INVESTOR PRESENTATION February 2016 FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

February 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 - CURRENT

• 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

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56% 44%

Revenue by Geography 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

SALE OF U.S. BUSINESS

• 645,000 HP fracturing equipment
• 14 Cementing units
• 7 Coiled Tubing units
• Property, personnel, and ongoing work

commitments

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SALE OF U.S. BUSINESS

• Sold to Keane Group
• Approximately $285 million (CAD)

cash

• 10% retained ownership in Keane
• Potential 20% upside from certain

economic interests upon Keane liquidity event

• Total transaction value between

$352 and $405 million (CAD)

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SALE OF U.S. BUSINESS

• Trican retains ownership of

technology

• Keane has a non-exclusive license

to Trican technology

• Trican will market certain technology

to others in U.S. and to markets in which we no longer have equipment

• Expected closing: March 15, 2016

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DEBT REDUCTION AND COVENANT RELIEF

• Proceeds from U.S. sale will be

used to pay down debt

• Debt post transaction of

approximately $235 million

• $140 million of long-term notes
• $95 million drawn on $308 million

revolver

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COVENANT RELIEF

• Amended covenants allow Trican to

ride out the downturn

• All financial covenants eliminated

until Q3 2016

• Leverage covenant of 5x and interest

coverage of 2x will start in Q3 and will be calculated in Q3 as four times Q3 EBITDA

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COVENANT RELIEF

• LTM calculations will not

commence until Q2 2017

• Normalized covenant of 3x

Debt/EBITDA by Q1 2018

• Equity cure provision allows us to

apply 50% of any equity raise towards EBITDA in covenant calculations

• Equity cure can be used twice per

year up to a maximum of $20 million

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U.S. SALE - STRATEGIC RATIONALE

• Covenant relief and strengthened

balance sheet puts Trican in a strong position to weather the downturn

• Fair deal in this market
• $546 to $628 / HP
• 67% to 77% of PPE
• Retained ownership allows us to

participate in U.S. recovery

• Combined Trican-Keane will have

lower cost structure and good balance sheet to ride out the downturn and size to compete in U.S. going forward

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U.S. SALE - STRATEGIC RATIONALE

• Keane intends to continue to grow

the business to be a major player in the U.S. market

• Trican has a 2-year non-compete

and first right to purchase the business should we decide to re-enter the U.S.

• Trican technology and engineering

will augment Keane’s operations

• Trican will license our technology to
• thers going forward
• Allows Trican to focus on our core

markets

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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 dollar to U.S. dollar exchange rate helps producer economics

CANADA

• Strong safety record
• 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%

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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

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

CANADA EQUIPMENT

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

16 * 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 - 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
• Cost cutting measures have substantially

improved second half results in 2015

• Still working on additional cost savings
• Utilization high but not at peak in Q1 (75%)
• A warm March could hurt quarter
• Pricing down slightly in Q1 2016
• Q2 2016 slow due to normal spring

breakup

• Poor visibility at this time on Q3 2016
• No adjustments up or down

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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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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
• f $24 million
• Other
• Implemented significant cost

cutting measures for all other Corporate expenses

• Corporate costs down 70% year-
• ver-year

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COMPLETION TOOLS

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

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• Grown Norwegian and Russian revenue and profitability in 2015 due to

market share growth

• 2016 demand still challenged in North America and anticipate continued

strong performance in Norway and Russia

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
• Currently working with potential

buyers

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GETTING THROUGH THE DOWNTURN

GETTING THROUGH THE DOWNTURN

• Improve balance sheet
• Keep utilization high and costs low

in remaining operations

• Maintain customer relationships
• Provide differentiating safety,

efficiency and technology

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POSITIVES AFTER THE DOWNTURN

• Competitive landscape changing
• Baker-Halliburton merger will

create opportunities in all of our markets

• 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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• Strong earnings on reduced cost structure as utilization and pricing improve

COMING OUT OF THE DOWNTURN

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

and operational efficiencies

• Achieving cost advantages

through size and scale in Canada

• 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

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• Will look to expand service lines in Canada upon recovery to leverage on
• ur strong business

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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• 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.

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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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

CASH FLOW

• Managing cash flow and liquidity a

key focus in 2016

• Dividend suspended until financial

performance improves

• Total capital spend in 2016 expected

to be approximately $20 - $30 million

• No expansion initiatives will be

considered until financial performance improves

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INVESTMENT ADVANTAGES

• Trading substantially below book value
• Significant earnings potential on existing

assets

• High leverage on low cost structure coming
• ut of downturn
• 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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SUMMARY

• Number of Outstanding Shares (as of

January 31, 2016):

• 148.9 million
• Average Daily Volume (one month

period):

• 2,235,487 (as of January 29, 2015)
• Directors/Officers Ownership:
• 2.0% (approx. - diluted basis)
• Market Cap:
• $252 million as of January 31, 2016

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INVESTOR PRESENTATION

February 2016