Investor Presentation March 2015 FORWARD LOOKING STATEMENTS This - - PowerPoint PPT Presentation

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Investor Presentation March 2015 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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Investor Presentation

March 2015

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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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45% 42% 13%

OVERVIEW OF TRICAN

  • Large, world-wide, full service

pressure pumping company

  • International
  • Russia (majority)
  • Kazakhstan
  • Australia
  • Norway
  • Saudi Arabia

REVENUE BY GEOGRAPHY

Year ending December 31, 2014

International USA Canada

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SLIDE 4

TRICAN STRENGTHS

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SLIDE 5

TRICAN STRENGTHS

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  • Focus on safety, technology,

and operational performance

  • Significant earnings potential on

existing assets

  • 1,193,000 HP available

fracturing capacity

  • 280,000 HP currently idle
  • 94 Cement & 37 Acid Units
  • 35 Coiled Tubing & 72 N2 Units

* Expected horsepower based on current capital budget. 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

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SLIDE 6

TRICAN STRENGTHS

  • Our people are our strength – 6,000

skilled employees worldwide

  • Named one of Canada’s Top

Employers for Young People for 2013, one of Canada’s Top Employers for 2014 and 2015, and

  • ne of Canada’s Top Family

Friendly Employers for 2014

  • Hiring and training people are key

to growth

  • Total hours of training for new hire
  • rientation and upgrading over the

last 11 years: 1,431,369

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SLIDE 7

STRENGTHS – FULL SERVICES

Service Line % of 2014 Revenue

(at December 31, 2014)

Fracturing 79% Cementing 11% Nitrogen 4% Coiled Tubing 3% Acidizing & Specialty Chemicals 2% Industrial & Pipeline Services 1%

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SLIDE 8

COMPETITIVE ADVANTAGES

  • Customer-focused provider of

technical solutions

  • Separate ourselves with technology
  • Named one of Canada’s top 100

Corporate R&D spenders in 2012, 2013 and 2014 (by Research Infosource Inc.)

  • Product development is a quick,

customer-focused process

  • Strong regional technical teams that

understand the customers’ needs

  • Operational excellence

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AREAS OF OPERATION

  • Canada
  • United States
  • Russia
  • Kazakhstan
  • Norway
  • Australia
  • Saudi Arabia

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SLIDE 10

CANADA

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SLIDE 11

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 11

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CANADA EQUIPMENT

  • Current Available Canadian fleet
  • 440,000 fracturing HP
  • 55 Cementing units
  • 38 N2 Pumpers
  • 19 Acid Units
  • 16 Coil Units
  • Expect to park 20% – 25% of total

fleet by the end of Q1 2015

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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 2008 2009 2010 2011 2012 2013 2014 2015*

Canadian HP Growth

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CANADA - OUTLOOK

  • Strong activity in early Q1 2015 but

slowing down significantly in March

  • Expect pricing drop of 10% in Q1

2015; pressure throughout 2015

  • Spring break-up expected to start

early and end late

  • Substantial activity drop in second

half of 2015 as customers’ cash flows are reduced

  • Well positioned with a number of

clients in all major growth regions

  • Technical and operational strength

will protect customer base

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SLIDE 14

USA

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HOUSTON MATHIS

GEOGRAPHIC COVERAGE - FRACTURING

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  • Barnett: 1 crew
  • Eagle Ford: 1 crews
  • Permian: 3 crews
  • Oklahoma: 1 crew
  • Marcellus: 4 crews
  • Bakken: 1 crews
  • Current active

USA HP: 465,000 Bakken

MINOT

Utica Marcellus

ODESSA

Permian

SHAWNEE

Mid-Con

SPRINGTOWN

Barnett Eagle Ford

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USA EQUIPMENT

  • Current active U.S. fleet
  • 465,000 fracturing HP
  • 9 Cement units
  • 10 Acid units
  • 6 Coil units
  • 11 N2 units
  • Parked 4 Fracturing crews in Q1
  • Permian, Eagle Ford, Bakken,

Haynesville

  • 150,000 HP

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USA – OUTLOOK

  • Rig count will drop throughout 2015
  • Expect pricing decline of 15% – 20%
  • Will reduce costs and size of
  • perations as required
  • Strong management team and lower

cost structure than last downturn

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COST CONTROL

  • Initiated significant cost control

measures in late 2014

  • Salary reduction effective Feb. 1, 2015
  • $28m in expected savings
  • Negotiating cost reductions with all

