INVESTOR PRESENTATION December 2016 FORWARD LOOKING STATEMENTS - - PDF document

INVESTOR PRESENTATION

December 2016

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

• Full service, Canadian pressure

pumping company

• Market leader in Canada
• 440,000 HP available fracturing

capacity

• Large 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 Cementing Nitrogen Coiled Tubing Acid & Specialty Chemicals Industrial & Pipeline Services

YEAR TO DATE SEPTEMBER 30, 2016

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

CANADA

CANADA

• Trican is the largest pressure

pumper in Canada

• Trican offers full services in

Canadian market which balances revenue and profitability

• Large cementing market share
• Strong market share in other

services

• Canadian market has fewer

competitors (6 vs. over 30 in the U.S. market)

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• Trican has a strong customer base in Canada
• Numerous long-term clients
• Canadian to U.S. dollar exchange rate helps customer economics

CANADA – COMPETITIVE ADVANTAGE

• Strong safety record
• TRIR YTD rate of 0.7
• LTIR YTD rate of 0.0
• Technical advantage in Canadian market
• 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

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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

CANADA EQUIPMENT

• Current Canadian fleet
• 440,000 fracturing HP
• 55 Cementing units
• 38 N2 Pumpers
• 19 Acid Units
• 16 Coil Units
• 50% of equipment currently 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 in

equipment in 2017

8 * 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

CANADA 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
• perators on location due to

electronic control systems

• No additional capital required to

upgrade fracturing pumps

CANADA 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
• Canadian frac capacity fully utilized at

6,500 to 7,500 wells

• Deep Basin, Montney, Duvernay activity is

60-70% of anticipated Canadian activity

• 70-75% of Trican revenue comes from these

plays

• Cardium, Viking and other oil plays will

grow as oil prices improve

CANADA - OUTLOOK

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• Increased frac intensity and job size
• Sand volume up 44% year-over-year
• Average sand per well increasing
• Currently 2,260 tonnes / well in Montney
• Still 50% below US average
• Average stages per well increasing
• Currently 26 stages per well
• Increasing 10% per year

CANADA OUTLOOK - 2017

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• Fully booked for active equipment in

major service lines until April 2017

• Focused on increasing pricing
• Raising pricing for 2017 work
• Targeting 10% price increase
• Second half of 2017 activity looks strong

based on current commodity prices

• Looking to activate some parked

equipment as margins improve

CANADA – 2016 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 cost structure
• 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

GETTING THROUGH THE DOWNTURN

GROWTH

• Strong earnings from Canadian assets

with a reduced cost structure as utilization and pricing improve

• 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 interest valued at $94 million on

September 30, 2016

• Keane filed for IPO in mid-December
• 2-year non-compete in U.S. 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
• 558,221 shares in NOV (valued at $29.9 million

CAD on December 15, 2016)

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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 SEPTEMBER 30, 2016

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

• $125 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

• $77 million of Senior Notes
• Net debt of approximately

$175 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

• All financial covenants eliminated

until 2017

• 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 of less than

$1 million in 2016

• No expansion initiatives will be

considered until financial performance improves

• Approximately $60 million of

cash and available debt as of November 8, 2016

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INVESTMENT ADVANTAGES

• Balance sheet largely fixed
• Trading substantially below historic book values
• Significant earnings potential on existing assets
• High leverage on low cost structure coming out
• f downturn
• Strong Canadian business that generates

industry leading margins

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

through numerous cycles

• Equipment base not scavenged and ready to go

when activity increases

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SUMMARY

• Number of Outstanding Shares (as of

November 30, 2016):

• 193 million
• Average Daily Volume (one month

period):

• 1,314,800 (as of November 30, 2016)
• Directors/Officers Ownership:
• 1.5% (approx. - diluted basis)
• Market Cap:
• $714 million as of November 30, 2016

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INVESTOR PRESENTATION

December 2016