INVESTOR PRESENTATION March 2017 FORWARD LOOKING STATEMENTS This - PDF document

INVESTOR PRESENTATION March 2017

FORWARD LOOKING STATEMENTS This document contains statements that constitute forward-looking statements within the meaning of applicable securities legislation. These forward-looking statements include, among others, the Company’s prospects, expected revenues, expenses, profits, expected developments and strategies for its operations, and other expectations, beliefs, plans, goals, objectives, 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, or if assumptions are incorrect, actual results may vary materially from those expected. 2

OVERVIEW OF TRICAN - CURRENT  Full service, Canadian pressure YEAR TO DATE DECEMBER 31, 2016 pumping company Revenue by Service Line  Market leader in Canada 3% 4% 5%  422,000 HP available fracturing capacity 26%  Significant Cement, Coiled Tubing, 58% Acidizing, Nitrogen and Industrial 4% Services business Fracturing Acid & Specialty Chemicals  Focus on safety, technology, and Coiled Tubing Nitrogen Cementing Industrial & Pipeline Services operational performance 3

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 5

TRICAN AND CANYON  Strong, loyal customer base Fraction Industrial, 2%  Minimal customer overlap Energy, 4% Acid, Coil, Nitrogen, 7% between companies  Canada-US exchange rate Cementing, 15% helps customer economics  Complementary cultures and vision  Significant growth with Fracturing, 72% approximately 245,000 HP parked fracturing capacity 6

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 operations 7

TRICAN AND CANYON – TRANSACTION OVERVIEW  Trican to acquire all of the issued and outstanding shares of Canyon in an all-share transaction Transaction  Canyon shareholders to receive 1.7 shares of Trican for each common share held Overview:  Total consideration of ~$637 million, including the assumption of ~$40 million of Canyon’s net debt  Trican: 56% Pro Forma Ownership:  Canyon: 44%  Represents equity consideration of $6.63 per share (based on Trican’s March 21, 2017 closing price) Consideration:  Implies a 32% premium to Canyon’s March 21, 2017 closing price  Brad Fedora (CEO of Canyon) will join the Trican Board of Directors Governance:  Expected to be completed in the second half of 2017 Approvals and  Subject to TSX and Alberta Court of Queen’s Bench approval, regulatory approvals, Timing: shareholder approvals from each company and the satisfaction of other customary closing conditions 8

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 9

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 10

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 offices TM system • MVP Frac • 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 11

GEOGRAPHIC COVERAGE Horn River Shale British Columbia Saskatchewan Manitoba Alberta FORT ST. JOHN Montney Shale Duvernay GRANDE PRAIRIE Shale WHITECOURT HINTON NISKU LLOYDMINSTER DRAYTON VALLEY Viking RED DEER Tight Oil Deep CALGARY Basin ESTEVAN BROOKS Spearfish Bakken Cardium Lower Shaunavon Shale Tight Oil Tight Oil 12

TRICAN EQUIPMENT  Current Canadian fleet • 422,000 fracturing HP • 55 Cementing units • 38 N 2 Pumpers Canadian HP Growth • 19 Acid Units 500,000 450,000 • 16 Coil Units 400,000  350,000 Approximately 300,000 • 40% of fracturing capacity parked 250,000 • 50% of other services parked 200,000 150,000  Equipment not scavenged 100,000 50,000 • Estimate $3.5 million Capex to 0 activate parked fracturing equipment 2008 2009 2010 2011 2012 2013 2014 2015 2016* * Anticipated HP at year-end based on approved • $50,000 Capex / truck to activate budgets, which are subject to change parked cement equipment  Looking to activate parked equipment in 2017 13

TRICAN EQUIPMENT – FRACTURING PUMPS  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 14

TRICAN - OUTLOOK 2017  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 15

TRICAN - OUTLOOK 2017  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 16

TRICAN - OUTLOOK 2017  Will face cost increases from Q2 onward 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 17

TRICAN - OUTLOOK 2017  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 18

TRICAN – COST SAVINGS  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 19

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 21

GROWTH  We will focus on: • Being on leading edge of cost and operational 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 22