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Trican Reports First Quarter Results for 2014

CALGARY, ALBERTA -- (Marketwired) -- 05/07/14 -- Trican Well Service Ltd. (TSX:TCW) -

Financial Review

                                       ----------------------------------- 
                                                Three months ended         
($ millions, except per                 March 31,   March 31, December 31, 
 share amounts; unaudited)                   2014        2013         2013 
-------------------------------------------------------------------------- 
Revenue                                    $643.2      $618.4       $552.1 
Operating income (i)                         42.4        86.7         35.5 
Profit / (loss) for the                                                    
 period                                      (8.5)       25.4        (20.8)
Earnings / (loss) per share     (basic)     (0.06)      $0.17       ($0.14)
                              (diluted)     (0.06)      $0.17       ($0.14)
Adjusted profit / (loss) (i)                 (6.3)       27.6         (9.9)
Adjusted profit / (loss) per                                               
 share(i)                       (basic)     (0.04)      $0.18       ($0.07)
                              (diluted)     (0.04)      $0.18       ($0.07)
Funds provided by                                                          
 operations(i)                               38.0        58.0         30.4 
-------------------------------------------------------------------------- 
Notes:                                                                      
(i) Trican makes reference to operating income, adjusted profit (loss) and  
funds provided by operations. These are measures that are not recognized    
under International Financial Reporting Standards (IFRS). Management        
believes that, in addition to profit (loss), operating income, adjusted     
profit (loss) and funds provided by operations are useful supplemental      
measures. Operating income provides investors with an indication of earnings
before depreciation, foreign exchange, 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 operations provide investors with an indication  
of cash available for capital commitments, debt repayments and other        
expenditures. Investors should be cautioned that operating income, 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, adjusted profit (loss) and 
funds provided by operations may differ from that of other companies and    
accordingly may not be comparable to measures used by other companies.      

FIRST QUARTER HIGHLIGHTS

Consolidated revenue for the first quarter of 2014 was $643.2 million, an increase of 4% compared to the first quarter of 2013. The adjusted consolidated loss was $6.3 million compared to profit of $27.6 million, and adjusted loss per share was $0.04 compared to profit of $0.18 for the same period in 2013.

Canadian revenue increased by 4% but operating margins decreased by 880 basis points in the first quarter of 2014 compared to the first quarter of 2013. Canadian equipment utilization levels were high for most of the quarter due to an extended winter drilling season that kept pressure pumping demand strong to the end of March. Pressure pumping demand also benefitted from improving Canadian market fundamentals as Canadian commodity prices and a weakening Canadian dollar led to increased cash flows for our customers. Despite the strong demand, Canadian operating margins were below expectations due to a low pricing environment combined with increased costs. Higher diesel prices, increased sand hauling requirements and a stronger U.S. dollar have all contributed to the rising cost structure in Canada. We expect to raise prices in Canada during the second quarter of 2014 to address the recent declines in Canadian operating margins. In addition, due to an expected increase in customer demand, we plan to deploy an additional fracturing crew in Canada in late 2014. The equipment for this crew is expected to come from our existing fleet of parked equipment.

U.S. revenue for the first quarter of 2014 was relatively consistent with the first quarter of 2013 and was up 22% on a sequential basis. Although operating income increased on a sequential basis, our U.S. operations incurred an operating loss of $1.0 million in the first quarter of 2014. U.S. equipment utilization was negatively impacted by unfavorable weather conditions in January and February for our operations in the Marcellus, Permian and Oklahoma regions. The financial performance of our U.S. operations improved substantially in March as operating conditions improved. We believe the March results reflect improving fundamentals for the U.S. pressure pumping market and we expect operating margins to continue to improve sequentially for our U.S. business throughout 2014. During the second quarter, we expect to deploy a fourth fracturing crew into the Marcellus region that will be supported by customer commitments. In addition, due to underperformance in the region, we have closed our operating base in Woodward, Oklahoma, where one fracturing crew had been active. We believe these strategic decisions will improve the financial performance of our U.S. operations in the second half of 2014.

International revenue for the first quarter of 2014 increased by 12% and operating margins improved by 340 basis points compared to the first quarter of 2013. As expected, cold weather at the start of the quarter negatively impacted Russian activity levels; however, Russian activity rebounded strongly near the end of the first quarter once operating conditions improved. First quarter revenue and operating margins increased substantially for the North Sea completion tools business on both a year-over-year and sequential basis. Strong customer acceptance of the completion tools technology in this region has led to improved financial performance for this division. International operating margins in the first quarter of 2014 were negatively impacted by increased start-up costs incurred in both Saudi Arabia and Colombia. Active cementing operations were initiated in Colombia during April and we expect to begin coiled tubing operations in Saudi Arabia in the second quarter of 2014.

MANAGEMENT'S DISCUSSION AND ANALYSIS

OVERVIEW

Headquartered in Calgary, Alberta, Trican has operations in Canada, the U.S., Russia, Kazakhstan, Algeria, Australia, Norway, Saudi Arabia and Colombia. Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.

COMPARATIVE QUARTERLY INCOME STATEMENTS ($ thousands, unaudited)           
-------------------------------------------------------------------------- 
                                                         Quarter-          
                                                            Over-          
                                    % of            % of  Quarter        % 
Three months ended March                                                   
 31,                        2014 Revenue    2013 Revenue   Change   Change 
-------------------------------------------------------------------------- 
                                                                           
Revenue                  643,217  100.0% 618,376  100.0%   24,841     4.0% 
Expenses                                                                   
 Materials and operating 568,277   88.3% 502,026   81.2%   66,251    13.2% 
 General and                                                               
  administrative          32,536    5.1%  29,680    4.8%    2,856     9.6% 
-------------------------------------------------------------------------- 
Operating income(i)       42,404    6.6%  86,670   14.0%  (44,266)  (51.1%)
 Finance costs            10,227    1.6%   8,488    1.4%    1,739    20.5% 
 Depreciation and                                                          
  amortization            52,751    8.2%  47,059    7.6%    5,692    12.1% 
 Foreign exchange gain    (2,292)  (0.4%) (1,726)  (0.3%)    (566)   32.8% 
 Other income             (2,604)  (0.4%) (2,070)  (0.3%)    (534)  (25.8%)
-------------------------------------------------------------------------- 
(Loss)/ profit before                                                      
 income taxes            (15,678)  (2.4%) 34,919    5.6%  (50,597) (144.9%)
Income tax (recovery) /                                                    
 expense                  (6,568)  (1.0%)  9,727    1.6%  (16,295) (167.5%)
Non-controlling interest    (629)  (0.1%)   (171)     0%     (458)  267.8% 
-------------------------------------------------------------------------- 
(Loss) / income for the                                                    
 period                   (8,481)  (1.3%) 25,363    4.1%  (33,844) (133.4%)
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 

