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INVESTOR PRESENTATIONApril 2020
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
Investment Summary
Near Term Market Outlook
Canadian Industry Overview and
Trican’sCompetitive Positioning
Company Overview and Ongoing
Business Transformation
3
TRICAN OVERVIEW
Focused in Canada, Trican has a highly trained workforce dedicated to safety and operational excellence who provide a comprehensive array of specialized products and services using equipment required for the exploration and development of oil and gas reserves
Trican has been servicing wells in western Canada for more than 24 years
Trican service lines cover 60% to 70% of a typical well cost
Customer
Full Cycle Technical Expertise
Engineering SupportReservoir ExpertiseLaboratory Services
Drilling Cycle
Cementing Services
Completion Cycle
FracturingCoil Tubing
Fluid Management
Production Cycle
Coil Tubing Acidizing
Pipeline ServicesIndustrial ServicesChemical Services
Remedial Cementing
WHAT WE DO
5
BUSINESS TRANSFORMATION: OUR STRATEGIC PRIORITIES REMAIN INTACT
To achieve top quartile ROIC in our sector
- Maintain market leading position in Fracturing and Cementing service lines- Strengthen auxiliary service lines (Coiled Tubing)- Activate parked equipment (if return hurdles can be met)
- Growth in existing services linesDisciplined investment into future growth – ensure ROIC hurdle rates are met
- Return value to shareholders through share buyback program- Sell excess and permanently stranded capital equipment, return funds to the balance sheet
- Reduce costs for ourselves and our clients through efficiency improvements and scale
Strengthen Existing
Business
Growth
Share-holder Return
Cost Control & Efficiency
Gains
6
Having safe, efficient, customer-focused operations is always priority #1. Beyond safety and operational performance, our
strategic priorities remain intact:
BUSINESS TRANSFORMATION: 2015 AND ONGOING EFFORTS
The 2014 oil supply glut required Trican to take decisive action
The Company’s actions have positioned Trican to weather and take advantage of near-term North American energy market turbulence
Restructure Refocus
Right SizeReturns
7
TRICAN STRENGTH: FINANCIAL STRENGTH & RESILIENCY
Financial position allows company to survive current downturn and be in a strong position to take advantage of opportunities when industry improves
Company has deleveraged by more than $700 million and improved asset coverage relative to 2015 cyclical low
• Sold Russia business for ~ $1,720/HHP (Q3 2015)• Sold US business for ~ $630/HHP (Q1 2016)
Monetizing stranded capital by selling permanently idled assets• Since 2017, sold $60 million of excess property and equipment at
values approximating net book value• Sold water business in Q1 2020 for $17.6 million• Selling redundant real estate: ~ $18 million listed for sale
Strong Financial Position Net bank debt of ~ $25 million (Mar. 31, 2020) (bank debt less ~
$23 million of cash)
Positive working capital of greater than $100 million (Mar. 31, 2020)
8
See non-GAAP measure Adjusted EBITDA as more fully described in Trican’s MD&A.
