INVESTOR PRESENTATION September 2019 FORWARD LOOKING STATEMENTS - PDF document

INVESTOR PRESENTATION September 2019

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  Trican has been servicing wells Technical Coil Tubing Expertise in western Canada for more Acidizing Customer than 22 years Pipeline Services Engineering Support Reservoir Expertise Industrial Services  Trican service lines cover 60% Chemical Services Laboratory Services to 70% of a typical well cost. Remedial Cementing 5

BUSINESS TRANSFORMATION: 2015 AND ONGOING EFFORTS  The 2014 oil supply glut, required Trican 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 6

RESTRUCTURE: FINANCIAL STRENGTH & RESILIENCY Debt / Tangible Capital  Company has deleveraged by more than $700 0.60 $800 million and improved asset coverage relative to Debt / Tangible Capital $700 Total Debt (millions) 0.50 $600 2015 cyclical low 0.40 $500 0.30 $400  Monetized stranded capital by selling permanently $300 0.20 $200 idled assets 0.10 $100 - $  $nil debt less cash at June 30, 2019 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19  Financial position allows opportunistic evaluation Total Debt (RHS) Debt / Tangible Capital (LHS) of investment opportunities in volatile North American energy market Canadian Results ($millions) $1,200  Lowered fixed costs and increased variable costs $1,000 $800 to make the company more resilient during a $600 down cycle $400 $200 $0  Continue to evaluate prudent options to diversify 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 our revenue streams and resiliency of cash flow Revenue Adjusted EBITDA through the cycles See non-GAAP measure Adjusted EBITDA as more fully described in Trican’s MD&A. 7

REFOCUS: FOCUS ON 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  Ongoing innovations • Largest natural gas dual fuel fleet (149,000 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 less 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 8

RIGHT SIZE: THE NEW CANADIAN MARKET SIZE  Since the 2014 oil price decline, the industry has seen a market shift in the number of wells drilled in western Canada  The well count has stabilized at ~ 5,000 to 6,500 wells  The decline in well count has been offset by an increase in well intensity  An increase in the average rig count by approximately 24 rigs would absorb all excess staffed equipment (6 crews)  An increase in the average rig count by ~ 50 rigs in high intensity plays would absorb all currently excess and idled fracturing capacity in Canada (approximately 18 crews) Canadian Well Count 12 Month Trailing Average Canadian Rig Count 15000 Well Count Market Shift – New Frac 500 Market Equilibrium ~ 400 10000 300 Well Count Market 200 5000 Shift – Old Frac Market Equilibrium ~ 100 10,000 wells 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2010 2012 2014 2016 2018 Source: Petroleum Services Association of Canada and Internal Source: Baker Hughes GE Rig Count Estimates 9

CANADIAN INDUSTRY: FRACTURING COMPETITIVE LANDSCAPE  Canadian competitive landscape much better Hydraulic Capacity Active Crewed Fleets than U.S. market Horsepower (HHP)  Equipment capacity down approximately Trican 593,450 347,000 8 250,000 HP since Q1 Competitor A 306,000 190,000 5 Competitor B 298,000 170,000 6  Estimated industry demand of ~1,000,000 HHP in Q319 Competitor C 240,000 175,000 3 • Approximately 70 to 75% utilization Competitor D 250,000 140,000 3 Competitor E 263,000 175,000 5  Approximately 900,000 HHP overcapacity in the basin (unstaffed) and 300,000 HHP Competitor F* 80,000 75,000 4 overcapacity (staffed) Competitor G* 50,000 50,000 4 • Roughly 6 larger staffed fleets 2,080,450 1,322,000 38 • Roughly 18 larger total fleets • Roughly 50 additional rigs in deeper plays uses * Smaller crews not suitable for all higher intensity plays all capacity in basin (~ 30% increase in activity) Source: Competitor company reports, internal company data, and internal estimates 10

RIGHT SIZE: ALIGNING INFRASTRUCTURE TO NEW CANADIAN MARKET  To align our business to the new post 2015 Canadian market dynamics and lower average well counts: • Merged with Canyon, ~ $55 million of Synergies • Modernized system infrastructure to support further business optimization • Since 2017, sold $45 million of excess property and equipment at values approximating net book value • Realized $25 million cost reductions since 2018 • Planning incremental cost reductions of an additional $12 million in Q4 to align with the current Canadian well count of ~ 5,000 wells - Reduced fracturing crews to approximately 8 fleets from 10.5 last year - Reduced cement trucks to 19 from 23 to better align with reduced average drilling rig count (cement aligns with rig count) - Added 2 coil units to improve leverage on coil fixed cost structure Field and Shared Service / SG&A Employee 12 10 1-Jul 9.4 8 Dec-18 Dec-15 8.2 5.5 6 Dec-17 6.5 4 Dec-16 4.4 2 0 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 1-Mar 1-Jun Field & Shared Service / G&A Yearly Avg Field & Shared Service / G&A Expon. (Field & Shared Service / G&A) 11

RETURNS: FINDING WAYS TO RETURN MONEY TO SHAREHOLDERS  Trican is focused on delivering the top quartile ROIC in our sector Dividends and Share Repurchases, 2006 - 2019  Since 2006, Trican has returned $372 100,000 400,000 million to shareholders Cumulative Dividend (RHS) 75,000 300,000 Cumulative NCIB (RHS)  The Company remains focused on finding Annual (LHS) 50,000 200,000 ways to return funds to shareholders Cumulative (RHS) • Current market dynamics support share 25,000 100,000 repurchases as the best way to return money to shareholders - - 2006 2008 2010 2012 2014 2016 2018 • Repurchased approximately 18% of the Company’s shares since October 2017 12

RETURNS: FINDING WAYS TO RETURN MONEY TO SHAREHOLDERS  Price to Tangible Book Value vs. Leverage Profile Strong balance sheet and excess asset 1.20 2.0x position offers unique opportunity in the 1.8x Price to Tangible Book Value 1.00 current cycle to continue shareholder Debt / Tangible Equity 1.6x 1.4x 0.80 returns and/or evaluate selective 1.2x investment opportunities 0.60 1.0x 0.8x 0.40 0.6x  Will park equipment instead of 0.4x 0.20 0.2x aggressive long-term price discounting - 0.0x that delivers no long-term benefit to shareholders Debt to Tangible Equity (LHS) Price to Tangible Book (RHS) 13