OVERVIEW OF TRICAN AND CANYON Market leader in Canada Fraction Energy, Industrial, 2% 4% Acid, Coil, Canadian fleet Nitrogen, 7% 680,000 fracturing HP 72 Cementing units 55 N2 Pumpers Cementing, 15% 31 Acid Units 29 Coil…
EQUIPMENT Active equipment 410,000 fracturing HP (active, manned) 145,000 fracturing HP (active, maintenance and future activations) 125,000 fracturing HP (parked) Plans to activate 2-3 crews in 2H 2017 (approximately 75,000 HP)…
TRICAN EQUIPMENT FRACTURING PUMPS 85% of Tricans active fleet already running continuous duty Quintuplex high HP pumps Canyon converting pumps to new technology continuous duty pumps 70% of fluid ends converted to stainless…
TRICAN AND CANYON - SYNERGIES Annual synergies between 20 and 40 million 18 million realized as of July 30, 2017 Will implement best practices from both companies 7
STRONG FINANCIAL POSITION Creates the premier pressure pumping company in Canada Strong balance sheet with roughly 149 million net debt post Canyon One of the largest service companies in Canada Combined market cap of…
TRICAN COMPETITIVE ADVANTAGE Strong safety record LTIR rate of 0.08 Technical advantage in Canada Numerous engineers embedded in client offices MVP FracTM system Geological and reservoir services integrated into frac designs…
GEOGRAPHIC COVERAGE Horn River Shale British Columbia Alberta Saskatchewan Manitoba Montney FORT ST. JOHN Shale GRANDE PRAIRIE Duvernay Shale WHITECOURT HINTON NISKU LLOYDMINSTER DRAYTON VALLEY Viking RED DEER Tight…
TRICAN OUTLOOK 2017 Estimate 6,700 wells to be drilled in 2017 (PSAC Forecast) Up 65% year-over-year Industry short manned fracturing equipment in 2H 2017 Deep Basin, Montney, Duvernay activity generates 70-75% of Trican…
TRICAN OUTLOOK 2017 Fully booked for active equipment in major service lines through to 2018 Fracturing pricing up 20-25% in 2H 2017 over Q1 levels No change recently in second half of 2017 activity based on current commodity…
TRICAN OUTLOOK 2017 Will face cost increases in 2H 2017 for products, spare parts, third-party hauling and labour Contracts allow for recovery of major input costs Cost savings on products anticipated from new technology…
TRICAN OUTLOOK 2017 Increased frac intensity and job size Q2 2017 sand volume per month is the highest ever 25% sequential increase over Q1 volume Leading edge sand volume 6,000 tonnes per well Still below US average Average…
TRICAN COST SAVINGS Fixed costs reduced by 140 million per year since the start of the downturn Minimal fixed cost increases going forward as business improves Lowered fixed/variable cost ratio Fixed costs now 25% of costs…
GROWTH
GROWTH Strong earnings from Trican-Canyon assets with a reduced cost structure as utilization improves Mid-cycle combined EBITDA from Canada (2014): 347million - 19.6% EBITDA margin 70% utilization Peak combined EBITDA from…
GROWTH We will focus on: Being on leading edge of cost and operational efficiencies Achieving cost advantages through size and scale in Canada Separating ourselves through safety, technology, service quality and innovation…
ADDITIONAL GROWTH Retained ownership in Keane allows us to participate in U.S. recovery Approximately 6.5% ownership in Keane Group with potential increased payout from certain economic conditions upon liquidity event Trican…
ADDITIONAL GROWTH Trican Pro Rata Year Ending Keane Holding Trican Pro Rata Proceeds (1.35 CAD/USD March 15 Company Proceeds Proceeds Exchange Rate) FRAC USD 9.87 share price: 2018 USD0.71 billion USD99 million CAD134 million…
ADDITIONAL GROWTH Non-compete in U.S. until April 2018 and first right to purchase the Keane business should we decide to re-enter the U.S. Trican will license our technology in U.S. and International markets Licensed one sand…
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 Strong…
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 Results in increased…
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
AS OF JUNE 30, 2017 106 million drawn on 227 million revolving credit facility Outstanding Senior Notes (Shown in CAD) 227 million revolving credit facility is committed 40,000 until 2018 35,000 30,000 68 million of Senior…
INVESTMENT ADVANTAGES Trican-Canyon deal increases scale Trading substantially below U.S. pressure pumpers Significant earnings potential on existing assets No significant capital required Equipment base not scavenged and ready…
SUMMARY Number of Outstanding Shares (as of June 30, 2017): 346.3 million Average Daily Volume (one month period): 2,307,369 (as of June 30, 2017) Directors/Officers Ownership: 1.2% (approx. - diluted basis) Market Cap (as…
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