Investor Presentation December 2014 PLATFORM FOR GROWTH
OVERVIEW OF TRICAN Large, world-wide, full service REVENUE BY GEOGRAPHY pressure pumping company 9 months ending September 30, 2014 International International 14% Canada Russia (majority) 45% Kazakhstan Australia Norway…
TRICAN STRENGTHS PLATFORM FOR GROWTH 4
TRICAN STRENGTHS Focus on safety, technology, and operational performance Fracturing HP Growth Significant earnings potential on 1,400,000 1,200,000 existing assets 1,000,000 800,000 1,193,000 HP current fracturing…
TRICAN STRENGTHS Our people are our strength 6,500 skilled employees worldwide Named one of Canadas Top Employers for Young People for 2013, one of Canadas Top Employers for 2014 and 2015, and one of Canadas Top Family…
STRENGTHS FULL SERVICES Service Line % of 2014 Revenue (at September 30, 2014) Fracturing 79% Cementing 11% Coiled Tubing 3% Nitrogen 4% Acidizing & Specialty 2% Chemicals Industrial & Pipeline 1% Services PLATFORM FOR…
COMPETITIVE ADVANTAGES Customer-focused provider of technical solutions Separate ourselves with technology Named one of Canadas top 100 Corporate R&D spenders in 2012, 2013 and 2014 (by Research Infosource Inc.) Product…
AREAS OF OPERATION Canada United States Russia Kazakhstan Algeria Australia PLATFORM FOR GROWTH 9
CANADA PLATFORM FOR GROWTH 10
GEOGRAPHIC COVERAGE Horn River FORT NELSON HIGH LEVEL Shale British Columbia Alberta Saskatchewan Manitoba Montney FORT ST. JOHN Shale RED EARTH GRANDE PRAIRIE Duvernay WHITECOURT Shale HINTON NISKU LLOYDMINSTER DRAYTON…
CANADA EQUIPMENT - 2014 Current Canadian fleet Canadian HP Growth 440,000 fracturing HP 450,000 400,000 55 Cementing units 350,000 300,000 38 N2 Pumpers 250,000 200,000 19 Acid Units 150,000 100,000 16 Coil Units…
CANADA - 2014 Strong Canadian demand through to April 2015 Canadian producer cash flows up 40% in 2014 Low Canadian dollar significantly improved customer cash flow Over 12 billion raised by customers YTD Pricing increased…
CANADA - OUTLOOK Strong activity in Q1 2015 Slower second half of 2015 as customers cash flows are reduced Activity reduction cushioned by increase in fracturing intensity Well positioned with a number of clients in all…
DUVERNAY IMPACT ON TRICAN Duvernay activity expected to increase in 2015 Pressure pumping revenue from 3 to 4 million per well Full scale development could be 500 wells per year Full scale development uses 300,000 to…
USA EQUIPMENT - 2014 Current active U.S. fleet 585,000 fracturing HP 13 Cement units 10 Acid units 6 Coil units 11 N2 units Strong utilization anticipated until Q2 2015 Pricing currently holding Cost reduction initiatives…
PATH TO IMPROVED FINANCIAL RESULTS IN THE U.S. Operational Performance Increase Utilization Increase Pricing - Service Quality - Utilization has increased in - Opportunities to increase price the Permian, Bakken in the Permian -…
USA OUTLOOK Rig count will drop after Q1 2015 Gas areas remain stronger Will reduce costs and size of operations as required Strong management team and lower cost structure than last downturn PLATFORM FOR GROWTH 20
RUSSIA PLATFORM FOR GROWTH 21
RUSSIA AND THE FSU Started operations in 2000 One of the largest fracturing companies in Russia Primarily work on oil wells All work is on 1 or 3 year contracts Services: Fracturing 88% Coiled Tubing 6% Cementing 4%…
RUSSIA AND THE FSU ARCTIC SHELF (BARENTS, PECHORA, KARA SEA) Traditional regions for oil production Regions of growth Operational Base NOVY URENGOY Representative Office MOSCOW GUBKINSKY NYAGAN KUEDA RADUZHNY VCNG…
RUSSIA - 2014 Horizontal, multi-stage fracturing on conventional sandstones continuing to increase Has led to strong demand since March 2014 Future growth in Eastern Siberia to fill new Chinese pipeline Russia/Ukraine conflict…
INTERNATIONAL PLATFORM FOR GROWTH 25
INTERNATIONAL Australia Cement and environmental services Flat first half of 2015 with growth in second half LNG driven gas market Kazakhstan Fracturing services Good profitability Looking for growth opportunities…
INTERNATIONAL Norway Completion tools only Strong acceptance of completion tool technology in North Sea Anticipate growth in 2015 good profitability Middle East Started coiled tubing operations in Q2 2014 Looking to add…
INNOVATION PLATFORM FOR GROWTH 28
INNOVATION Trican focuses on separating itself with technology MVP FracTM Patented chemical solution that reduces proppant settling in slick water fracs Strong market acceptance in Canada; looking to expand into other…
COMPLETION TOOLS Operations in Norway, USA and Canada Offer multistage frac tools, completion and intervention tools for both open hole and cemented installations Innovative design team with 19 patents granted or pending…
TRICAN RESERVOIR SOLUTIONS Microseismic Solutions Trican partnered with GeoTomo to offer leading edge microseismic analysis Used to optimize frac designs Expanding to U.S. in 2014 Geological Solutions Offer unconventional…
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 PLATFORM FOR GROWTH 33
BALANCE SHEET STRENGTH Industry leading debt structure Mix of variable and fixed rate Low cost average rate of 5.35% on notes Balanced maturity dates ranging from 2016 to 2021 Current outstanding and available debt at…
BALANCED CAPITAL ALLOCATION Dividend of 0.30/year Capital Allocation 2013 Share buyback program in place 13% 48% Capital Expenditures 19% Total capital spend for 2014 Dividends Debt Repayment expected to be 85 to 100…
INVESTMENT ADVANTAGES Significant earnings potential on existing assets ROCE Low capital expenditures in 2015 45.00% 40.00% Strong Canadian business that 35.00% historically weathers the storm 30.00% Strong management team…
SUMMARY Number of Outstanding Shares (as of Nov. 28, 2014): 149.3 million Average Daily Volume (one month period): 801,924 (as of November 28, 2014) Directors/Officers Ownership: 2.0% (approx. - diluted basis) Market Cap:…
Investor Presentation December 2014 PLATFORM FOR GROWTH
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