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

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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

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SLIDE 1

Investor Presentation

January 2016

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SLIDE 2

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,

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

FORWARD LOOKING STATEMENTS

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SLIDE 3

56% 44%

OVERVIEW OF TRICAN

  • Large, North American, full service

pressure pumping company

  • 1,083,500 HP available fracturing

capacity

  • 87 Cement & 37 Acid Units
  • 29 Coiled Tubing & 61 N2 Units
  • Focus on safety, technology, and
  • perational performance

Revenue by Geography 3 Revenue by Service Line

79% 9% 4% 3% 2% 3%

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

YEAR TO DATE SEPTEMBER 30, 2015

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SLIDE 4

OVERVIEW OF TRICAN

  • 577,000 HP (53% of equipment)

parked since 2014

  • 35% parked in Canada
  • 62% now parked in USA
  • Equipment parked whole and not

scavenged

  • Continue to maintain R&M

expenditures during downturn

  • 60,000 HP bi-fuel units

* Equipment after International divestures.

200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Historical Fracturing HP 4

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SLIDE 5

COMPETITIVE ADVANTAGES

  • Strong safety record
  • 2015 YTD injury frequency rate of 1.07
  • Operational performance
  • Efficiency saves clients money
  • Technology
  • MVP Frac
  • TriVert

TM Diverting Agent

  • Lightweight cements
  • Recycled water

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SLIDE 6

CANADA

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SLIDE 7

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 dollar to U.S. dollar exchange rate helps producer economics
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SLIDE 8
  • 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%

CANADA

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SLIDE 9

GEOGRAPHIC COVERAGE

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

HIGH LEVEL RED EARTH GRANDE PRAIRIE WHITECOURT

HINTON

FORT ST. JOHN NISKU LLOYDMINSTER RED DEER

PROVOST

DRUMHELLER BROOKS MEDICINE HAT ESTEVAN

British Columbia Alberta Saskatchewan

FORT NELSON

Tight Gas Duvernay Shale

DRAYTON VALLEY CALGARY

Manitoba

BRANDON

Spearfish 9

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SLIDE 10

CANADA EQUIPMENT

  • Current available Canadian fleet
  • 440,000 fracturing HP
  • 55 Cementing units
  • 38 N2 Pumpers
  • 19 Acid Units
  • 16 Coil Units

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* 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*

Canadian HP Growth

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SLIDE 11

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

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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

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SLIDE 13

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

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SLIDE 14

USA

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SLIDE 15

HOUSTON MATHIS

GEOGRAPHIC COVERAGE - FRACTURING

  • Oklahoma: 2 crew
  • Marcellus: 4 crews
  • Current Active HP: 217,500

Bakken

MINOT

Utica Marcellus

ODESSA

Permian

SHAWNEE

Mid-Con

SPRINGTOWN

Barnett Eagle Ford Current Active US Crews

  • Current Parked HP: 427,500

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  • Cement and Coiled

Tubing services in the Permian and Eagle Ford

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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

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USA – OUTLOOK

  • Anticipate Q1 2016 activity to be

strong on committed crews based

  • n current customer plans
  • Will continue to monitor customer

programs and adjust equipment up

  • r down
  • Competitive landscape improving as

less equipment available

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SLIDE 18

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

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  • 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
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SLIDE 19

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

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  • Other
  • Implemented significant cost cutting

measures for all other Corporate expenses

  • Corporate costs down 70% year-over-year
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SLIDE 20

COMPLETION TOOLS

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SLIDE 21

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

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SLIDE 22

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

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SLIDE 23

GETTING THROUGH THE DOWNTURN

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SLIDE 24

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

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SLIDE 25

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

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POSITIVES AFTER THE DOWNTURN

  • Strong earnings on reduced cost

structure as utilization and pricing improve

  • Competitive landscape changing
  • Baker-Halliburton merger will create
  • pportunities 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

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SLIDE 27

POSITIVES AFTER THE DOWNTURN

  • Substantial completions

backlog

  • Currently estimating over

4,500 drilled but uncompleted wells in the US market

  • Bodes well for an

increase in fracturing demand coming out of the downturn before drilling increases

  • Stage count/well and

sand/stage continue to increase

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  • 50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Sand per Stage Frac Stage Intensity

Source: Wall Street research, Pac West

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SLIDE 28
  • We will focus on:
  • Being on the leading edge of cost

and operational efficiencies

  • Achieving cost advantages through

size and scale in active regions

  • Separating ourselves through

technology, safety, service quality and innovation

  • Long term, need to lower cost to

producers without lowering our margins

  • More efficient, lower cost fracturing

business through equipment designs, technology and reductions in costs

COMING OUT OF THE DOWNTURN

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INNOVATION

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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
  • MVP FracTM used in 20% of all wells fractured by Trican in Canada in 2014: up 100%
  • vs. 2013; approximately $200 million in frac revenue
  • Recent case studies show 20% increased production in the Cardium and 30%

increased production in the Montney

  • Currently gaining market acceptance of system in U.S.

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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

  • Expected to result in increased production

without further well intervention

  • Gaining good market acceptance in the U.S.

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SLIDE 32

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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SLIDE 33

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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SLIDE 34

FINANCIAL OVERVIEW

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DEBT STRUCTURE

  • Current outstanding and available debt at

November 30, 2015

  • $335 million in fixed rate notes payable
  • $147 million due by April 2016
  • $235 million drawn on $410 million

revolving credit facility

  • $233 million in cash and available debt as
  • f November 30
  • New covenant agreement in place

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SLIDE 36
  • Managing cash flow and liquidity a key

focus in 2015

  • Dividend suspended until financial

performance improves

  • Total capital spend in 2015 expected to be

approximately $30 million

  • No expansion initiatives will be considered

until financial performance improves

  • 2016 Capex anticipated to be $20 to $30

million

CASH FLOW

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SLIDE 37

INVESTMENT ADVANTAGES

  • Trading substantially below book value
  • Significant earnings potential on existing assets
  • High leverage on low cost structure coming out
  • f downturn
  • Low capital expenditures in 2015 and 2016
  • Free cash flow in 2015
  • Strong Canadian business that is generating

industry leading margins

  • Strong management team that has managed

through numerous cycles

  • Equipment base not scavenged and ready to go

when activity increases

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SLIDE 38

SUMMARY

  • Number of Outstanding Shares (as of

December 31, 2015):

  • 148.9 million
  • Average Daily Volume (one month period):
  • 783,564 (as of December 31, 2015)
  • Directors/Officers Ownership:
  • 2.0% (approx. - diluted basis)
  • Market Cap:
  • $95 million as of December 31, 2015

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Investor Presentation

January 2016