The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Trican Reports Second Quarter Results for 2012

Monday, July 30, 2012

Trican Reports Second Quarter Results for 201219:54 EDT Monday, July 30, 2012CALGARY, ALBERTA--(Marketwire - July 30, 2012) -Financial ReviewThree months endedSix months ended($ millions, except per share amounts; unaudited)June 30,2012June 30, 2011March 31, 2012June 30,2012June 30, 2011Revenue$418.0$421.7$716.4$1,134.3$956.3Operating income/(loss) *(28.3)78.3161.8133.6223.6Profit/(loss)(50.9)30.189.438.5112.5Earnings/(loss) per share(basic)$(0.35)$0.21$0.61$0.26$0.78(diluted)$(0.35)$0.21$0.61$0.26$0.77Adjusted profit/(loss) *(48.6)33.392.343.7118.8Adjusted profit/(loss) per share*(basic)$(0.33)$0.23$0.63$0.30$0.82(diluted)$(0.33)$0.23$0.63$0.30$0.81Funds provided by/(used in) operations*(49.1)60.9$136.187.0202.6Notes: * Trican makes reference to operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations. These are measures that are not recognized under International Financial Reporting Standards (IFRS). Management believes that, in addition to profit, operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations are useful supplemental measures. Operating income/(loss) provides investors with an indication of earnings/(loss) before depreciation, foreign exchange gains and losses, other income, taxes and interest. Adjusted profit/(loss) provides investors with information on profit/(loss) excluding one-time non-cash charges and the non-cash effect of stock-based compensation expense. Funds provided by/(used in) operations provide investors with an indication of cash available for capital commitments, debt repayments and other expenditures. Investors should be cautioned that operating income/(loss), adjusted profit/(loss), and funds provided by/(used in) operations should not be construed as an alternative to profit/(loss) and cash flow from operations determined in accordance with IFRS as an indicator of Trican's performance. Trican's method of calculating operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations may differ from that of other companies and accordingly may not be comparable to measures used by other companies.SECOND QUARTER HIGHLIGHTSConsolidated revenue for the second quarter of 2012 was $418.0 million, a decrease of 1% compared to the second quarter of 2011. Consolidated net loss was $50.9 million and diluted loss per share was $0.35 compared to profit of $30.1 million and diluted earnings per share of $0.21 for the same period in 2011. Funds used in operations were $49.1 million compared to funds provided by operations of $60.9 million in the second quarter of 2011. Second quarter revenue was $140.2 million for our Canadian operations, which was 16% lower than the second quarter of 2011. Canadian results were negatively impacted by wet weather in May and June that led to road bans and road weight restrictions throughout most of the second quarter. Unlike 2011, no Horn River projects were completed in Canada during the second quarter, which also contributed to the year-over-year reductions in revenue and operating income. However, we expect to complete a large Horn River project in the third quarter, which will positively impact third quarter results. Horizontal drilling activity continued to dominate the Canadian market as 71% of wells drilled during the second quarter were horizontal compared to 59% in the second quarter of 2011. This trend continues to benefit all of our service lines in Canada. U.S. operations second quarter revenue was $206.8 million, 20% higher than the second quarter of 2011. U.S. results were negatively impacted by a decrease in pricing, primarily in our dry gas areas of operation, and a significant increase in guar costs which is a key ingredient in many fracturing fluids. A number of cost cutting measures were initiated during the second quarter; however, they did not have a significant impact on the financial results for the quarter. Management anticipates the financial impact of these cost cutting measures will increase during the third and fourth quarters of 2012. The U.S. operations took delivery of three new fracturing spreads from its 2012 capital program. One of the fracturing spreads has been deployed in the North Dakota Bakken and is expected to commence operations during the third quarter. In addition, four cementing units and two coiled tubing units were also deployed resulting in a significant increase in activity in these two service lines during the second quarter.International revenue was $71.0 million during the second quarter of 2012, which was a 13% year-over-year decrease and a 10% sequential increase. Our Russian and Kazakhstan operations comprise the majority of our international results, and second quarter activity levels in these areas benefitted from improved weather conditions compared to the first quarter of 2012. However, our customers' work programs were behind schedule and second quarter activity levels and operating margins were below expectations and lower on a year-over-year basis. Russian results were also negatively impacted by a weaker Russian ruble as the average ruble to Canadian dollar exchange rate for the second quarter of 2012 decreased by 6% compared to the second quarter of 2011.COMPARATIVE QUARTERLY INCOME STATEMENTS($ thousands; unaudited) Three months ended June 30,2012% of Revenue2011% of RevenueQuarter- Over- Quarter Change% ChangeRevenue417,975100.0%421,701100.0%(3,726)-1%ExpensesMaterials and operating426,468102.0%319,06175.7%107,40734%General and administrative19,7624.7%24,3635.8%(4,601)-19%Operating income/(loss)*(28,255)-6.8%78,27718.6%(106,532)-136%Finance costs7,3951.8%5,4161.3%1,97937%Depreciation and amortization38,1719.1%28,5546.8%9,61734%Foreign exchange loss2,9140.7%810.0%2,8333,498%Other income(736)-0.2%(1,287)-0.3%551-43%Profit/(loss) before income taxes(75,999)-18.2%45,51310.8%(121,512)-267%Income tax expense/(recovery)(25,139)-6.0%15,4373.7%(40,576)-263%Profit/(loss) before non-controlling interest(50,860)12.2%30,0767.1%(80,936)-269%Non-controlling interest(75)-0.0%--(75)100%Profit/(loss)(50,785)12.2%30,0767.1%(80,861)-269%* see first page of this reportCANADIAN OPERATIONS($ thousands, except revenue per job, unaudited) Three months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenueMarch 31, 2012% of RevenueRevenue140,178167,805433,111ExpensesMaterials and operating136,12797.1%130,00877.5%265,96661.4%General and administrative5,2223.7%6,5103.9%8,1351.9%Total expenses141,349100.8%136,51881.4%274,10163.3%Operating income/ (loss)*(1,171)-0.8%31,28718.6%159,01036.7%Number of jobs3,3343,7257,153Revenue per job41,95944,36960,353* see first page of this reportSales MixThree months ended, (unaudited)June 30, 2012June 30, 2011March 31, 2012% of Total RevenueFracturing57%67%70%Cementing18%16%17%Nitrogen8%6%7%Coiled Tubing6%3%3%Acidizing5%3%2%Other6%5%1%Total100%100%100%Operations Review As expected, road weight restrictions and road bans to remote areas limited Canadian oil and gas industry activity levels during the second quarter. The number of active drilling rigs in Canada decreased by 70% and well completions decreased