Market Overview

Trican Reports Third Quarter Results for 2015

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CALGARY, ALBERTA--(Marketwired - Nov. 12, 2015) - Trican Well Service Ltd. (TSX:TCW)



--------------------------------------------------------
Three months ended Nine months ended
($ millions, except
per share amounts; September 30, September 30, September 30, September 30,
unaudited) 2015 2014 2015 2014
----------------------------------------------------------------------------
Revenue $325.5 $688.5 $927.6 $1,710.1
Adjusted operating
income / (loss)(i) 20.1 100.2 (33.3) 126.5
Operating income /
(loss) (i) 10.7 100.2 (59.6) 126.5
Gross profit /
(loss) (24.0) 80.1 (147.3) 82.5
Net income / (loss) (202.4) 38.2 (523.2) (15.6)
Per share - basic
and diluted ($1.36) $0.26 ($3.51) ($0.10)
Adjusted profit /
(loss)(i) (53.6) 36.2 (202.2) (12.0)
Per share - basic
and diluted ($0.36) $0.24 ($1.36) ($0.08)
Funds provided
by/(used in)
operations(i) (16.3) 102.1 (106.3) 110.9
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Notes:

(i) Trican makes reference to operating income / (loss), adjusted operating income / (loss), adjusted profit / (loss) and funds provided by / (used in) operations. These measures are not recognized under International Financial Reporting Standards (IFRS) and are considered non-IFRS measures. Management believes that, in addition to gross profit / (loss) and profit / (loss), operating income / (loss), adjusted operating income / (loss), adjusted profit / (loss) and funds provided by / (used in) operations are useful supplemental measures. Operating income / (loss) provides investors with an indication of profit / (loss) before depreciation and amortization, foreign exchange gains and losses, other (income) / loss, finance costs and income tax expense / (recovery). Adjusted operating income / (loss) provides investors with an indication of comparable operating income / (loss), which exclude items that are significant but not reflective of our underlying operations for the period. Adjusted profit / (loss) provides investors with information on profit / (loss) excluding asset impairments, the impact of foreign currency gains / losses and the non-cash effect of stock-based compensation expense. Funds provided by / (used in) operations provide investors with an indication of cash available for capital commitments, debt repayments and other expenditures. Investors should be cautioned that operating income / (loss), adjusted operating income / (loss), adjusted profit / (loss), and funds provided by / (used in) operations should not be construed as an alternative to gross profit / (loss) or profit / (loss) determined in accordance with IFRS as an indicator of Trican's performance. Trican's method of calculating operating income / (loss), adjusted operating income / (loss), adjusted profit / (loss) and funds provided by / (used in) operations may differ from that of other companies and accordingly may not be comparable to measures used by other companies. See also "Non-IFRS Disclosure" section of this report.

THIRD QUARTER HIGHLIGHTS

Consolidated revenue from continuing operations for the third quarter of 2015 was $325.5 million, a decrease of 53% compared to the third quarter of 2014. The adjusted loss was $53.6 million and adjusted diluted loss per share was $0.36 compared to an adjusted profit of $36.2 million and adjusted diluted profit per share of $0.24 in the same period of 2014. Funds used in operations were $16.3 million compared to funds provided by operations of $102.1 million in the third quarter of 2014.

During the third quarter, Trican closed the sale of its Russian pressure pumping business to RN Assets LLC, an indirect subsidiary of Rosneft Oil Company, for a purchase price of USD$140 million and an initial working capital adjustment of USD$10 million or approximately CAD$197.2 million. Trican intends to apply the net proceeds from this sale to reduce its outstanding debt.

Trican and Rosneft are also continuing to negotiate for the sale of Trican's Kazakhstan pressure pumping business. If the parties reach agreement on the terms of the sale of the Kazakhstan business, Trican expects that such sale would close in Q4 2015. There is no guarantee that the parties will be able to agree on terms regarding the sale of the Kazakhstan business or complete the transaction on the terms agreed. Further, such transaction would be subject to approval by the Kazakhstan Antimonopoly Body, and final corporate approvals by Trican and the Purchaser.

On September 25, 2015 Trican, its lenders and senior noteholders reached an agreement in principle amending the terms of the current credit agreements. Trican, its lenders and the senior noteholders expect to finalize the amending agreement on the same terms and conditions as the agreement in principle on November 13, 2015. As at September 30, 2015, Trican is in compliance with the terms of the amending agreement.

Canadian operations generated $193.4 million of revenue and adjusted operating income of $37.4 million during the third quarter of 2015 compared to revenue of $360.9 million and adjusted operating income of $97.3 million during the third quarter of 2014. Canadian results were negatively impacted by reduced drilling and completions activity caused by low commodity prices. Activity levels were very low when compared to third quarter of 2014 but increased meaningfully when compared to Q2 2015 due to seasonal increases in activity and market share gains. The increased level of activity was partially offset by a slight sequential decline in pricing. Trican significantly lowered its costs during the quarter which had a large impact on our ability to achieve peer leading margins in the Canadian region. Our product costs were lowered by approximately 10-20% for proppant, cement, chemicals, third party hauling, fuel and parts. Trican's fixed cost structure in the Canadian operation has been reduced by 41% since the beginning of 2015 as a result of workforce reductions, discretionary spending reductions and lower compensation programs. Repair and maintenance spending has not been significantly lowered as we continue to keep our equipment in good working order and have not scavenged equipment during the downturn. Approximately 35% of the Canadian operations' equipment remains parked and we will continue to monitor activity and pricing levels and adjust our active equipment fleet and cost structure accordingly. Our parked equipment in all regions is ring-fenced and available to be re-deployed with little cost should industry conditions improve.

