Trican Reports Third Quarter Results for 2023, Declares Quarterly Dividend and Approved Preliminary 2024 Capital Budget – Canadian Energy News, Top Headlines, Commentaries, Features & Events – EnergyNow

THIRD QUARTER HIGHLIGHTS

• Trican’s results for the quarter compared to 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 September 30, 2023, a 2% decrease compared to $258.3 million for the three months ended September 30, 2022.
• Adjusted EBITDAS¹ and adjusted EBITDA¹ for the three months ended September 30, 2023 were $68.5 million and $65.7 million, compared to $72.1 million and $70.9 million, respectively, for the three months ended September 30, 2022.
• Free cash flow¹ and free cash flow per share¹ for the three months ended September 30, 2023 was $47.7 million, $0.23 per share basic and $0.22 per share diluted compared to $64.9 million, $0.27 per share basic and $0.26 per share diluted for the three months ended September 30, 2022.
• Profit and profit per share for the three months ended September 30, 2023 was $36.4 million, $0.17 per share basic and diluted compared to $38.2 million, $0.16 per share basic and diluted for the three months ended September 30, 2022.
• The Company has approved a preliminary capital budget for 2024 of $76 million, funded with available cash resources and free cash flow¹.

• The Company’s balance sheet remains in excellent shape with positive working capital, including cash, of $143.9 million at September 30, 2023 compared to $169.4 million at December 31, 2022, providing significant financial flexibility.
• Trican operates the newest, most technologically advanced fleet of fracturing equipment in Canada. We developed our fleet by upgrading existing equipment incorporating CAT Tier 4 Dynamic Gas Blending (“DGB”) 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% 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. Our fracturing fleet upgrades also include industry leading continuous duty pumps (3,000 HHP) 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 underway 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 (“ESG”) strategy. Our ongoing ESG initiatives, including fleet upgrades, will reduce our environmental impact, improve efficiency and reduce our emissions profile thereby improving the sustainability of our operations and supporting our customers in achieving their ESG goals.

RETURN OF CAPITAL

• The Company continues to be active in its Normal Course Issuer Bid (“NCIB”) program as a key component of its return of capital strategy:
  • During the three and nine months ended September 30, 2023, Trican purchased and cancelled 2,708,054 common share and 20,059,654 common shares, respectively, at a weighted average price of $3.71 per share and $3.34 per share, equating to approximately 1% and 9% of the 229,776,553 outstanding shares at December 31, 2022. The 2022-2023 NCIB program was fully completed in Q3 2023 resulting in the purchase of 23,083,554 common shares.
  • On October 2, 2023, the Company announced the renewal of its NCIB program, commencing October 5, 2023, to purchase up to 21,004,897 common shares for cancellation before October 4, 2024, subject to the TSX NCIB rules. All common shares purchased under the NCIB are returned to treasury for cancellation. Subsequent to September 30, 2023, the Company purchased an additional 1,112,429 common shares.
  • Since the initiation of our NCIB programs in 2017, Trican has repurchased 144,340,382 common shares, equating to approximately 42% of total shares outstanding at the start of the NCIB programs.

• In 2023, Trican added an additional component to its return of capital strategy by instituting a quarterly dividend program in 2023:
  • During the three and nine months ended September 30, 2023, the Company paid a cash dividend of $0.04 per share for each quarter, or approximately $8.5 million and $26.0 million, respectively, in aggregate to shareholders.
  • On November 9, 2023, the Company’s board of directors approved a dividend of $0.04 per share with distribution to be made on December 29, 2023 to shareholders of record as of the close of business on December 15, 2023. The dividends are designated as eligible dividends for Canadian income tax purposes.

