Investor Presentation February 2014 PLATFORM FOR GROWTH
OVERVIEW OF TRICAN Large, world-wide, full service REVENUE BY GEOGRAPHY pressure pumping company 12 months ending December 31, 2013 International International 15% Russia (majority) Kazakhstan Algeria 48% Canada…
TRICAN STRENGTHS PLATFORM FOR GROWTH 4
TRICAN STRENGTHS Fracturing HP Growth 1,193,000 HP current fracturing 1,400,000 capacity 1,200,000 1,000,000 94 Cement & 37 Acid Units 800,000 600,000 400,000 35 Coiled Tubing & 72 N2 Units 200,000 0 2007 2008 2009…
TRICAN STRENGTHS Focus on safety Our people are our strength 6,066 skilled employees worldwide Named one of Canadas Top Employers for Young People for 2013, one of Canadas Top Employers for 2014, and one of Canadas Top…
STRENGTHS FULL SERVICES Service Line % of 2013 Revenue (at December 31, 2013) Fracturing 78% Cementing 11% Coiled Tubing 4% Nitrogen 3% Acidizing & Specialty 2% Chemicals Industrial & Pipeline 2% Services PLATFORM FOR GROWTH…
COMPETITIVE ADVANTAGES Customer-focused provider of technical solutions Separate ourselves with technology Named one of Canadas top 100 Corporate R&D spenders in 2012 and 2013 (by Research Infosource Inc.) Product development…
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 - 2013 Current Canadian fleet Canadian HP Growth 414,000 fracturing HP 450,000 400,000 350,000 55 Cementing units 300,000 250,000 38 N2 Pumpers 200,000 150,000 19 Acid Units 100,000 50,000 16…
CANADA - 2014 Canadian market remains competitive but healthy Expect an increase in demand in 2014 but will continue to monitor the capital budgets of our customers Long-term potential very good with LNG export opportunities…
CANADA - PRICING Canadian pricing is down 25-30% compared to peak pricing in Q1 2012 Will look to increase pricing if activity levels remain high in second half of 2014 No significant additional equipment entering the…
DUVERNAY IMPACT ON TRICAN Duvernay activity will increase in 2014 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 400,000…
HORN RIVER Dont anticipate any significant additional activity in 2014 Pressure pumping revenue of 5-6 million per well 40,000 HP frac crew can stimulate approximately 50 wells per year Will be a key source of supply for…
HORN RIVER Activity levels expected to ramp up 3 years prior to completion of LNG facilities Demonstrated superior operational performance in 2012 and 2013 Average of 6.9 fracs/day in 2013 up from 4.4 two years ago Trican…
USA EQUIPMENT - 2013 US HP Growth 700,000 600,000 Current active U.S. fleet 500,000 400,000 495,000 fracturing HP 300,000 200,000 13 Cement units 100,000 0 10 Acid units 2007 2008 2009 2010 2011 2012 2013* USA Cement…
USA - 2013 Expect activity to increase in Q1 2014 Continued focus on cost control Focus on improving utilization Seeing improving fundamentals in the Permian and Marcellus plays PLATFORM FOR GROWTH 21
USA PRICING AND MARGINS Pricing down substantially from peak levels in Q4 2011 Continued pricing weakness in the Eagle Ford Seeing an increase in demand in the Marcellus and Permian in 2014 Potential opportunities to…
RUSSIA PLATFORM FOR GROWTH 23
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 7% Cementing 4%…
RUSSIA AND THE FSU ARCTIC SHELF (BARENTS, PECHORA, KARA SEA) NOVY URENGOY MOSCOW GUBKINSKY NYAGAN KUEDA RADUZHNY SAKHALIN NIZHNEVARTOVSK VCNG & SHELF NEFTEYUGANSK VOLGO-URALS OTHER REGIONS EAST SIBERIA OF WEST…
RUSSIA - 2013 2014 revenue projected to be up 5% over 2013 Horizontal, multi-stage fracturing continuing to increase Russian market remains competitive PLATFORM FOR GROWTH 26
INTERNATIONAL PLATFORM FOR GROWTH 27
INTERNATIONAL Algeria Coiled tubing services Weak market Australia Cement services Market growing profitability improving Kazakhstan Fracturing services Good profitability PLATFORM FOR GROWTH 28
INTERNATIONAL Middle East Expect to start coiled tubing operations in first half of 2014 Colombia Expect to start cementing operations in first half of 2014 Norway Completion tools only Strong acceptance of completion…
INNOVATION PLATFORM FOR GROWTH 30
INNOVATION Trican focuses on separating itself with technology MVP FracTM Patented chemical solution that reduces proppant settling in slick water fracs Over 2,900 fracs completed in 2013 with this technology in the Cardium,…
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 Geological Solutions Offer unconventional rock analysis, core testing…
SUSTAINABLE INNOVATION EcoClean Fluids Continuing to expand our line of environmentally friendly fracturing fluids Completed over 2,000 treatments in 2013 Water Management and Reduction Developed a 100% recycled water…
FINANCIAL OVERVIEW PLATFORM FOR GROWTH 35
FINANCIAL RESULTS Year ended December 31 Comparison* 2013 2012 % Change Revenue 2,115,472 2,213,400 (4%) Operating Income 179,550 240,073 (26%) Adjusted Net (Loss) Income (31,490) 63,028 (150%) Adjusted (Loss) Earnings per share -…
FINANCING Long-term notes payable US 375 million - US 95 million of this balance is hedged - US 75 million due in June 2014 CA 60 million Average rate: 5.35% CA 500 million revolving credit facility US 20 million Russian…
BALANCE SHEET STRENGTH As at December 31 Cash & Available 362 Million Debt Long Term Debt to 31% Capitalization Substantial room on Yes our debt covenants PLATFORM FOR GROWTH 38
BALANCED CAPITAL ALLOCATION Dividend of 0.30/year Approx. 2.5% yield Capital Allocation 2013 Share buyback program in place 13% Approved 2014 capital budget of 48% Capital Expenditures 19% 33 million Dividends Debt…
INVESTMENT ADVANTAGES Strong management team ROCE 45.00% Capital disciplined strong 40.00% balance sheet 35.00% 30.00% Geographical diversification 25.00% 20.00% Future growth opportunities 15.00% 10.00%…
SUMMARY Number of Outstanding Shares (as of Jan. 31, 2014): 148.9 million 148.9 million (diluted, monthly, weighted avg.) (approx., estimated) Average Daily Volume (one month period): 375,696 (as of January 31, 2014)…
Investor Presentation February 2014 PLATFORM FOR GROWTH
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