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

INVESTOR PRESENTATION May 2016

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

OVERVIEW OF TRICAN  Full service, Canadian pressure YEAR TO DATE MARCH 31, 2016 pumping company Revenue by Service Line  Market leader in Canada 3% 3% 2% 2%  440,000 HP available fracturing 26% capacity  Completions Tools business active in 64% North America, Norway and Russia  Fracturing Coiled Tubing Focus on safety, technology, and Cementing Acid & Specialty Chemicals operational performance Nitrogen Industrial & Pipeline Services 3

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)  Trican has a strong customer base in Canada • Numerous long-term clients  Canadian dollar to U.S. dollar exchange rate helps customer economics 5

CANADA  Strong safety record  Technical advantage in Canadian market which pays off in downturn • 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 in a downturn • Lowers product cost  Strong operations 6

GEOGRAPHIC COVERAGE FORT NELSON Horn River HIGH LEVEL Shale British Columbia Saskatchewan Manitoba Alberta FORT ST. JOHN Montney Shale RED EARTH Duvernay GRANDE PRAIRIE Shale WHITECOURT HINTON NISKU LLOYDMINSTER DRAYTON VALLEY Viking RED DEER PROVOST Tight Oil CALGARY Tight Gas BRANDON ESTEVAN BROOKS Spearfish Bakken Cardium Lower Shaunavon Shale Tight Oil Tight Oil 7

CANADA EQUIPMENT  Current Canadian fleet • 440,000 fracturing HP • 55 Cementing units Canadian HP Growth • 38 N 2 Pumpers 500,000 450,000 • 19 Acid Units 400,000 • 16 Coil Units 350,000 300,000 250,000  50% of equipment parked during 200,000 remainder of 2016 150,000 100,000  50,000 Parked equipment ring fenced 0 and ready to go to work when 2008 2009 2010 2011 2012 2013 2014 2015 2016* activity improves * Anticipated HP at year-end based on approved budgets, which are subject to change  Will right size fleet up or down to maximize utilization and profits 8

CANADA - FIRST QUARTER  Utilization and activity low and choppy in Q1  March very slow due to early breakup  Pricing down 6% sequentially in Q1 2016 9

CANADA - OUTLOOK  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 over Q1 results  Customer base remains strong 10

CANADA - SECOND HALF COST SAVINGS  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) 11

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 13

POSITIVES AFTER THE DOWNTURN  Strong earnings on reduced cost structure as utilization and pricing improve • 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 14

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  Will look to expand service lines in Canada upon recovery to leverage on our strong Canadian business 15

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  Norwegian and Russian revenue and profitability to grow in 2016  North American results improved year-over-year based on cost controls 17

SALE OF U.S. BUSINESS

SALE OF U.S. BUSINESS  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 19

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 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 20

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 others going forward  Allows Trican to focus on our core markets 21

INNOVATION

INNOVATION  Trican focuses on separating itself with technology  Technology must reduce $/BOE for our customers or lower our costs  TM MVP Frac • Patented chemical solution that reduces proppant settling in slick water fracs • Strong market acceptance in Canada • 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 23

INNOVATION  TM Diverting Agent TriVert • 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 24

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 25

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. 26

FINANCIAL OVERVIEW