U.S. operations generated $120.6 million of revenue and an adjusted operating loss of $13.7 million during the third quarter of 2015 compared to Q3 2014 revenue of $314.6 million and adjusted operating income of $19.6 million. Despite continued low demand combined with excess pressure pumping supply, our U.S. operations increased revenue 52% sequentially from Q2 2015 to Q3 2015. During the third quarter we operated eight of our sixteen crews in the U.S. during the third quarter. As in Canada, we have not reduced our spending on maintenance and all of our parked equipment could be put back into service at any time with minimal cost. Pricing decreased slightly since the last quarter and is down 30% relative to peak pricing levels at the end of 2014. Activity increased substantially over the second quarter as we repositioned much of our equipment with new clients which substantially improved sequential utilization. August results were strong with a positive 4% operating margin however, our U.S. third quarter results were hurt by a weak September, due to our Marcellus customers having a temporary slowdown due to normal job scheduling issues. We have experienced a recovery in October as four of five contracted crews went back to work in October. As a result of continued pricing pressure in the Eagle Ford and Permian basins and a lack of sustained work programs on these spot market crews, we have shut down two more of our fracturing crews in this region. Therefore, we will be running four crews in Marcellus and two in Oklahoma until industry activity and pricing improves.

Management has meaningfully reduced the U.S. operations' cost structure and continues to adjust it to current industry activity and operating conditions. U.S. operational results benefitted from price reductions in the 15-25% range for proppant, cement, chemicals, third party hauling, fuel and parts. Management has also reduced the U.S. operations' fixed-cost structure by 16% during the third quarter on a sequential basis and 51% since the fourth quarter of last year. Management expects that fourth quarter operating margins will improve sequentially from Q3 due to additional cost savings realized from shutting down our Texas operations and from five of our six crews going forward being committed into high utilization positive EBITDA contracts. Management will continue to monitor activity and pricing levels and adjust our active equipment fleet and cost structure accordingly to ensure we maintain high utilization on our equipment.

International operations generated $11.5 million in revenue and adjusted operating income of $1.6 million during the 2015 third quarter compared to Q3 2014 revenue of $13.0 million and adjusted operating income of $1.3 million. Weak market conditions in Kazakhstan and the suspension of operations in Colombia and Saudi Arabia negatively impacted our revenue. However, these factors were offset by increased level of activity in our Norwegian and Russian completions tools business. As of the third quarter of 2015, the profits and losses associated with Russia pressure pumping, Australia and Algeria have been classified as discontinued operations, as Trican completely exited these markets.



CONTINUING OPERATIONS COMPARATIVE QUARTERLY INCOME STATEMENTS
($ thousands, unaudited)
----------------------------------------------------------------------------
Quarter-
Over-
Three months ended % of % of Quarter %
September 30, 2015 Revenue 2014 Revenue Change Change
----------------------------------------------------------------------------

Revenue 325,535 100% 688,489 100.0% (362,954) (53%)
Expenses
Materials and
operating 301,971 92.8% 562,529 81.7% (260,558) (46%)
General and
administrative 12,839 3.9% 25,745 3.7% (12,906) (50%)
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Operating income(i) 10,725 3.3% 100,215 14.6% (89,489) (89%)
Finance costs 8,589 2.6% 9,683 1.4% (1,094) (11%)
Depreciation and
amortization 48,633 14.9% 47,383 6.9% 1,250 3%
Foreign exchange
(gain)/loss (13,482) (4.1%) (4,272) (0.6%) (9,209) (216%)
Asset impairment 161,604 49.6% - -% 161,604 -%
Other (income) / loss (453) (0.1%) 141 0.0% (594) (421%)
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Income / (loss) before
income taxes and non-
controlling interest (194,166) (59.6%) 47,280 6.9% (241,446) (511%)
Income tax expense 9,135 2.8% 9,931 1.4% (796) (8%)
Non-controlling
interest (884) (0.3%) (822) (0.1%) (62) 8%
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Net income / (loss) (202,417) (62.1%) 38,171 5.6% (240,588) (630%)
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Adjusted operating
income(i) 20,122 6.2% 100,215 14.6% (80,093) (80%)
Gross profit /
(loss)(i) (24,007) (7.4%) 80,149 11.6% (104,157) (130%)
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(i) See the first page of this report for a description of operating income / (loss) and adjusted operating income / (loss). Gross profit / (loss) has been presented in this table as it is the most directly comparable measure calculated in accordance with IFRS to operating income / (loss).

