TSX:CFW CALFRAC WELL SERVICES LTD. January 2015 Investor Presentation
Company Snapshot TSX Stock Symbol CFW Share Price 9.20 (1/7/2015) Market Capitalization 876 million Quarterly Dividend 0.125 per share Dividend Yield 5.4 percent (1/7/2015) Shares Outstanding 94.8 million (1/7/2015) DRIP…
Calfracs Size and Scope Fifteen Years of Service 4,900 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…
GLOBALLY DIVERSE OPERATIONS 5
Full Service Hydraulic Pressure Pumping Canada Fleet: 17 Fracturing Spreads 387,000 Hydraulic Horsepower 17 Coiled Tubing Crews U.S. Fleet: 15 Fracturing Spreads 676,000 Hydraulic Horsepower Russia Fleet: 18 Cementing Crews 7…
Canadian Operations 7
Canada Update Market Activity One of the Largest Pressure Pumpers Six largest companies control 85% by HHP of the market Exposure to LNG through strong Competitor 5, Calfrac, 18% relationships with a number of key 12% operators in…
Canada Key Trends Well count is only one factor impacting Calfracs utilization: Stages per well have risen as lateral lengths increased and frac spacing tightened Tons per reported job is up 23% YTD (3Q14) 24-hour operations…
United States Operations 10
United States Update Market Approach Service Intensity has Increased Sustainable and meaningful market share in each operating area Focus on E&P customers that are financially strong and intend to remain active Target an equal mix…
United States Regional Update Highlights Meaningful Market Share (9/30/2014) Marcellus activity is expected to Mkt. Share remain high Region HHP Crews Rank by HHP (1) Rockies (Niobrara) activity is Marcellus/Utica 250,500 5 4…
Latin American Operations 13
Argentina Update Market Activity One of the largest pressure pumping companies in Argentina Argentina Fleet: Multi-year contract awarded by YPF 68,000 Hydraulic Horsepower in 3Q13 8 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 Poza play economics Rica Expect low levels of activity…
Russian Operations 16
Russia Update Market Overview and Outlook Horizontal fracturing comprised 33% of frac jobs YTD (compared to 32% in the same period last year) Horizontal activity down due to a drop-off in drilling by a key customer Sanctions and…
LICENSE TO OPERATE 18
Health, Safety & Environment Excellent HSE Performance Advancements Outperforming industry benchmark Implementation of SandStorm in groups fracturing operations US experience modification rate of 0.7 30% below industry average for…
Supply Chain and Logistics Network optimization focus Optimize infrastructure and storage to further enhance service levels and improve margins North American sand pumped for first nine months of 2014 up 86% y/y 1 .5MM =…
Supply Chain and Logistics Initiatives Transload access and storage in key plays is increasing which will alleviate supply disruptions Significant y/y increase in rail car fleet Experienced supply chain group positioned to…
PEOPLE WHO MAKE A DIFFERENCE 22
People & Service Quality The Calfrac Team Experienced management team with a proven track record of effectively managing through OFS cycles Culture of innovation, growth and continuous improvement Our Core Competencies Energy,…
TECHNOLOGIES THAT WORK IN THE FIELD 24
Technology Commitment Commitment To Continuous Improvement In Technology Technology Strategy Continually advance reservoir understanding to optimize productivity and economics Gain a Ensure fluid chemistries meet and Thorough…
FINANCIAL HIGHLIGHTS 26
Downturn Strategy Elimination of discretionary spending Non-critical training Travel Employee recognition programs Head count review Right size overhead cost structure Optimize field staffing levels to be in line with activity…
The Balance Sheet Term Debt US600 mm with an interest rate of 7.5% Matures in 2020 Credit Facilities 227 mm available at September 30, 2014 Facility matures in September 2018 2014 Capital Program Expanded to 360 mm from 150 mm…
Financial Results (C millions except per share amounts) Income Statement For the Three Ended September 30 2014 2013 % Change Revenue 697 389 79 Operating Income 126 52 144 Net Income 44.5 6.1 630 Earnings Per Share (Diluted) 0.46…
Ian Gillies Manager, Investor Relations 403-218-3422 igilliescalfrac.com www.calfrac.com 30
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