Mr. Bradley Fedora reports

TRICAN REPORTS THIRD QUARTER RESULTS FOR 2023, DECLARES QUARTERLY DIVIDEND AND APPROVED PRELIMINARY 2024 CAPITAL BUDGET

Trican Well Service Ltd. has released its third quarter results for 2023. The following news release should be read in conjunction with management's discussion and analysis, the unaudited interim consolidated financial statements, and related notes of Trican for the three and nine months ended Sept. 30, 2023, as well as the annual information form for the year ended Dec. 31, 2022. All of these documents are available on SEDAR+.

Third quarter highlights:

• Trican's results for the quarter compared with the prior-year period were only marginally down despite lower activity and a persistent inflationary environment:
  • Revenue was $252.5-million for the three months ended Sept. 30, 2023, a 2-per-cent decrease compared with $258.3-million for the three months ended Sept. 30, 2022.
  • Adjusted EBITDAS (earnings before interest, taxes, depreciation, amortization and stock-based compensation) and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended Sept. 30, 2023, were $68.5-million and $65.7-million, compared with $72.1-million and $70.9-million, respectively, for the three months ended Sept. 30, 2022.
  • Free cash flow and free cash flow per share for the three months ended Sept. 30, 2023, were $47.7-million, 23 cents per share, basic, and 22 cents per share, diluted, compared with $64.9-million, 27 cents per share, basic, and 26 cents per share, diluted, for the three months ended Sept. 30, 2022.
  • Profit and profit per share for the three months ended Sept. 30, 2023, were $36.4-million, and 17 cents per share, basic and diluted, compared with $38.2-million, and 16 cents per share, basic and diluted, for the three months ended Sept. 30, 2022.
  • The company has approved a preliminary capital budget for 2024 of $76-million, financed with available cash resources and free cash flow.
• The company's balance sheet remains in excellent shape with positive working capital, including cash, of $143.9-million at Sept. 30, 2023, compared with $169.4-million at Dec. 31, 2022, providing significant financial flexibility.
• Trican operates the newest, most technologically advanced fleet of fracturing equipment in Canada. It developed its fleet by upgrading existing equipment incorporating CAT Tier 4 dynamic gas blending engine technology and building new fully electric ancillary equipment. The combination of Tier 4 DGB engine and fully electric ancillary equipment displaces up to 90 per cent of the diesel used in a conventional pumper with cleaner burning and less expensive natural gas resulting in lower overall fuel cost and reduced carbon dioxide and particulate matter emissions. its fracturing fleet upgrades also include industry-leading continuous duty pumps (3,000 hydraulic horsepower) and idle reduction technology packages, which enable longer pumping times and improved operating efficiencies:
  • Upgrades to Trican's fifth Tier 4 DGB fleet (42,000 HHP) are under way with the equipment anticipated to be field ready in early 2024, which will bring Trican's total Tier 4 DGB fleet to 210,000 HHP.
  • Tier 4 upgrades and electric ancillary equipment are key components of Trican's environmental, social and governance strategy. Its continuing ESG initiatives, including fleet upgrades, will reduce environmental impact, improve efficiency and reduce its emission profile, thereby improving the sustainability of its operations and supporting its customers in achieving their ESG goals.

Outlook

The company's overall outlook for the next few years remains unchanged. The company expects annual oil field activity in Canada to remain relatively stable, allowing it to continue generating sector-leading returns for its shareholders. Canadian market fundamentals remain strong for fracturing, cementing and coiled tubing services for the rest of the year, and the company expects the Canadian fracturing market to remain effectively balanced under the current supply and demand dynamic. Trican saw some work scheduled for the third quarter deferred into the fourth quarter due to the volatility in natural gas prices and weather-related events. It anticipates fourth quarter activity to be strong as it winds down into the Christmas season.

Although industry pricing fundamentals improved significantly over the past 12 to 18 months, it has recently experienced some pricing pressure as its competitors positioned themselves aggressively for the winter season. However, it expects disciplined pricing to return to the basin as it moves into 2024.

The Montney reservoir in northeastern British Columbia and northwest Alberta remains one of the premier resource plays in North America, and the company expects that the combination of attractive economics, future demand from liquefied natural gas export facilities and British Columbia's agreements with first nations should lead to continuing and growing activity in the play. Montney development requires large, high-pressure fracturing, cementing and coiled tubing services, which should directly benefit Trican. Additional Canadian export capacity is in the late stages of construction through the Trans Mountain pipeline, the Coastal GasLink pipeline and several LNG export facilities on the west coast of Canada. This creates a positive backdrop for oil and natural gas development activity in Western Canada and the associated oil field services required as it moves through the rest of 2023 and beyond.

The company continues to experience inflationary pressures on specific components throughout its supply chain but generally at a much lower rate compared with 2022. It will work diligently to ensure that it mitigates supply chain challenges such as long-lead times on key inputs, parts and components. It continues to face challenges in attracting and retaining qualified personnel to the oil field service industry and thus expects to see continuing wage inflation.

Trican continues to build on the investments made in its equipment fleet over the last two years to ensure that it is on the forefront of pressure pumping technology and design in Canada. Demand for its Canadian market-leading low-emission Tier 4 DGB fracturing fleets is very robust and expected to remain strong for 2024. It is currently in the process of upgrading its fifth fleet of Tier 4 DGB fracturing equipment containing high-pressure pumps, which is anticipated to be field ready in early 2024 bringing Trican's total Tier 4 fleet to an industry-leading 210,000 HHP.

To further reduce emissions and fuel costs from diesel consumption, it continues to invest and enhance its equipment offering, has recently developed fully electric versions of certain ancillary equipment required for on-site fracturing operations, and is deploying them into its fleets going forward. This equipment includes sand handling, blending and other items used on-site for chemical blending. It believes these continuing technological advancements will augment its differentiation strategy and add value for its customers. Its ability to generate strong free cash flow and its financial flexibility allow for continued progress in its fleet upgrade and electrification program.

It will continue to serve its customers with state-of-the-art equipment and generate industry-leading returns in an environmentally and socially responsible manner. In turn, this will allow Trican to focus on returning capital to its shareholders both through its continuing normal course issuer bid program and its quarterly dividend program. It believes its ability to deliver a multilayered return of capital strategy while maintaining a strong balance sheet will lead to long-term value creation for its shareholders.

Additional information regarding Trican, including Trican's most recent AIF, is available under Trican's profile on SEDAR+.

Conference call and webcast details

The company will host a conference call on Friday, Nov. 10, 2023, at 10 a.m. MT (12 p.m. ET) to discuss its results for the third quarter 2023.

A webcast of the conference call will be available.

You can also visit the investors section of its website and click on reports.

To participate in the question-and-answer session, please call the conference call operator at 1-800-319-4610 (North America) or 1-403-351-0324 (outside of North America) 10 minutes prior to the call's start time and ask for the Trican Well Service Ltd. third quarter 2023 earnings results conference call.

The conference call will be archived on Trican's website.

About Trican Well Service Ltd.

Headquartered in Calgary, Alta., Trican supplies oil and natural gas well servicing equipment and solutions to its customers through drilling, completion and production cycles. Its team of technical experts provides state-of-the-art equipment, engineering support, reservoir expertise and laboratory services through the delivery of hydraulic fracturing, cementing, coiled tubing, nitrogen services and chemical sales for the oil and gas industry in Western Canada. Trican is the largest pressure pumping service company in Canada.

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