by 33% compared to the first quarter of 2012. Activity levels were also lower on a year-over-year basis as the rig count was down 4% and completions activity was down 36% compared to the second quarter of 2011.During the second quarter of 2011, we completed a large Horn River project that benefitted utilization levels and contributed to a record breaking quarter. We were expecting to start a Horn River project in early June 2012 but the wet weather delayed the project until late June. As a result, Horn River activity had virtually no impact on the second quarter of 2012, which contributed to the year-over-year reductions in revenue and operating income. We continue to see an increase in horizontal drilling activity as 71% of wells drilled during the second quarter of 2012 were horizontal compared to 59% in the second quarter of 2011. This increase benefits all of our service lines and has led to a substantial increase in revenue per job for our fracturing service line. Almost all of our second quarter fracturing revenue was from horizontal wells. Q2 2012 versus Q2 2011Revenue decreased by 16% compared to the second quarter of 2011 due to a decrease in job count and revenue per job. The job count decreased by 10% due to the decline in year-over-year drilling and completions activity as well as the reduction in Horn River activity for Trican. Revenue per job decreased by 5% as a 2% increase in price and an increase in fracturing job size were more than offset by a reduction in fracturing revenue as a percentage of total revenue. Second quarter materials and operating expenses increased to 97.1% of revenue compared to 77.5% in the second quarter of 2011. The substantial growth of our Canadian operations over the past year has led to a higher fixed cost structure in this region. In particular, employee costs increased as a percentage of revenue relative to the second quarter of 2011 due to the reduced operating leverage on our Canadian fixed cost structure. In addition, product costs such as sand, acid and guar have increased on a year-over-year basis. The price of guar in the second quarter increased by approximately 275% compared to the second quarter of 2011, which reduced operating margins by 235 basis points. General and administrative expenses decreased by $1.3 million compared to the second quarter of 2011 due largely to lower share based and profit sharing expenses. Q2 2012 versus Q1 2012Canadian revenue decreased by 68% sequentially due to the expected reduction in industry activity caused by spring break-up. The 70% sequential decrease in Canadian rig count contributed to the 53% decrease in job count. Revenue per job decreased by 30% due to the lower proportion of fracturing revenue relative to total revenue, and to a lesser extent, the 2% decrease in price. Materials and operating expenses increased as a percentage of revenue to 97.1% compared to 61.4% in the first quarter of 2012, due largely to reduced operating leverage on our fixed cost structure. Guar costs increased by approximately 60% sequentially and also had a negative impact on second quarter operating margins. General and administrative expenses decreased by $2.9 million due mainly to lower share based and profit sharing expenses.UNITED STATES OPERATIONS($ thousands, except revenue per job, unaudited) Three months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenueMarch 31, 2012% of RevenueRevenue206,777172,404218,536ExpensesMaterials and operating224,923108.8%118,63568.8%193,86988.7%General and administrative3,9861.9%4,0132.3%2,9631.4%Total expenses228,909110.7%122,64871.1%196,83290.1%Operating income/(loss)*(22,132)(10.7%)49,75628.9%21,7049.9%Number of jobs1,9151,1781,680Revenue per job108,394146,229130,499* see first page of this reportOperations ReviewThe U.S. rig count continued to decline in the dry gas regions; however, the rig count continued to increase in the oil and liquids-rich gas regions of our U.S. operations. The activity decline in the dry gas regions marginally lowered the job count in the Marcellus, Haynesville, Barnett and Oklahoma regions, and significant pricing pressure continued in these areas during the quarter. Activity increases in the oil and liquids-rich gas regions resulted in an increase in job count in the Eagle Ford and Permian basins; however, marginal pricing pressure was experienced in these basins as well. Overall pricing during the second quarter decreased by 11% and this pricing pressure was the largest contributor to the operating loss recorded during the quarter. Equipment utilization was consistent with utilization experienced during the first quarter of 2012; however, it did not increase as anticipated by management, largely as a result of the lower job count in the dry gas areas of operation.Guar pricing increased approximately 80% during the quarter relative to the first quarter of 2012. Guar is a significant component of many fracturing fluids and is used as a thickening agent assisting in carrying the proppant into the fracture during a fracturing job. Management has restructured guar pricing charged in most of the customer contracts; however, overall pricing pressure has largely eroded the gains made by this restructuring. The increase in guar costs was the second largest contributor to the operating loss recorded during the quarter.The U.S. operations initiated many cost cutting measures during the quarter; however, the cost savings expected from these measures did not have a significant impact on the second quarter financial results. Management is focused on optimizing the cost structure and reducing costs wherever practical and expects the most meaningful decreases in product costs, freight costs, unit expenses, wage expenses and base expenses during the second half of 2012.One new fracturing spread was delivered to our new operating base in North Dakota. The North Dakota Bakken is currently very active and we are still seeing increasing activity in this oil play. We expect this fracturing spread will commence operations during the third quarter. Four cementing units and two coiled tubing units were deployed during the quarter resulting in a significant increase in activity in these two service lines. The cementing and coiled tubing service lines now account for approximately 8% of the U.S. operations sales mix.Q2 2012 versus Q2 20112012 second quarter revenue increased by approximately 20% compared to the second quarter of 2011. The job count increased by 63% while revenue per job decreased by 26%. The job count increase is primarily a result of fracturing, cementing and coiled tubing equipment additions and an increase in the year-over-year rig count resulting in an increase in demand for these services. Overall the U.S. operations experienced reasonable equipment utilization. A reduction in demand for our services in dry gas regions was partially offset by higher utilization in oil and liquids-rich gas regions. Revenue per job decreased approximately 26% primarily due to pricing pressure in the U.S. market combined with the increase in work performed in the cementing and coiled tubing service lines and smaller jobs typically