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Platform for Growth PLATFORM FOR GROWTH 2012 Annual Report Trican Well Service Ltd. CORPORATE PROFILE Trican Well Service Ltd. (“Trican”) is a provider of pressure pumping and completion services in the global marketplace. A technical and operational leader, Trican’s experience in pressure pumping is among the most extensive in the industry. Trican offers services throughout key oil and gas plays in Canada, the United States and Russia, and has growing operations in many other active regions around the world. Trican became a public company in 1996, and since then has invested more than $2.5 billion in capital expenditures and acquisitions, expanding its equipment, infrastructure and capabilities. As a result of its strategic expansion program, Trican has evolved from a regional supplier of cementing services to one of the world’s largest pressure pumping companies. Trican employs a disciplined and scientific approach to research and development that delivers innovative products and processes, while addressing a shared commitment to safety, quality and reducing our impact on the environment. Services provided include fracturing, cementing, coiled tubing, acidizing, nitrogen, reservoir management, industrial cleaning and pipeline services, and completion systems and downhole tool services. Trican’s shares trade on The Toronto Stock Exchange under the symbol “TCW”. NOTICE OF ANNUAL MEETING ANNUAL FINANCIAL STATEMENTS Trican will be holding its annual general AND MD&A and special meeting at 2 p.m. on May 9, For further information on Trican’s 2012 financial 2013, in the Metropolitan Centre located at results, please refer to Trican’s financial statements 333-4th Ave SW, Calgary, Alberta, Canada. and Management’s Discussion and Analysis (MD&A) for the years ended December 31, 2012 and 2011, available on SEDAR at www.sedar.com or our website at www.trican.ca. B | 2012 Annual Report Trican Well Service Ltd. CONTENT Financial Summary ....................................................................................................................................................................................2 Message from our CEO ...........................................................................................................................................................................4 Platform for Growth ..................................................................................................................................................................................6 Operations by Geographic Region Canada .............................................................................................................................................................................................. 9 United States ................................................................................................................................................................................12 International Russia .................................................................................................................................................................................................17 Kazakhstan ....................................................................................................................................................................................19 Algeria .............................................................................................................................................................................................20 Saudi Arabia .................................................................................................................................................................................20 Australia ..........................................................................................................................................................................................21 Colombia .........................................................................................................................................................................................21 Saftey ................................................................................................................................................................................................................22 Technology .....................................................................................................................................................................................................25 Sustainability ................................................................................................................................................................................................33 Outlook .............................................................................................................................................................................................................36 Forward Looking Statements .............................................................................................................................................................38 Corporate Information .............................................................................................................................................................................44 2012 Annual Report | 1 Trican Well Service Ltd. FINANCIAL SUMMARY 350 30 40 300 35 25 30 250 20 25 200 15 20 150 15 10 100 10 5 50 5 07 08 09 10 11 12 07 08 09 10 11 12 07 08 09 10 11 12 Net Income ($Millions) Return on Assets (%) Return on Equity (%) 2.5 600 2500 500 2.0 2000 400 1.5 1500 300 1.0 1000 200 500 0.5 100 070807 08 1009 1110 11 12 07 08 09 10 11 12 07 08 09 10 11 12 Adjusted EPS ($) Funds from Operations ($Millions) Revenue ($Millions) 2 | 2012 Annual Report Trican Well Service Ltd. Financial Summary ($ thousands, except per share amounts and operational information) 2012 2011 Change % Change Revenue 2,213,400 2,309,647 (96,247) -4% Net income 53,339 338,636 (285,297) -84% Adjusted net income 63,028 351,014 (287,986) -82% Adjusted earnings per share: (Basic) $0.43 $2.41 $(1.98) -82% (Diluted) $0.43 $2.39 $(1.96) -82% Funds provided by operations 122,750 558, 811 (436,061) -78% Capital expenditures 444,550 578,457 (133,907) -23% Long-term debt (excluding current portion) 694,972 400,256 294,716 74% Shareholders' equity 1,374,812 1,365,389 9,423 1% Average shares outstanding - Basic 146,620 145,805 815 1% Average shares outstanding - Diluted 146,690 147,085 (395) 0% Shares outstanding at year end 146,450 146,917 (467) 0% Operational Information (unaudited) Canadian operations Number of jobs completed 22,427 25,393 (2,966) -12% Revenue per job 50,486 49,964 522 1% United States operations Number of jobs completed 7,110 5,065 2,045 40% Revenue per job 112,471 146,457 (33,986) -23% International operations Number of jobs completed 4,007 4,901 (894) -18% Revenue per job 65,027 55,902 9,125 16% 2012 Annual Report | 3 Trican Well Service Ltd. MESSAGE FROM OUR CEO On behalf of the employees and Board of Directors of Trican Well Service Ltd., I am pleased to report on our Company’s 2012 financial and operational results. After posting record financial results in 2011, Trican faced some significant challenges in 2012. Depressed natural gas prices, combined with increased pressure pumping equipment supply in North America contributed to a decline in Trican profitability in 2012. In addition, international markets remained competitive and led to disappointing financial results in many of our international regions. Despite these challenges, Trican made progress on some key strategic goals in 2012. We Dale M. Dusterhoft – Chief Executive Officer expanded and developed our presence in international markets including Colombia, Saudi Arabia and Australia; we expanded our U.S. geographic footprint by opening a new base in the Bakken; we enhanced our position as a technological leader through the development of innovative pressure pumping fluids and systems from our Research and Development Centres in Calgary, Houston and Moscow; and we expanded our completion systems service line through the acquisition of a completion and intervention tools company based in Norway in early 2013. We believe these efforts, combined with a continued focus on meeting the needs of our customers, have positioned Trican to capitalize on growth opportunities in new and existing markets throughout 2013 and beyond. 4 | 2012 Annual Report Trican Well Service Ltd. 2012 Annual Report | 5 Trican Well Service Ltd. PLATFORM FOR GROWTH Trican faced difficult market conditions during 2012 as the the U.S., all contributed in establishing a platform for growth North American pressure pumping market weakened, and in the U.S. Although the U.S. market weakened substantially international markets remained competitive. Notwithstanding in 2012, it remains the world’s largest pressure pumping these difficult market conditions, Trican was able to make market. Trican has established a reputation as a technically significant progress during 2012 in establishing a platform for focused, international, full-service pressure pumping growth in all of our world-wide regions. company and we believe that a strong presence in the U.S. market is necessary to maintain this reputation. Our focus Although the Canadian market weakened somewhat in in the U.S. for the past few years has been on growth, and 2012, Canada remained our strongest and most profitable with U.S. growth expected to subside in 2013, we
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