INVESTOR PRESENTATION August 2017
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
TRICAN OVERVIEW
OVERVIEW OF TRICAN AND CANYON ▪ Market leader in Canada Fraction Energy, Industrial, 2% 4% ▪ Acid, Coil, Canadian fleet Nitrogen, 7% • 680,000 fracturing HP • 72 Cementing units • 55 N 2 Pumpers Cementing, 15% • 31 Acid Units • 29 Coil Units ▪ Industry-leading Cement business ▪ Expanded scale of Coiled Tubing, Acid, Nitrogen businesses will Fracturing, 72% improve overall profitability ▪ Addition of Fluid Management business complementary to Fracturing ▪ Customer-focused company with safety, technology and efficient operations ▪ Significant growth potential on existing equipment base 4
EQUIPMENT ▪ Active equipment • 410,000 fracturing HP (active, manned) • 145,000 fracturing HP (active, maintenance and future activations) • 125,000 fracturing HP (parked) • Plans to activate 2-3 crews in 2H 2017 (approximately 75,000 HP) • Activating additional cement, acid and coil units • 40% of other services parked ▪ Equipment not scavenged • Less than $1.0 million Capex YTD to activate equipment this year • Estimate $3.0 to $4.0 million Capex to activate remaining parked Trican fracturing equipment • $50,000 Capex / truck to activate parked cement equipment 5
TRICAN EQUIPMENT – FRACTURING PUMPS ▪ 85% of Trican’s active fleet already running continuous duty Quintuplex high HP pumps ▪ Canyon converting pumps to new technology continuous duty pumps ▪ 70% of fluid ends converted to stainless steel • Gives 4 times longer life ▪ 40% reduction in pumper equipment operators on location due to electronic control systems ▪ Will continue to optimize personnel efficiency in the field 6
TRICAN AND CANYON - SYNERGIES ▪ Annual synergies between $20 and $40 million • $18 million realized as of July 30, 2017 ▪ Will implement best practices from both companies 7
STRONG FINANCIAL POSITION ▪ Creates the premier pressure pumping company in Canada ▪ Strong balance sheet with roughly $149 million net debt post Canyon ▪ One of the largest service companies in Canada ▪ Combined market cap of approximately $1.3 billion ▪ Well positioned for index inclusion in September ▪ Significant capability to generate free cash flow with minimal capex 8
TRICAN – COMPETITIVE ADVANTAGE ▪ Strong safety record • LTIR rate of 0.08 ▪ Technical advantage in Canada • Numerous engineers embedded in client offices • TM system MVP Frac • Geological and reservoir services integrated into frac designs • Lightweight cement blends • Technology retains and grows market share and improves returns • Lowers product cost ▪ High-quality, efficient operations ▪ Significantly lowered cost structure in downturn ▪ Large scale going forward 9
GEOGRAPHIC COVERAGE Horn River Shale British Columbia Manitoba Alberta Saskatchewan FORT ST. JOHN Montney Shale Duvernay GRANDE PRAIRIE Shale WHITECOURT HINTON NISKU LLOYDMINSTER DRAYTON VALLEY Viking RED DEER Tight Oil Deep CALGARY Basin ESTEVAN BROOKS MEDICINE HAT Spearfish Bakken Cardium Lower Shaunavon Shale Tight Oil Tight Oil 10
TRICAN – OUTLOOK 2017 ▪ Estimate 6,700 wells to be drilled in 2017 (PSAC Forecast) • Up 65% year-over-year ▪ Industry short manned fracturing equipment in 2H 2017 ▪ Deep Basin, Montney, Duvernay activity generates 70-75% of Trican revenue ▪ Customer economics in liquids-rich gas plays can compete with all plays worldwide • Driven largely by condensate pricing ▪ CDN / US dollar exchange rate helps customer economics 11