CANADIAN OPERATIONS

----------------------------------------------------------------------------
($ thousands, except                                                        
 revenue per job,                                                           
 unaudited)            March 31,    % of March 31,    % of  Dec.31,     % of
Three months ended,         2014 Revenue      2013 Revenue     2013  Revenue
----------------------------------------------------------------------------
Revenue                  353,342           338,649          286,869         
Expenses                                                                    
 Materials and                                                              
  operating              283,280   80.2%   241,473   71.3%  228,533    79.7%
 General and                                                                
  administrative           7,543    2.1%     7,376    2.2%    5,244     1.8%
                       ---------        ----------        ---------         
 Total expenses          290,823   82.3%   248,849   73.5%  233,777    81.5%
Operating income(i)       62,519   17.7%    89,800   26.5%   53,092    18.5%
Number of jobs             6,396             6,955            5,154         
Revenue per job           55,200            48,280           55,435         
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Sales Mix

--------------------------------------------------------------------------
Three months ended,                    March 31,    March 31,     Dec. 31,
(unaudited)                                 2014         2013         2013
--------------------------------------------------------------------------
% of Total Revenue                                                        
Fracturing                                   67%          64%          67%
Cementing                                    19%          20%          18%
Nitrogen                                      6%           7%           6%
Coiled Tubing                                 3%           4%           3%
Acidizing                                     2%           3%           1%
Other                                         2%           1%           1%
Industrial Services                           1%           1%           4%
--------------------------------------------------------------------------
Total                                       100%         100%         100%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Operations Review

Equipment utilization for our Canadian operations was strong throughout most of the first quarter of 2014. Pressure pumping demand was soft in the first half of January due to reduced drilling and completions activity at the end of 2013 that carried into early 2014; however, our Canadian equipment was fully utilized from the second half of January to the end of March. First quarter Canadian pressure pumping demand benefitted from increased customer cash flows due to higher Canadian commodity prices combined with a stronger U.S. dollar. In addition, cold temperatures throughout the quarter led to an extended winter drilling season that carried to the end of March and into early April.

The Canadian dollar weakened relative to the U.S. dollar on both a year-over-year and sequential basis. A weaker Canadian dollar negatively impacted operating margins as a portion of our product costs are denominated in U.S. dollars. In addition, sand volumes and fracturing stages per well continued to increase during the first quarter of 2014. This trend led to higher sand hauling requirements in Canada and required our Canadian operations to outsource a higher percentage of hauling services. Our Canadian cost structure was also impacted by higher first quarter diesel prices relative to the comparative periods.

Our pricing levels declined at the end of the fourth quarter of 2013 and these rates were carried throughout all of the first quarter of 2014. As a result, first quarter Canadian pricing was down slightly on a sequential basis and substantially compared to the first quarter of 2013. Lower pricing combined with higher costs led to first quarter operating margins that were 880 basis points lower in Canada on a year-over-year basis.

The Canadian completion tools division continued to show strong growth during the first quarter of 2014. We are continuing to gain customer acceptance of the technology and are focused on increasing the Canadian customer base and improving the profitability of the division.

Q1 2014 versus Q1 2013

Canadian revenue for the first quarter of 2014 increased by 4% compared to the first quarter of 2013. Revenue per job increased by 14% due to an increase in fracturing job size combined with an increase in fracturing revenue as a percentage of total revenue. Proppant used per fracturing job, a good indicator of job size, increased by 40% on a year-over-year basis. These factors were partially offset by a year-over-year decrease in Canadian pricing.

The job count decreased by 8% due largely to lower coiled tubing activity caused by increased competition in Canada for this service line. Lower coiled tubing activity also had a negative impact on our nitrogen and acidizing job count as these service lines are closely correlated with coiled tubing. Cementing and fracturing activity remained strong throughout most of the quarter and benefitted from robust demand and favorable weather conditions.

As a percentage of revenue, materials and operating expenses increased to 80.2% compared to 71.3% in the first quarter of 2013. The most significant cause of the margin decline was lower year-over-year pricing. Operating margins were also negatively impacted by higher fuel and sand hauling costs as well as a weaker Canadian dollar that led to higher U.S. denominated product costs.

General and administrative expenses increased by $0.2 million due to slightly higher overhead costs associated with the growing Canadian completion tools business.

Q1 2014 versus Q4 2013

Sequentially, Canadian revenue increased by 23% due largely to an increase in activity levels. The job count increased by 24% as equipment utilization was up for all pressure pumping service lines compared to the fourth quarter of 2013. Pressure pumping demand benefitted from favorable weather conditions and increased customer cash flows due to higher Canadian commodity prices combined with a stronger U.S. dollar. Revenue per job was down slightly as lower average pricing levels were offset by larger fracturing job sizes.

As a percentage of revenue, materials and operating expenses increased to 80.2% compared to 79.7% in the fourth quarter of 2013. Lower average pricing combined with increased product, fuel and hauling costs contributed to the reduction in operating margins. These factors were largely offset by increased operational leverage on our fixed costs due to the increase in utilization for our pressure pumping service lines.

General and administrative expenses increased by $2.3 million due largely to higher share-based and profit sharing expenses.

