Corporate Presentation February 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 57 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 Capex cuts by E&Ps driving lower activity Early break-up conditions expected Canadian Industry Active Rig Count 800 5 year range 2012 2013 2014 2015 600 400 200 0 week week week week week…
Trinidads Canadian Operations Liard Other Active in key plays 1 37 Montney 8 Oil sands Broad customer base USA CANADA Duvernay Current activity remains 2 5 Cardium 2 AB Bakken Frobisher 5 above industry average…
US Industry Conditions US active rig count lowering Initial pressure on mechanical rigs dayrates, all areas beginning to feel impact US Industry Active Rig Count 2500 5 year range 2012 2013 2014 2015 2000 1500 1000 week…
Trinidads United States Operations Bakken 4 US operations less seasonal Other 29 Demand slowing on older assets first Permian Barnett Long-term outlook unclear Haynesville 12 2 4 Eagle TMS* Ford 2 4 Includes rigs…
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 11
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 12
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 14
More Rigs that Customers Want Approx. 85% of Trinidads rigs are modern, high performance rigs Average age of 9 years Average depth capacity of 4,300 metres (14,000 feet) IT'S ABOUT PERFORMANCE 15
Growing Importance of Modern Rigs Benefits of high spec rigs US Industry Fleet by Power Source more broadly accepted 100% Efficiency more 90% 80% important with low 70% 60% commodity prices 50% 40% Opportunity to upgrade…
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 18
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 19
Geographic Diversity Increasing diversity YTD Operating Income (1) by Segment improves stability Growing international 2% 55% 0% joint venture contribution Ability to move rigs within markets increases 43% opportunities…
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 22
Solid Capital Structure Capital structure meets our needs Currency balance, extended maturity and financial flexibility Net cash on hand at Q4 2014 - 55 m Credit Facility Available Outstanding Expiry Q3 2014 Revolver C200 m C0 m…
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. 335 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 approx. 175 million Complete US new…
Shareholder Friendly Activities Dividend Current dividend 0.05 per share quarterly Yield of 4.5%(1) Payout of 14% of 2015 cash flow(2) Share Buy Back Program Active in buy back program Purchased 4.8 million(3) shares to date…
Trinidad is Well Positioned High quality fleet Diversified operations Extensive contract coverage Potential international expansion opportunities Financial flexibility IT'S ABOUT PERFORMANCE 27
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 32
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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