FINANCIAL REVIEW

($ millions, except $ per share amounts. Weighted average shares is stated in thousands)		Three months ended									Nine months ended
(Unaudited)		September 30, 2023			September 30, 2022			June 30, 2023			September 30, 2023			September 30, 2022
Revenue		252.5			258.3			168.2			717.8			629.8
Gross profit		59.0			61.2			21.5			152.3			102.1
Adjusted EBITDAS1		68.5			72.1			32.9			184.3			137.7
Adjusted EBITDA1		65.7			70.9			31.9			179.2			129.1
Free cash flow1		47.7			64.9			20.2			122.9			110.0
Per share – basic1		0.23			0.27			0.09			0.56			0.45
Per share – diluted1		0.22			0.26			0.09			0.55			0.44
Cash flow from operations		43.5			33.1			101.3			166.5			84.1
Profit for the period		36.4			38.2			9.8			92.2			53.0
Per share – basic		0.17			0.16			0.05			0.42			0.22
Per share – diluted		0.17			0.16			0.04			0.41			0.21
Dividends paid		8.5			–			8.6			26.0			–
Per share		0.04			–			0.04			0.12			–
Shares outstanding, end of period		211,744			232,610			213,264			211,744			232,610
Weighted average shares outstanding – basic		211,887			241,184			218,614			218,955			244,714
Weighted average shares outstanding – diluted		216,766			245,774			222,694			223,518			250,067
1 Refer to the Non-GAAP disclosure section of this news release for further details.

($ millions, unaudited)		As at September 30, 2023			As at December 31, 2022
Cash and cash equivalents		44.5			58.1
Current assets – other		229.5			205.2
Current portion of lease liabilities		3.7			3.0
Current liabilities – other		126.4			90.9
Lease liabilities – non-current portion		12.6			9.6
Non-current loans and borrowings		–			29.8
Total assets		684.8			671.1

	Three months ended
(Unaudited)	September 30, 2023	June 30, 2023	March 31, 2023	December 31, 2022	September 30, 2022
WTI – Average Price (US$/bbl)	$82.22	$73.67	$75.99	$82.64	$91.43
AECO-C – Spot Average Price (C$/mcf)	$2.48	$2.30	$3.06	$4.94	$4.18
WCS – Average Price (C$/bbl)	$88.83	$80.91	$76.58	$74.32	$92.23
Condensate – Average Price (C$/bbl)	$106.99	$92.94	$106.68	$115.48	$115.19
Average Exchange Rate (US$/C$)	$0.75	$0.74	$0.74	$0.74	$0.77
Canadian Average Drilling Rig Count	190	125	227	201	205

Source: Bloomberg, Bank of Canada, Nickle’s Energy Group, Rig Locator

OPERATING HIGHLIGHTS

Capital Expenditures

Capital expenditures for the three and nine months ended September 30, 2023 totaled $27.1 million and $61.0 million, respectively ($24.6 million and $70.4 million for the three and nine months ended September 30, 2022) related primarily to maintenance capital, our Tier 4 DGB fleet upgrade program and additional electric ancillary equipment. The Company’s capital budget remains at approximately $114 million, the Company has approved a preliminary capital budget for 2024 of $76 million, funded with available cash resources and free cash flow¹.

Financial Position

We continue to focus on maintaining a strong balance sheet with significant positive working capital including cash. Our ability to generate strong free cash flow¹ and financial flexibility will allow us to execute our strategic plans including investment in our Tier 4 DGB upgrade program, continued participation in our NCIB program and the payment of a quarterly dividend as a part of our disciplined capital allocation strategy which includes a consistent return of capital to our shareholders.

OUTLOOK

Our overall outlook for the next few years remains unchanged. We expect annual oilfield activity in Canada to remain relatively stable allowing us to continue generating sector leading returns for our shareholders. Canadian market fundamentals remain strong for fracturing, cementing and coiled tubing services for the remainder of the year and we expect 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. We anticipate fourth quarter activity to be strong as we wind down into the Christmas season.

Although industry pricing fundamentals improved significantly over the past 12 to 18 months, we have recently experienced some pricing pressure as our competitors positioned themselves aggressively for the winter season. However, we expect disciplined pricing to return to the basin as we move into 2024.