UNITED STATES OPERATIONS

------------------------------------------------------------------------- 
($ thousands,                                                             
 except revenue per                                                       
 job, unaudited)   March 31,     % of March 31,    % of Dec. 31,     % of 
Three months ended,     2014  Revenue      2013 Revenue     2013  Revenue 
------------------------------------------------------------------------- 
Revenue              211,040            210,685          173,470          
Expenses                                                                  
 Materials and                                                            
  operating          205,207    97.2%   186,213   88.4%  174,989   100.9% 
 General and                                                              
  administrative       6,868     3.3%     6,483    3.1%    6,776     3.9% 
                   ---------          ---------        ---------          
 Total expenses      212,075   100.5%   192,696   91.5%  181,765   104.8% 
Operating income /                                                        
 (loss)(i)            (1,035)   (0.5%)   17,989    8.5%   (8,295)   (4.8%)
Number of jobs         3,218              2,035            2,262          
Revenue per job       61,776            103,696           68,533          
------------------------------------------------------------------------- 
------------------------------------------------------------------------- 
                                                                          
--------------------------------------------------------------------------
Three months ended,                    March 31,    March 31,     Dec. 31,
(unaudited)                                 2014         2013         2013
--------------------------------------------------------------------------
% of Total Revenue                                                        
Fracturing                                   90%          92%          88%
Cementing                                     6%           6%           7%
Coiled Tubing                                 4%           2%           5%
--------------------------------------------------------------------------
Total                                       100%         100%         100%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Operations Review

January and February activity levels in the U.S. were negatively impacted by cold weather and customer delays, in particular for our operations in the Marcellus, Permian and Oklahoma regions. As operating conditions improved in late February, overall equipment utilization increased for our U.S. operations. As a result, March financial results improved substantially compared to January and February for most of our U.S. operating regions.

March results were particularly strong in the Marcellus play. Our reputation for superior service quality and operational execution continued to benefit our Marcellus operations, despite the flat rig count in the region. Once weather conditions improved, our three fracturing crews operating in this region were fully utilized.

Financial and operational performance improved significantly in both the Permian and Bakken regions during the first quarter. Despite the challenging weather conditions at the start of the first quarter, improved operational execution combined with a rising horizontal rig count led to improved March financial results for our operations in the Permian region. In addition, a focused sales effort, strong operational execution, and customer acceptance of our recycled water technology led to significant sequential financial improvements for our fracturing crew operating in the Bakken play.

Improving natural gas prices led to a modest increase in activity levels in the Haynesville shale and, as a result, a fracturing crew was deployed back into this region during the first quarter of 2014. Pressure pumping demand remained steady in the Eagle Ford region with one contracted crew and one crew working in the spot market.

Our operations in the Barnett shale and Oklahoma regions performed below expectations during the first quarter. Despite the recent rise in natural gas prices, the rig count in the Barnett shale continued to decrease and led to weak first quarter utilization for our fracturing crew in this region. Despite relatively strong overall activity levels in the various Oklahoma oil and gas plays, our two Oklahoma operating regions performed below expectations. Weather impacted our Oklahoma operations early in the first quarter; however, equipment utilization did not return to acceptable levels once operating conditions improved.

Our first quarter pricing levels were relatively consistent with the fourth quarter of 2013 for all of our U.S. operating regions.

Revenue for the U.S. completion tools division decreased sequentially due to delays with one of our major customers. We continue to be pleased with customer acceptance of the completion tools technology in the U.S. and expect revenue and profitability to improve throughout 2014.

Q1 2014 versus Q1 2013

First quarter revenue for our U.S. operations was relatively stable in Canadian dollars but was down approximately 8% in U.S. dollars. The U.S. dollar strengthened by approximately 9% on a year-over-year basis. The positive impact of a stronger U.S. dollar on revenue per job was more than offset by a change in job mix as revenue per job in the first quarter of 2014 decreased by 40% compared to the first quarter of 2013. A substantial year-over-year increase in Marcellus, Bakken and Permian activity contributed to the lower revenue per job. Fracturing jobs in these regions are generally higher volume but lower revenue per job compared to other U.S. operating regions such as the Haynesville and Oklahoma. Lower year-over-year pricing also contributed to the decrease in revenue per job. The job count rose by 58% due largely to increased Marcellus, Bakken and Permian fracturing activity combined with higher coiled tubing activity.

First quarter materials and operating expenses increased to 97.2% of revenue compared to 88.4% in the first quarter of 2013. Lower pricing was the most significant cause of the reduction in operating margins. Margins were also negatively impacted by higher fuel and repairs and maintenance expenses. These factors were partially offset by decreased product costs. General and administrative expenses increased by $0.4 million due primarily to higher insurance costs and one-time professional fees.

Q1 2014 versus Q4 2013

Sequentially, U.S. revenue increased by 22% due to an increase in activity levels combined with a 5% strengthening of the U.S. dollar. The job count increased by 42% due largely to higher Marcellus, Bakken and Permian activity levels. Fracturing jobs in these plays are generally smaller, which contributed to the 10% decline in revenue per job.

As a percentage of revenue, materials and operating expenses decreased to 97.2% compared to 100.9% sequentially. Operating margins benefitted from increased operational leverage on our fixed cost structure, which was offset partially by higher fuel and repairs and maintenance expenses. General and administrative expenses were relatively consistent on a sequential basis.

INTERNATIONAL OPERATIONS

---------------------------------------------------------------------------
($ thousands, except                                                       
 revenue per job,                                                          
 unaudited)           March 31,    % of March 31,     % of Dec. 31,    % of
Three months ended,        2014 Revenue      2013  Revenue     2013 Revenue
---------------------------------------------------------- ----------------
Revenue                  78,835            70,111            91,805        
Expenses                                                                   
 Materials and                                                             
  operating              73,299   93.0%    68,384    97.5%   80,556   87.7%
 General and                                                               
  administrative          5,256    6.7%     3,848     5.5%    4,434    4.8%
                     ----------        ----------          --------        
 Total expenses          78,555   99.7%    72,232   103.0%   84,990   92.6%
Operating income/                                                          
 (loss)(i)                  280    0.3%    (2,121)   (3.0%)   6,815    7.4%
Number of jobs              966               914             1,074        
Revenue per job          73,520            73,249            82,872        
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Sales Mix

--------------------------------------------------------------------------
Three months ended,                    March 31,    March 31,     Dec. 31,
(unaudited)                                 2014         2013         2013
--------------------------------------------------------------------------
% of Total Revenue                                                        
Fracturing                                   85%          84%          84%
Coiled Tubing                                 6%           8%           6%
Cementing                                     5%           5%           5%
Nitrogen                                      2%           2%           2%
Other                                         2%           1%           3%
--------------------------------------------------------------------------
Total                                       100%         100%         100%
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Operations Review

The majority of International revenue is generated from our Russian operations. Cold weather throughout January and February negatively impacted Russian activity levels, which was consistent with expectations. Operating conditions improved in March and Russian financial and operating results were strong at the end of the quarter.

The conflict between Russia and the Ukraine did not impact our Russian operations during the first quarter of 2014 and we are not anticipating any operational disruptions to our Russian business throughout 2014; however, we will continue to monitor the situation closely and react appropriately if the conflict escalates further. The potential financial impact, if any, to Trican from additional economic sanctions placed on Russia in the future is unknown at this time.