TRICAN – OUTLOOK 2017 ▪ Fully booked for active equipment in major service lines through to 2018 ▪ Fracturing pricing up 20-25% in 2H 2017 over Q1 levels ▪ No change recently in second half of 2017 activity based on current commodity prices ▪ Looking to activate parked equipment in 2H 2017 • 2 to 3 fracturing crews (75,000 – 90,000 HP) • 3 cementing units • 2 additional coil crews ▪ Hiring qualified staff limiting speed of equipment activations but not a barrier to growth 12
TRICAN – OUTLOOK 2017 ▪ Will face cost increases in 2H 2017 for products, spare parts, third-party hauling and labour ▪ Contracts allow for recovery of major input costs ▪ Cost savings on products anticipated from new technology introductions ▪ Additional scale will provide more leverage on fixed costs ▪ Additional scale will provide supply chain cost efficiencies 13
TRICAN – OUTLOOK 2017 ▪ Increased frac intensity and job size ▪ Q2 2017 sand volume per month is the highest ever • 25% sequential increase over Q1 volume • Leading edge sand volume 6,000 tonnes per well • Still below US average ▪ Average stages per well increasing • Increasing 11% per year 14
TRICAN – COST SAVINGS ▪ Fixed costs reduced by $140 million per year since the start of the downturn ▪ Minimal fixed cost increases going forward as business improves ▪ Lowered fixed/variable cost ratio • Fixed costs now 25% of costs as compared to 50% pre-downturn ▪ Canyon-Trican combination allows for additional cost savings 15
GROWTH
GROWTH ▪ Strong earnings from Trican-Canyon assets with a reduced cost structure as utilization improves • Mid-cycle combined EBITDA from Canada (2014): $347million 19.6% EBITDA margin – 70% utilization - • Peak combined EBITDA from Canada: $586 million ▪ No significant capital required to generate returns ▪ Substantial leverage on lower costs 17
GROWTH ▪ We will focus on: • Being on leading edge of cost and operational efficiencies • Achieving cost advantages through size and scale in Canada • Separating ourselves through safety, technology, service quality and innovation ▪ Will explore adding or growing additional service lines in Canada after Canyon integrated 18
ADDITIONAL GROWTH ▪ Retained ownership in Keane allows us to participate in U.S. recovery ▪ Approximately 6.5% ownership in Keane Group with potential increased payout from certain economic conditions upon liquidity event • Trican received an initial distribution totaling approximately CAD $38 million • Trican maintains significant residual value in remaining common stock of Keane and measurable value is dependent on timing and share price of any further liquidating events 19
ADDITIONAL GROWTH Trican Pro Rata Year Ending Keane Holding Trican Pro Rata Proceeds (1.35 CAD/USD March 15 Company Proceeds Proceeds Exchange Rate) FRAC USD $9.87 share price: 2018 USD$0.71 billion USD$99 million CAD$134 million 2019 USD$0.71 billion USD$67 million CAD$91 million 2020 USD$0.71 billion USD$67 million CAD$91 million 2021 USD$0.71 billion USD$67 million CAD$91 million FRAC USD $13.87 share price : 2018 USD$1.00 billion USD$178 million CAD$241 million 2019 USD$1.00 billion USD$130 million CAD$175 million 2020 USD$1.00 billion USD$94 million CAD$126 million 2021 USD$1.00 billion USD$94 million CAD$126 million FRAC USD $17.87 share price: 2018 USD$1.29 billion USD$257 million CAD$347 million 2019 USD$1.29 billion USD$209 million CAD$282 million 2020 USD$1.29 billion USD$144 million CAD$195 million 2021 USD$1.29 billion USD$120 million CAD$162 million 20
ADDITIONAL GROWTH ▪ Non-compete in U.S. until April 2018 and first right to purchase the Keane business should we decide to re-enter the U.S. ▪ Trican will license our technology in U.S. and International markets • Licensed one sand supplier in North America • Selling selective chemistry in US and Canada • Selling silica dust control product in other industries 21
INNOVATION
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