The Montney reservoir in Northeastern British Columbia and Northwest Alberta remains one of the premier resource plays in North America and we expect that the combination of attractive economics, future demand from LNG export facilities and British Columbia’s agreements with First Nations should lead to ongoing 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 oilfield services required as we move through the remainder of 2023 and beyond.

We continue to experience inflationary pressures on specific components throughout our supply chain but generally at a much lower rate compared to 2022. We will work diligently to ensure that we mitigate supply chain challenges such as long lead times on key inputs, parts and components. We continue to face challenges in attracting and retaining qualified personnel to the oilfield services industry and thus expect to see ongoing wage inflation.

Trican continues to build on the investments made in our equipment fleet over the last two years to ensure that we are on the forefront of pressure pumping technology and design in Canada. Demand for our Canadian market-leading low emissions Tier 4 DGB fracturing fleets is very robust and expected to remain strong for 2024. We are currently in the process of upgrading our 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, we continue to invest and enhance our equipment offering and have recently developed fully electric versions of certain ancillary equipment required for on-site fracturing operations and are deploying them into our fleets going forward. This equipment includes sand handling, blending and other items used on-site for chemical blending. We believe these ongoing technological advancements will augment our differentiation strategy and add value for our customers. Our ability to generate strong free cash flow¹ and our financial flexibility allows for continued progress in our fleet upgrade and electrification program.

We will continue to serve our 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 our shareholders both through our ongoing NCIB program and our quarterly dividend program. We believe our ability to deliver a multi-layered return of capital strategy while maintaining a strong balance sheet will lead to long-term value creation for our shareholders.

COMPARATIVE QUARTERLY INCOME STATEMENTS

($ thousands, except total job count, revenue per job and crews; unaudited)
Three months ended	September 30, 2023	Percentage of revenue	September 30, 2022	Percentage of revenue	June 30, 2023	Percentage of revenue
Revenue	252,498	100%	258,275	100%	168,232	100%
Cost of sales
Cost of sales	176,153	70%	177,617	69%	128,122	76%
Cost of sales – depreciation and amortization	17,318	7%	19,493	8%	18,579	11%
Gross profit	59,027	23%	61,165	24%	21,531	13%
Administrative expenses	10,807	4%	9,986	4%	8,375	5%
Administrative expenses – depreciation	907	-%	881	-%	954	1%
Other income	(937	-%	(571	-%	(831	-%
Results from operating activities	48,250	19%	50,869	20%	13,033	8%
Finance costs	514	-%	557	-%	484	-%
Foreign exchange (gain) / loss	(42	-%	(45	-%	155	-%
Profit before income tax	47,778	19%	50,357	19%	12,394	7%
Current income tax expense	10,973	4%	–	-%	2,478	1%
Deferred income tax expense	430	-%	12,163	5%	77	-%
Profit for the period	36,375	14%	38,194	15%	9,839	6%
Adjusted EBITDAS1	68,496	27%	72,093	28%	32,946	20%
Adjusted EBITDA1	65,666	26%	70,936	27%	31,908	19%
Total job count	1,823		2,078		1,337
Revenue per job	138,507		124,290		125,828
Total proppant pumped (tonnes)	347,000		397,000		235,000
Hydraulic pumping capacity (HHP)	521,000		529,000		529,000
Hydraulic fracturing – active crews	7.0		7.0		7.0
Hydraulic fracturing – parked crews	5.0		5.0		5.0
1 Refer to the Non-GAAP disclosure section of this news release for further details.