First quarter revenue and operating margins increased substantially for the North Sea completion tools business on both a year-over-year and sequential basis. We continued to expand our customer base in this region through strong acceptance of the completion tools technology.

Start-up costs were incurred in both Saudi Arabia and Colombia during the first quarter of 2014, which had a negative impact on international operating margins. We completed our first cementing job in Colombia during April 2014 and expect activity to increase in this region throughout 2014. Active operations in Saudi Arabia are expected to commence the second quarter of 2014. We are currently in discussions with Saudi Aramco to secure additional contracts in this region.

Revenue increased for our Australian operations in the first quarter of 2014 compared to the first quarter of 2013 as we improved our market share in the region. We remain optimistic about the long-term growth opportunities in the region and are committed to growing our Australian cementing business during 2014. Although financial results improved in Algeria during the first quarter, this region continued to perform below expectations due to low equipment utilization levels.

Q1 2014 versus Q1 2013

First quarter International revenue increased by 12% compared to the first quarter of 2013. Year-over-year international revenue benefited from a substantial increase in North Sea completion tools sales. In addition, the job count increased by 6% as strong March activity led to an increase in Russian pressure pumping jobs. A rise in cementing work in Australia also contributed to the increase in the job count. Revenue per job was up slightly as larger fracturing job size in Russia was offset by a devaluation of the ruble relative to the Canadian dollar.

Materials and operating expenses decreased to 93.0% of revenue compared to 97.5% in the first quarter of 2013. An increase in activity for our Russian, Australian, Algerian and North Sea operations led to improved operational leverage on our fixed cost structure. This was offset partially by increased start-up costs during the first quarter of 2014 in Saudi Arabia and Colombia compared to the first quarter of 2013. General and administrative expenses increased by $1.4 million due to higher share based employee expenses and a bad debt provision in Russia of $0.9 million recorded in the first quarter of 2014.

Q1 2014 versus Q4 2013

Sequentially, International revenue decreased by 14%. The job count decreased by 10% due to seasonal factors in Russia that led to lower activity for all Russian service lines. Low Russian activity was offset by a sequential rise in North Sea completion tools activity. Revenue per job decreased by 11% due to a decline in the value of the ruble relative to the Canadian dollar, which led to lower revenue per job in Russia. A change in job type mix also led to lower revenue per job in Russia for the fracturing and cementing service lines.

As a percentage of revenue, materials and operating expenses increased to 93.0% compared to 87.7% in the fourth quarter of 2013. Operating margins were negatively impacted by a sequential increase in start-up costs in Saudi Arabia and Colombia and lower activity levels in Russia. General and administrative costs increased by $0.8 million due primarily to a bad debt provision recorded in Russia during the first quarter of 2014.

CORPORATE

---------------------------------------------------------------------------
($ thousands, except                                                       
 revenue per job,                                                          
 unaudited)            March 31,    % of March 31,    % of Dec. 31,    % of
Three months ended,         2014 Revenue      2013 Revenue     2013 Revenue
---------------------------------------------------------------------------
Expenses                                                                   
 Materials and                                                             
  operating                6,491    1.0%     6,663    1.1%    6,635    1.2%
 General and                                                               
  administrative          12,869    2.0%    12,987    2.1%    9,477    1.7%
                      ----------        ----------        ---------        
 Total expenses           19,360    3.0%    19,650    3.2%   16,112    2.9%
Operating loss(i)        (19,360)          (19,650)         (16,112)       
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Q1 2014 versus Q1 2013

Corporate costs for the first quarter of 2014 decreased by $0.3 million due largely to lower profit sharing and share based expenses, offset partially by expenses incurred relating to an insolvent vendor issue.

Q1 2014 versus Q4 2013

Corporate costs increased sequentially by $3.2 million due largely to expenses incurred relating to an insolvent vendor issue, higher share based expenses and a slight increase in profit sharing expenses.

OTHER EXPENSES AND INCOME

Finance costs increased by $1.7 million on a year-over-year basis due to an increase in average debt balances. Foreign exchange gains of $2.3 million were recognized in the first quarter of 2014 compared to $1.7 million in the first quarter of 2013. The gain is due largely to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Other income was $2.6 million compared to $2.1 million in the same period in 2013. Other income is largely comprised of net gains on disposal of property and equipment and interest income earned on cash balances.

Depreciation expense for the first quarter of 2014 increased by $5.7 million compared to the first quarter of 2013 due to an increase in depreciable property and equipment balances.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Funds provided by operations was $38.0 million in the first quarter of 2014 compared to $58.0 million in the first quarter of 2013. Lower profits contributed to the decline in operating cash flows, which was partially offset by less taxes paid.

Working capital at March 31, 2014 increased by $112 million compared to December 31, 2013 due to a sequential increase in Canadian activity, and to a lesser extent, an increase in U.S. activity.

Investing Activities

Property and equipment purchases were $16.7 million in the first quarter of 2014 compared to $31.0 million in the first quarter of 2013. Capital spending has decreased in response to reduced operating cash flows from our Canadian and U.S. operations as well as adequate equipment capacity in all of our operating regions.

There were no significant changes made to our 2014 capital budget during the first quarter of 2014. Remaining expenditures on approved capital budgets are expected to be approximately $65 million to $75 million.

Financing Activities

As at May 7, 2014, Trican had 149,030,739 common shares and 10,351,798 employee stock options outstanding.

Trican currently pays a semi-annual dividend of $0.15 per share. During the first quarter of 2014, $22.3 million in dividend payments were made and we expect an additional $22.3 million to be paid in July 2014.

During the quarter ended March 31, 2014, Trican withdrew $103.6 million on its revolving credit and bank facilities to fund operating, investing and financing activities. As at March 31, 2014, Trican has available unused committed bank credit facilities in the amount of $199.0 million plus cash and trade and other receivables of $95.4 million and $606.7 million respectively, for a total of $901.1 million available to fund the cash outflows relating to its financial obligations. We believe we have sufficient funding through the use of these sources to meet foreseeable borrowing requirements.

During the first quarter of 2014, Trican received approval from the Toronto Stock Exchange to purchase its own common shares, for cancellation, in accordance with a Normal Course Issuer Bid ("NCIB") that expires on March 12, 2015. There were no common shares purchased through the NCIB during the first quarter of 2014.

