AltaCorp Conference January 13, 2015 IT'S ABOUT PERFORMANCE
Why Invest In Trinidad Trinidad has: Solid operations & future growth opportunities The right equipment More stability Financial flexibility IT'S ABOUT PERFORMANCE 3
Operations Overview Canada 62 rigs US 59 rigs 5 barges 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…
Industry & Operations Update IT'S ABOUT PERFORMANCE 5
Canadian Industry Conditions Current activity solid but weakening expected Market currently in flux as E&Ps review capex plans Canadian Industry Active Rig Count 800 5 year range 2012 2013 2014 600 400 200 0 week week…
Trinidads Canadian Operations Active in key plays Liard Other 2 Montney 24 Broad customer base 14 Oil USA Current activity firm CANADA sands Duvernay 1 6 Lloyd Heavy Oil Long-term visibility unclear Cardium 1 6 AB…
Canadian LNG Some delays due to commodity prices, as well as regulatory and environmental hurdles Existing relationships with key LNG players The right equipment and experience IT'S ABOUT PERFORMANCE 8
US Industry Conditions US active rig count lowering Pressure on mechanical rigs dayrates, further pressure expected US Industry Active Rig Count 2500 5 year range 2012 2013 2014 2000 1500 1000 500 0 week week week week…
Trinidads United States Operations Bakken 3 Niobrara 1 US operations less seasonal Other 9 Demand slowing on older Cleveland Tonkawa assets first Long-term outlook unclear 6 Permian Barnett 17 Haynesville 4 6 Eagle…
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) Four new builds for Mexico to be delivered in late 2014/early 2015 IT'S ABOUT PERFORMANCE 12
JV Operational Update Four Saudi rigs operating First two Mexican rigs in country, others coming over next few months Learning curve less steep with each incremental rig IT'S ABOUT PERFORMANCE 13
International Growth Joint Venture Halliburton* has projects in 20 countries, with 100 rigs First look at all HAL international opportunities, outside North America Trinidad can say no to any deal Capital exposure limited to…
The Right Equipment IT'S ABOUT PERFORMANCE 15
More Rigs that Customers Want Approx. 85% of Trinidads rigs are modern, high performance rigs Average age of 9 years Average depth capacity of 4,336 metres (14,226 feet) IT'S ABOUT PERFORMANCE 16
Continued Demand for Modern Rigs Benefits of high spec rigs US Industry Fleet by Power Source more broadly accepted 100% 90% Efficiency more 80% important with low 70% 60% commodity prices 50% 40% Opportunity to upgrade 30%…
Consistent Industry Outperformance Trinidads rigs are more active Canadian Utilization Rates US Active Rig Count (Change from 10/3/08) 80% 60% Trinidads Canadian 70% Utilization 40% 60% TDG 20% 50% 0% 40% -20% 30% Industry…
More Stability IT'S ABOUT PERFORMANCE 19
Customer Backed Growth We only build rigs under long-term contracts Approx. 50% of fleet on long-term contract More than 1.5 years average term remaining IT'S ABOUT PERFORMANCE 20
Geographic Diversity Increasing diversity YTD Operating Income by Segment improves stability Growing international 2% 55% 0% joint venture contribution Ability to move rigs within markets increases 43% opportunities Canada…
Broad Customer Base No concentration of assets Customer Concentration* Broad exposure to basins 2% Customers mostly larger 6% 8 rigs E&P companies 6% 5 rigs 6% 4 rigs 66% 3 rigs 14% 2 rigs 1 rig * Percentage of…
Financial Flexibility IT'S ABOUT PERFORMANCE 23
Solid Capital Structure Capital structure meets our needs Currency balance, extended maturity and financial flexibility Cash on hand at Q3 2014 - 142 m Credit Facility Available Outstanding Expiry Q3 2014 Revolver C200 m C0 m Dec…
Improved Financial Flexibility Total/Net Debt to EBITDA* 4.0 (times) 3.5 3.0 2.5 Short-term 2.0 1.5 1.0 Long-term 0.5 0.0 2007 2008 2009 2010 2011 2012 2013 Q3-14 Target Total Debt to EBITDA Net Debt to EBITDA IT'S…
Capital Program 2014 capital approx. 350 million (1) One Canadian new build, begin US new builds JV - Four Saudi rigs, begin Mexico rigs Major upgrade program and maintenance capital 2015 capital under review US new builds…
Shareholder Friendly Activities Dividend Current dividend 0.05 per share quarterly Yield of 4.2%(1) Payout of 13% of 2015 cash flow(2) Share Buy Back Program Active in buy back program Purchased 3.0 million(3) shares to date…
Attractive Valuation Current stock price below tangible book value and estimated replacement value Current multiple at 4.4x 2015 EBITDA(1) 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 EV/EBITDA per share TBV per share…
Trinidad is Well Positioned High quality fleet Diversified operations Extensive contract coverage Potential international expansion opportunities Financial flexibility IT'S ABOUT PERFORMANCE 29
APPENDIX IT'S ABOUT PERFORMANCE
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%…
Advanced, Deep and Modern Fleet In-demand rigs generate higher dayrates and margins Technically Advanced Fleet Rig Fleet Depth 9% 6% 4% 0 - 5,999ft 12% 6,000- 7,999ft 8,000ft+ 84% 84% Rig Fleet Age 23% High performance,…
A Continued Focus on Safety Total Recordable Incident Rates 6.00 5.00 4.00 TRIF 3.00 2.00 1.00 0.00 TRIF Total Recordable Injury Frequency, 12 month corporate rolling average IT'S ABOUT PERFORMANCE 34
2500, 700 9 Avenue S.W. Calgary, AB, Canada T2P 3V4 T 403.265.6525 Email: investorstrinidaddrilling.com www.trinidaddrilling.com IT'S ABOUT PERFORMANCE
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