0% Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3…
Canadian Activity As Expected Q1 2014 activity in line with 2013 to date Dayrates and activity stable for high performance rigs Canadian Industry Active Rig Count 800 600 400 200 0 week week week week week week week…
US Industry Conditions Improving US active rig count stable year to date in 2014 Rig mix changing, driving improving conditions US Industry Active Rig Count 2400 2000 1600 1200 800 400 0 week week week week week week…
Solid Canadian Operations Active in key plays Broad customer base Liard LNG development 1 Montney 14 Oil driving new demand USA CANADA sands Duvernay 3 5 Viking Cardium 2 5 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 11
Stable Operations in United States US operations less Bakken 2 Niobrara 3 seasonal Competition easing Cleveland Tonkawa US activity and dayrates CANADA 10 Permian Barnett improving 10 4 Haynesville Eagle Ford 3 Expect…
US Growth Equipment Upgrade 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 beyond…
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 15
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…
We Build Rigs that Outperform We are drillers, we know: what our customers need what works in the field what will be in demand over the long term IT'S ABOUT PERFORMANCE 17
We Live and Breathe Safety Our safety performance is better than the industry and it keeps improving IT'S ABOUT PERFORMANCE 18
Our People Make The Difference High performance, active rigs attract the best people IT'S ABOUT PERFORMANCE 19
Customer Backed Growth We lower our risk by only building rigs under long-term contracts IT'S ABOUT PERFORMANCE 20
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…
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 Q4 2013…
Debt Reduction Almost Complete Total Debt to EBITDA* (times) 3.56 3.20 3.24 2.86 2.42 1.91 1.80 1.50 2007 2008 2009 2010 2011 2012 2013 Long term target *Based on current debt covenants 23
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 26
APPENDIX www.trinidaddrilling.com
Q4 2013 Highlights Slower industry demand lead to reduced activity compared to Q4 2012 Higher margins in Canadian operations due to lower coring-related expenses Early termination revenue of 19.6m received in US. Adjusted EBITDA of…
Summary of Results FINANCIAL HIGHLIGHTS For the years ended December 31, Three months ended December 31, For the yea rs ended December 31, ( tho usands except share and per share data) 2013 2012 % Cha nge 2013 2012 % Cha nge Revenue…
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…
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…
A Continued Focus on Safety TRIF 6.00 5.00 4.00 3.00 2.00 1.00 0.00 TRIF Total Recordable Injury Frequency, 12 month corporate rolling average 35
2500, 700 9 Avenue S.W. Calgary, AB, Canada T2P 3V4 T 403.265.6525 E infotrinidaddrilling.com www.trinidaddrilling.com
Loading...