OUTLOOK

Canadian Operations

Canadian pressure pumping demand is expected to remain strong during the second half of 2014. Increased customer cash-flows in the first quarter are expected to carry into the second half of the year, assuming that commodity prices and exchange rates remain relatively consistent with current levels.

Utilization of our Canadian equipment is expected to benefit from a Horn River project during the third quarter of 2014, which will be similar to the project completed during the third quarter of 2013. We also expect to complete a small project in the Liard basin during the third quarter of 2014. This will be the first fracturing project completed by Trican in the Liard basin and reflects potential customer interest in this region in light of Canadian LNG export opportunities. We also expect activity in the Duvernay play to continue to increase and contribute to higher year-over-year pressure pumping demand in Canada.

With strong Canadian activity levels anticipated for the second half of 2014, we expect to implement a pricing increase in the second quarter that is expected to be phased in during the second half of 2014. Rising costs combined with lower pricing have led to Canadian financial results that are below our return on capital targets and we believe that a price increase is required and justified given the current operating environment in Canada. Due to an expected increase in customer demand, we plan to deploy an additional fracturing crew in Canada in late 2014. The equipment for this crew is expected to come from our existing fleet of parked equipment.

As expected, second quarter activity in Canada will be impacted by spring break-up conditions. Second quarter operating margins are expected to be negatively impacted by lower year-over-year pricing and higher costs compared to the second quarter of 2013; however, we expect second quarter utilization to increase year-over-year due to a strong activity in early April combined with incremental multi-well projects planned for May and June.

U.S. Operations

Although the U.S. pressure pumping market remains over-supplied with equipment and very competitive, market fundamentals are continuing to improve. While these improvements are expected to benefit our U.S. operations, our focus continues to be on optimizing equipment location, adding crews to select regions from our parked fleet, improving utilization in certain regions, and reducing costs, where possible.

The Marcellus play continues to be our most profitable U.S. region, and we expect solid financial results in this area for the remainder of 2014. We expect to add a fourth fracturing crew into the Marcellus play during the latter half of the second quarter of 2014, which will be supported by new customer commitments. We will continue to explore additional expansion prospects in Marcellus throughout 2014.

Fracturing demand in the Permian region increased throughout the first quarter and we expect this trend to continue throughout 2014. We are currently operating three fracturing crews in this region and, although utilization has recently increased, continued utilization improvement and cost reduction is the focus for our Permian operations. We have recently obtained pricing improvements in the Permian region and we will look for additional opportunities to increase pricing as the year progresses.

Although natural gas prices have recently strengthened, the rig count in both the Barnett and Haynesville regions are expected to remain low for the remainder of 2014. Activity levels are up slightly in Haynesville and, as a result, we deployed one crew back into this play late in the quarter for the remainder of 2014. We expect utilization of our Longview fracturing crew to be stable for the remainder of 2014, and we are committed to maintaining our presence in this region.

Overall activity levels in the various Oklahoma oil and gas plays have remained steady. Despite stable pressure pumping demand, equipment utilization and financial results have not met expectations for our two operating bases in Oklahoma over the past several quarters. As a result, we have closed our operating base in Woodward, Oklahoma during the second quarter of 2014. We are currently looking at opportunities to deploy the Woodward fracturing crew into the Permian region. Customer commitments in Woodward will be covered by our base in Shawnee, Oklahoma, which is expected to improve the utilization for this location.

Equipment utilization has improved substantially in the Bakken region over the last several months. Our focus is to maintain these utilization levels going forward by continuing to offer innovative technology and strong service quality in this region. We will also look to add an additional crew into this region if utilization remains high.

Eagle Ford activity and demand is expected to remain stable for the remainder of 2014.

International Operations

Consistent with our previous guidance, 2014 Russian revenue is expected to increase by 5% compared to 2013 with a slight improvement in operating margins. We continue to see an increase in horizontal drilling and completions activity in Russia. We expect 30% of our 2014 Russian pressure pumping revenue to be generated from horizontal wells compared to 20% in 2013.

Customer acceptance of our completion tools technology in the North Sea has been strong and we expect the completion tools business to grow during 2014 as we increase our customer base in the region.

Although the Australian market continues to develop slowly, we will continue to focus on expanding market share through sales and marketing initiatives. We believe in the long-term potential of this market and are committed to growing our presence in the region.

Algeria continues to be a challenging market. We are currently exploring opportunities to obtain more profitable contracts in the region or redeploy the Algerian assets into a more profitable area. We expect to have more clarity on our future in Algeria once existing customer contract commitments have been completed.

We began active operations in Colombia during April 2014 and will look to expand our customer base in this region throughout 2014. We expect active operations in Saudi Arabia to commence in the second quarter of 2014.

NON-IFRS DISCLOSURE

Adjusted net income, 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 net income and funds provided by operations have been reconciled to net income 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 ended          
--------------------------------------------------------------------------
                                       March 31,    March 31,    Dec. 31, 
                                            2014         2013        2013 
--------------------------------------------------------------------------
Adjusted net income (loss)               ($6,330)     $27,551     ($9,873)
Deduct:                                                                   
 Fluid end depreciation adjustment                                        
 (net of $2.4 million tax                                                 
  recovery)(i)                                 -            -       7,513 
 Intangible amortization adjustment                                       
 (net of $0.5 million tax                                                 
  recovery)(ii)                                -            -       1,595 
 Non-cash share-based compensation                                        
  expense                                  2,151        2,188       2,209 
--------------------------------------------------------------------------
                                                                          
Profit (loss) for the period (IFRS                                        
 financial measure)                      ($8,481)     $25,363    ($20,830)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(i) Depreciation and amortization expense for the fourth quarter of 2013    
included a $14.3 million charge for accelerated depreciation on fluid ends  
in Canada. $9.5 million of this adjustment ($7.2 million net of tax) relates
to periods prior to October 1, 2013 and has been excluded from adjusted net 
income for the fourth quarter of 2013.                                      
                                                                            
(ii) Depreciation and amortization expense for the fourth quarter included  
$3.1 million in amortization on the intangible assets relating to the       
purchase of i-TEC. The purchase price accounting was not finalized until the
fourth quarter of 2013; therefore, a catch-up entry was required to ensure  
that adequate amortization had been recorded as of December 31, 2013. $2.1  
million of this adjustment ($1.6 million net of tax) relates to periods     
prior to October 1, 2013 and has been excluded from adjusted net income for 
the fourth quarter of 2013.                                                 
                                                                            
