Trican Well Service Ltd. · TSX:TCW
Trican Well Service — Investor Presentation (June 2021)
18 slides from Trican Well Service's investor presentation, June 2021
Slide 1: Investor Presentation June 2021
INVESTOR PRESENTATION June 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 Strong free cash flow generation capability: • Q1 2021: $21 million (2020: $13 million) • Can fund capital program as well as share buybacks Debt / Tangible Capital 0.60 $800 Low financial leverage: $700 0.50 Debt / Tangible Capital • Mar
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 Reducing our Environmental Impact and Improving Efficiency Trican is committed to becoming an ESG leader in the WCSB and will issue its first sustainability report in Q3 2021 Recently announced 30,000 HHP Tier 4 fleet, displaces up to 85% of diesel fuel
Slide 10: Responsibly Improving Efficiency in Canada
RESPONSIBLY IMPROVING EFFICIENCY IN CANADA 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
Slide 11: Canadian Industry & Trican Competitive Positioning
CANADIAN INDUSTRY & TRICAN COMPETITIVE POSITIONING
Slide 12: 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 13: Canadian Industry - Increased Well Service Intensity
CANADIAN INDUSTRY - INCREASED WELL SERVICE INTENSITY WCSB – Tonnes / Well WCSB - Wells Drilled 2,000 1,896 12,000 10,853 10,924 1,800 1,696 1,570 10,000 1,600 1,400 1,298 8,000 6,959 1,200 1,080 6,648 1,000 878 6,000 5,376 4,810 800 3,963 4,114 594 3,604 600 510 4,000 2,963 400 2,000 200 - - 2013 20
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 282,500 200,
Slide 15: Well Services
WELL SERVICES Cement: Cement operations track very closely with Average Canadian Rig Count drilling rig activity 700 600 Longer laterals have increased cement 500 requirements 400 Historically generated positive return on 300 capital despite recent market challenges 200 100 Coil: - Adjusting
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 are: Safety People Development Environment Our frontline workers face dangers Since 2017 we have invested over Trican and its customers adhere to that are not typical in most office 200,000 hours of training time into strict environmen
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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