Sales Mix – % of Total Revenue

Three months ended (unaudited)	September 30, 2023	September 30, 2022	June 30, 2023
Fracturing	74%	77%	68%
Cementing	18%	16%	23%
Coiled Tubing	8%	7%	8%
Other	-%	-%	1%
Total	100%	100%	100%

COMPARATIVE YEAR-TO-DATE INCOME STATEMENTS

Continuing Operations

($ thousands, except total job count, revenue per job and crews; unaudited)
Nine months ended	September 30, 2023	Percentage of revenue	September 30, 2022	Percentage of revenue	Year-over year change	Percentage change
Revenue	717,765	100%	629,822	100%	87,943	14%
Cost of sales
Cost of sales	509,655	71%	470,835	75%	38,820	8%
Cost of sales – depreciation and amortization	55,827	8%	56,912	9%	(1,085	(2%)
Gross profit	152,283	21%	102,075	16%	50,208	49%
Administrative expenses	29,412	4%	30,827	5%	(1,415	(5%)
Administrative expenses – depreciation	2,771	-%	2,557	-%	214	8%
Other income	(2,849	-%	(3,189	(1%)	(340	(11%)
Results from operating activities	122,949	17%	71,880	11%	51,069	71%
Finance costs	1,943	-%	1,574	-%	369	23%
Foreign exchange loss / (gain)	175	-%	(269	-%	(444	(165%)
Profit before income tax	120,831	17%	70,575	11%	50,256	71%
Current income tax expense	28,065	4%	–	-%	28,065	-%
Deferred income tax expense	518	-%	17,577	3%	(17,059	(97%)
Profit for the period	92,248	13%	52,998	8%	39,250	74%
Adjusted EBITDAS1	184,320	26%	137,696	22%	46,624	34%
Adjusted EBITDA1	179,205	25%	129,121	21%	50,084	39%
Total job count	5,249		5,640
Revenue per job	136,743		111,671
Total proppant pumped (tonnes)	1,022,000		1,049,000
Hydraulic pumping capacity (HHP)	521,000		529,000
Hydraulic fracturing – active crews	7.0		7.0
Hydraulic fracturing – parked crews	5.0		5.0
1 Refer to the Non-GAAP disclosure section of this news release for further details.

Sales Mix – % of Total Revenue

Nine months ended (unaudited)	September 30, 2023	September 30, 2022
Fracturing	74%	75%
Cementing	19%	16%
Coiled Tubing	7%	8%
Other	-%	1%
Total	100%	100%

NON-GAAP MEASURES

Certain terms in this News Release, including adjusted EBITDA, adjusted EBITDAS, adjusted EBITDA percentage, adjusted EBITDAS percentage and free cash flow, do not have any standardized meaning as prescribed by IFRS and therefore, are considered non-GAAP measures and may not be comparable to similar measures presented by other issuers.

Adjusted EBITDA and Adjusted EBITDAS

Adjusted EBITDA is a non-GAAP term and has been reconciled to profit / (loss) for the applicable financial periods, being the most directly comparable measure calculated in accordance with IFRS. Management utilizes adjusted EBITDA to translate historical variability in the Company’s principal business activities into future financial expectations. By isolating incremental items from net income, including income / expense items related to how the Company chooses to manage financing elements of the business, taxation strategy and non-cash charges, management can better predict future financial results from our principal business activities.

Adjusted EBITDAS is a non-GAAP term and has been reconciled to profit / (loss) for the applicable financial periods, being the most directly comparable measure calculated in accordance with IFRS. Management utilizes adjusted EBITDAS as a useful measure of operating performance, cash flow to complement profit / (loss) and to provide meaningful comparisons of operating results.

The items included in this calculation of adjusted EBITDA have been specifically identified as they are non-cash in nature, subject to significant volatility between periods, and / or not relevant to our principal business activities. Items adjusted in the non-GAAP calculation of adjusted EBITDA, are as follows:

• Non-cash expenditures, including depreciation, amortization, impairment of non-financial assets, and equity-settled share-based compensation;
• Consideration as to how the Company chose to generate financial income and incur financial expenses, including foreign exchange expenses and finance costs;
• Taxation in various jurisdictions; and
• Other income / expense which generally results from the disposition of equipment, as these transactions generally do not reflect quarterly operational field activity.

