INVESTOR PRESENTATION March 2017 FORWARD LOOKING STATEMENTS This - - PDF document

INVESTOR PRESENTATION

March 2017

FORWARD LOOKING STATEMENTS

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This document contains statements that constitute forward-looking statements within the meaning of applicable securities legislation. These forward-looking statements include, among

• thers, the Company’s prospects, expected revenues, expenses, profits, expected

developments and strategies for its operations, and other expectations, beliefs, plans, goals,

• bjectives, assumptions, information and statements about possible future events, conditions,

results of operations or performance. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “achieve”, “achievable,” “believe,” “estimate,” “expect,” “intend”, “plan”, “planned”, and other similar terms and phrases. Forward-looking statements are based on current expectations, estimates, projections and assumptions that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; and availability of products, qualified personnel, manufacturing capacity and raw materials. If any of these uncertainties materialize,

• r if assumptions are incorrect, actual results may vary materially from those expected.

OVERVIEW OF TRICAN - CURRENT

• Full service, Canadian pressure

pumping company

• Market leader in Canada
• 422,000 HP available fracturing

capacity

• Significant Cement, Coiled Tubing,

Acidizing, Nitrogen and Industrial Services business

• Focus on safety, technology, and
• perational performance

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Revenue by Service Line

Fracturing Coiled Tubing Cementing Acid & Specialty Chemicals Nitrogen Industrial & Pipeline Services

YEAR TO DATE DECEMBER 31, 2016

58% 4% 26% 5% 3% 4%

CANADA

OVERVIEW OF TRICAN AND CANYON

• Approximately 680,000 HP

fracturing capacity

• Industry-leading Cement business
• Expanded scale of Coiled Tubing,

Acid, Nitrogen businesses will improve overall profitability

• Addition of Fluid Management

business complementary to Fracturing

• Technology advantage in Canada

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TRICAN AND CANYON

• Strong, loyal customer base
• Minimal customer overlap

between companies

• Canada-US exchange rate

helps customer economics

• Complementary cultures

and vision

• Significant growth with

approximately 245,000 HP parked fracturing capacity

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Fracturing, 72% Cementing, 15% Acid, Coil, Nitrogen, 7% Fraction Energy, 4% Industrial, 2%

TRICAN AND CANYON - SYNERGIES

• Annual synergies between $20 and

$40 million

• Complete geographical overlap
• Real estate synergies an additional $7

to $8 million

• Will implement best practices from

both companies

• Customer-focused company with

safety, technology and efficient

• perations

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TRICAN AND CANYON – TRANSACTION OVERVIEW

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Transaction Overview:

• Trican to acquire all of the issued and outstanding shares of Canyon in an all-share

transaction

• Canyon shareholders to receive 1.7 shares of Trican for each common share held
• Total consideration of ~$637 million, including the assumption of ~$40 million of

Canyon’s net debt Pro Forma Ownership:

• Trican: 56%
• Canyon: 44%

Consideration:

• Represents equity consideration of $6.63 per share (based on Trican’s March 21, 2017

closing price)

• Implies a 32% premium to Canyon’s March 21, 2017 closing price

Governance:

• Brad Fedora (CEO of Canyon) will join the Trican Board of Directors

Approvals and Timing:

• Expected to be completed in the second half of 2017
• Subject to TSX and Alberta Court of Queen’s Bench approval, regulatory approvals,

shareholder approvals from each company and the satisfaction of other customary closing conditions

TRICAN AND CANYON – TRANSACTION METRICS

• Accretive deal for Trican
• Approximately 20% above

replacement value of Canyon

• $2300 / HP as compared to U.S.

recent IPO’s of $2870 / HP and $2600 / HP

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STRONG FINANCIAL POSITION

• Creates the premier pressure pumping

company in Canada

• One of the largest service companies in

Canada

• Combined market cap of $1.4 billion
• Well positioned for index inclusion
• Strong balance sheet with roughly $160

million net debt

• Significant capability to generate free

cash flow with minimal capex

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TRICAN – COMPETITIVE ADVANTAGE

• Strong safety record
• TRIR rate of 1.05 and LTIR rate of 0.09
• Technical advantage in Canada
• Numerous engineers embedded in client
• ffices
• MVP Frac