performed in the Permian basin.Materials and operating expenses increased to 108.8% from 68.8% as a percentage of revenue. Operating margins were negatively impacted by the decrease in pricing and a significant increase in guar costs. Increases in freight, repairs and maintenance and accommodation expenses also contributed to the increase in materials and operating expenses.General and administrative costs were consistent with the second quarter of 2011 as an increase in travel expenses was largely offset by a decrease in stock based compensation expense. Q2 2012 versus Q1 2012Second quarter revenue in 2012 decreased 5% relative to the first quarter of 2012. The job count increased by 14% largely as a result of job count increases in the cementing and coiled tubing service lines. Four cementing units and two coiled tubing units were deployed during the quarter and largely account for the job count increase in these two service lines. Job count for the fracturing service line marginally increased as significant job count increases in the Eagle Ford and Permian basins were largely offset by job count decreases in the Marcellus, Barnett and Oklahoma regions. Revenue per job decreased by 17% primarily as a result of an 11% decrease in pricing combined with the increase in work from the cementing and coiled tubing service lines and increased work performed in the Permian basin. Revenue per job for the cementing and coiled tubing service lines is typically lower than the fracturing service line and fracturing jobs performed in the Permian Basin are typically smaller relative to other regions resulting in lower revenue per job.Materials and operating expenses increased to 108.8% from 88.7% as a percentage of revenue. A significant increase in the cost of guar largely accounts for this increase with the average price of guar realized during the second quarter increasing approximately 80% relative to the average price realized during the first quarter of 2012. Increases in freight, repairs and maintenance and accommodation expenses also contributed to the increase in materials and operating expenses. Repairs and maintenance expense largely increased due to an increase in the expenses relating to fluid ends and treating iron. We are currently working with one of our fluid end suppliers to determine the root cause of the increase in fluid end usage.General and administrative expenses increased by approximately $1 million as a result of an increase in salary expenses combined with an increase in travel expenses.INTERNATIONAL OPERATIONS($ thousands, except revenue per job, unaudited) Three months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenueMarch 31, 2012% of RevenueRevenue71,02081,49264,709ExpensesMaterials and operating60,52385.2%66,45081.5%61,30294.7%General and administrative2,9854.2%3,8854.8%3,6965.7%Total expenses63,50889.4%70,33586.3%64,998100.4%Operating income*7,51210.6%11,15713.7%(289)-0.4%Number of jobs1,0571,254942Revenue per job62,50662,44264,435* see first page of this reportSales MixThree months ended, (unaudited)June 30, 2012June 30, 2011March 31, 2012% of Total RevenueFracturing76%79%80%Coiled Tubing13%10%7%Cementing8%7%9%Nitrogen2%4%3%Other1%0%1%Total100%100%100%Operations ReviewOur International operations include the financial results for our operations in Russia, Kazakhstan, Algeria, and Australia. Our operations in Russia and Kazakhstan comprise the majority of our international results and revenue and activity levels in these regions improved sequentially due to improved weather conditions. However, some of our Russian customers' work programs remained behind schedule during the quarter, which contributed to second quarter results that were below management's expectations.Horizontal drilling and completions activity has increased in Russia during 2012. Approximately 10% of our Russian fracturing revenue was from horizontal wells during the second quarter compared to 3% in the second quarter of 2011. We believe this trend will continue and result in increased pressure pumping demand in Russia.The Russian ruble weakened by 2% relative to the Canadian dollar compared to the first quarter of 2012 and by 6% compared to the second quarter of 2011. This negatively impacted revenue and operating margins for our International operations as approximately 25% of our Russian operations expenses are incurred in Canadian dollars and other international currencies. Results for our Algerian operations improved during the second quarter as utilization levels for our coiled tubing and cementing operations increased relative to the first quarter of 2012. Results for our Australian operations were below expectations during the second quarter as utilization of equipment remained low. We will continue to establish our cementing service line in Australia and expect results to improve as new work tenders are obtained.Q2 2012 versus Q2 2011International revenue decreased by 13% compared to the second quarter of 2011. Job count decreased by 16% as our customers' work programs in Russia are behind schedule relative to 2011. Revenue per job was relatively unchanged on a year-over-year basis as pricing increases obtained during the 2012 tendering process were offset by a 6% weakening of the ruble and a lower proportion of fracturing revenue relative to total revenue. Materials and operating expenses as a percentage of revenue increased to 85.2% compared to 81.5% in the second quarter of 2011. Year-over-year price increases were offset by lower than expected utilization in Russia due to delays in our Russian customers' 2012 work program. The low utilization led to decreased operational leverage on our fixed cost structure, in particular for employee costs. General and administrative expenses were down $0.9 million on a year-over-year basis due to lower share based expenses.Q2 2012 versus Q1 2012Revenue for our International operations increased by 10% on a sequential basis. The number of jobs completed increased by 12% due to improved weather conditions in the second quarter relative to the first quarter. Revenue per job decreased sequentially by 3% due to a lower proportion of fracturing revenue relative to total revenue combined with a weakening of the ruble relative to the Canadian dollar. Materials and operating expenses as a percentage of revenue decreased to 85.2% from 94.7% on a sequential basis. Improved operational leverage on our fixed cost structure contributed to the higher second quarter margins. General and administrative expenses decreased by $0.7 million due largely to lower share based expenses.CORPORATE($ thousands, unaudited) Three months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenueMarch 31, 2012% of RevenueExpensesMaterials and operating4,8951.2%3,9680.9%6,4090.9%General and administrative7,5691.8%9,9552.4%12,1711.7%Total expenses12,4643.0%13,9233.3%18,5802.6%Operating loss*(12,464)(13,923)(18,580)* see first page of this reportQ2 2012 versus Q2 2011Corporate expenses decreased $1.5 million from the same quarter last year due primarily to lower share based and profit sharing expenses. These factors were partially offset by increased salary