CANADIAN OPERATIONS



----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)
September % of September % of June 30, % of
Three months ended, 30, 2015 Revenue 30, 2014 Revenue 2015 Revenue
----------------------------------------------------------------------------
Revenue 193,435 360,896 81,808
Expenses
Materials and
operating 155,003 80.1% 257,851 71.4% 90,610 110.8%
General and
administrative 1,627 0.8% 5,738 1.6% 3,934 4.8%
----------- ----------- ---------
Total expenses 156,630 80.9% 263,589 73.0% 94,544 115.6%
Operating income /
(loss)(i) 36,805 19.1% 97,307 27.0% (12,736) (15.6%)
Adjusted operating
income / (loss)(i) 37,413 19.3% 97,307 27.0% (11,808) (14.4%)

Number of jobs 3,565 6,331 1,914
Revenue per job 53,661 56,810 41,729

Gross profit /
(loss)(i) 20,559 10.6% 86,764 24.0% (25,070) (30.6%)
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(i) See the first page of this report for a description of operating income / (loss) and adjusted operating income / (loss). Gross profit/(loss) has been presented in this table as it is the most directly comparable measure calculated in accordance with IFRS to operating income / (loss).

Sales Mix



----------------------------------------------------------------------------
Three months ended, (unaudited) September 30, September 30, June 30,
2015 2014 2015
----------------------------------------------------------------------------
% of Total Revenue
Fracturing 66% 67% 60%
Cementing 15% 19% 13%
Industrial services 7% 2% 10%
Nitrogen 6% 6% 5%
Coil Tubing 2% 3% 4%
Acidizing 2% 2% 3%
Other 2% 1% 5%
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Total 100% 100% 100%
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Operations Review

Low commodity prices continued to have a significant impact on the demand for Trican's Canadian pressure pumping services in the third quarter of 2015, as revenue decreased by 46% on a year-over-year basis. Rig count in Canada decreased by 51% compared to the same quarter of 2014, as customers reduced capital spending. Weak third quarter demand also had a significant impact on Canadian pricing levels. Third quarter average pricing decreased 25% compared to the same period in 2014.

Despite a year-over-year decrease in revenue of $167.5 million and lower gross margins due to pricing reductions, Canadian operations generated adjusted operating income of $37.4 million, or 19.3% of net revenue due to cost savings initiatives realized during Q2 and Q3 2015.

Industrial services activity remained strong in the third quarter of 2015 as revenue from this service line increased by 61% on a year-over-year basis. Industrial services demand is less dependent on commodity prices because it is based on pipeline and plant maintenance rather than drilling and completions activity.

Q3 2015 versus Q3 2014

Canadian revenue for the third quarter of 2015 decreased by 46% compared to the third quarter of 2014. Low commodity prices led to a significant decrease in demand for our services, which was reflected in the 44% year-over-year decline in the job count. Revenue per job decreased by 6% due to a 25% year-over-year drop in overall Canadian pricing, which was partially offset by an increase in fracturing job size. Sales mix also caused a decrease in revenue per job as the number of industrial services jobs increased year over year. The size of industrial service jobs is typically smaller than jobs from other service lines in Canada.

Materials and operating expenses increased to 80.1% of revenue compared to 71.4% for the same period in 2014. The gross profit for the third quarter of 2015 was 10.6% of revenue compared to 24.0% for the same period in 2014. The year-over-year decline in activity levels reduced operating leverage on our fixed cost structure and when combined with reduced pricing caused a decrease in operating and gross margins.

General and administrative costs were down by $4.1 million due primarily to lower employee and share based expenses. Lower employee expenses resulted from aggressive cost reduction initiatives during the third quarter of 2015.

Q3 2015 versus Q2 2015

Canadian revenue in the third quarter increased 136% compared to the second quarter of 2015. A slower than typical spring break up was followed by a gain of market share with new customers, resulting in an increase in the number of jobs by 86%. Job count and revenue per job increased quarter over quarter due to an increase in activity levels and larger fracturing job size, resulting in a 29% increase in revenue per job.

As a percentage of revenue, third quarter materials and operating expenses decreased to 80.1% compared to 110.8% during the second quarter of 2015. The gross profit was 10.6% during the third quarter compared to a gross loss of 30.6% in the second quarter of 2015. This improvement was due to an increase in activity levels resulting in increased operating leverage on our cost structure and a lower fixed cost structure due to cost saving initiatives implemented throughout the first half of 2015. General and administrative costs decreased by $2.3 million due mainly to lower share-based expenses.

UNITED STATES OPERATIONS



----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)
June
September % of September % of 30, % of
Three months ended, 30, 2015 Revenue 30, 2014 Revenue 2015 Revenue
----------------------------------------------------------------------------
Revenue 120,621 314,574 79,393
Expenses
Materials and
operating 132,188 109.6% 286,454 91.1% 96,267 121.3%
General and
administrative 2,713 2.2% 8,554 2.7% 7,766 9.8%
----------- ----------- --------
Total expenses 134,901 111.8% 295,008 93.8% 104,033 131.0%
Operating income /
(loss)(i) (14,280) (11.8%) 19,566 6.2% (24,640) (31.0%)
Adjusted operating
income / (loss)(i) (13,686) (11.3%) 19,566 6.2% (22,739) (28.6%)

Number of jobs 2,288 2,996 1,558
Revenue per job 53,002 101,476 51,003

Gross loss(i) (39,535) (32.8%) (306) (0.1%)(44,422) (56.0%)
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(i) See the first page of this report for a description of operating income / (loss) and adjusted operating income / (loss). Gross profit / (loss) has been presented in this table as it is the most directly comparable measure calculated in accordance with IFRS to operating income / (loss).

