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FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking information and financial outlook 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. Forward-looking information and financial outlook 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 information and financial outlook 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. This forward-looking information and financial outlook speak only as of the date of this document and we do not undertake to publicly update this forward-looking information and financial outlook except in accordance with applicable securities laws. This forward-looking information and financial outlook include, among others:
-- The belief that fourth quarter Canadian pricing levels reflect a balanced Canadian pressure pumping market and the expectation that the market will remained balanced throughout 2013;-- The expectation that Canadian activity levels will rebound in the first quarter of 2013 as we enter the 2013 winter drilling season in Canada;-- The expectation that the four idle U.S. crews will remain inactive until U.S. market conditions improve or a strategic opportunity arises in North America or internationally;-- The expectation that the growth of horizontal drilling and multi-stage completions in Russia is an important development for the pressure pumping industry in Russia, as the shift towards more unconventional drilling and completions will increase the demand for horsepower in the region and place a larger emphasis on technology;-- The expectation that Trican will initially provide cementing services in the Colombian market, growing over time to become a full service pressure pumping company in the region;-- The expectation that Trican will commence operations in Colombia during the first half of 2013;-- The belief that the i-TEC acquisition complements Trican's existing completion systems and tools business, and is expected to provide positive growth opportunities, as well as enhance our other pressure pumping service lines;-- Many of our maintenance spending requirements for 2013 were incurred in 2012 and we are confident our fleet will be maintained in top operating condition throughout the coming year. Trican will continue to closely monitor its capital program and make any necessary modifications as greater visibility is obtained throughout 2013.-- Demand for pressure pumping services in Canada is expected to be stable throughout 2013, with recent industry forecasts reflecting a 3% increase in the number of wells drilled compared to 2012. Oil and liquids-rich gas directed activity is expected to continue to dominate the Canadian oil and gas market given the continued weakness in natural gas prices. Horizontal drilling activity is also expected to remain strong, as it has become the leading drilling method in the Canadian market.-- The expectation that demand for pressure pumping services in Canada will be stable in 2013 compared to the 2012;-- The expectation that oil and liquids-rich gas directed activity will continue to dominate the Canadian oil and gas market;-- The expectation that horizontal drilling activity will remain strong in Canada;-- The expectation that increased equipment supply in Canada will result in a year-over-year reduction in pricing;-- The belief that most of the 2012 price declines in Canada occurred in the second half of 2012 and we do not expect any significant additional pricing decreases in Canada during 2013;-- The expectation that a meaningful increase in Canadian horsepower supply will not occur in 2013 and that sustained demand levels will keep the market in balance;-- The expectation that 2013 first quarter activity levels will increase relative to the fourth of 2012 as we enter the busy the Canadian drilling season;-- The expectation that first quarter activity levels will not be as strong as the first quarter of 2012. As a result, we expect first quarter operating margins will be higher sequentially due to increased activity but lower year-over-year due to the declines in pricing and activity levels;-- The expectation that U.S. pressure pumping demand will continue to be driven by commodity prices and the cash flows and capital budgets of our U.S. customers;-- The expectation that based on the current commodity price and capital spending environment in the U.S., no significant change in 2013 pressure pumping demand will occur relative to demand levels seen in the second half of 2012.-- The expectation that a meaningful amount of new horsepower will not enter the U.S. market in 2013;-- The potential for modest declines in available U.S. horsepower to occur in 2013 if equipment is redeployed out of North American and into international markets and if older U.S. equipment is permanently retired;-- The expectation that a significant drop in U.S. pressure pumping supply in 2013 will not occur;-- The belief that the U.S. pressure pumping market will remain oversupplied throughout the upcoming year;-- The expectation that the supply/demand imbalance in the U.S. will not grow throughout 2013;-- The expectation that U.S. pricing will remain stable in 2013 given the expectations of a steady supply and demand environment in the U.S.;-- The expectation that we will be working with new and existing customers to obtain work for U.S. fracturing crews that have expiring contracts in 2013;-- The expectation that we will realize moderate pricing declines in the U.S. in 2013 due to the contract expirations but expect 2013 utilization of our U.S. fracturing fleet to remain consistent with 2012;-- The belief that U.S. pricing could soften slightly in some of the more active oil and liquids-rich gas plays if equipment continues to be redeployed into these areas;-- The belief that Trican's U.S. operating margins will increase gradually throughout the year;-- The expectation that cost cutting initiatives will improve U.S. operating margins in 2013;-- The expectation that realized guar prices will continue to decline in the first quarter of 2013 as we work through our higher priced inventory;-- The expectation that we will grow our cementing and coiled tubing service lines in the U.S. during 2013 by increasing utilization on existing equipment;-- The expectation that sales from our U.S. cementing and coiled tubing service lines will increase as a percentage of total sales;-- The expectation that 2013 Russia revenue will increase by approximately 25%, as measured in Russian roubles, compared to 2012;-- The expectation that the estimated revenue increase is based on a 2% rise in overall activity combined with a 23% increase in average revenue per job.-- The expectation that the increase in average revenue per job is the combined result of the trend towards larger fracturing job sizes in multi-stage completions, a shift in the sales mix toward more fracturing work relative to coiled tubing and cementing and a modest increase in pricing;-- The expectation of moderate improvements in Russian operating margins in 2013;-- The expectation that the Kazakhstan pressure pumping market will be stable in 2013;-- The expectation that activity levels in Kazakhstan will be down slightly; however, operating margins are expected to remain strong in this region;-- The expectation that Algerian coiled tubing activity and pricing will remain stable in 2013;-- The expectation that the cementing market in Algeria will be very competitive in 2013;-- The expectation of moderate growth in Australian cementing revenue and operating income improvements in 2013;-- The expectation that Australia will not generate a meaningful level of profitability in 2013;-- The expectation that Trican will participate in pressure pumping tenders in 2013 in Saudi Arabia and Colombia;-- The expectation that Trican will renew the NCIB in the first quarter of 2013;-- The expectation that 2013 dividend payments will be approximately $44.0 million.