$0$100$200$300$400$500$600$700$800
-
0.10
0.20
0.30
0.40
0.50
0.60
Q1/
15Q
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Q3/
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Q1/
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Q1/
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Q3/
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4/17
Q1/
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Q3/
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4/19
Tota
l Deb
t (m
illio
ns)
Deb
t / T
angi
ble
Cap
ital
Debt / Tangible Capital
Total Debt (RHS) Debt / Tangible Capital (LHS)
$0
$200
$400
$600
$800
$1,000
$1,200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Canadian Results ($ millions)
Revenue Adjusted EBITDA
Hydraulic Fracturing
70%
Cementing16%
Coil Services8%
Fluid Management
4%
Industrial Services
2%
TRICAN STRENGTH: DIVERSIFIED SERVICE LINES
Market Leading Positions Canadian market leader in fracturing services
(based on horse-power)
Canadian market leader in cementing services (based on drilling rigs serviced)
Supporting service lines: coil tubing, nitrogen, acid, pipeline and industrial services
2019 revenue of $636 million
2019 Revenues: Business Unit Breakdown
9
TRICAN STRENGTH: DRIVING EFFICIENCY IN 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
10
TRICAN STRENGTH: DRIVING EFFICIENCY IN THE CANADIAN MARKET
Ongoing innovations• Largest natural gas dual fuel fleet (145,000 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 fewer 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
11
TRICAN STRENGTH: RIGHT FRACTURING FLEET
Largest fleet of continuous duty pumps; most efficient style of fracturing pump, designed for higher well service intensity plays:
• Equipment is well maintained, hot stacked and requires little capex to activate
• Allows Trican to continue to efficiently operate in the highest service intensity resource plays: Montney, Duvernay and Deep Basin (accounts for ~80% of the required HHP demand in Canada)
Large dual fuel fleet to offer fuel savings: 145,000 HHP of natural gas bi-fuel pumps
Fracturing Fleet
Type of Pump Pump (#)
HHP % of Fleet
Continuous Duty 2,700 / 3,000 HHP 126 345,000 59%
Mid Tier 2,500 HHP 95 237,500 41%
Total Fracturing Fleet
221 582,500
See MD&A for definition of Fracturing Fleet terms
12
TRICAN STRENGTH: FRACTURING COMPETITIVE LANDSCAPE IMPROVING
13
* Smaller crews not suitable for all higher intensity plays
Source: Competitor company reports, internal company data, and internal estimates
Canadian competitive landscape much better than U.S. market
Recent downturn is anticipated to drop active crewed fleets by half in second half of 2020• Crewed capacity in second half estimated to be
660,000 HHP and 18 crews as of April 1 • Evolving situation as second half activity
becomes better defined
Crewed capacity was reduced ~ 400,000 HHP during 2019
Trican will not staff additional capacity until prices improve
CANADIAN CAPACITY IN Q1 2020
Hydraulic Horsepower (HHP)
Capacity Active Crewed
Fleets
Trican 583,000 324,000 8
Competitor A 305,000 193,000 4
Competitor B 298,000 225,000 6
Competitor C 170,000 125,000 2
Competitor D 250,000 140,000 3
Competitor E 263,000 175,000 5
Competitor F* 85,000 85,000 4
Competitor G* 50,000 50,000 4
2,004,000 1,317,000 36
TRICAN STRENGTH: AVAILABLE CAPACITY
Trican has reduced its fleet size in response to declining market conditions
Current downturn will result in Trican parking approximately half of our active equipment going forward that we were running in Q1
14
Service Line Total Equipment
Active,Manned
Idled
Fracturing (HHP) 583,000 162,000(4 fleets)
421,000(9 fleets)
Cementing (trucks) 62 11 51
Coil Tubing (units) 23 6 17
Will continue to monitor customer activity levels going forward and will adjust equipment as required to reduce costs and keep utilization high on active equipment
Existing idle equipment provides opportunity for incremental returns upon a market recovery• Substantial leverage on existing infrastructure and fixed cost structure upon recovery• Assets are well-maintained and not scavenged• Can be activated by adding staff with little capital• Approximately 9 fracturing fleets parked
TRICAN STRENGTH: ALIGNING COST STRUCTURE TO NEW CANADIAN MARKET
We will continue to align our business to the changes in the Canadian market and lower our costs accordingly:
• Reduced personnel costs including fixed and G&A by approximately 50%
• Parked half of our active Q1 equipment
• Reduced discretionary costs in all categories
• Lowered capital spending to only essential maintenance capital: estimated to be 3 to 4% of revenue going forward
• Will monitor customer activity going forward and will adjust size of operations and cost structure with the target of making positive operating cash flow in the second half of the year
• History of cost reductions: annualized $40 million in cost reductions during 2019
15
TRICAN STRENGTHS: FINDING WAYS TO RETURN MONEY TO SHAREHOLDERS
Trican is focused on delivering the top quartile ROIC in our sector