--------------------------------------------------------------------------
(thousands; unaudited)                       Three months ended           
--------------------------------------------------------------------------
                                      March 31,    March 31,     Dec. 31, 
                                           2014         2013         2013 
--------------------------------------------------------------------------
Funds provided by operations            $37,999      $58,127      $30,380 
Charges to income not involving                                           
 cash                                                                     
 Depreciation and amortization          (52,751)     (47,059)     (70,085)
 Amortization of debt issuance                                            
  costs                                    (216)        (216)        (216)
 Stock-based compensation                (2,151)      (2,188)      (2,209)
 Loss on disposal of property and                                         
  equipment                                  90          460           15 
 Net finance costs                       (9,816)      (7,532)      (8,122)
 Unrealized foreign exchange (gain)                                       
  / loss                                  2,773        3,296           (1)
 Income tax recovery / (expense)          6,568       (9,727)      16,431 
 Interest paid                            5,659        2,791       12,956 
 Income tax paid                          3,365       27,411           21 
--------------------------------------------------------------------------
                                                                          
Profit (loss) for the period (IFRS                                        
 financial measure)                     ($8,481)     $25,363     ($20,830)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                          
                                                                          
--------------------------------------------------------------------------
(thousands; unaudited)                       Three months ended           
--------------------------------------------------------------------------
                                      March 31,    March 31,     Dec. 31, 
                                           2014         2013         2013 
--------------------------------------------------------------------------
Operating income                        $42,404      $86,670      $35,500 
Add:                                                                      
 Administrative expenses                 33,989       30,282       26,064 
Deduct:                                                                   
 Depreciation expense                   (52,751)     (47,059)     (70,085)
                                                                          
--------------------------------------------------------------------------
                                                                          
Gross profit (IFRS financial                                              
 measure)                               $23,642      $69,893      ($8,521)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

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," "intention", "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 includes, among others:

--  The expectation to raise prices in Canada during the second quarter of
    2014 to help address the recent declines in Canadian operating margins; 
--  The expectation that Canadian pricing increases will be phased in during
    the second half of 2014; 
--  The belief that strong March results reflect improving fundamentals for
    the U.S. pressure pumping market; 
--  The expectation that operating margins will improve sequentially for our
    U.S. business throughout 2014; 
--  The expectation that, during the latter half of the second quarter of
    2014, we will deploy a fourth fracturing crew into the Marcellus play
    that will be supported by customer commitments; 
--  The belief that the closure of the Woodward base will improve the
    financial performance of our U.S. operations in the second half of 2014;
--  The intention to begin coiled tubing operations in Saudi Arabia in the
    second quarter of 2014; 
--  The expectation that revenue and profitability will improve throughout
    2014 for our U.S. completion tools division; 
--  The expectation that the conflict between Russia and the Ukraine will
    not disrupt our Russian operations throughout 2014; 
--  Our plan to monitor the Russian/Ukraine conflict closely and react
    appropriately if the conflict escalates further; 
--  The expectation that activity in Colombia will increase; 
--  The expectation that Canadian pressure pumping demand will remain strong
    during the second half of 2014; 
--  The expectation that increased Canadian customer cash-flows in the first
    quarter will carry into the second half of the year, assuming that
    commodity prices and exchange rates remain relatively consistent with
    current levels; 
--  The expectation that utilization of our Canadian equipment will benefit
    from a Horn River project during the third quarter of 2014, which will
    be similar to the project completed during the third quarter of 2013; 
--  The expectation that we will complete a small project in the Liard basin
    during the third quarter of 2014 and that this reflects potential
    customer interest in this region; 
--  The expectation that activity in the Duvernay play will continue to
    increase and contribute to higher year-over-year pressure pumping demand
    in Canada; 
--  The belief that a Canadian price increase is required and justified
    given the current operating environment in Canada; 
--  The plan to deploy an additional fracturing crew in Canada from our
    parked equipment in late 2014;  
--  The expectation that second quarter Canadian operating margins will be
    negatively impacted by lower year-over-year pricing and higher costs
    compared to the second quarter of 2013; 
--  The expectation that second quarter utilization will increase year-over-
    year in Canada due to a strong activity in early April combined with
    incremental multi-well projects planned for May and June; 
--  The belief that U.S. market fundamentals are continuing to improve,
    which will benefit our U.S. operations; 
--  The intention to focus on optimizing equipment location, adding crews to
    select regions from our parked fleet, improving utilization in certain
    regions, and reducing costs, where possible, for our U.S. operations; 
--  The expectation that the Marcellus region will continue to be our most
    profitable U.S. region for the remainder of 2014; 
--  The intention to explore additional expansion prospects in the Marcellus
    region throughout 2014; 
--  The expectation that fracturing demand in the Permian region will
    continue to increase throughout 2014; 
--  The intention to focus on improving utilization for our Permian
    operations. 
--  The intention to look for opportunities to increase pricing for our
    Permian fracturing crews; 
--  The expectation that the rig count in both the Barnett and Haynesville
    regions will remain low for the remainder of 2014; 
--  The expectation that utilization of our Longview fracturing crew will be
    stable for the remainder of 2014; 
--  The intention to maintain our presence in the Haynesville region; 
--  The expectation that customer commitments in Woodward will be covered by
    our base in Shawnee, Oklahoma, and that the utilization for this
    location will improve; 
--  The plan to add an additional crew into the Bakken play if utilization
    remains high in the region; 
--  The expectation that Eagle Ford activity and demand will remain stable
    for the remainder of 2014; 
--  The expectation that 2014 Russian revenue will increase by 5% compared
    to 2013 with a slight improvement in operating margins; 
--  The expectation that 30% of our 2014 Russian pressure pumping revenue
    will be generated from horizontal wells compared to 20% in 2013; 
--  The expectation that the North Sea completion tools business will grow
    during 2014 as we increase in our customer base in the region; 
--  The intention to expand our Australian market share through sales and
    marketing initiatives. 
--  The belief that the long-term potential of the Australian market is
    strong and that we are committed to growing our presence in the region; 
--  The plan to explore opportunities to obtain more profitable contracts in
    Algeria or redeploy the Algerian assets into a more profitable area; 
--  The expectation that we will have more clarity on our future in Algeria
    once existing customer contract have been completed; 
--  The expectation that remaining expenditures on approved capital budgets
    will be approximately $65 million to $75 million; 
--  The expectation that $22.3 million in dividends will be paid in July
    2014; 
--  The belief that we have sufficient funding to meet foreseeable borrowing
    requirements. 