The item adjusted in the non-GAAP calculation of adjusted EBITDAS from adjusted EBITDA, is as follows:

• Cash-settled share-based compensation.

($ thousands; unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Profit for the period (IFRS financial measure)	36,375	38,194	9,839	92,248	52,998
Adjustments:
Cost of sales – depreciation and amortization	17,318	19,493	18,579	55,827	56,912
Administrative expenses – depreciation	907	881	954	2,771	2,557
Current income tax expense	10,973	–	2,478	28,065	–
Deferred income tax expense	430	12,163	77	518	17,577
Finance costs and amortization of debt issuance costs	514	557	484	1,943	1,574
Foreign exchange (gain) / loss	(42)	(45)	155	175	(269)
Other income	(937)	(571)	(831)	(2,849)	(3,189)
Administrative expenses – equity-settled share-based compensation	128	264	173	507	961
Adjusted EBITDA	65,666	70,936	31,908	179,205	129,121
Administrative expenses – cash-settled share-based compensation	2,830	1,157	1,038	5,115	8,575
Adjusted EBITDAS	68,496	72,093	32,946	184,320	137,696
Certain financial measures in this news release – namely adjusted EBITDA, adjusted EBITDAS, adjusted EBITDA percentage, adjusted EBITDAS percentage and free cash flow are not prescribed by IFRS and are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other issuers and should not be viewed as a substitute for measures reported under IFRS. These financial measures are reconciled to IFRS measures in the Non-GAAP disclosure section of this news release. Other non-standard measures are described in the Non-Standard Measures section of this news release. Stainless steel fluid ends were historically expensed as depreciation prior to December 2017. Not all hydraulic fracturing companies apply the accounting policy for stainless steel fluid ends consistently.

Adjusted EBITDA % and Adjusted EBITDAS %

Adjusted EBITDA % and adjusted EBITDAS % is determined by dividing adjusted EBITDA and adjusted EBITDAS, respectively, by revenue. The components of the calculations are presented below:

($ thousands; unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Adjusted EBITDA	65,666	70,936	31,908	179,205	129,121
Revenue	252,498	258,275	168,232	717,765	629,822
Adjusted EBITDA %	26%	27%	19%	25%	21%

($ thousands, unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Adjusted EBITDAS	68,496	72,093	32,946	184,320	137,696
Revenue	252,498	258,275	168,232	717,765	629,822
Adjusted EBITDAS %	27%	28%	20%	26%	22%

Free Cash Flow and Free Cash Flow per Share

Free cash flow and free cash flow per share are non-GAAP terms which Management believes to be key measures of capital management as they demonstrate the Company’s ability to generate monies available to fund future growth through capital investments and return capital to our shareholders.

Free cash flow has been reconciled to cash flow from operations for the applicable financial periods, being the most directly comparable measure calculated in accordance with IFRS. Management adjusts for other (income) / loss, realized (gain) / loss, non-cash income tax expense, maintenance capital expenditures included within purchase of property and equipment from the statement of cash flows, net changes in other liabilities and change in non-cash operating working capital.

Management reconciles free cash flow from adjusted EBITDA for the applicable financial periods by adjusting for interest paid, income taxes, and maintenance capital expenditures included within purchase of property and equipment from the statement of cash flows as they are considered non-discretionary.

In 2023, the Company moved into a cash taxable position due to improved operating results and utilization of its available non-capital loss pools.  The Company elected to defer its 2023 current tax installments which are expected to be remitted in Q1 2024.  The Company expects to remit current tax installments for 2024 beginning in early 2024.  The Company is able to defer its 2023 current tax installments until Q1 2024 but has elected to present these amounts as a reduction of free cash flow in the current periods to clearly show the impact of such non-discretionary items.

Free cash flow per share is calculated by dividing free cash flow by the Company’s basic or diluted weighted average common shares outstanding.

Free cash flow and free cash flow per share are not standardized measures and therefore may not be comparable with the calculation of similar measures by other entities.