TM system

• Geological and reservoir services

integrated into frac designs

• Lightweight cement blends
• Technology retains and grows market

share and improves returns

• Lowers product cost
• Strong operations
• Significantly lowered cost structure in

downturn

• Large scale going forward

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GEOGRAPHIC COVERAGE

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Horn River Shale Montney Shale Bakken Shale Cardium Tight Oil Viking Tight Oil Lower Shaunavon Tight Oil

GRANDE PRAIRIE WHITECOURT

HINTON

FORT ST. JOHN NISKU LLOYDMINSTER RED DEER BROOKS ESTEVAN

British Columbia Alberta Saskatchewan

Deep Basin Duvernay Shale

DRAYTON VALLEY CALGARY

Manitoba

Spearfish

TRICAN EQUIPMENT

• Current Canadian fleet
• 422,000 fracturing HP
• 55 Cementing units
• 38 N2 Pumpers
• 19 Acid Units
• 16 Coil Units
• Approximately
• 40% of fracturing capacity parked
• 50% of other services parked
• Equipment not scavenged
• Estimate $3.5 million Capex to

activate parked fracturing equipment

• $50,000 Capex / truck to activate

parked cement equipment

• Looking to activate parked

equipment in 2017

13 * Anticipated HP at year-end based on approved budgets, which are subject to change 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Canadian HP Growth

TRICAN EQUIPMENT – FRACTURING PUMPS

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• 85% of Trican’s active fleet already

running continuous duty Quintuplex high HP pumps

• 70% of fluid ends converted to

stainless steel

• Gives 4 times longer life
• 40% reduction in pumper

equipment operators on location due to electronic control systems

• No additional capital required to

upgrade fracturing pumps

• Canyon converting pumps to new

technology continuous duty pumps

TRICAN - OUTLOOK 2017

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• Customers’ conventional capex up

50-60% year-over year

• Estimate 5,500 to 6,500 wells to be

drilled in 2017

• Up 38-63% year-over-year
• Anticipate full utilization of staffed

equipment for remainder of the year

• Deep Basin, Montney, Duvernay activity

generates 70-75% of Trican revenue

• Cardium, Bakken, Viking and other oil

plays will remain strong

TRICAN - OUTLOOK 2017

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• Fully booked for active equipment in major

service lines through to Q4

• Q2 programs significantly higher than 2016
• Fracturing fleet fully booked in Q2
• Second half of 2017 activity looks strong

based on current commodity prices

• Looking to activate some parked

equipment as economic conditions improve

• 3 fracturing crews (90,000 HP) in 2H 2017
• 6 cementing units
• Additional coil units
• Hiring qualified staff limiting speed of

equipment activations but not a barrier to growth

TRICAN - OUTLOOK 2017

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• Will face cost increases from Q2
• nward for products, third-party

hauling and labour

• Contracts allow for recovery of major

input costs

• Cost savings on products anticipated

from new product introductions

• Additional scale will provide more

leverage on fixed costs

TRICAN - OUTLOOK 2017

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• Increased frac intensity and job size
• Sand volume up 47% per well

year-over-year

• Average sand per well increasing
• Currently 2,600 tonnes / well in Montney
• Still 50% below US average
• Average stages per well increasing
• Currently 29 stages per well
• Increasing 12% per year

TRICAN – COST SAVINGS

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• Fixed costs reduced by $140 million per

year since the start of the downturn

• Minimal fixed cost increases going

forward as business improves

• Lowered fixed/variable cost ratio
• Fixed costs now 25% of costs as

compared to 50% pre-downturn

• Variable costs reduced by 27% since the

beginning of 2016

• No increases forecast in early 2017

GROWTH

GROWTH

• Strong earnings from Canadian assets

with a reduced cost structure as utilization improves

• Mid-cycle EBITDA from Canada (2014):

$226 million (19% EBITDA margin)

• Peak EBITDA from Canada:

