INVESTOR PRESENTATION May 2016 FORWARD LOOKING STATEMENTS This - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

May 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

• Completions Tools business active in

North America, Norway and Russia

• 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 MARCH 31, 2016

64% 26% 3% 3% 2% 2%

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 customer economics

CANADA

• Strong safety record
• Technical advantage in Canadian

market which pays off in downturn

• Numerous engineers embedded

in client offices

• MVP Frac

TM system

• Geological and reservoir services

integrated into frac designs

• Lightweight cement blends
• Technology retains and grows

market share and improves returns in a downturn

• Lowers product cost
• Strong operations

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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

BROOKS ESTEVAN

British Columbia Alberta Saskatchewan

FORT NELSON

Tight Gas Duvernay Shale

DRAYTON VALLEY CALGARY

Manitoba

BRANDON

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 parked during

remainder of 2016

• 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

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 - FIRST QUARTER

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• Utilization and activity low and

choppy in Q1

• March very slow due to early

breakup

• Pricing down 6% sequentially in

Q1 2016

CANADA - OUTLOOK

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• Q2 2016 slow due to normal spring

breakup and commodity prices with improved year-over-year operating income

• Poor visibility at this time on Q3 2016
• Customers will confirm programs in

May and June for Q3

• Anticipate:
• Overall activity down 50% in Q3
• Trican revenue only down 35% due to

increased fracturing programs in Q3

• Pricing flat to Q1 levels
• Improved revenue and profitability
• ver Q1 results
• Customer base remains strong

CANADA - SECOND HALF COST SAVINGS

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• Parked additional equipment for

upcoming quarters

• Approximately 50% of equipment parked
• Closed Medicine Hat and Drumheller

locations

• Variable costs reduced 6-8%
• Fixed costs reduced $20-25 million in

second half

• Corporate costs reduced approximately

$2 million per quarter (not including share-based costs)

GETTING THROUGH THE DOWNTURN

GETTING THROUGH THE DOWNTURN

• Improve balance sheet
• Keep utilization high and costs low

in remaining operations

• Reduce fixed costs as business

centralizes to Canada

• Maintain customer relationships
• Provide differentiating safety,

efficiency and technology

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POSITIVES AFTER THE DOWNTURN

• Mid-cycle EBITDA from Canada (2014):

$226 million

• Peak EBITDA from Canada:

$465 million

• Competitive landscape changing
• Sanjel / STEP deal reduces competition
• One other small fracturing company in

receivership

• Equipment attrition will be significant

which improves recovery

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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 Canadian business

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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• Norwegian and Russian revenue and profitability to grow in 2016
• North American results improved year-over-year based on cost controls

SALE OF U.S. BUSINESS

SALE OF U.S. BUSINESS

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• Sold to Keane Group on March 16
• Approximately $267 million (CAD)

cash

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

economic interests upon Keane liquidity event

• Total transaction value approximately

$345 million (CAD) based on Keane valuation today

• Trican will retain ownership of

technology and will sell to others in markets we are not in

U.S. SALE - STRATEGIC RATIONALE

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• Covenant relief and strengthened

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

• Fair deal in this market with upside

in Keane interest

• Retained ownership allows us to

participate in U.S. recovery

• Combined Trican-Keane will have

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

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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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

• Will market MVP in US and other regions

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

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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

POST USA BALANCE SHEET

28 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Nov 2017 Apr 2018 2019 2020 Apr 2021 2022 2023 Sept 2024

Outstanding Senior Notes - Post Strategy

USD Notes (hedged)

CAD Notes USD Notes (unhedged)

• $167 million drawn on $303

million revolving credit facility

• $303 million revolving credit

facility is committed until 2018

• Max utilization capped at

$175 million until Q3 2016

• $106 million of senior notes

(net of currency swaps)

• Net debt of approximately

$233 million

COVENANT RELIEF

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• Amended covenants put Trican in a

strong position 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

COVENANT RELIEF

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• 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

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 less than $20 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 generates

industry leading margins

• Ability to further de-lever balance sheet
• 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

April 30, 2016):

• 149 million
• Average Daily Volume (one month

period):

• 689,221 (as of April 30, 2016)
• Directors/Officers Ownership:
• 2.0% (approx. - diluted basis)
• Market Cap:
• $260 million as of April 30, 2016

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INVESTOR PRESENTATION

April 2016