North American suppliers

  • Targeting 10%-15% savings
  • Reduced people and infrastructure to

match drop in active equipment

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  • Reduced North American staff by approximately 30%
  • Will continue to right size North American operations based on demand
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SLIDE 19

RUSSIA

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RUSSIA AND THE FSU

  • Started operations in 2000
  • One of the largest fracturing

companies in Russia

  • Primarily work on oil wells
  • All work is on 1 or 3 year contracts
  • Services:
  • Fracturing

88%

  • Coiled Tubing

6%

  • Cementing

4%

  • Nitrogen

2%

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RUSSIA AND THE FSU

21 NOVY URENGOY GUBKINSKY RADUZHNY NIZHNEVARTOVSK NYAGAN NEFTEYUGANSK KRASNOYARSK IRKUTSK KUEDA VCNG MOSCOW

EAST SIBERIA VOLGO-URALS

CAUCASUS ARCTIC SHELF (BARENTS, PECHORA, KARA SEA) CASPIAN OFFSHORE

OTHER REGIONS OF WEST SIBERIA

Traditional regions for oil production Regions of growth Operational Base Representative Office

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RUSSIA - 2015

  • Strong technical and operational

business

  • Future growth in Eastern Siberia to fill

new Chinese pipeline

  • Russia/Ukraine conflict has not caused

any operational disruptions thus far; will continue to monitor effects of sanctions

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  • 2015 tendering complete
  • Slight increase in year-over-year activity
  • Ruble decline will impact Canadian dollar revenue by 40% – 50%
  • Most costs in Rubles so no appreciable drop in margin percentages
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SLIDE 23

INTERNATIONAL

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SLIDE 24

INTERNATIONAL

  • Australia
  • Cement and environmental

services

  • Slow first half of 2015 with growth

in second half

  • LNG driven gas market
  • Kazakhstan
  • Fracturing services
  • Good profitability
  • Looking for growth opportunities

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INTERNATIONAL

  • Norway
  • Completion tools only
  • Strong acceptance of completion

tool technology in North Sea

  • Anticipate stable 2015 demand
  • Middle East
  • Started coiled tubing operations in

Q2 2014

  • Looking to add additional

contracts in 2015

  • Colombia
  • Suspended operations in early

2015

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INNOVATION

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INNOVATION

  • Trican focuses on separating itself

with technology

  • MVP Frac

TM

  • Patented chemical solution that

reduces proppant settling in slick water fracs

  • Strong market acceptance in Canada;

looking to expand into other regions

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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

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SLIDE 28

COMPLETION TOOLS

  • Operations in Norway, 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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  • Strong year-over-year growth in 2014
  • 2015 demand will be impacted by low oil prices but have market share
  • pportunities
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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

  • Developed Bakken market using

recycled water solutions

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FINANCIAL OVERVIEW

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DEBT STRUCTURE

  • Industry leading debt structure
  • Mix of variable and fixed rate
  • Low cost – average rate of 5.2% on notes
  • Balanced maturity dates ranging from 2016

to 2021

  • Current outstanding and available debt

at December 31, 2014

  • USD $300 million and CAD $80 million in

fixed rate notes payable

  • A portion of the USD notes are hedged
  • CAD $575 million revolving credit facility
  • $300 million of cash and available debt

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  • Managing cash flow and balance sheet a

key focus in 2015

  • Dividend of $0.30/year
  • Total capital spend for 2015 expected to

be $50 to $60 million

  • Working capital release in 2015 expected

to provide significant cash inflows

  • Will pay down debt in first half of 2015

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CASH FLOW

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INVESTMENT ADVANTAGES

  • Significant earnings potential on existing

assets

  • Low capital expenditures in 2015
  • Strong Canadian business that

historically weathers the storm

  • Strong management team that has

managed through numerous cycles

  • Geographical diversification
  • Focus on cost control

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SUMMARY

  • Number of Outstanding Shares (as of Feb. 27, 2015):
  • 148.9 million
  • Average Daily Volume (one month period):
  • 1,153,825 (as of February 27, 2015)
  • Directors/Officers Ownership:
  • 2.0% (approx. - diluted basis)
  • Market Cap:
  • $650 Million as of February 27, 2015
  • Pay a semi-annual dividend of $0.15 per share

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Investor Presentation

March 2015