$465 million

• Equipment attrition and service intensity

will improve recovery

• Substantial leverage on lower costs

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GROWTH

• We will focus on:
• Being on leading edge of cost and
• perational efficiencies
• Achieving cost advantages through size

and scale in Canada

• Separating ourselves through safety,

technology, service quality and innovation

• Will explore adding or growing

additional service lines in Canada

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ADDITIONAL GROWTH

• Retained ownership in Keane allows us to

participate in U.S. recovery

• 10% ownership in Keane Group with

potential increased ownership from certain economic conditions upon liquidity event

• Keane announced pricing of its IPO on

January 20, 2017

• Trican received an initial distribution totaling

approximately CAD $37.8 million

• Trican maintains significant residual value in

remaining common stock of Keane and measurable value is dependent on timing and share price of any further liquidating events

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ADDITIONAL GROWTH

• Non-compete in U.S. until April

2018 and first right to purchase the Keane business should we decide to re-enter the U.S.

• Trican will license our technology

in U.S. and International markets

• Licensed one sand supplier in

North America

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INNOVATION

INNOVATION

• Trican focuses on separating itself with

technology

• Technology must reduce $/BOE for our

customers or lower our costs

• MVP Frac

TM

• Patented chemical solution that

reduces proppant settling in slick water fracs

• Strong market acceptance in Canada

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• Recent case studies show 20% increased production in the Cardium and 30%

increased production in the Montney

• Signed one license in U.S. with sand supplier and pursuing additional licenses

INNOVATION

• TriVert

TM Diverting Agent

• Can be used in new completions or

refracturing treatments

• Redirects fluid into new sections of

the wellbore

• Contains particles that dissolve

with time and temperature

• Results in increased production

without further well intervention

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TRICAN RESERVOIR SOLUTIONS

• Geological Solutions
• Offer unconventional rock analysis,

core testing and rock mechanics

• Reservoir Solutions
• Reservoir model that integrates

geological and frac data to optimize long-term reservoir recoverability

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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 treatment

• Recycled water used on most

fracturing projects in the U.S.

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FINANCIAL OVERVIEW

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 Nov 2017 Apr 2018 2019 2020 Apr 2021 2022 2023 Sept 2024

Outstanding Senior Notes - Post Equity and TCS Sale

AS OF FEBRUARY 24, 2017

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USD Notes (hedged) CAD Notes USD Notes (unhedged)

• $119 million drawn on $250

million revolving credit facility

• $250 million revolving credit

facility is committed until 2018

• Max utilization capped at

$175 million until the first quarter in which $25 million in EBITDA is reached

• $65 million of Senior Notes
• Net debt of approximately

$134 million (net of cash and currency swaps)

(Shown in $CAD)

COVENANT RELIEF

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• Amended covenants put Trican in a

strong position to ride out the downturn

• Leverage covenant of 5x and interest

coverage of 2x will start in 2017 and will be calculated in Q1 as four times Q1 EBITDA plus $20 million

COVENANT RELIEF

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• $20 million equity cure will be

added to 2017 EBITDA

• LTM calculations will not

commence until Q4 2017

• Normalized covenant of 3x

Debt/EBITDA by Q1 2018

CASH FLOW

• Managing cash flow and liquidity a key

focus

• Dividend suspended until financial

performance improves

• Total capital spend estimated at less

than $10 million in 2017

• No expansion initiatives will be

considered until financial performance improves

• Will be reviewed quarterly
• Approximately $106 million of cash and

available debt as of February 24, 2017

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INVESTMENT ADVANTAGES

• Trican-Canyon deal increases scale
• Trading substantially below U.S. pressure

pumpers

• Significant earnings potential on existing assets
• No significant capital required
• Equipment base not scavenged and ready to go

when activity increases

• High leverage on low cost structure coming out
• f downturn
• Strong Canadian business that generates

competitive margins

• Upside to U.S. market recovery through Keane
• wnership
• Strong management team that has managed

through numerous cycles

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SUMMARY

• Number of Outstanding Shares (as of

March 23, 2017):

• 193.6 million
• Average Daily Volume (one month

period):

• 2,270,957 (as of March 23, 2017)
• Directors/Officers Ownership:
• 1.5% (approx. - diluted basis)
• Market Cap:
• $709 million as of March 23, 2017

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INVESTOR PRESENTATION

March 2017