Trican Well Service Ltd. · TSX:TCW
Trican Well Service — Investor Presentation (April 2021)
18 slides from Trican Well Service's investor presentation, April 2021
Slide 1: Investor Presentation April 2021
INVESTOR PRESENTATION April 2021
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 is a leading Canadian energy services company, servicing wells in Drilling western Canada for more than 24 Cycle Completion years Cycle • Cementing Services • Fracturing Our goal is to generate industry • Coil Tubing leading returns in an environmentally and socially responsibl
Slide 4: Our Strategic Priorities
OUR STRATEGIC PRIORITIES Strengthen - Maintain market leading position in Fracturing and Cementing service lines Existing - Expand coil tubing Business Activate parked equipment (if return hurdles can be met) - Adapt our business approach, integrating ESG to improve value ESG Differentiate with new
Slide 5: Western Canadian Sedimentary Basin Focus
WESTERN CANADIAN SEDIMENTARY BASIN FOCUS Market Leading Positions Canadian market leader in fracturing services (crewed HHP) Horn River British Columbia Alberta Saskatchewan Manitoba Shale Canadian market leader in cementing Montney FORT ST. JOHN services (based on rig count) Shale GRANDE PRAIRI
Slide 6: Diversified Service Lines
DIVERSIFIED SERVICE LINES 2020 Revenues: Business Unit Breakdown Market Leading Positions Other 1% Coil Services 9% Canadian market leader in fracturing services (based on horsepower) Cementing 18% Canadian market leader in cementing services (based on drilling rigs serviced) Supporting servic
Slide 7: Financial Strength & Resiliency
FINANCIAL STRENGTH & RESILIENCY Strong Financial Position Low financial leverage: • December 31, 2020: $22.6 million of cash, no bank debt Debt / Tangible Capital • Clean balance sheet puts us in a strong position to take 0.60 $800 advantage of attractive opportunities 0.50 $700 Debt / Tangible Ca
Slide 8: Returning Money to Shareholders
RETURNING MONEY TO SHAREHOLDERS Dividends and Share Repurchases: 2006-2021 ($000's) Since 2006, Trican has $120,000 $450,000 returned over $422 million to Cumulative Dividend (RHS) $400,000 shareholders $100,000 Cumulative NCIB (RHS) $350,000 Total Annual (LHS) $80,000 $300,000 Invested over $19
Slide 9: Responsibly Improving Efficiency in Canada
RESPONSIBLY IMPROVING EFFICIENCY IN CANADA Leading Efficiency and Reducing our Environmental Impact Large natural gas dual fuel fleet (~ 170,000 HHP) helps reduce well costs and emissions Introducing new technology to reduce tractors on location which will provide fuel savings, result in fewer e
Slide 10: Canadian Industry & Trican Competitive Positioning
CANADIAN INDUSTRY & TRICAN COMPETITIVE POSITIONING
Slide 11: Available Capacity
AVAILABLE CAPACITY Existing idle equipment provides opportunity Service Line Total Active, Idled for incremental returns upon a market recovery Equipment Manned • Substantial leverage on existing infrastructure 280,000 289,900 Fracturing (HHP) 569,900 and fixed cost structure upon recovery (6 flee
Slide 12: Canadian Industry - Increased Well Service Intensity
CANADIAN INDUSTRY - INCREASED WELL SERVICE INTENSITY WCSB – Tonnes / Well WCSB – Wells Drilled 2,000 1,896 12,000 1,696 10,853 10,924 1,800 1,570 10,000 1,600 1,400 1,298 8,000 1,200 1,080 6,959 6,648 1,000 878 6,000 5,376 4,810 800 594 3,963 4,114 510 4,000 3,482 600 2,993 400 2,000 200 - 0 2013 20
Slide 13: Fracturing Fleet
FRACTURING FLEET Most efficient style of fracturing pump Fracturing Type of Pump Pump HHP % of designed for higher intensity plays Fleet (#) Fleet • Montney, Duvernay and Deep Basin (accounts for ~ 80% of the required Continuous Duty 2,700 / 3,000 HHP 127 347,400 61% HHP demand in Canada) Mid-Tier
Slide 14: Fracturing Competitive Landscape
FRACTURING COMPETITIVE LANDSCAPE CANADIAN CAPACITY Q1 2021 Hydraulic Capacity Active Fleets Canadian competitive landscape Horsepower Crewed (HHP) more consolidated than the U.S. Trican 569,900 280,000 6 market Competitor A 275,000 202,000 4 Expect an increase in active Competitor B 282,500 175,
Slide 15: Well Services
WELL SERVICES Cement: Cement operations track very closely with drilling Average Canadian Rig Count rig activity 12 Month Avg. 60 Day Avg. 800 Longer laterals have increased cement 700 requirements 600 500 Historically generated positive return on capital despite recent market challenges 400 3
Slide 16: Aligning Cost Structure to New Canadian Market
ALIGNING COST STRUCTURE TO NEW CANADIAN MARKET Lean, efficient organization: • Reduced fixed personnel costs by over 55% since Q1/20 • Parked half of our active equipment • Lowered capital spending to essential maintenance capital: estimated to be 3% to 5% of revenue in 2021 • Closely monitoring m
Slide 17: Environment, Social and Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE Our primary focus areas have been: Safety People Development Environment Our frontline workers face dangers that are Since 2017 we have invested over 200,000 Trican and its customers are subject to not typical in most office workplace hours of training time i
Slide 18: Investment Summary
INVESTMENT SUMMARY • ROIC and capital • Largest Canadian • Equipment capacity OPPORTUNITY discipline, focused on pressure pumping for incremental shareholder returns company with broad returns upon a market STRENGTH service offering RETURNS recovery • Operating efficiencies will drive free cash • St
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