expenses. Q2 2012 versus Q1 2012Corporate expenses decreased by $6.1 million on a sequential basis due to lower profit sharing and donation expenses. OTHER EXPENSES AND INCOME Finance costs for the second quarter of 2012 increased by $2.0 million on a year-over-year basis mainly due to interest on the new private placement debt. Depreciation and amortization increased by $9.6 million in the second quarter of 2012 compared to the same period last year, due primarily to capital additions relating to our capital expansion program. The foreign exchange loss of $2.9 million in the quarter versus a loss of $0.1 million in the same quarter last year was due to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Other income was $0.7 million in the quarter versus $1.3 million for the same period in the prior year. Other income is mainly comprised of interest income on a loan to an unrelated third party and interest income earned on cash balances. INCOME TAXES Trican recorded an income tax recovery of $25.1 million in the quarter versus an expense of $15.4 million for the comparable period of 2011. The decrease in tax expense is attributable to lower taxable income.COMPARATIVE YEAR-TO-DATE INCOME STATEMENTS($ thousands; unaudited) Six months ended June 30,2012% of Revenue2011% of RevenuePeriod-Over-Period Change% ChangeRevenue1,134,331100.0%956,329100.0%178,00219%ExpensesMaterials and operating954,01384.1%683,72371.5%270,29040%General and administrative46,7274.1%48,9975.1%(2,270)-5%Operating income*133,59011.8%223,60923.4%(90,018)-40%Finance costs14,4281.3%7,4270.8%7,00194%Depreciation and amortization74,0036.5%58,6596.1%15,34426%Foreign exchange (gain)/loss2,2220.2%(228)0.0%2,450-1,075%Other income(2,082)-0.2%(3,043)-0.3%960-32%Profit before income taxes45,0194.0%160,79416.8%(115,775)-72%Provision for income taxes6,4970.6%48,2925.0%(41,166)-87%Profit before non-controlling interest38,5223.4%112,50211.8%(73,980)-66%Non-controlling interest(153)-0.0%--(153)100%Profit38,6753.4%112,50211.8%(73,827)-66%* see first page of this reportCANADIAN OPERATIONS($ thousands, except revenue per job, unaudited) Six months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenuePeriod-Over-Period ChangeRevenue573,289494,18216%ExpensesMaterials and operating402,09270.1%327,39866.2%23%General and administrative13,3582.3%13,7752.8%(3%)Total expenses415,45072.5%341,17369.0%22%Operating income*157,83927.5%153,00931.0%3%Number of jobs10,48711,323(7%)Revenue per job54,38443,02026%* see first page of this reportRevenue for the six months ending June 30, 2012, for our Canadian operations was 16% higher compared to the same period in 2011. Revenue per job increased by 26% due to larger job sizes combined with an 8% increase in price. Job size benefitted from a higher proportion of fracturing revenue relative to total revenue and an increase in the average cement and fracturing job size due to the increase in horizontal drilling activity. Job count decreased by 7% due to lower second quarter activity as well as a change in customer mix for our cementing and fracturing service lines as larger but fewer jobs were completed for our Canadian customers. As a percentage of revenue, materials and operating expenses increased to 70.1% from 66.2% for the comparable period in 2011. Increased pricing was more than offset by higher product and employee costs. General and administrative costs were down $0.4 million as an increase in administrative salaries was more than offset by decreased share based expenses. UNITED STATES OPERATIONS($ thousands, except revenue per job, unaudited)Six months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenuePeriod-Over-Period ChangeRevenue425,313315,95635%ExpensesMaterials and operating418,79298.5%220,63969.8%90%General and administrative6,9491.6%6,2462.0%11%Total expenses425,741100.1%226,88571.8%88%Operating income*(428)(0.1%)89,07128.2%(100%)Number of jobs3,5952,12569%Revenue per job118,724148,663(20%)* see first page of this reportU.S. revenue for the first six months of 2012 increased 35% relative to the first six months of 2011. Job count increased 69% and is largely due to increased demand for our services combined with the significant fracturing capacity additions and expansion of the cementing and coiled tubing service lines. Revenue per job declined by 20% largely as a result of the decrease in fracturing pricing experienced during the first half of 2012. Increased industry fracturing capacity combined with slowing growth in the U.S. market has created a very competitive market which has significantly reduced pricing particularly in the dry gas regions.Material and operating expenses as a percentage of revenue increased to 98.5% from 69.8% relative to the first half of 2011. This increase is largely attributed to the decline in pricing and the significant increase in guar costs. The 11% increase in general and administrative expenses is largely attributable to an increase in travel expenses, but has not increased in proportion to the growth in revenue.INTERNATIONAL OPERATIONS($ thousands, except revenue per job, unaudited)Six months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenuePeriod-Over-Period ChangeRevenue135,729146,191(7%)ExpensesMaterials and operating121,82589.8%125,65386.0%(3%)General and administrative6,6804.9%7,2024.9%(7%)Total expenses128,50594.7%132,85590.9%(3%)Operating income*7,2245.3%13,3369.1%(46%)Number of jobs1,9992,333(10%)Revenue per job63,41560,4465%* see first page of this reportInternational revenue was down 7% for the six months ended June 30, 2012, compared to the same period in 2011. The number of jobs completed is down 14% due to a slower than expected start to our Russian customers' 2012 work programs. Revenue per job was up 5% as a 4% weakening of the Russian ruble relative to the Canadian dollar was more than offset by pricing increases and a higher proportion of fracturing revenue relative to total revenue.Materials and operating expenses as a percentage of revenue increased to 89.8% compared to 86.0% in 2011. Pricing increases were more than offset by reduced operating leverage on our fixed cost structure combined with increased product costs. General and administrative decreased by $0.5 million due largely to lower share based expenses. CORPORATE($ thousands, unaudited)Six months ended,June 30, 2012% of RevenueJune 30, 2011% of RevenuePeriod-Over-Period ChangeExpensesMaterials and operating11,3041.0%10,0331.0%13%General and administrative19,7401.7%21,7742.3%(9%)Total expenses31,0442.7%31,8073.3%(2%)Operating loss*(31,044)(31,807)(2%)* see first page of this reportCorporate expenses decreased $0.8 million from the same period last year due to a lower profit sharing costs and shared based expenses. These decreases were partially offset by increased salary expenses and a $1.0 million charitable donation to the Alberta Children's Hospital. OTHER EXPENSES AND INCOME For the six months ended June 30, 2012, finance costs increased by $7.0 million compared to the same period in 2011 largely due to interest on the new private placement debt. Depreciation and amortization increased by $15.3 million compared to the same period