TSX:CFW CALFRAC WELL SERVICES LTD. 2016 Barclays CEO Energy-Power Conference
Company Snapshot TSX Stock Symbol: CFW Share Price* 2.93 30-Day Average Volume* 690,000 Market Capitalization* 338.7 million Enterprise Value* 1.1 billion Shares Outstanding* 115.6 million Insider Ownership 25% * As at 16:00:00…
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 1,000 400 800 300 600 200 400 100 200 0 0 1/4/2013 1/4/2014 1/4/2015…
Global Supply/Demand Weekly Lower 48 Oil Production 10,000 Global oil demand growth continues 9,000 U.S. oil production declines 8,000 accelerating and expected to 000's Bbls/d 7,000 continue into 2017 6,000 U.S.…
Full Service Pressure Pumping As at June 30, 2016 Canada Fleet: 410,000 Horsepower 13 Coiled Tubing Crews U.S. Fleet: 611,000 Horsepower Russia Fleet: 11 Cementing Crews 70,000 Horsepower 5 Coiled Tubing Crews 7 Coiled…
Canadian Operations Canada Fleet: 410,000 Horsepower 13 Coiled Tubing Crews Calfrac Well Services Ltd. 7
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: 611,000 Horsepower 11 Cementing Crews 5 Coiled Tubing Crews Calfrac Well Services Ltd. 9
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 Frac spacing tightening plays across the U.S.…
Latin America Operations Neuqun, Argentina Frac Operation (2014). Calfrac Well Services Photo Calfrac Well Services Ltd. 11
Argentina Market Update Calfrac Market Positioning Argentina Fleet: One of the largest pressure pumping 108,250 Horsepower 13 Cementing Crews companies in Argentina 6 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…
Russian Operations Russia Fleet: 7 Fracturing Spreads 70,000 Horsepower 7 Coiled Tubing Crews Calfrac Well Services Ltd. 14
Russia Market Update Calfrac Market Positioning Horizontal fracturing in conventional reservoirs is a significant amount of Calfracs activity Rouble devaluation has negatively impacted reported financial results Market Outlook…
Committed To Safety, Quality And Flawless Execution LICENSE TO OPERATE Calfrac Well Services Ltd. 16
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…
NAVIGATING THROUGH THE DOWNTURN Calfrac Well Services Ltd. 18
Margin Erosion To Below Breakeven Source: Company Reports, Morgan Stanley Calfrac Well Services Ltd. 19
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…
Managing The Downturn Service Line Strategy Equipment has been idled when operating margins do not meet the companys return requirements Utilization and Maintenance Planning More efficient equipment utilization and maintenance…
Positioned For Recovery Strong management team and Board of Directors that have been through multiple downturns Optimized cost structure and developed operational efficiencies Maintained core customer and supplier relationships…
Service Intensity Continues To Increase Source: Rystad Energy, Morgan Stanley Calfrac Well Services Ltd. 23
FINANCIAL HIGHLIGHTS Calfrac Well Services Ltd. 24
The Balance Sheet Term Debt US600 mm with an interest rate of 7.5% Matures in 2020 Second Lien Term Loan 200 mm with an interest rate of 9% Matures in 2020 Credit Facilities Loan facility 300 mm (largely undrawn) Matures in…
APPENDIX Calfrac Well Services Ltd. 26
Relaxation Of Covenants (Credit Facility) 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…
Second Lien Term Loan On June 10, 2016, AIMCo provided Calfrac a 200 million second lien senior secured term loan facility maturing in September 2020. 9% interest rate paid quarterly with option to pay interest in kind at 12% rate (8…
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