($ thousands, unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Cash flow from operations	43,498	33,144	101,270	166,547	84,087
Other income	(601)	(198)	(449)	(1,798)	(494)
Realized foreign exchange (gain) / loss	(77)	(121)	450	321	(354)
Maintenance capital expenditures	(6,462)	(5,478)	(8,772)	(26,408)	(18,637)
Net changes in other liabilities	(1,623)	66	(667)	(358)	974
Change in non-cash operating working capital	13,007	37,511	(71,635)	(15,443)	44,378
Free cash flow2	47,742	64,924	20,197	122,861	109,954
2 The Company expects to pay the current tax liabilities in Q1 2024, see definition above for more details.

($ thousands, unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Adjusted EBITDA	65,666	70,936	31,908	179,205	129,121
Interest paid	(489)	(534)	(461)	(1,871)	(1,503)
Income taxes2	(10,973)	–	(2,478)	(28,065)	973
Maintenance capital expenditures	(6,462)	(5,478)	(8,772)	(26,408)	(18,637)
Free cash flow2	47,742	64,924	20,197	122,861	109,954
2 2023 tax amounts represent current tax liabilities expected to be paid in Q1 2024, see definition above for more details. 2022 amounts represent income taxes received.

($ thousands, unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Purchase of property and equipment	27,082	24,578	14,419	60,990	70,393
Growth capital expenditures	20,620	19,100	5,647	34,582	51,756
Maintenance capital expenditures	6,462	5,478	8,772	26,408	18,637

($ millions, except $ per share amounts. Weighted average shares is stated in thousands; unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Free cash flow	47,742	64,924	20,197	122,861	109,954
Weighted average shares outstanding – basic	211,887	241,184	218,614	218,955	244,714
Free cash flow per share – basic	0.23	0.27	0.09	0.56	0.45

($ millions, except $ per share amounts. Weighted average shares is stated in thousands; unaudited)	Three months ended			Nine months ended
	September 30, 2023	September 30, 2022	June 30, 2023	September 30, 2023	September 30, 2022
Free cash flow	47,742	64,924	20,197	122,861	109,954
Weighted average shares outstanding – diluted	216,766	245,774	222,694	223,518	250,067
Free cash flow per share – diluted	0.22	0.26	0.09	0.55	0.44

OTHER NON-STANDARD FINANCIAL TERMS

In addition to the above non-GAAP financial measures, this News Release makes reference to the following non-standard financial terms. These terms may differ and may not be comparable to similar terms used by other companies.

Revenue Per Job

Calculation is determined based on total revenue divided by total job count. This calculation is significantly impacted by factors such as the relative revenue contribution by service line, changes in pricing and the magnitude of customer supplied consumables and inputs.

Maintenance and Growth Capital

Term that refers to capital additions as maintenance or growth capital. Maintenance capital are expenditures in respect of capital additions, replacements or improvements required to maintain ongoing business operations. Growth capital refers to expenditures primarily for new items and/or equipment that will expand our revenue and/or reduce our expenditures through operating efficiencies. The determination of what constitutes maintenance capital expenditures versus growth capital involves judgement by management.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking information and statements (collectively “forward-looking statements”). These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “estimate”, “expect”, “intend”, “plan”, “planned”, and other similar terms and phrases. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this document should not be unduly relied upon. These statements speak only as of the date of this document.