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 21, 2014. 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).

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION                     
                                                                           
                                                   March 31,  December 31, 
(Stated in thousands; unaudited)                        2014          2013 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
ASSETS                                                                     
Current assets                                                             
 Cash and cash equivalents                           $95,406       $63,869 
 Trade and other receivables                         606,697       459,210 
 Current tax assets                                    5,354         5,186 
 Inventory                                           236,916       232,898 
 Prepaid expenses                                     29,919        34,407 
-------------------------------------------------------------------------- 
                                                     974,292       795,570 
Property and equipment                             1,351,912     1,374,212 
Intangible assets                                     42,370        44,285 
Deferred tax assets                                  142,340       122,745 
Other assets                                          15,187        17,360 
Goodwill                                              59,475        59,475 
-------------------------------------------------------------------------- 
                                                  $2,585,576    $2,413,647 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
                                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                                       
Current liabilities                                                        
 Bank loans                                          $11,104            $- 
 Trade and other payables                            354,611       301,920 
 Deferred consideration                                    -           650 
 Current tax liabilities                                  91            14 
 Current portion of loans and borrowings              82,913        79,770 
-------------------------------------------------------------------------- 
                                                     448,719       382,354 
                                                                           
Loans and borrowings                                 698,300       593,786 
Deferred tax liabilities                              91,443        87,005 
                                                                           
Shareholders' equity                                                       
 Share capital                                       560,032       559,723 
 Contributed surplus                                  65,164        63,074 
 Accumulated other comprehensive gain/(loss)           2,301        (1,020)
 Retained earnings                                   716,691       725,172 
-------------------------------------------------------------------------- 
Total equity attributable to equity holders of                             
 the Company                                       1,344,188     1,346,949 
Non-controlling interest                               2,926         3,553 
-------------------------------------------------------------------------- 
                                                  $2,585,576    $2,413,647 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
                                                                           
                                                                          
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                  
                                                                          
(Stated in thousands, except per share                                    
 amounts; unaudited)                                   2014          2013 
Three months ended March 31,                                              
------------------------------------------------------------------------- 
                                                                          
Revenue                                            $643,217      $618,376 
Cost of sales                                       619,575       548,483 
------------------------------------------------------------------------- 
Gross profit                                         23,642        69,893 
Administrative expenses                              33,989        30,282 
Other income                                         (2,193)       (1,114)
------------------------------------------------------------------------- 
Results from operating activities                    (8,154)       40,725 
Finance income                                         (411)         (956)
Finance costs                                        10,227         8,488 
Foreign exchange gain                                (2,292)       (1,726)
------------------------------------------------------------------------- 
(Loss) / profit before income tax                   (15,678)       34,919 
Income tax (recovery) / expense                      (6,568)        9,727 
------------------------------------------------------------------------- 
(Loss) / profit for the period                      ($9,110)      $25,192 
------------------------------------------------------------------------- 
                                                                          
Other comprehensive (loss) / income                                       
                                                                          
 Unrealized (loss) / gain on hedging                                      
  instruments                                        (1,534)          100 
 Foreign currency translation differences             4,857         7,029 
------------------------------------------------------------------------- 
Total comprehensive (loss) / income for the                               
 period                                             ($5,787)      $32,321 
------------------------------------------------------------------------- 
                                                                          
(Loss) / profit attributable to:                                          
Owners of the Company                                (8,481)       25,363 
Non-controlling interest                               (629)         (171)
------------------------------------------------------------------------- 
(Loss) / profit for the period                      ($9,110)      $25,192 
------------------------------------------------------------------------- 
                                                                          
Total comprehensive (loss) / income                                       
 attributable to:                                                         
 Owners of the Company                               (5,158)       32,331 
 Non-controlling interest                              (629)          (10)
------------------------------------------------------------------------- 
Total comprehensive (loss) / income for the                               
 period                                             ($5,787)      $32,321 
------------------------------------------------------------------------- 
                                                                          
                                                                          
(Loss) / earnings per share                                               
------------------------------------------------------------------------- 
 Basic                                               ($0.06)        $0.17 
 Diluted                                             ($0.06)        $0.17 
------------------------------------------------------------------------- 
Weighted average shares outstanding - basic         148,927       148,593 
Weighted average shares outstanding - diluted       148,927       148,892 
------------------------------------------------------------------------- 
                                                                           
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                             
                                                                           
(Stated in thousands; unaudited)                                           
Three months ended March 31,                           2014           2013 
-------------------------------------------------------------------------- 
Cash Provided By / (Used In):                                              
Operations                                                                 
 (Loss) / profit for the period                     ($9,110)       $25,192 
 Charges to income not involving cash:                                     
  Depreciation and amortization                      52,751         47,059 
  Amortization of debt issuance costs                   216            216 
  Stock-based compensation                            2,151          2,188 
  Loss on disposal of property and equipment            (90)          (460)
  Net finance costs                                   9,816          7,532 
  Unrealized foreign exchange gain                   (2,773)        (3,296)
  Income tax (recovery) / expense                    (6,568)         9,727 
-------------------------------------------------------------------------- 
                                                     46,393         88,158 
 Change in inventories                               (6,063)       (13,203)
 Change in trade and other receivables             (145,540)      (101,438)
 Change in prepayments                                5,086          2,839 
 Change in trade and other payables                  74,650         73,020 
-------------------------------------------------------------------------- 
Cash (used in) / provided by operating                                     
 activities                                         (25,474)        49,376 
                                                                           
 Interest paid                                       (5,659)        (2,791)
 Income taxes paid                                   (3,365)       (27,411)
-------------------------------------------------------------------------- 
                                                    (34,498)        19,174 
                                                                           
Investing                                                                  
 Interest received                                    1,615              - 
 Purchase of property and equipment                 (16,716)       (30,986)
 Proceeds from the sale of property and                                    
  equipment                                             590            929 
 Purchase of other assets                                 -         (4,000)
 Payment of deferred consideration                     (650)             - 
 Business acquisitions                                    -        (31,009)
-------------------------------------------------------------------------- 
                                                    (15,161)       (65,066)
                                                                           