last year, due primarily to capital additions relating to our capital expansion program. Foreign exchange losses of $2.2 million have been recorded for the six months ended June 30, 2012 compared to gains of $0.2 million for the same period in 2011. This change is due to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Year-to-date other income was $2.1 million versus $3.0 million for the same period in the prior year. Other income is mainly comprised of interest income on a loan to an unrelated third party and interest income earned on cash balances. INCOME TAXES Trican recorded income tax expense of $6.5 million for the six months ended June 30, 2012, versus $48.3 million for the comparable period of 2011. The decrease in tax expense is primarily attributable to lower earnings. LIQUIDITY AND CAPITAL RESOURCES Operating ActivitiesFunds used in operations was $49.1 million for the second quarter of 2012 compared to funds provided by operations of $60.9 million for the same period in 2011. The decrease was due largely to lower earnings.At June 30, 2012, Trican had working capital of $408.4 million compared to $621.2 million at the end of 2011. The decrease is due to lower cash on hand, lower accounts receivable due to a decrease in second quarter activity, and higher accounts payable as we continue to execute our 2012 capital budget. Investing ActivitiesCapital expenditures for the second quarter of 2012 totaled $148.3 million compared with $161.0 million for the same period in 2011. Capital expenditures for the six months ended June 30, 2012 were $304.2 million compared to $261.2 million for the same period in 2011. Capital expenditures for the remainder of 2012 are expected to be approximately $200 to $250 million.Financing ActivitiesAs at July 30, 2012, Trican had 146,438,677 common shares and 6,327,083 employee stock options outstanding.In the second quarter of 2012, Trican entered into an uncommitted shelf agreement that could allow for the issuance of up to US$100 million in senior unsecured notes. The terms of the notes, including the maturity date and coupon, would be negotiated with the counterparty if and when Trican chooses to issue notes from the shelf agreement and if the counterparty is willing to commit funds at that time. The purpose of this shelf agreement is to facilitate timely execution of future long term debt.The Company received approval from the Toronto Stock Exchange to purchase its own common shares, for cancellation, in accordance with a Normal Course Issuer Bid ("NCIB") for the one year period of March 2, 2012 to March 2, 2013. During the three months ended June 30, 2012, 520,400 common shares were purchased at a cost of $6.5 million, of which $1.9 million was charged to Share Capital and $4.6 million to retained earnings. During the six months ended June 30, 2012, 755,400 common shares were purchased at a cost of $10.0 million, of which $2.7 million was charged to Share Capital and $7.3 million to retained earnings. OUTLOOK Canadian OperationsWe expect Canadian activity levels to increase sequentially during the third quarter as weather conditions improve during the summer months. We expect increased activity levels to result in strong utilization for our equipment during the third quarter and contribute to solid operating margins. We also expect pricing to decrease in the third quarter due to additional pressure pumping supply in Canada combined with recent reductions in our customers' capital budgets for 2012. We expect the price decrease to result in lower third quarter 2012 margins compared to the pre-spring break-up margins from the first quarter of 2012. We expect to add four fracturing crews totaling 92,500 horsepower to our Canadian fleet during the second half of the year, as well as additional cementing, nitrogen, and acidizing equipment as we complete our 2012 capital program. We have relationships with a broad range of customers in Canada and we will continue to monitor their capital budgets and cash flows in light of low gas prices and the recent weakness in oil prices. We expect that any additional reductions in capital spending by our customers will decrease Canadian rig count and place further pricing pressure on the Canadian pressure pumping market.U.S. OperationsThe 2012 second quarter financial results were well below expectations. Continued pricing pressure combined with the spike in guar costs resulted in an operating loss during the quarter. We have seen the price of guar decline recently and expect this trend and the introduction of a guar alternative fluid to improve our operating margins during the second half of the third quarter and all of the fourth quarter. We expect this decline in this key cost input for our business should substantially improve our financial results for the second half of 2012. That being said, we believe the decline in fracturing pricing experienced during the first half of 2012 has been rapid and significant and is not sustainable in the long-term. We are currently in discussions with many of our customers to address this decline; however, current market conditions will make it difficult to meaningfully increase pricing in the near term. If we cannot pass through cost increases, we will examine shutting down crews until market conditions improve.Management is currently reviewing its cost optimization strategies and undertaking a number of cost cutting measures directed at improving the financial performance wherever possible. We believe that successful implementation of these cost optimization strategies and cost cutting measures is necessary to get the U.S. operations financial results back to a level of acceptability. We expect a more meaningful improvement to margins as a result of these cost cutting measures during the third quarter; however, the full benefit is not expected until the fourth quarter. U.S. operations has taken delivery of two additional fracturing crews at the end of the second quarter. Management does not expect to deploy these crews given current market conditions. We are actively seeking customers for this equipment, but deployment of the crews doesn't make economic sense given current operating conditions and pricing.Management understands that pressure pumping is a cyclical business and is well equipped to handle the current weakness in the U.S. market. We still believe in the long-term potential of the market and our strategy of becoming a full-service pressure pumping company in the United States. Management is confident that our U.S. operations will continue to be able to execute on the strategy through the downturn and will emerge from it as a stronger company.International OperationsFirst half results for our International operations were below expectations due to a slower than expected start to our Russian customers' 2012 work plans and a 4% weakening of the Russian ruble relative to the Canadian dollar. We expect activity levels to increase in the second half of the year as our customers work towards meeting 2012 spending and production targets; however, our outlook for our international region will be slightly lower than our previous guidance. Our operations in Algeria are improving and we are establishing our work programs and our customer base in Australia. However, we do not expect operations in these regions to have a meaningful impact on our operating results for the remainder of 2012. NON-IFRS DISCLOSURE Adjusted profit, operating income and funds provided by operations do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-IFRS measures. Adjusted profit and funds provided by operations have been reconciled to profit and operating income has been reconciled to gross profit, being the most directly comparable measures calculated in accordance with IFRS. The reconciling items have been presented net of tax.