Trican Well Service Ltd. · TSX:TCW
Trican Well Service — Investor Presentation (October 2022)
15 slides from Trican Well Service's investor presentation, October 2022
Slide 1: Trican Well Service Ltd. Investor Update – October 2022
TRICAN WELL SERVICE LTD. INVESTOR UPDATE – OCTOBER 2022
Slide 2: Forward Looking Statements
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 development
Slide 3: Who We Are
WHO WE ARE ▪ Trican has been servicing wells in western Canada for more than 25 years Drilling Cycle Completion ▪ Canada’s largest pressure pumper • Cementing Cycle Services • Fracturing ▪ Goal is to generate industry leading returns in an • Coil Tubing environmentally and socially responsible manne
Slide 4: Where We Operate
WHERE WE OPERATE Trican is Canada’s Largest Pressure Pumper ▪ Largest fracturing fleet in Canada ▪ Market leader in cementing services Horn River British Columbia Alberta Saskatchewan Manitoba Shale FORT ST. JOHN ▪ Supporting service lines: coil tubing, Montney Shale Duvernay nitrogen, acid GRANDE P
Slide 5: Our Strategic Priorities
OUR STRATEGIC PRIORITIES Strengthen - Maintain market leading position in fracturing and cementing service lines Existing - Expand coil tubing market share Business Activate parked equipment (if return hurdles can be met) - Adapt our business approach, integrating ESG into our daily operations ESG D
Slide 6: Introducing New Technology into Canada
INTRODUCING NEW TECHNOLOGY INTO CANADA Tier 4 DGB Technology – Investing to Reduce our Environmental Impact and Improve Efficiency ▪ First company in Canada to deploy Tier 4 DGB low emissions fracturing fleet • Displace up to 85% of diesel fuel with cleaner burning natural gas to reduce costs and on
Slide 7: Introducing New Technology into Canada: Emissions and Fuel Cost Comparison
INTRODUCING NEW TECHNOLOGY INTO CANADA Tier 4 DGB Technology - Reducing our Environmental Impact and Improving Efficiency GHG Emissions Comparison Fuel Cost Comparison * Based on Trican internal modeling and industry research 7
Slide 8: Responsibly Improving Efficiency
RESPONSIBLY IMPROVING EFFICIENCY Reducing our Environmental Impact and Improving Efficiency ▪ Fracturing • High volume products delivered through bulk logistics, reducing transportation and handling by 50% • Development of friction reducers that maintain performance in 100% produced water • Reduced
Slide 9: Returning Capital to Shareholders
RETURNING CAPITAL TO SHAREHOLDERS Strong Financial Position ▪ Free cash flow and low financial leverage • Clean balance sheet allows us to invest in our equipment while returning capital to shareholders Dividends and Share Repurchases $120,000 $500,000 ▪ Invested over $260 million repurchasing more
Slide 10: Canadian Pressure Pumping – Market Dynamics
CANADIAN PRESSURE PUMPING – MARKET DYNAMICS Canadian Industry Capacity CANADIAN CAPACITY Q2 2022 ▪ Canadian competitive landscape more Hydraulic Capacity Active Fleets consolidated than the U.S. market Horsepower Crewed (HHP) ▪ Expecting demand > supply for active crewed Trican 537,300 379,800 7 fle
Slide 11: Canadian Pressure Pumping – Market Dynamics: Trican Capacity
CANADIAN PRESSURE PUMPING – MARKET DYNAMICS Trican Capacity ▪ Trican has approximately 40% of the total idled SERVICE LINE TOTAL ACTIVE IDLED pressure pumping equipment in Canada EQUIPMENT ▪ Incremental returns as market recovers Fracturing (HHP) 537,300 379,800 157,500 • Substantial leverage on exi
Slide 12: Canadian Pressure Pumping – Increased Well Service Intensity
CANADIAN PRESSURE PUMPING – INCREASED WELL SERVICE INTENSITY WCSB - Tonnes / Well WCSB - Wells Drilled 3,000 2,760 12,000 10,853 10,924 2,552 2,500 10,000 2,081 2,000 8,000 1,702 6,959 6,781 1,580 6,000 1,500 1,309 6,000 5,376 4,810 1,096 4,323 979 3,963 1,000 4,000 657 2,963 500 500 2,000 - - 2013
Slide 13: Well Services
WELL SERVICES Cement ▪ Cement operations track very closely with drilling rig activity ▪ Trican services approximately 1/3 of Canadian market – focused in the Montney and Deep Basin • Approximately 45% market share in NW AB / NE B.C. ▪ Longer laterals demand increased technical cement capabilities C
Slide 14: ESG – Sustainability Driven Initiatives
ESG – SUSTAINABILITY DRIVEN INITIATIVES ENVIRONMENT SOCIAL GOVERNANCE ▪ Canada’s first Tier 4 DGB ▪ Safe Work Practices ▪ Ethics Training / Policy Pumping Fleet ▪ Indigenous Relations ▪ Anti-Corruption Training / ▪ Idle Reduction Technology ▪ Dust Control Policy ▪ Bulk Chemical Logistics ▪ Concentra
Slide 15: Investment Highlights
INVESTMENT HIGHLIGHTS Canadian Growth • Canadian basin bottlenecks removed and LNG close to onstream • Increasing global focus on the importance of energy security • Own almost half of the spare pumping capacity in Canada Strong Free Cash Flow • Free cash flow margin driven by corporate focus on eff
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