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 Canada 62 rigs US 5 barges 59 rigs Saudi 4 rigs Mexico Mexico41 rigs 7 rigs Rig manufacturing Innovation & design Includes rigs under construction, JV rigs included at 100 percent IT'S ABOUT…
More Rigs that Customers Want 85% of Trinidads Rigs are Modern, High Performance Rigs IT'S ABOUT PERFORMANCE 5
Consistent Industry Outperformance Trinidads rigs are more active Canadian Utilization Rates US Active Rig Count (Change from 10/3/08) Trinidads Canadian 70% 60% Utilization 60% 40% TDG 50% 20% 40% 0% 30% Industry -20% Average…
Solid Canadian Operations Active in key plays Broad customer base Liard Other Demand stable 2 25 Montney 13 Oil sands LNG development drives USA CANADA Duvernay 1 6 Lloyd Heavy Oil future growth Cardium 1 5 AB Frobisher…
Canadian Growth - LNG LNG - a perfect fit for Trinidad Existing relationships with key LNG players The right equipment and experience Constructing Liard new build for LNG Expect growth in coming years IT'S ABOUT PERFORMANCE 8
Stable Operations in United States Bakken 4 US operations less Niobrara 2 seasonal Other Demand increasing 1 Cleveland Tonkawa US activity and dayrates 10 Permian Barnett improving 18 Haynesville 4 6 Eagle TMS* Ford 4…
Demand for Upgraded Equipment Industry shift plays into Trinidads strategy Strong reputation as a high performance driller Upgrades to our fleet maintain market share and marketability Five new rigs for US operations, delivery in…
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 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 12
JV - Saudi Operations Begin First three rigs operating Fourth rig in Middle East Drilling Office space established (68 Rigs) 93% 250 employees hired to date CANADA IT'S ABOUT PERFORMANCE 13
International Growth Joint Venture More than 100 rigs operating globally for HAL First look at all HAL international opportunities, outside North America Trinidad can say no to any deal Capital exposure limited to 60% IT'S ABOUT…
Skilled, Safety Focused Crews Our safety performance is better than the industry and keeps improving High performance rigs attract the best people IT'S ABOUT PERFORMANCE 15
Customer Backed Growth We lower our risk by only building rigs under long-term contracts 50% of fleet on long-term contract 1.5 years average term remaining IT'S ABOUT PERFORMANCE 16
Solid Capital Structure Capital structure meets our needs Currency balance, extended maturity and financial flexibility Cash on hand at Q3 2014 - 142m Credit Facility Available Outstanding Expiry Q3 2014 Revolver C200m C0m Dec…
Debt Reduction Total/Net Debt to EBITDA* 4.0 (times) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2007 2008 2009 2010 2011 2012 2013 Q3-14 Long term target Total Debt to EBITDA Net Debt to EBITDA *Based on current debt covenants 18
Q3 & 2014 Capital Program 2014 capital budget - 350 million New builds (LNG, purchased rig, begin 5 US new rigs) JV related(1) (4 Saudi, 4 Mexico) Upgrades Maintenance and infrastructure capital Q3 14 capex of 117 million (includes…
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 21
APPENDIX www.trinidaddrilling.com
Canadian Industry Strengthening Current activity ahead of 2013 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 week week…
US Industry Conditions Improving US active rig count increasing Rig mix changing, driving improving conditions US Industry Active Rig Count 2400 2000 1600 1200 800 400 0 week week week week week week week week week week…
Historical Dayrates Dayrates Canada Rate Per Operating Day vs Operating Margin Dayrates US Rate Per Operating Day vs Operating Margin (CDN) (US) 30,000 50% 30,000 50% 25,000 40% 25,000 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. 15% 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 9% 12% 6% 4% 0 - 5,999ft 6,000- 7,999ft 8,000ft+ 84% 88% Rig Fleet Age 23% 17% < 5 years High performance, high mobility, advanced drilling…
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…
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