(thousands; unaudited)Three months endedSix months endedJune 30, 2012June 30, 2011March 31, 2012June 30, 2012June 30, 2011Adjusted profit/(loss)$(48,612)$33,328$92,300$43,688$118,789Deduct:Non-cash share-based compensation expense2,2483,2522,9185,1666,287Profit/(loss) (IFRS financial measure)$(50,860)$30,076$89,382$38,522$112,502(thousands; unaudited)Three months endedSix months endedJune 30, 2012June 30, 2011March 31, 2012June 30, 2012June 30, 2011Funds provided by/(used in) operations$(49,057)$60,912$136,102$87,045$202,611Charges to income not involving cashDepreciation and amortization38,17128,55435,83274,00358,659Stock-based compensation2,2483,2522,9185,1666,287Loss on disposal of property and equipment28235333528Unrealized foreign exchange (gain)/loss3,460(992)1933,653(982)Income tax expense/ (recovery)(25,139)15,43731,6366,49748,292Income tax paid(17,219)(15,418)(23,912)(41,131)(22,175)Profit/(loss) (IFRS financial measure)$(50,860)$30,076$89,382$38,522$112,502(thousands; unaudited)Three months endedSix months endedJune 30, 2012June 30, 2011March 31, 2012June 30, 2012June 30. 2011Operating income/ (loss)$(28,255)$78,277$161,845$133,591$223,609Add:Administrative expenses20,58225,55227,83348,41551,302Deduct:Depreciation expense(38,171)(28,554)(35,832)(74,003)(58,659)Gross profit/ (loss) (IFRS financial measure)$(45,844)$75,275$153,846$108,002$216,252CONSOLIDATED STATEMENT OF FINANCIAL POSITION(Stated in thousands; unaudited)June 30, 2012December 31, 2011ASSETSCurrent assetsCash and cash equivalents$61,269$125,855Trade and other receivables422,819607,672Current tax assets1,5201,553Inventory217,610173,515Prepaid expenses40,33331,996743,551940,591Property and equipment1,416,3341,178,410Intangible assets12,10614,662Deferred tax assets52,63033,369Other assets11,0906,445Goodwill43,74943,706$2,279,460$2,217,183LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilitiesBank loans (note 3)$11,549$-Trade and other payables306,192287,689Contingent consideration (note 2)2,8032,867Current tax liabilities14,5603,363Current portion of long-term debt (note 3)-25,425335,104319,344Loans and borrowings (note 3)459,465400,256Deferred tax liabilities104,375132,031Shareholders' equityShare capital (note 4)527,678529,062Contributed surplus50,83045,894Accumulated other comprehensive income(20,959)(22,805)Retained earnings822,667813,238Total equity attributable to equity holders of the Company1,380,2161,365,389Non-controlling interest300163$2,279,460$2,217,183See accompanying notes to the condensed consolidated financial statements.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(Stated in thousands, except per share amounts; unaudited)Three Months Ended June 30, 2012Three Months Ended June 30, 2011Six Months Ended June 30, 2012Six Months Ended June 30, 2011Revenue$417,975$421,701$1,134,331$956,329Cost of sales463,819346,4261,026,329740,077Gross profit/(loss)(45,844)75,275108,002216,252Administrative expenses20,58225,55248,41551,302Other income(205)(600)(894)(1,720)Results from operating activities(66,221)50,32360,481166,670Finance income(531)(687)(1,188)(1,323)Finance costs7,3955,41614,4287,427Foreign exchange loss/(gain)2,914812,222(228)Profit/(loss) before income tax(75,999)45,51345,019160,794Income tax expense/(recovery) (note 6)(25,139)15,4376,49748,292Profit/(loss) for the period$(50,860)$30,076$38,522$112,502Profit / (loss) attributable to:Owners of the Company(50,785)30,07638,675112,502Non-controlling interest(75)-(153)-Profit/(loss) for the period$(50,860)$30,076$38,522$112,502Other comprehensive income/(loss)Unrealized gain/(loss) on hedging instruments(261)2,7534422,753Foreign currency translation differences(3,196)(5,231)1,404(4,333)Total comprehensive income/(loss) for the period$(54,317)$27,598$40,368$110,922Total comprehensive income/(loss) attributable to:Owners of the Company(54,242)27,59840,521110,922Non- Controlling interest(75)-(153)-Total comprehensive income/(loss) for the period$(54,317)$27,598$40,368$110,922Earnings/(loss) per share (note 5)Basic$(0.35)$0.21$0.26$0.78Diluted$(0.35)$0.21$0.26$0.77Weighted average shares outstanding - basic146,653145,385146,800145,067Weighted average shares outstanding - diluted146,653147,223146,943146,889See accompanying notes to the condensed consolidated financial statements.CONSOLIDATED STATEMENT OF CASH FLOWS(Stated in thousands; unaudited)Three Months Ended June 30, 2012Three Months Ended June 30, 2011Six Months Ended June 30, 2012Six Months Ended June 30, 2011Cash Provided By/ (Used In):OperationsProfit/(loss) for the period$(50,860)$30,076$38,522$112,502Charges to income not involving cash:Depreciation and amortization38,17128,55474,00358,659Amortization of debt issuance costs201-403-Stock-based compensation2,2483,2525,1666,287Loss on disposal of property and equipment282333528Net finance costs6,8644,72913,2406,104Unrealized foreign exchange gain/(loss)3,460(992)3,653(982)Income tax expense/ (recovery)(25,139)15,4376,49748,292(24,773)81,059141,819230,890Change in inventories(21,016)(10,004)(46,373)(36,780)Change in trade and other receivables216,375110,553178,923(4,454)Change in prepayments(2,413)(4,308)(8,146)(5,504)Change in trade and other payables(49,639)(20,884)(6,844)(8,165)Cash generated from operating activities118,534156,416259,379192,317Interest paid(1,582)(1,547)(2,777)(2,084)Income tax paid(17,219)(15,418)(41,131)(22,175)99,733135,451215,471168,058InvestingInterest received2256217101,151Purchase of property and equipment(148,268)(160,953)(304,155)(261,216)Proceeds from the sale of property and equipment588116679487Payments received on loan to an unrelated third party-1,3082262,711(147,455)(173,457)(302,540)(253,332)FinancingNet proceeds from issuance of share capital36911,7471,10815,241Repurchase and cancellation of shares under NCIB(6,505)-(10,011)-Issuance (repayment) of bank loans52,773(6,810)64,549-Issuance of long-term debt, net of financing fees-295,824-295,824Repayment of long-term debt(25,425)-(25,425)-Dividend paid--(7,345)(7,232)21,212300,76122,876303,833Effect of exchange rate changes on cash(328)(1,326)(393)(977)Increase / (decrease) in cash and cash equivalents(26,838)261,429(64,586)217,582Cash and cash equivalents, beginning of period88,10737,211125,85581,058Cash and cash equivalents, end of period$61,269$298,640$61,269$298,640See accompanying notes to the condensed consolidated financial statements.Selected Notes to Condensed Consolidated Interim Financial Statements (Unaudited)For the three and six months ended June 30, 