Investor Presentation January 2016 FORWARD LOOKING STATEMENTS This - PowerPoint PPT Presentation

Investor Presentation January 2016

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 YEAR TO DATE SEPTEMBER 30, 2015  Large, North American, full service pressure pumping company Revenue by Geography 44% 56%  1,083,500 HP available fracturing USA capacity Canada  87 Cement & 37 Acid Units Revenue by Service Line  3% 2% 4% 29 Coiled Tubing & 61 N 2 Units 3% 9% Fracturing Cementing Nitrogen  Coiled Tubing Focus on safety, technology, and Acid & Specialty Chemicals operational performance Industrial & Pipeline Services 79% 3

OVERVIEW OF TRICAN  577,000 HP (53% of equipment) Historical Fracturing HP parked since 2014 1,400,000 • 35% parked in Canada 1,200,000 • 62% now parked in USA 1,000,000  Equipment parked whole and not 800,000 scavenged 600,000 400,000  Continue to maintain R&M 200,000 expenditures during downturn 0 2007 2008 2009 2010 2011 2012 2013 2014 2015*  60,000 HP bi-fuel units * Equipment after International divestures. 4

COMPETITIVE ADVANTAGES  Strong safety record • 2015 YTD injury frequency rate of 1.07  Operational performance • Efficiency saves clients money  Technology • MVP Frac TM Diverting Agent • TriVert • Lightweight cements • Recycled water 5

CANADA 6

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)  Trican has a strong customer base in Canada • Numerous long-term clients  Canadian dollar to U.S. dollar exchange rate helps producer economics 7

CANADA  Technical advantage in Canadian market which pays off in downturn • 20% of fracturing work in 2014 done with MVP frac • Geological and reservoir services integrated into frac designs • Lightweight cement blends • Numerous engineers embedded in client offices • Technology retains and grows market share and improves returns in a downturn  Canadian Q3 operating margin: 19.3% 8

GEOGRAPHIC COVERAGE FORT NELSON Horn River HIGH LEVEL Shale British Columbia Alberta Saskatchewan Manitoba FORT ST. JOHN Montney Shale RED EARTH Duvernay GRANDE PRAIRIE Shale WHITECOURT HINTON NISKU LLOYDMINSTER DRAYTON VALLEY Viking RED DEER PROVOST Tight Oil DRUMHELLER CALGARY Tight Gas BRANDON BROOKS ESTEVAN MEDICINE HAT Spearfish Bakken Cardium Lower Shaunavon Shale Tight Oil Tight Oil 9

CANADA EQUIPMENT Canadian HP Growth  Current available Canadian fleet 500,000 450,000 • 440,000 fracturing HP 400,000 350,000 • 55 Cementing units 300,000 250,000 • 38 N 2 Pumpers 200,000 150,000 • 19 Acid Units 100,000 50,000 • 16 Coil Units 0 2008 2009 2010 2011 2012 2013 2014 2015* * Anticipated HP at year-end based on approved budgets, which are subject to change 10

CANADA - OUTLOOK  35% of equipment parked during 2015 • Anticipate keeping remaining equipment highly utilized  Parked equipment ring fenced and ready to go to work when activity improves  Will right size fleet up or down to maximize utilization and profits  Pricing down 25% off 2014 peak levels 11

CANADA - OUTLOOK  Customer base strong • Have had market share improvements  Cost cutting measures have substantially improved second half results • Still working on additional cost savings  Customers anticipated plans for Q1 2016 look strong at this time • Core customers remaining busy in 2016 12

CANADA – COST CUTTING  Product Costs • Largest element of cost structure • Have achieved 10-15% reduction  People • Have reduced Canadian employee base by 45% • Total salary and benefits cost reduced by 57% • Expected annual fixed cost reductions of $86 million  Other • Implemented significant cost cutting measures for all other costs  Fixed costs reduced 42% year-over-year 13

USA 14

GEOGRAPHIC COVERAGE - FRACTURING MINOT Bakken Marcellus Mid-Con Utica Barnett SHAWNEE Current Active US Crews  Oklahoma: 2 crew SPRINGTOWN ODESSA  Marcellus: 4 crews  Current Active HP: 217,500 HOUSTON Permian  Current Parked HP: 427,500 MATHIS  Cement and Coiled Eagle Ford Tubing services in the Permian and Eagle Ford 15

USA – OUTLOOK  Pricing stabilized - down approximately 30% from peak  Shut down 2 fracturing crews in Texas in October resulting in additional cost savings • Cost savings of approximately $4 million per quarter  Expect to operate 35% of available equipment over the remainder of 2015 and 2016  5 of 6 crews committed to Q2 2016 • 4 of 6 crews committed to 2017 • One spot market crew in Marcellus 16

USA – OUTLOOK  Anticipate Q1 2016 activity to be strong on committed crews based on current customer plans • Will continue to monitor customer programs and adjust equipment up or down  Competitive landscape improving as less equipment available 17

US - COST CUTTING  Product costs • Have achieved 15-25% reduction to date  People • Have reduced employee base by 60% • Salary reductions of 10% on remaining employees • Expected annual fixed cost reductions of $76 million  Equipment • Repair costs have not declined on a $/HP basis as we continue to maintain equipment • Parked equipment ring fenced and available to go to work  Fixed costs reduced 51% year-over-year and 16% sequentially 18

CORPORATE - COST CUTTING  People Costs • Salary and benefits reductions - Salary reductions of 10% - Temporary suspension of certain benefits • Reduced Corporate employee base by 40% • Total annualized cost reductions of $24 million  Other • Implemented significant cost cutting measures for all other Corporate expenses  Corporate costs down 70% year-over-year 19

COMPLETION TOOLS 20

COMPLETION TOOLS  Operations in Norway, Russia, USA and Canada  Offer multistage frac tools, completion and intervention tools for both open hole and cemented installations  Competitive advantage with patented completion system that has capacity for 240 cemented stages  Grown Norwegian and Russian revenue and profitability in 2015 due to market share growth  2015 demand down in North America 21

INTERNATIONAL  Closed sale of Russian business for $195 million CDN • Includes first tranche of working capital adjustment • Sold for 6.4x 2014 EBITDA  Closed Saudi Arabia and Australia as scale not large enough to sustain International infrastructure  Kazakhstan sale in progress 22

GETTING THROUGH THE DOWNTURN 23

GETTING THROUGH THE DOWNTURN  Size operations to current activity levels  Lower costs  Keep utilization high on activated equipment  Work for the right customers  Maintain equipment  Provide differentiating safety, efficiency and technology  Increase scale in Basins to lower fixed costs 24

STEPS TO MANAGE THE DOWNTURN  Sell Russia, Kazakhstan, and spare international equipment in closed regions  Maximize profitability and cash flow from remaining operations • Canada doing well • Costs lowered in US to make positive cash if utilization high  Continue to de-lever the balance sheet and work with lending group 25

POSITIVES AFTER THE DOWNTURN  Strong earnings on reduced cost structure as utilization and pricing improve  Competitive landscape changing • Baker-Halliburton merger will create opportunities in all of our markets • U.S. competitive landscape will change - Smaller competitors struggling to survive - Mergers of mid-sized companies improves market - Equipment attrition will be significant 26