Sales Mix



----------------------------------------------------------------------------
Three months ended, (unaudited) September 30, September 30, June 30,
2015 2014 2015
----------------------------------------------------------------------------
% of Total Revenue
Fracturing 92% 93% 88%
Cementing 4% 5% 6%
Coil Tubing 4% 2% 6%
----------------------------------------------------------------------------
Total 100% 100% 100%
----------------------------------------------------------------------------
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Operations Review

Weak commodity prices led to a substantial decrease in oilfield activity in the U.S. as the average number of active drilling rigs was down by 62% year-over-year in the third quarter of 2015. Despite continued low demand combined with excess pressure pumping supply, our U.S. operations increased revenue 52% sequentially from Q2 2015 to Q3 2015 due to a higher job count.

Although several of our U.S. customers reduced or completely eliminated well completion activity early in the second quarter, we began to win new work and saw a progressive increase in utilization towards the end of the second quarter, which contributed to an improvement in utilization during the third quarter. Pricing levels for our U.S. operations remained at historical lows degraded slightly between the second and third quarter of 2015. Pricing is now down 30% relative to peak pricing levels from the end of 2014. In this low pricing environment maintaining a high utilization is key to positive operating results. August results were strong with a positive 4% operating income due to utilization on our eight crews in the 65 to 70% range. U.S. third quarter results were hurt by a weak September due to our Marcellus customers having a temporary slowdown due to normal job scheduling issues. Utilization improved to 60% to 65% levels in October as our Marcellus customers re-initiated their job programs.

Cost cutting remained a key area of focus for our U.S. operations during the third quarter. We continued to negotiate lower pricing from all of our product suppliers. The cost of key products has now declined by 15-25% year-to-date and the impact of these cost savings was fully realized during the third quarter of 2015. So far this year, we have reduced our U.S. employee base by 60% and maintained only eight of our sixteen U.S. fracturing crews active in response to the low demand.

The impact of the cost cutting measures combined with increased level of activity helped offset the impact of low pricing as third quarter adjusted operating loss was reduced by $9.1 million when compared to Q2 2015.

Q3 2015 versus Q3 2014

U.S. revenue in the third quarter of 2015 was down 62% compared to the third quarter of 2014. The job count decreased by 24% as low commodity prices reduced customer spending in all regions of the U.S. The most significant reductions occurred in the oil producing regions, including the Eagle Ford, Bakken, and Permian plays. Revenue per job decreased by 48% due to a significant decline in pricing, a change in geographic sales mix, and a decrease in fracturing revenue relative to total revenue. The impact of these factors was partially offset by a stronger U.S. dollar relative to the Canadian dollar.

As a percentage of revenue, materials and operating expenses increased to 109.6% from 91.1% and the gross loss increased to 32.8% compared to 0.1%, on a year-to-year comparison. Lower activity led to reduced operating leverage on our fixed cost structure, causing margins to decline. Lower year-over-year pricing also negatively impacted margins. General and administrative expenses decreased by $5.8 million mainly due to lower employee expenses combined with lower share based expenses.

Q3 2015 versus Q2 2015

On a sequential basis, U.S. revenue increased by 52% due to a higher level of activity. Job count increased 47% as utilization rates for our fracturing crews improved. Revenue per job increased slightly as a decrease in pricing was offset by a stronger U.S. dollar relative to the Canadian dollar and an increase in fracturing jobs as a percentage of total jobs.

As a percentage of revenue, materials and operating expenses decreased to 109.6% from 121.3% and the gross loss decreased to 32.8% from 56.0% due to increases in activity and revenue that improved our operating leverage. General and administrative expenses primarily decreased by $5.1 million due to a decrease in share based expenses.

INTERNATIONAL OPERATIONS



----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)
Three months ended, June
September % of September % of 30, % of
30, 2015 Revenue 30, 2014 Revenue 2015 Revenue
----------------------------------------------------------------------------
Revenue 11,479 13,019 12,252
Expenses
Materials and
operating 9,630 83.9% 10,593 81.4% 7,976 65.1%
General and
administrative 434 3.8% 1,083 8.3% 1,098 9.0%
----------- ----------- --------
Total expenses 10,064 87.7% 11,676 89.7% 9,074 74.1%
Operating income(i) 1,415 12.3% 1,343 10.3% 3,178 25.9%
Adjusted operating
income 1,636 14.3% 1,343 10.3% 3,178 25.9%

Number of jobs 321 243 374
Revenue per job 35,759 53,577 32,757

Gross profit(i) 1,304 11.4% 1,945 14.9% 3,751 30.6%
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(i) See the first page of this report for a description of operating income / (loss). Gross profit / (loss) has been presented in this table as it is the most directly comparable measure calculated in accordance with IFRS to operating income / (loss).

Sales Mix



----------------------------------------------------------------------------
Three months ended, (unaudited) September 30, September 30, June 30,
2015 2014 2015
----------------------------------------------------------------------------
% of Total Revenue
Fracturing and Completions 100% 100% 91%
Coil Tubing 0% 0% 8%
Other 0% 0% 1%
----------------------------------------------------------------------------
Total 100% 100% 100%
----------------------------------------------------------------------------
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Continuing Operations

Operations Review

Our International operations include financial results for operations in Russia, Kazakhstan, Saudi Arabia, Colombia and Norway.