2012 and 2011NOTE 3 - LOANS AND BORROWINGSLong term debtAs at (Stated in thousands)June 30, 2012December 31, 2011Notes payable$387,982$412,646Finance lease obligations36,65526,766Revolving credit facility53,959-Bank loans11,549-Hedge receivable(6,807)(4,903)Total483,338434,509Current portion of finance lease obligations (1)(12,324)(8,828)Russian demand revolving credit facility(11,549)-Current portion of long-term debt-(25,425)Non-current$459,465$400,256(1) Current portion of finance lease obligations is included in trade and other payables.On October 18, 2011, Trican entered into a new $450 million four year extendible revolving credit facility (the "New Facility") with a syndicate of banks. The New Facility, which replaced the previous $250 million three year extendible facility, is unsecured and bears interest at the applicable Canadian prime rate, U.S. prime rate, Banker's Acceptance rate or at LIBOR plus 50 to 325 basis points, dependent on certain financial ratios of the Company. The New Facility requires Trican to comply with certain financial and non-financial covenants that are typical for this type of arrangement. Trican was in compliance with these covenants at June 30, 2012.Notes payableThe Notes payable require the Company to comply with certain financial and non-financial covenants that are typical for this type of arrangement. At June 30, 2012, the Company was in compliance with these covenants (2011 - in compliance). During the quarter ended June 30, 2012, Trican repaid $25.0 million U.S. in notes payable.NOTE 4 - SHARE CAPITAL Share capital Authorized: The Company is authorized to issue an unlimited number of common and preferred shares, issuable in series. The shares have no par value.Issued and Outstanding - Common Shares:(stated in thousands, except share amounts)Number of SharesAmountBalance, January 1, 2012146,916,859$529,062Exercise of stock options220,9181,108Reclassification from contributed surplus on exercise of options-230Shares repurchased and cancelled under NCIB(755,400)(2,722)146,382,377527,678Shares repurchased, not yet cancelled under NCIB--Balance, June 30, 2012146,382,377$527,678All issued shares are fully paid.Normal Course Issuer Bid The Company received approval from the Toronto Stock Exchange to purchase its own common shares, for cancellation, in accordance with a Normal Course Issuer Bid ("NCIB") for the one year period of March 2, 2012 to March 2, 2013. During the six months ended June 30, 2012, 755,400 common shares were purchased at a cost of $10.0 million, of which $2.7 million was charged to Share Capital and $7.3 million to retained earnings. NOTE 5 - EARNINGS PER SHARE (Stated in thousands, except share and per share amounts)For the three months endedFor the six months endedBasic earnings per shareJune 30, 2012June 30, 2011June 30, 2012June 30, 2011Profit attributable to owners of the company$(50,785)$30,076$38,675$112,502Weighted average number of common shares146,652,770145,385,235146,800,377145,067,097Basic earnings per share$(0.35)$0.21$0.26$0.78Diluted earnings per share2012201120122011Profit attributable to owners of the company$(50,785)$30,076$38,675$112,502Weighted average number of common shares146,652,770145,385,235146,800,377145,067,097Diluted effect of stock options-1,837,446142,8021,821,653Diluted weighted average number of common shares146,652,770147,222,682146,943,179146,888,750Diluted earnings per share$(0.35)$0.21$0.26$0.77At June 30, 2012, 5.9 million (2011 - 6.1 million) options were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.NOTE 6 - INCOME TAXES (Stated in thousands) Six months ended June 30,20122011Current income tax expense$53,367$15,702Deferred income tax (recovery)/expense(46,870)32,590$6,497$48,292The net income tax provision differs from that expected by applying the combined federal and provincial income tax rate of 25.17% (2011 - 26.64%) to income before income taxes for the following reasons:(Stated in thousands)Six months ended June 30,20122011Expected combined federal and provincial income tax$10,703$42,788Statutory and other rate differences(7,356)4,131Non-deductible expenses3,8423,354Translation of foreign subsidiaries(624)(120)Changes to deferred income tax rates-(2,161)Capital and other foreign tax49313Other(117)(13)$6,497$48,292NOTE 9 - OPERATING SEGMENTSThe Company operates in Canada and the U.S. along with a number of international operations. The international regions include Russia, Algeria, Kazakhstan, Australia and Saudi Arabia. Each geographic region has a General Manager that is responsible for the operation and strategy of their region's business. Personnel working within the particular geographic region report to the General Manager; the General Manager reports to the corporate executive. The Company provides a comprehensive array of specialized products, equipment, services and technology to customers through three operating divisions:Canadian operations provides cementing, fracturing, coiled tubing, nitrogen, geological, and acidizing services, which are performed on new and existing oil and gas wells, and industrial services. U.S. operations provides cementing, fracturing, coiled tubing, nitrogen, and acidizing services which are performed on new and existing oil and gas wells. International operations provides cementing, fracturing, coiled tubing, and nitrogen services which are performed on new and existing oil and gas wells.Information regarding the results of each geographic region is included below. Performance is measured based on Revenue and Gross profit as included in the internal management reports which are reviewed by the Company's executive management team. Each region's Gross profit is used to measure performance as management believes that such information is most relevant in evaluating regional results relative to other entities that operate within the industry.(Stated in thousands)CanadianOperationsUnited StatesOperationsInternationalOperationsCorporateTotalThree months ended June 30, 2012Revenue$140,178$206,777$71,020$-$417,975Gross profit/(loss)(8,212)(36,845)3,928(4,715)(45,844)Finance income---(531)(531)Finance costs---7,3957,395Tax expense/ (recovery)(7,310)(17,832)849(846)(25,139)Depreciation and amortization12,86418,7506,613(56)38,171Assets829,9601,063,951288,31597,2342,279,460Goodwill22,690-6,83314,22643,749Property and equipment778,357539,30984,25014,4181,416,334Capital expenditures72,70663,06812,494-148,268Three months ended June 30, 2011Revenue$167,805$172,404$81,492$-$421,701Gross profit/(loss)27,26342,13310,017(4,138)75,275Finance income---(687)(687)Finance costs---5,4165,416Tax expense1,96511,9961,21925715,437Depreciation and amortization11,73211,6825,1053528,554Assets638,071471,706258,965502,5591,871,301Goodwill22,690-14,226-36,916Property and equipment510,333298,91786,7867,540903,576Capital expenditures42,043113,5605,350-160,953(Stated in thousands)CanadianOperationsUnited StatesOperationsInternationalOperationsCorporateTotalSix months ended June 30, 2012Revenue$573,289$425,313$135,729$-$1,134,331Gross profit/(loss)147,479(29,607)1,209(11,079)108,002Finance income---(1,188)(1,188)Finance costs---14,42814,428Tax expense/ (recovery)25,055(18,145)(582)1696,497Depreciation and amortization24,85436,21112,82910974,003Capital expenditures105,593173,71324,849-304,930Six months ended June 30, 2011Revenue$494,182$315,956$146,191$-$956,329Gross profit/(loss)146,43970,9679,050(10,204)216,252Finance income---(1,323)(1,323)Finance costs---7,4277,427Tax expense26,65720,5949548748,292Depreciation and amortization22,24424,44111,66930558,659Capital expenditures70,730180,3509,193943261,216The Corporate division does not represent an operating segment and is included for informational purposes only. Corporate division expenses consist of salary expenses, stock-based compensation and office costs related to corporate employees, as well as public company costs.FORWARD-LOOKING INFORMATIONThe MD&A contains certain forward-looking statements and other information based on Trican's current expectations, estimates, projections and assumptions that were made by the Company in light of information available at the time the statement was made. Statements and other information that address expectations or projections about the future, and other statements and information about the Company's strategy for growth, expected and future expenditures, costs, operating and financial results, future financing and capital activities are forward-looking statements. Some forward-looking statements are identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intend", "plan", "planned", and other similar terms and phrases. These statements speak only as of the date of this document and we do not undertake to publicly update these forward-looking statements except in accordance with applicable securities laws. These forward-looking statements include, among others:expectation that we will complete a large Horn River project in the third quarter, which will positively impact third quarter results for our Canadian operations; belief that the trend towards more horizontal drilling and completions activity in Russia will continue and result in increased pressure pumping demand in Russia; expectation that we will continue to establish our cementing service line in Australia and financial results will improve as new work tenders are obtained; expectation that capital expenditures for the remainder of 2012 will be approximately $200 to $250 million; expectation that Canadian activity levels will increase sequentially during the third quarter as weather conditions improve during the summer months; expectation that increased activity levels in Canada will result in strong utilization for our Canadian equipment during the third quarter and contribute to solid operating margins in Canada; expectation that Canadian pricing will decrease in the third quarter due to additional pressure pumping supply in Canada combined with recent reductions in our customers' capital budgets for 2012; expectation that the Canadian price decrease will result in lower third quarter 2012 margins compared to the pre spring break-up margins from the first quarter of 2012; expectation to add four fracturing crews or 92,500 horsepower to our Canadian fleet during the second half of the year, as well as additional cementing, nitrogen, and acidizing equipment as we complete our 2012 capital program; expectation that any additional reductions in capital spending by our Canadian customers will decrease Canadian rig count and place further pricing pressure on the Canadian pressure pumping market; expectation that Russian activity levels will increase in the second half of the year as our customers work towards meeting 2012 spending and production targets; expectation that financial results for our international region will be slightly lower than our previous guidance; expectation that 2012 revenue and operating margins for our International operations will be consistent with 2011 results; expectation that operations in Algeria and Australia will not have a meaningful impact on our operating results for the remainder of 2012; expectation that the most meaningful cost cutting decreases for our U.S. operations will be in product costs, freight costs, unit expenses, wage expenses and base expenses during the second half of 2012; expectation that our fracturing spread in the North Dakota Bakken will commence operations during the third quarter; expectation that declining guar prices will improve our operating margins and financial results during the second half of the third quarter and all of the fourth quarter; belief that the decline in fracturing pricing experienced in the U.S. during the first half of 2012 has been rapid and significant and is not sustainable in the long-term; belief that current market conditions will make it difficult to meaningfully increase U.S. pricing in the near term; belief that successful implementation of our cost optimization strategies and cost cutting measures is necessary to get the U.S. Operations financial results back to a minimum level of acceptability; expectation of a more meaningful improvement to margins as a result of cost cutting measures during the third quarter but the full benefit is not expected until the fourth quarter; expectation that management will not deploy the two new U.S. fracturing crews given current market conditions; management's belief in the long-term potential of the U.S. pressure pumping market; andbelief that our U.S. Operations will continue to be able to execute on our strategy to become a full service pressure pumping company through the downturn, and that Trican will emerge from it as a stronger company.Forward-looking information and financial outlook is based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect. Trican's actual results may differ materially from those expressed or implied and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services.Forward-looking information and financial outlook is subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. The foregoing important factors are not exhaustive. In addition, actual results could differ materially from those anticipated in forward-looking information and financial outlook provided herein as a result of the risk factors set forth under the section entitled "Risks Factors" in our Annual Information Form dated March 22, 2012. Readers are also referred to the risk factors and assumptions described in other documents filed by the Company from time to time with securities regulatory authorities. Additional information regarding Trican including Trican's most recent annual information form is available under Trican's profile on SEDAR (www.sedar.com).Please visit our website at www.trican.ca.FOR FURTHER INFORMATION PLEASE CONTACT: Dale DusterhoftTrican Well Service Ltd.Chief Executive Officer(403) 266 - 0202(403) 237 - 7716 (FAX)ddusterhoft@trican.caORMichael BaldwinTrican Well Service Ltd.Vice President, Finance & CFO(403) 266 - 0202(403) 237 - 7716 (FAX)mbaldwin@trican.caORGary SummachTrican Well Service Ltd.Director of Reporting and Investor Relations(403) 266 - 0202(403) 237 - 7716 (FAX)gsummach@trican.caOR2900, 645 - 7th Avenue S.W.Trican Well Service Ltd.Calgary, Alberta T2P 4G8(403) 266 - 0202(403) 237 - 7716 (FAX)www.trican.ca