Reports 2Q16 Results

Trinidad reported 2Q16 EBITDAS of $57 mm, above our estimate of $47 mm due to higher-than-expected standby revenue. Internationally, Trinidad has one rig operating in the UAE on a trial basis, but this work could provide the opportunity for a broader scope of activity. In TDI, one rig contract in Saudi Arabia was cancelled during the quarter, but the Company is trying to identify new opportunities for this rig and negotiating termination compensation. Our 2016e EBITDAS is down 1% to $138 mm and

REPORTS 2Q16 RESULTS ABOVE CONSENSUS

Impact: We expect the stock to trade higher tomorrow due to positive 2Q16 results.

RECEIVES CREDIT FACILITY AMENDMENTS AND REDUCES CREDIT FACILITY SIZE

Impact: positive due to reduced covenant risk should a low rig count environment persist, with the operational update being in line with expectations.

PROVIDES UPDATE AT FIRSTENERGY

FirstEnergy hosted Brent Conway (President) and Lisa Ottmann (VP, Investor Relations) of Trinidad Drilling for an operational update on May 18,2016.

Reports Positive 1Q16 Results

Trinidad is one of our top investment ideas in the FCC Oilfield Services (OFS) coverage universe given it is well situated to benefit from a recovery in the North American rig count, while being able to remain in compliance with its covenants. We have increased 2016e EBITDAS by 13% to $137 mm and 2017e EBITDAS by 7% to $129 mm. Trinidad has reiterated its 2016e capital program of $30 mm. We are forecasting 2016e and 2017e FCF of $56 mm in each year respectively, depicting a FCF yield of 12%.

REPORTS POSITIVE 1Q16 RESULTS

Positive with results above consensus, net debt coming in better than our expectations and the first JV distribution being completed.

1Q16e Preview and Commodity Update – All Is Quiet on the Western Front

We are updating our oilfield industry forecasts post the release of FirstEnergy’s new commodity price forecast for crude oil and natural gas on March 24, 2016. We have updated our 2016e Canadian well count/drilling days forecast to 3,209/37,335 from 3,800/43,325. In 2017e, we have left our forecast unchanged at 6,200 wells/70,200 days. In the U.S., our 2016e rig count forecast is now 482 (prior: 610) and 2017e is 675 (prior: 775). Data for 1Q16e came in weaker than our prior forecast anticipated

Drilling Down to Identify Value

We believe Trinidad’s fleet composition in Canada and the United States will allow it to be a first mover in increasing utilization and EBITDAS as North American rig counts recover. We believe the mid-cycle case for TDG’s EBITDAS from its existing asset base is $202 mm and the high point case is $298 mm, relative to our 2016e of $133 mm (which is aided by $34 mm in early termination revenue). In Canada, Trinidad has the highest average vertical depth per rig at 4,267 metres leaving a significant

Reports Better Than Anticipated 4Q15 Results and Suspends Dividend

Trinidad reported 4Q15 EBITDAS of $47 mm, well above our es mate of $37 mm due to cost cutting initiatives and greater than expected early termination payments. The Company also announced early termination revenue of $34.9 mm, of which $34.3 mm will be recognized as EBITDAS in 2Q16e. This posi vely impacts our 2016e EBITDAS but has a negative impact on 2017e. We expect the Company to receive a distribution payment of $21.6 mm from Trinidad Drilling International in 2Q16e. Our current forecasts s

REPORTS BETTER THAN ANTICIPATED 4Q15 RESULTS AND SUSPENDS DIVIDEND

Impact: positive.

Drilling Efficiencies Improving in Western Canada

A topic that is often brought up, but rarely addressed in a quantifiable manner is drilling efficiencies. Using a data set supplied by June-Warren Nickle’s, we have tried to extrapolate drilling efficiencies by formation in Western Canada. On average, when adjusting for formation type, we believe drilling efficiencies improved by 5% in 2015 when compared to 2014.

Energy Services 4Q15e Preview and Updating Activity Outlook – Buckle Up

In conjunction with the new oil price forecast released by FirstEnergy on February 8, 2016, we have updated our 2016e Canadian well count/drilling days forecast to 3,800/43,325 from 4,950/54,853. In 2017e, we are now forecasting wells/drilling days of 6,200/70,200 from 7,900/86,600. In the U.S., our 2016e rig count forecast is now 610 (prior: 763) and 2017e is 775 (prior: 1,063).

Introducing 2017 Estimates

We have updated our 2016e WCSB drilling days forecast to ~54,900 days, which is 18% below our prior forecast and a 16% decline y/y. We are also rolling out our 2017e drilling days forecast, which is 86,600 days, or a 58% improvement from 2016e. In the context of the last 25 years, our 2017e forecast ranks 19th for active drilling days. Our 2016e U.S. rig count forecast has been reduced to 763 rigs from 888 rigs. In 2017e, we are forecasting a U.S. rig count of 1,063 rigs.

TRINIDAD DRILLING LTD. (TDG) AMENDS CREDIT FACILITY AND COVENANTS, ANNOUNCES 2016E CAPEX AND ADDITIONAL COST CUTTING MEASURES

Impact: Positive. The amended covenant package should provide Trinidad with additional flexibility should the duration of the downturn continue to extend. Furthermore, the 2016e capital program should allow Trinidad to remain FCF positive in 2016e.

TRINIDAD DRILLING LTD. (TDG) PROVIDES UPDATE AT FIRSTENERGY

FirstEnergy hosted Brent Conway (President) and Lisa Ottmann (VP, Investor Relations) of Trinidad Drilling for a management update on October 5, 2015. Trinidad continues to pragmatically manage the downturn through ongoing reviews of its cost structure while competitively bidding for work where appropriate. Trinidad's contracted status of ~35% in 2015e has helped it mitigate some of the reduction in North American rig count, but the reality is that all companies have been meaningfully impacted.

NextSource Materials - Initiation

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i3 Energy - 2024 Guidance: Consolidation for Growth

i3 Energy announced that its 2024 guidance consists of expectations to drill 10.5 net wells (7.6 net wells in Central Alberta, 1.9 net wells in Simonette and 1.0 net wells in the Clearwater play) with 85% of capex allocated to the second half of the year. Total capex expenditure for the year is guided at $US 50.9m. The company indicated that it intends to commence pad drilling of its Montney acreage in Q1 2025 and we perceive the company is bulking up for that significant growth opportunity for

Initiation of Coverage - Critical raw materials for Europe’s green transition

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Falcon Oil & Gas - Funding a Multi TCF Resource

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Beowulf Mining (BEM LN) – Initiation Note – BUY – Supporting Scandinavia's Green Transition

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I3 Energy (I3E LN) - 2024 work programme and budget

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Morning Note – 22 April 2024

Morning Note – 24 April 2024

Trifast (TRI LN) - Trading conditions remain difficult but self-help initiatives coming through

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Morning Note – 25 April 2024

Sintana Energy Inc. (TSX-V: SEI): Constrained test rate of 14 mboe/d at Mopane-1X. 10+ bn boe in place confirmed.

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