Financing                                                                  
 Net proceeds from issuance of share capital            248              - 
 Funds received from bank loans                      11,104              - 
 Funds drawn on revolving credit facility            92,449         26,354 
 Dividend paid                                      (22,338)       (21,968)
-------------------------------------------------------------------------- 
                                                     81,463          4,386 
                                                                           
Effect of exchange rate changes on cash                (267)          (420)
-------------------------------------------------------------------------- 
                                                                           
Increase / (decrease) in cash and cash                                     
 equivalents                                         31,537        (41,926)
Cash and cash equivalents, beginning of                                    
 period                                              63,869        113,506 
-------------------------------------------------------------------------- 
Cash and cash equivalents, end of period            $95,406        $71,580 
-------------------------------------------------------------------------- 

LOANS AND BORROWINGS

Long term debt

                                                 March 31,    December 31, 
                                                      2014            2013 
-------------------------------------------------------------------------- 
Notes payable                                     $472,865        $456,935 
Finance lease obligations                           23,613          25,904 
Revolving credit facilities                        321,047         212,625 
Hedge receivable                                   (13,134)         (9,970)
-------------------------------------------------------------------------- 
Total                                              804,391         685,494 
Current portion of finance lease                                           
 obligations (1)                                    12,074          11,938 
Russian demand revolving credit facility            11,104               - 
Current portion of loans and borrowings             82,913          79,770 
-------------------------------------------------------------------------- 
Non-current                                       $698,300        $593,786 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
(1) Current portion of finance lease obligations is included in trade and   
other payables.                                                             

Trican has a $500.0 million four-year extendible revolving credit facility ("Revolving Credit Facility") with a syndicate of banks. The Revolving Credit 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. On October 17, 2013 the Revolving facility was extended until 2017. The Revolving Credit 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 March 31, 2014 (2013 - in compliance).

Notes payable

The Notes payable require the Company to comply with certain financial and non-financial covenants that are typical for this type of arrangement. At March 31, 2014, the Company was in compliance with these covenants (2013 - in compliance).

EARNINGS PER SHARE

Three months ended March 31,                                               
Basic earnings per share                              2014             2013
---------------------------------------------------------------------------
(Loss) / Income available to common                                        
 shareholders                                      ($8,481)         $25,363
Weighted average number of common shares       148,927,411      148,593,420
Basic (loss) / earnings per share                   ($0.06)           $0.17
---------------------------------------------------------------------------
                                                                           
Three months ended March 31,                                               
Diluted earnings per share                            2014             2013
---------------------------------------------------------------------------
(Loss) / Income available to common                                        
 shareholders                                      ($8,481)         $25,363
Weighted average number of common shares       148,927,411      148,593,420
Diluted effect of stock options                          -          298,170
---------------------------------------------------------------------------
Diluted weighted average number of common                                  
 shares                                        148,927,411      148,891,590
Diluted (loss) / earnings per share                 ($0.06)           $0.17
---------------------------------------------------------------------------

At March 31, 2014, 10.5 million (2013 - 6.6 million) options were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.

INCOME TAXES

(Stated in thousands)                                                      
Three months ended March 31,                          2014            2013 
-------------------------------------------------------------------------- 
Current income tax expense                          $3,188         $12,422 
Deferred income tax recovery                        (9,756)         (2,695)
-------------------------------------------------------------------------- 
                                                   ($6,568)         $9,727 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 

The net income tax provision differs from that expected by applying the combined federal and provincial income tax rate of 25.26% (2013 - 25.17%) to income before income taxes for the following reasons:

(Stated in thousands)                                                      
Three months ended March 31,                          2014            2013 
-------------------------------------------------------------------------- 
Expected combined federal and provincial                                   
 income tax                                        ($3,960)         $8,789 
Statutory and other rate differences                (3,221)         (1,217)
Non-deductible expenses                              1,595           1,524 
Stock based compensation                               543             551 
Translation of foreign subsidiaries                   (730)            (39)
Adjustments related to prior years                    (842)              - 
Other                                                   47             119 
-------------------------------------------------------------------------- 
                                                   ($6,568)         $9,727 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 

OPERATING SEGMENTS

                                  United                                   
                     Canadian     States International                     
                   Operations Operations    Operations Corporate     Total 
-------------------------------------------------------------------------- 
Three months ended                                                         
March 31, 2014                                                             
Revenue              $353,342   $211,040       $78,835        $-  $643,217 
Gross profit /                                                             
 (loss)                52,322    (19,754)       (1,440)   (7,486)   23,642 
Finance income              -          -             -      (411)     (411)
Finance costs               -          -             -    10,227    10,227 
Tax expense /                                                              
 (recovery)             7,444    (13,094)         (918)        -    (6,568)
Depreciation and                                                           
 amortization          18,961     25,880         6,914       996    52,751 
Assets              1,038,701  1,155,341       345,861    45,673 2,585,576 
Goodwill               45,248          -        14,227         -    59,475 
Property and                                                               
 equipment            499,545    728,905       110,891    12,571 1,351,912 
Capital                                                                    
 expenditures           4,550      2,236         8,009     1,921    16,716 
-------------------------------------------------------------------------- 
                                                                           
Three months ended                                                         
March 31, 2013                                                             
Revenue              $338,649   $209,616       $70,111        $-  $618,376 
Gross profit /                                                             
 (loss)                81,341        931        (5,239)   (7,140)   69,893 
Finance income              -          -             -      (956)     (956)
Finance costs               -          -             -     8,488     8,488 
Tax expense /                                                              
 (recovery)            13,994     (3,247)       (1,020)        -     9,727 
Depreciation and                                                           
 amortization          16,683      22,90         6,993       476    47,059 
Assets              1,010,906  1,131,254       330,878    60,619 2,533,657 
Goodwill               63,279          -        21,163         -    84,442 
Property and                                                               
 equipment            554,351    769,147       110,326    15,195 1,449,019 
Capital                                                                    
 expenditures          13,314     15,563         2,109         -    30,986 

The 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.

Contacts:
Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
(403) 266-0202
(403) 237-7716 (FAX)
[email protected]

Trican Well Service Ltd.
Michael Baldwin
Sr. Vice President, Finance & CFO
(403) 266-0202
(403) 237-7716 (FAX)
[email protected]

Trican Well Service Ltd.
Gary Summach
Director of Reporting and Investor Relations
(403) 266-0202
(403) 237-7716 (FAX)
[email protected]

Trican Well Service Ltd.
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
www.trican.ca

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