Activity levels in Norway and our Russian completion tools business was strong during the third quarter as our key customers remained committed to their work plans. Operating conditions continued to be challenging in Kazakhstan, Saudi Arabia and Colombia, with all regions being negatively impacted by low commodity prices and weak customer activity. As a result, management has decided to suspend operations in Saudi Arabia and Colombia.

Q3 2015 versus Q3 2014

International revenue in the third quarter of 2015 decreased by 12% compared to the third quarter of 2014. The job count increased by 32% due to higher activity levels in Norway, partially offset by lower activity in Kazakhstan. Additionally, revenue per job was 33% lower as a result of a change in job mix. Jobs performed related to the completion tools business are typically lower revenue compared to fracturing jobs performed in other international regions.

As a percentage of revenue, materials and operating expenses increased to 83.9% from 81.4% due to lower activity and pricing in Kazakhstan, Saudi Arabia and Colombia. International operating margins increased from 10.3% to 12.3% due to job mix, as a higher proportion of completion tool jobs were performed in the current quarter, which typically have a higher operating margin. General and administrative costs decreased by $0.6 million due to lower share unit expenses and reduction of headcount.

Q3 2015 versus Q2 2015

International revenue decreased by 6% sequentially. The decrease is mainly due to lower level of activity in Norway, with jobs being rescheduled due to delays associated with customer drilling schedules combined with a job count decrease. The job count decreased by 14% largely due to a decrease in activity in Kazakhstan, lower activity in Norway due to rescheduling of customer drilling schedules, and the suspension of Colombian operations.

As a percentage of revenue, materials and operating expenses increased to 83.9% from 65.1% and gross profit decreased to 11.4% from 30.6% on a sequential basis. Q3 2015 margins were lower than Q2 2015, because of higher margin projects in Q2 2015, combined with higher cost of material due to foreign exchange losses in Q3 2015. This was partially offset by the release of staff in Kazakhstan, Saudi Arabia and Colombia which resulted in cost savings during the third quarter of 2015. General and administrative costs decreased by $0.7 million due largely to the suspension of activities in Colombia and Saudi Arabia.

Discontinued Operations

The discontinued operations disclosure includes the results of regional operations in Algeria and Australia, which were suspended in the third quarter of 2015, and the disposition of the Russian pressure pumping operations.

Discontinued operations for the third quarter of 2015 include revenues from discontinued operations of $30.5 million compared to $82.1 million for the same period of 2014. Profit from discontinued operations including a gain on sale was $0.5 million in the third quarter of 2015 and $3.5 million for the three months ended September 30, 2014.

During the third quarter management committed to a plan to sell operating assets in Algeria and Australia, resulting in property and equipment being classified as held for sale. As at September 30, 2015, the net carrying value of these assets was $11.7 million.

Discontinued operations have not been included in the tables above. For information related to Trican's discontinued operations, please see the interim consolidated financial statements for the three and nine months ended September 30, 2015.

CORPORATE



----------------------------------------------------------------------------
($ thousands,
unaudited) Three September % of September % of June 30, % of
months ended, 30, 2015 Revenue 30, 2014 Revenue 2015 Revenue
----------------------------------------------------------------------------
Expenses
Materials and
operating 5,150 1.6% 7,631 1.1% 4,300 2.5%
General and
administrative 8,065 2.5% 10,370 1.5% 8,409 4.9%
----------- ----------- ---------
Total expenses 13,215 4.1% 18,001 2.6% 12,709 7.4%
Operating loss(i) (13,215) (4.1%) (18,001) (2.6%) (12,709) (7.4%)
Adjusted operating
loss(i) (5,242) (1.6%) (18,001) (2.6%) (12,709) (7.4%)

Gross loss(i) (6,335) (1.9%) (8,253) (1.2%) (5,364) (3.1%)
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(i) See the first page of this report for a description of operating income / (loss) and adjusted operating income / (loss). Gross profit / (loss) has been presented in this table as it is the most directly comparable measure calculated in accordance with IFRS to operating income / (loss).

Q3 2015 versus Q3 2014

Corporate share-unit costs in the third quarter were $1.7 million lower on a year-over-year basis. Excluding charges for severance, professional fees related to the sale of the Russian business and changes in share-unit costs, corporate expenses in the third quarter of 2015 were $12.8 million lower compared to the third quarter of 2014. The decrease is due to cost control measures initiated in late 2014 and into 2015, which included compensation reductions and lay-offs. Adjusted operating loss excludes $9.6 million for severance and professional fees related to the sale of our Russian business.

Q3 2015 versus Q2 2015

Corporate share-unit costs were $3.9 million lower during the third quarter of 2015 compared to the second quarter of 2015 due to the decrease in share price during the quarter. Excluding charges for severance, professional fees related to the sale of the Russian business and changes in share-unit costs, corporate expenses decreased sequentially by $7.5 million. The decrease is largely due to cost control measures initiated in late 2014 and into 2015, which included salary reductions and lay-offs. Adjusted operating loss excludes costs of $8.0 million incurred during the quarter for severance and professional fees related to the sale of our Russian business.