Since 2006, Trican has returned $390 million to shareholders
The Company remains focused on finding ways to return funds to shareholders
• Have been actively purchasing shares under our current NCIB and have purchased 6% of our approved volume since October 1, 2019
• Repurchased over 22% of the Company’s shares since October 2017
• Paused NCIB recently and will activate once industry visibility improves and stabilizes
• Current market dynamics support share repurchases as the best way to return money to shareholders
16
-
25,000
50,000
75,000
100,000
2006 2008 2010 2012 2014 2016 2018 -
100,000
200,000
300,000
400,000Dividends and Share Repurchases, 2006 - 2019
Cumulative Dividend (RHS)
Cumulative NCIB (RHS)
Annual (LHS)
Cumulative (RHS)
CANADIAN INDUSTRY & TRICAN COMPETITIVE POSITIONING
CANADIAN INDUSTRY: INCREASED WELL SERVICE INTENSITY
2019 well count 29% below 2018 levels
2020 estimates subject to change resulting from significant decline in oil prices
7,000 – 8,000 wells today equates to 2014 well count levels in terms of fracturing equipment demand
We expect well service intensity to remain flat in 2020• Tonnes of proppant placed per meter grew by approximately 30% in 2018 relative to 2017
- 1.5 tonnes / metre in 2018 vs. 1.2 tonnes / metre in 2017 (current 2019 data shows 1.4 tonnes / metre)- Leading edge 2.0 tonnes / metre
• 2018 and 2019 data weighted to higher well service intensity wells
Source: Canadian Discovery Source: Stifel FirstEnergy
18
10,853 10,924
5,376 3,963
6,959 6,781
4,809 5,050
-
2,000
4,000
6,000
8,000
10,000
12,000
2013 2014 2015 2016 2017 2018 2019E 2020E
WCSB - Wells Drilled
616 777
1,285 1,326
1,843
3,093 2,887
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2013 2014 2015 2016 2017 2018 2019
WCSB - Tonnes / Well
TRICAN: MARKET COVERAGE
Horn River Shale
Montney Shale
Bakken Shale
Cardium Tight Oil
Viking Tight Oil
Lower Shaunavon
Tight Oil
GRANDE PRAIRIEWHITECOURT
HINTON
FORT ST. JOHN
NISKU
RED DEER
BROOKSESTEVAN
British Columbia Alberta Saskatchewan
Deep Basin
Duvernay Shale
CALGARY
Manitoba
Spearfish
MEDICINE HAT
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Market Leading Positions Canadian market leader in fracturing
services (crewed HHP)
Canadian market leader in cementing services (based on rig count)
Supporting service lines: coil tubing, nitrogen, acid, pipeline and industrial services
Trican service line offerings cover approximately 60% to 70% of resource well AFE costs
TRICAN: CEMENT SERVICES
Drilling rig count provides: • A general indication of operational activity
• Cement operations track very closely with the drilling rig activity
• Lower rig count has reduced cement truck requirements, but longer laterals and increased cement requirements have counteracted this requirement
• Only two primary competitors in the cement business
• Trican has maintained a steady market share in this service line over the past decade
• Positive return on capital service line
20
0
100
200
300
400
500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
12 Month Trailing Average Canadian Rig Count
Source: Baker Hughes GE Rig Count. 2020 includes actuals to March 6th and internal estimates to end of Q1/20.
TRICAN: GROWING COILED TUBING
Adding scale to improve operating results
Currently running 6 active units
Have 17 more units to add back into the market with little capital investment required
21
TRICAN: INNOVATION
Scale allows targeted investment into internally developed IP and new technologies for reduced product costs
Patented MVP™ fracturing fluids that suspend proppants and increase production
Nano surfactants to improve water flowback
Developed new, high-viscosity friction reducers for produced water fluids
• Some direct chemical sales to customers who use other pumping service providers
Introducing new technology to reduce tractors on location which will provide fuel savings, result in fewer engine hours, and reduce GHGs
Implementing equipment monitoring technology that will reduce repairs and extend equipment life through data management
Developed lower cost cement blends
Continually lowering product costs
22
Low industry activity cycle cash flow management:Current Cycle
Continue to focus on lowering costs in downturn environment• $40 million annualized cost savings realized throughout 2019 (full realization in 2020)• Have adjusted active equipment, fixed and G&A costs down approximately 50% by April 1, 2020• Will continue to adjust active equipment and costs downward to match industry activity
Will maintain a strong balance sheet during downturn
Assets generated $183 million in adjusted EBITDA1 in 2017:Recent Cycle
~6,500 wells Average fracturing crew count of ~9.5 crews Excludes 5 months of acquired company results (Canyon acquired June 2017)
Trican will continue to evaluate asset divestiture opportunities or opportunities to generate returns on idle assets in other markets:Other Financial Levers
Since 2017, Trican has realized $60 million of proceeds from asset sales and expects to realize an incremental $15 million in Q1 2020
