TSX:CFW CALFRAC WELL SERVICES LTD. Investor Presentation June 2014
Company Snapshot TSX Stock Symbol CFW Share Price 19.15 (6/3/2014) Market Capitalization 1.8 billion Quarterly Dividend 0.125 per share Dividend Yield 2.6 percent (6/3/2014) Shares Outstanding 94.2 million (6/2/2014) 30-Day…
Calfracs Size and Scope Fifteen Years of Service 4,600 Employees 1.2 Million Hydraulic Horsepower Sixteen Lab Facilities 450 Primary Suppliers 24 hours ops 7Inth Largest Horsepower (North America) 80% US 30% Canada Revenue…
GROWING OPERATIONAL SCALE 5
Full Service Hydraulic Pressure Pumping Canada Fleet: 17 Fracturing Spreads 392,000 Hydraulic Horsepower 17 Coiled Tubing Crews U.S. Fleet: 15 Fracturing Spreads 674,450 Hydraulic Horsepower Russia Fleet: 18 Cementing Crews 7…
Canadian Operations 7
Canada Update Market Activity One of the Largest Pressure Pumpers by HHP Six largest companies control 85% of the market Exposure to LNG through strong Competitor 5, Calfrac, 18% relationships with a number of key 10% operators…
Canada Key Trends Well count is not the only factor for increasing utilization of Calfracs equipment Market continues to trend towards more stages per well and greater tonnage per stage which positively impacts equipment utilization…
United States Operations 10
United States Update Market Approach Growing U.S. Presence Sustainable and meaningful market share in each operating area Target a contracted status of 70% in the U.S. and an equal mix of oil/gas exposure Growing coiled tubing…
United States Regional Update Highlights Meaningful Market Share (4/30/2014) Adding a fifth crew in the Mkt. Share Region HHP Crews Rank by Marcellus that will become HHP (1) active in 2H14 Marcellus/Utica 262,950 5 3 Leading…
Latin American Operations 13
Argentina Update Market Activity One of the largest pressure pumping companies in Argentina Argentina Fleet: Contract win with YPF in fall of 68,000 Hydraulic Horsepower* 2013 7 Cementing Crews 3 Coiled Tubing Crews High rate…
Mexico Update Market Overview Long-term opportunity with the ongoing reform of the Mexican energy industry Technology Opportunity Latest technological advancement improves play economics Poza Rica One of only two service…
Russian Operations 16
Russia Update Market Overview and Outlook 34% of fracturing work on horizontal wells in 2013 Expect horizontal completions to trend towards 50% of fracturing work in 2014 Highly contracted status creates stable utilization levels…
LICENSE TO OPERATE 18
Health, Safety & Environment Excellent HSE Performance HSE Advancements Outperforming industry benchmark Implementation of SandStorm in groups fracturing operations US experience modification rate of 0.7 30% below industry average…
Quality Commitment At Calfrac What is API-Q2 A quality management system that reinforces specific guidelines for safety, environmental and regulatory concerns APIs goal for Q2 is that service companies will need to be certified in…
Supply Chain and Logistics Provide key direction on network optimization Leveraging the supplier landscape to manage growth opportunities Managing infrastructure and storage to enhance service levels Key suppliers in place to…
PEOPLE WHO MAKE A DIFFERENCE 22
People & Service The Calfrac Team Culture of innovation, growth and continuous improvement Build and maintain strong client relationships at all levels Commitment to employee safety Three Es Culture: Energy, Ethics and…
TECHNOLOGIES THAT WORK IN THE FIELD 24
Technology Commitment Commitment To Continuous Improvement In Technology Develop technologies to: Meet and exceed safety and environmental goals Continually advance our technical expertise Gain a Engineering & Geoscience: Thorough…
STRONG FINANCIAL PERFORMANCE 26
Financial Results (C millions except per share amounts) Income Statement For the Three Months Ended March 31 2014 2013 % Change Revenue 548 423 29 Operating Income 64 63 2 Net Income 8.9 24.6 (64) Earnings Per Share (Diluted) 0.19…
CALFRACS OPPORTUNITIES 28
Strategic Focus Increase market share in unconventional resource plays Grow global footprint Expand customer base in key markets where we operate Top 10 Countries - Technically Recoverable Top 10 Countries - Technically Recoverable…
Value Creation Optimize return on capital employed for our investors Create an environment that fosters dedicated employees Develop long-term relationships with our customers Cultivate strong supply chain alliances 30
Investment Advantages Management team with depth and breadth of experience Strong operational backgrounds Global experience History of capital discipline Targeted, strategic investments in equipment and growth Geographic and…
Ian Gillies Manager, Investor Relations 403-218-3422 igilliescalfrac.com www.calfrac.com 32
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