ASSET IMPAIRMENT

During the period ended September 30 2015, the Company reviewed all of its cash generating units ("CGU") for indicators of impairment. As a result of low commodity prices combined with excess pressure pumping supply in the market, the Company performed impairment tests to assess the carrying values of its property, plant and equipment, intangibles and goodwill. The Company also evaluated the net realizable value of its inventory balances. The impairment charges include a $22.5 million for write-off of goodwill, $22.9 million for write-down of inventory and $116.2 million for write-off of property and equipment. The Company recorded a total asset impairment of $161.6 million during the period ended September 30, 2015 (2014 - nil).

OTHER EXPENSES AND INCOME

Finance costs for the third quarter of 2015 decreased by 11% compared to the same period in 2014. A reduction in average outstanding debt contributed the decrease in interest.

Depreciation and amortization expense during the quarter increased by 3% compared to the same period last year due to an increase in Canadian dollar depreciation expense on U.S. dollar denominated assets.

Foreign exchange gains of $13.5 million have been recorded in the third quarter of 2015, compared to gains of $4.3 million for the same period in 2014. This change is largely due to the net impact of fluctuations in the U.S. dollar relative to the Canadian dollar.

Other income of $0.5 million for the third quarter of 2015 relates to gains on disposal of assets.



CONTINUING OPERATIONS COMPARATIVE YEAR-TO-DATE INCOME STATEMENTS
($ thousands, unaudited)
----------------------------------------------------------------------------
Year-
Over-
Nine months ended % of % of Year %
September 30, 2015 Revenue 2014 Revenue Change Change
----------------------------------------------------------------------------

Revenue 927,581 100% 1,710,097 100.0% (782,516) (46%)
Expenses
Materials and
operating 933,013 100.6% 1,496,974 87.5% (563,961) (38%)
General and
administrative 54,167 5.8% 86,666 5.1% (32,499) (37%)
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Operating income /
(loss)(i) (59,599) (6.4%) 126,457 7.4% (186,055) (147%)
Finance costs 27,274 2.9% 29,446 1.7% (2,172) (7%)
Depreciation and
amortization 145,410 15.7% 135,895 7.9% 9,516 7%
Foreign exchange
gain (38,019) (4.1%) (2,769) (0.2%) (35,250) (1,273%)
Asset impairment 161,604 17.4% - -% 161,604 -%
Other income (2,089) (0.2%) (3,449) (0.2%) 1,360 (39%)
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Loss before income
taxes and non-
controlling
interest (353,779) (38.1%) (32,666) (1.8%) (321,113) (983%)
Income tax expense /
(recovery) 171,216 18.5% (15,166) (0.9%) 186,382 1229%
Non-controlling
interest (1,824) (0.2%) (1,899) (0.1%) 75 (4%)
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Net loss (523,171) (56.4%) (15,601) (0.8%) (507,570) (3,253%)
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Adjusted operating
income / (loss)(i) (33,322) (3.6%) 126,457 7.4% (159,779) (126%)
Gross profit /
(loss)(i) (147,316) (15.9%) 82,520 4.8% (229,837) (279%)
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(i) see first page of this report

CANADIAN OPERATIONS



----------------------------------------------------------------------------
($ thousands, except Period-
revenue per job, Over-
unaudited) September % of September % of Period
Nine months ended, 30, 2015 Revenue 30, 2014 Revenue Change
----------------------------------------------------------------------------
Revenue 497,960 886,174 (44%)
Expenses
Materials and operating 456,513 91.7% 712,894 80.4% (36%)
General and
administrative 9,594 1.9% 21,494 2.4% (55%)
----------- ----------- ------------
Total expenses 466,107 93.6% 734,388 82.8% (37%)
Operating income(i) 31,853 6.4% 151,786 17.2% (79%)
Adjusted operating
income(i) 38,912 7.8% 151,786 17.2% (74%)

Number of jobs 9,090 16,355 (44%)
Revenue per job 53,995 54,130 0%

Gross profit/(loss)(i) (11,681) (2.3%) 123,465 13.9% (110%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



(i) see first page of this report

Low commodity prices throughout 2015 have led to substantial declines in activity for the majority of our Canadian service lines. Average rig count in Canada has decreased 47% for 2015 compared to 2014, which compares to the 44% decline in our job count. Revenue per job was consistent as pricing declines were offset with an increase in fracturing job size and the number of fracturing jobs relative to total jobs.

As a percentage of revenue, materials and operating expenses increased to 91.7% from 80.4% compared to the same period in 2014. In addition, the gross loss was 2.3% compared to gross profit of 13.9% in 2014. Operating and gross margins declined due largely to the 44% decrease in revenue that led to lower operational leverage of our fixed structure. This decline was partially offset by cost control initiatives that were implemented throughout the first half of 2015. General and administrative costs decreased by 55% mainly due to lower employee and share based expenses.