In particular, this document contains forward-looking statements pertaining to, but not limited to, the following:

• our business plans and prospects;
• statements under the Outlook section of this News Release;
• that we have sufficient liquidity to invest in new opportunities, improve our competitive position and drive profitable growth;
• that Trican will continue to adapt to the current economic environment;
• the impact of escalated geopolitical tensions, the conflicts in the Middle East and in Ukraine and the associated effect on worldwide demand for oil and gas;
• anticipated industry activity levels, rig counts and outlook as well as expectations regarding our customers’ work and capital programs and the associated impact on the Company’s equipment utilization levels and demand for our services in 2023;
• the impact of inflation and existence of inflationary pressures;
• expectations as to the type of pressure pumping equipment required and which operating regions the equipment is appropriate to operate in;
• expectations regarding supply and demand fundamentals and strong commodity pricing levels;
• expectations that we are adequately staffed for current industry activity levels, that we will be able to retain and attract staff and that we will maintain the Company’s lean cost structure;
• expectations regarding the Company’s ability to work with customers to achieve long-term pricing objectives;
• expectations regarding the Company’s financial results, working capital levels, liquidity and profits;
• expectations regarding Trican’s capital spending plans, sources of capital, and specifically the timing and cost of the roll out of Trican’s Tier 4 DGB pumpers;
• expectations regarding the environmental impact of Trican’s Tier 4 DGB pumpers;

• expectations regarding Trican’s utilization of its NCIB program;
• expectations regarding Trican’s ability to pay dividends;
• expectations that adjusted EBITDA will help predict future earnings;
• expectations regarding customer performance and financial flexibility;
• expectations regarding the impact of inflation;
• anticipated compliance with debt and other covenants under our revolving credit facilities;
• expectations that the Company can maintain its market leading position in the fracturing and cementing services lines and strengthen auxiliary services;
• expectations that the Company will deepen the integration of ESG into its business and be supported by its customers in doing so;
• expectations regarding the nature and focus of our share-based compensation programs;
• expectations regarding Trican’s policy of adjusting its capital budget on a quarterly basis;
• expectations regarding provincial income tax rates and ongoing tax evaluations; and
• expectations surrounding weather and seasonal slowdowns.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth herein and in the “Risk Factors” section of our AIF for the year ended December 31, 2022, available on SEDAR (www.sedar.com).

Readers are cautioned that the foregoing lists of factors are not exhaustive. Forward-looking statements are based on a number of factors and assumptions, which have been used to develop such statements and information, but which may prove to be incorrect. Although management of Trican believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Trican can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: crude oil and natural gas prices; the impact of increasing competition; the general stability of the economic and political environment; the timely receipt of any required regulatory approvals; industry activity levels; Trican’s policies with respect to acquisitions; the ability of Trican to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate our business in a safe, efficient and effective manner; the ability of Trican to obtain capital resources and adequate sources of liquidity; the performance and characteristics of various business segments; the regulatory framework; the timing and effect of pipeline, storage and facility construction and expansion; and future commodity, currency, exchange and interest rates.

The forward-looking statements contained in this document are expressly qualified by this cautionary statement. We do not undertake any obligation to publicly update or revise any forward-looking statements except as required by applicable law.

Additional information regarding Trican including Trican’s most recent AIF, is available under Trican’s profile on SEDAR (www.sedar.com).

CONFERENCE CALL AND WEBCAST DETAILS

The Company will host a conference call on Friday, November 10, 2023 at 10:00 a.m. MT (12:00 p.m. ET) to discuss its results for the Third Quarter 2023.

To listen to the webcast of the conference call, please enter the following URL in your web browser: http://www.gowebcasting.com/12670.

You can also visit the “Investors” section of our website at www.tricanwellservice.com/investors and click on “Reports”.

To participate in the Q&A session, please call the conference call operator at 1-800-319-4610 (North America) or 1-403-351-0324 (outside 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 at www.tricanwellservice.com/investors.

ABOUT TRICAN

Headquartered in Calgary, Alberta, Trican supplies oil and natural gas well servicing equipment and solutions to our customers through the drilling, completion and production cycles. Our team of technical experts provide 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.

Requests for further information should be directed to:

Bradley P.D. Fedora
President and Chief Executive Officer

Scott Matson
Chief Financial Officer

Phone: (403) 266-0202
2900, 645 – 7th Avenue S.W.
Calgary, Alberta T2P 4G8

Please visit our website at www.tricanwellservice.com.