INVESTOR PRESENTATION April 2020 FORWARD LOOKING STATEMENTS This - PowerPoint PPT Presentation

INVESTOR PRESENTATION April 2020

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

AGENDA Canadian Industry Company Overview Overview and and Ongoing Near Term Investment Trican’s Business Market Outlook Summary Competitive Transformation Positioning 3

TRICAN OVERVIEW

WHAT WE DO Focused in Canada, Trican has  a highly trained workforce Completion Drilling dedicated to safety and Cycle Cycle operational excellence who Fracturing provide a comprehensive array Cementing Coil Tubing Services of specialized products and Fluid Management services using equipment required for the exploration and development of oil and gas Production reserves Full Cycle Cycle Technical  Trican has been servicing wells Coil Tubing Expertise in western Canada for more Acidizing Customer than 24 years Pipeline Services Engineering Support Industrial Services Reservoir Expertise  Trican service lines cover 60% Laboratory Services Chemical Services to 70% of a typical well cost Remedial Cementing 5

BUSINESS TRANSFORMATION: OUR STRATEGIC PRIORITIES REMAIN INTACT Having safe, efficient, customer- - Maintain market leading position in Fracturing and Cementing service lines focused operations is always Strengthen priority #1. Beyond safety and - Strengthen auxiliary service lines (Coiled Tubing) Existing operational performance, our Business - Activate parked equipment (if return hurdles can be met) strategic priorities remain intact: - Growth in existing services lines Growth Disciplined investment into future growth – ensure ROIC hurdle rates are met To achieve top quartile ROIC in our sector - Return value to shareholders through share buyback program Share- holder - Sell excess and permanently stranded capital equipment, return Return funds to the balance sheet Cost - Reduce costs for ourselves and our clients through efficiency Control & improvements and scale Efficiency Gains 6

BUSINESS TRANSFORMATION: 2015 AND ONGOING EFFORTS  The 2014 oil supply glut required Trican to Restructure Refocus take decisive action  The Company’s actions have positioned Trican to weather and take advantage of near-term North American energy market Returns Right Size turbulence 7

TRICAN STRENGTH: FINANCIAL STRENGTH & RESILIENCY Debt / Tangible Capital  Financial position allows company to survive current downturn and 0.60 $800 be in a strong position to take advantage of opportunities when $700 Debt / Tangible Capital 0.50 Total Debt (millions) $600 industry improves 0.40 $500 0.30 $400  Company has deleveraged by more than $700 million and $300 0.20 improved asset coverage relative to 2015 cyclical low $200 0.10 $100 • Sold Russia business for ~ $1,720/HHP (Q3 2015) - $0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 • Sold US business for ~ $630/HHP (Q1 2016)  Monetizing stranded capital by selling permanently idled assets Total Debt (RHS) Debt / Tangible Capital (LHS) • Since 2017, sold $60 million of excess property and equipment at Canadian Results ($ millions) values approximating net book value $1,200 • Sold water business in Q1 2020 for $17.6 million $1,000 • Selling redundant real estate: ~ $18 million listed for sale $800 $600 Strong Financial Position $400  Net bank debt of ~ $25 million (Mar. 31, 2020) (bank debt less ~ $200 $0 $23 million of cash) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue Adjusted EBITDA  Positive working capital of greater than $100 million (Mar. 31, 2020) See non-GAAP measure Adjusted EBITDA as more fully described in Trican’s MD&A. 8

TRICAN STRENGTH: DIVERSIFIED SERVICE LINES 2019 Revenues: Business Unit Breakdown Market Leading Positions Industrial Fluid Services Management 2%  Canadian market leader in fracturing services 4% (based on horse-power) Coil Services 8%  Canadian market leader in cementing services (based on drilling rigs serviced) Cementing 16%  Supporting service lines: coil tubing, nitrogen, acid, pipeline and industrial services  2019 revenue of $636 million Hydraulic Fracturing 70% 9

TRICAN STRENGTH: DRIVING EFFICIENCY IN THE CANADIAN MARKET  Deliver exceptional customer service • Drive efficiency in our business to lower our costs and the cost to our customers • Integrate small service lines with larger business lines to improve cost structure and customer efficiency • Reduce product chemistry costs resulting in lower well costs for our customers 10

TRICAN STRENGTH: DRIVING EFFICIENCY IN THE CANADIAN MARKET  Ongoing innovations • Largest natural gas dual fuel fleet (145,000 HHP) in western Canada to help reduce well costs and GHGs • Introducing new technology to reduce tractors on location which will provide fuel savings, result in fewer engine hours, and reduce GHGs • Implemented large bore treating iron, reducing repair and maintenance costs • Implementing equipment monitoring technology that will reduce repairs and extend equipment life through data management • Developed new cement blends to lower costs to customers • Lowered fracturing product costs through implementation of new fluid systems 11

TRICAN STRENGTH: RIGHT FRACTURING FLEET  Largest fleet of continuous duty pumps; most efficient style of fracturing pump, designed for higher well service intensity plays: Fracturing Type of Pump Pump HHP % of Fleet (#) Fleet • Equipment is well maintained, hot stacked Continuous and requires little capex to activate 2,700 / 3,000 HHP 126 345,000 59% Duty • Allows Trican to continue to efficiently Mid Tier 2,500 HHP 95 237,500 41% operate in the highest service intensity resource plays: Montney, Duvernay and Total Deep Basin (accounts for ~80% of the Fracturing 221 582,500 Fleet required HHP demand in Canada) See MD&A for definition of Fracturing Fleet terms  Large dual fuel fleet to offer fuel savings: 145,000 HHP of natural gas bi-fuel pumps 12

TRICAN STRENGTH: FRACTURING COMPETITIVE LANDSCAPE IMPROVING CANADIAN CAPACITY IN Q1 2020  Canadian competitive landscape much better Hydraulic Capacity Active Fleets than U.S. market Horsepower Crewed (HHP) Recent downturn is anticipated to drop active  Trican 583,000 324,000 8 crewed fleets by half in second half of 2020 Competitor A 305,000 193,000 4 • Crewed capacity in second half estimated to be Competitor B 298,000 225,000 6 660,000 HHP and 18 crews as of April 1 Competitor C 170,000 125,000 2 • Evolving situation as second half activity Competitor D 250,000 140,000 3 becomes better defined Competitor E 263,000 175,000 5 Crewed capacity was reduced ~ 400,000 HHP  Competitor F* 85,000 85,000 4 during 2019 Competitor G* 50,000 50,000 4 2,004,000 1,317,000 36  Trican will not staff additional capacity until prices improve * Smaller crews not suitable for all higher intensity plays Source: Competitor company reports, internal company data, and internal estimates 13

TRICAN STRENGTH: AVAILABLE CAPACITY  Trican has reduced its fleet size in response to Service Line Total Active, Idled Equipment Manned declining market conditions 162,000 421,000 Fracturing (HHP) 583,000 (4 fleets) (9 fleets)  Current downturn will result in Trican parking Cementing (trucks) 62 11 51 approximately half of our active equipment going Coil Tubing (units) 23 6 17 forward that we were running in Q1  Will continue to monitor customer activity levels going forward and will adjust equipment as required to reduce costs and keep utilization high on active equipment  Existing idle equipment provides opportunity for incremental returns upon a market recovery • Substantial leverage on existing infrastructure and fixed cost structure upon recovery • Assets are well-maintained and not scavenged • Can be activated by adding staff with little capital • Approximately 9 fracturing fleets parked 14