UNITED STATES OPERATIONS



----------------------------------------------------------------------------
($ thousands, except Period-
revenue per job, Over-
unaudited) September % of September % of Period
Nine months ended, 30, 2015 Revenue 30, 2014 Revenue Change
----------------------------------------------------------------------------
Revenue 401,437 793,178 (49%)
Expenses
Materials and
operating 436,399 108.7% 738,201 93.1% (41%)
General and
administrative 17,672 4.4% 24,493 3.1% (28%)
----------- ----------- ------------
Total expenses 454,071 113.1% 762,694 96.2% (41%)
Operating income /
(loss)(i) (52,634) (13.1%) 30,484 3.8% (273%)
Adjusted operating
income / (loss)(i) (43,283) (10.8%) 30,484 3.8% (242%)

Number of jobs 6,133 9,216 (34%)
Revenue per job 65,758 84,586 (22%)

Gross loss(i) (118,784) (29.6%) (22,119) (2.8%) (437%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



(i) see first page of this report

U.S. revenue, for the period ending September 30, 2015, decreased by 49% compared to the same period of 2014. Job count decreased by 34% as the U.S. rig count was down 43% over the nine months of 2015 relative to the same period in 2014. In response to low demand, we have reduced our U.S. employee base by 60% and maintained only eight of our sixteen U.S. fracturing crews active in response to the low demand.

Revenue per job decreased 22% mainly due to pricing and lower product revenue per job. Pricing is now down 30% relative to peak pricing levels at the end of 2014.

As a percentage of revenue, materials and operating expenses increased to 108.7% from 93.1%. In addition, the gross loss increased to 29.6% compared to 2.8% of revenue. Lower pricing combined with decreased operating leverage on our fixed cost structure led to the decline in margins. These factors were partially offset by cost cutting initiatives implemented throughout the first half of 2015. General and administrative costs decreased by $6.8 million as cost reductions were partially offset by increased Canadian dollar costs due to a stronger U.S. dollar.

INTERNATIONAL OPERATIONS



----------------------------------------------------------------------------
($ thousands, except Period-
revenue per job, Over-
unaudited) September % of September % of Period
Nine months ended, 30, 2015 Revenue 30, 2014 Revenue Change
----------------------------------------------------------------------------
Revenue 28,184 30,745 (8%)
Expenses
Materials and operating 24,266 86.1% 26,074 84.8% (7%)
General and
administrative 2,197 7.8% 4,929 16.0% (55%)
----------- ----------- ------------
Total expenses 26,463 93.9% 31,003 100.8% (15%)
Operating loss(i) 1,721 6.1% (258) (0.8%) 767%
Adjusted operating income
/ (loss) 1,943 6.9% (258) (0.8%) 853%

Number of jobs 799 517 55%
Revenue per job 35,273 59,467 (41%)

Gross profit(i) 2,236 7.9% 3,516 11.4% (36%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



(i) see first page of this report

Continuing Operations

International revenue decreased by 8% during the period ending September 2015 compared to the same period in 2014. Decreased year-over-year activity in Kazakhstan and the closure of operations in Colombia and Saudi Arabia also negatively impacted the number of jobs completed in the first nine months of 2015. These factors were partially offset by increased activity in our Norwegian completion tools business.

Materials and operating expenses increased to 86.1% of revenue compared to 84.8% of revenue in the same period of 2014. Weaker year-over-year margins in Kazakhstan were partially offset by substantial margin improvement in Norway. Closure costs in Saudi Arabia and Colombia also contributed to the decline in operating margins. General and administrative costs decreased by $2.7 million due largely to reduction of workforce in Colombia and Saudi Arabia due to the closure of these regions.

Gross profit decreased to 7.9% of revenue compared to 11.4%. The primary difference between operating income and gross profit is depreciation expense, which increased as a percentage of revenue for our International operations due to lower revenue. This led to the deterioration of the gross profit margin.

Discontinued Operations

The discontinued operations disclosure includes the results of regional operations in Algeria and Australia, suspended in the third quarter of 2015, and the disposition of the Russian pressure pumping operations.

The discontinued operations disclosure includes the results of regional operations in Algeria and Australia, suspended in the third quarter of 2015, and the disposition of the Russian pressure pumping operations.

Discontinued operations for the first nine months of 2015 include revenues from discontinued operations of $135.2 million compared to $238.3 million for the same period of 2014. Profit from discontinued operations including a gain on sale was $2.2 million for the nine months ended September 30, 2015 and $5.7 million for the nine months ended September 30, 2014.

During the third quarter management committed to a plan to sell operating assets in Algeria and Australia, resulting in property and equipment being classified as held for sale. As at September 30, 2015, the value of these assets was $11.7 million.

Discontinued operations have not been included in the tables above. For information related to Trican's discontinued operations, please see the interim consolidated financial statements for the three and nine months ended September 30, 2015.

CORPORATE



----------------------------------------------------------------------------
Period-
Over-
($ thousands, unaudited) September % of September % of Period
Nine months ended, 30, 2015 Revenue 30, 2014 Revenue Change
----------------------------------------------------------------------------
Expenses
Materials and
operating 15,835 1.7% 19,805 1.2% (20%)
General and
administrative 24,704 2.8% 35,750 2.1% (31%)
----------- ----------- ------------
Total expenses 40,539 4.5% 55,555 3.3% (27%)
Operating loss(i) (40,539) (4.5%) (55,555) (3.3%) (27%)
Adjusted operating
loss(i) (30,894) (3.3%) (55,555) (3.3%) (44%)

Gross loss(i) (19,087) (2.1%) (22,342) (1.3%) (15%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



(i) see first page of this report

Corporate share-unit costs for the period ending September 2015 were $7.8 million lower on a year-over-year basis. Excluding share-unit costs and severance and professional charges incurred in the first quarter of 2015, corporate expenses decreased by $24.7 million compared to the period ending September 2014. The decrease is due to cost control measures initiated in late 2014, which included salary reductions and lay-offs.