Currently have approximately $18 million of real estate available for sale
TRICAN STRENGTH: FINANCIAL MANAGEMENT AND CAPABILITIES
231 See non-GAAP measures as more fully described in Trican’s MD&A.
NEAR-TERM OUTLOOK & INVESTMENT SUMMARY
OUTLOOK: Q2 2020
Very slow quarter as customers adjust to new commodity prices and delay well plans
Trican has aggressively reduced cost structure to adjust to reduced activity levels
Prices relatively flat sequentially
25
OUTLOOK: REMAINDER OF 2020
Customers will adjust spending as commodity prices and cash flows drop• Each customer will adjust differently
Trican will adjust active equipment and costs to changing activity levels
Overall activity estimated to be down 50% in second half of 2020• Oil activity will be substantially down at current commodity prices• AECO natural gas prices currently at a level that will drive some
gas activity in second half
Pricing at levels that will not allow us to give many price breaks
Will park additional equipment rather than operate at negative cash returns
26
WHY INVEST IN TRICAN
Low debt level mitigates downside risk
Company valued at historic low price to tangible book value
Fracturing horsepower valued below what Trican sold 12 to 19-year-old equipment for ($160 / HHP)
Ability to ride out the downturn with significant torque upon recovery in the industry
0.0x0.2x0.4x0.6x0.8x1.0x1.2x1.4x1.6x1.8x2.0x
-
0.20
0.40
0.60
0.80
1.00
1.20
Pric
e / T
angi
ble
Book
Val
ue
Deb
t / T
angi
ble
Equi
ty
Price to Tangible Book Value vs. Leverage Profile
Debt to Tangible Equity (LHS) Price to Tangible Book (RHS)
27
INVESTMENT SUMMARY
RET
UR
NS
• ROIC and capital discipline focused
• Business improvement and cost reductions for sustainable cash flow generation
• Positioned to return money to shareholdersST
REN
GTH
• Largest Canadian pressure pumping company with broad service offering
• Strong, loyal customer base
• Low debt positions Trican to withstand near-term weakness
• Strong asset coverage O
PPO
RTU
NIT
Y • Equipment capacity provides opportunity for incremental returns upon a market recovery
• Financial position for opportunistic growth
• Low capex required to grow business
• Very little customer growth required to balance market
28
APPENDICES
APPENDIX 1: SOCIAL AND ENVIRONMENTAL POLICIES
Safety Our frontline workers face dangers that are
not typical in most office workplace environments; therefore it is imperative we remain committed to safety.
A common measure for our safety performance is Lost Time Injury Rate (LTIR)
During the past 12 Months, our LTIR rate has dropped by nearly 50%
People Development Since 2017 we have invested over 200,000
hours of training time into our people
To provide a safe and productive work environment that results in quality service is training our people
A majority of our operational people are required to be trained as Class 1 driver trainers
Trican’s driver trainer program has allowed us to maintain our driver trainer status despite significantly increased regulations
Investment into our lean six sigma efficiency program will see a number of our people positioned to receive their green belt. Our people and our shareholders will see the benefit of our lean initiatives
Environment Trican and its customers are subject to
strict environmental regulation and compliance.
We have a system of governance to ensure compliance of environmental rules and regulations
Beyond standard regulatory compliance, Trican is committed to finding economically and environmentally responsible ways to reduce our environmental footprint
Trican has the largest fleet of dual fuel fracturing pumps. Dual fuel fracturing pumps provide several benefits to our customers and the environment, including 27% reduced GHGs (source: U.S. EIA)
Investment into tractor-less operations will reduce engine idle times, fuel consumption and therefore GHGs
Our Annual Information Form provides more detail on our policies and governance surrounding social and environmental matters. Our primary initiatives in these areas are as follows:
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INVESTOR PRESENTATIONApril 2020