OTHER EXPENSES AND INCOME

For the period ended September 30, 2015, finance costs decreased by 7% compared to the same period in 2014 due to decreased debt balances.

Depreciation and amortization increased by 7% compared to the same period last year as a stronger U.S. dollar led to higher Canadian dollar depreciation charges on U.S. assets.

Foreign exchange gains of $38.0 million have been recorded for the nine months ended September 30, 2015, compared to gains of $2.8 million for the same period in 2014. This change is due to the net impact of fluctuations in the U.S. dollar relative to the Canadian dollar.

Other income for the first nine months of 2015 is $2.1 million compared to other income of $3.4 million for the same period of 2014. Other income is largely comprised of gains and losses on asset sales and interest income on cash balances.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Funds used in operations increased to $16.3 million during the third quarter of 2015 compared to funds provided by operations of $102.1 million for the same period in 2014. The decrease in operating cash flow was largely due to weak North American results caused by low commodity prices.

At September 30, 2015, Trican had working capital of $254.5 million compared to $601.2 million at the end of 2014. The decrease is partially due to declines in North American revenue, which has led to a significant decrease in trade accounts receivable, offset partially by a decrease in trade payables. The decrease was also due to the proceeds from the sale of Trican's Russian pressure pumping business and the application of these proceeds towards long term debt. Cash flow generated by the decrease in working capital was $216.4 million during the first nine months of 2015 and was a significant source of cash flow for the Company during this period.

Investing Activities

During the third quarter, Trican closed the sale of its Russian pressure pumping business to RN Assets LLC, an indirect subsidiary of Rosneft Oil Company, for a purchase price of USD$150 million or approximately CAD$197.2 million, at the August 19, 2015 exchange rate of 0.7628, which is comprised of a purchase price of USD $140 million and an initial working capital adjustment of USD $10 million. Trican intends to apply the net proceeds from this sale to reduce its outstanding debt.

Trican and Rosneft are also continuing to negotiate the sale of Trican's Kazakhstan pressure pumping business. If the parties reach agreement on the terms of the sale of the Kazakhstan business, Trican expects that such sale would close in Q4 2015. There is no guarantee that the parties will be able to agree on terms regarding the sale of the Kazakhstan business or complete the transaction on the terms agreed. Furthermore, the potential transaction would be subject to approval by the Kazakhstan Antimonopoly Body, and final corporate approvals by Trican and the Purchaser.

Capital expenditures for the first nine months of 2015 totaled $21.4 million, compared with $54.5 million for the same period in 2014. With the decline in commodity prices and North American demand, capital expenditures will be kept to a minimum until operating conditions improve. A substantial amount of equipment has been parked in both Canada and the U.S., which will reduce the amount of maintenance capital needed throughout the current downturn. In addition, capital expansion initiatives will not be considered during the current economic environment in order to preserve current liquidity levels. Based on existing capital budget commitments, we expect capital spending to be approximately $30 million during 2015. Trican regularly reviews its capital equipment requirements and will continue to follow its policy of adjusting the capital budget on a quarterly basis to reflect changing operating conditions and capital equipment needs.

Financing Activities

On September 25, 2015 Trican, its lenders and senior noteholders reached an agreement in principle amending the terms of the current credit agreements (the "Amending Agreement"). Trican, its lenders and the senior noteholders have negotiated the terms of the formal documentation to implement the Amending Agreement, which documentation reflects the same terms and conditions as the Amending Agreement, and expect to finalize the execution of this formal documentation on November 13, 2015. As at September 30, 2015, Trican is in compliance with the terms of the amended agreement.

The Amending Agreement amended Trican's financial covenants as follows:



-- no financial covenants will be applicable for the third and fourth
quarters of 2015;
-- the maximum Debt to Capitalization test will no longer apply;
-- a minimum quarterly EBITDA of $20 million for the first quarter of 2016;
-- a minimum cumulative EBITDA of $50 million for the 2015 third quarter,
2015 fourth quarter and 2016 first quarter to be applied at the end of
the first quarter of 2016;
-- a minimum liquidity test to be performed on April 27, 2016 of $110
million after giving pro forma effect to the payment of the April 28,
2016 senior note maturities;
-- the ratio of Senior Consolidated Debt to EBITDA shall not exceed 5.0x
for the 2016 second quarter; 4.5x for the 2016 third quarter; 4.0x for
the 2016 fourth quarter; 3.5x for the 2017 first quarter; and 3.0x for
the 2017 second quarter and thereafter; and
-- a minimum Consolidated EBITDA to Consolidated Interest Expense Ratio
shall not be less than 2.5x for the 2016 second quarter, 2.75x for the
2016 third quarter and 3.0x for the 2016 fourth quarter and thereafter.



Key terms under the Amending Agreement include:



-- a reduction in the availability of the revolving credit facility ("RCF")
from $575 million to $410 million;
-- a 300 basis point increase to the interest rates on the senior notes and
RCF during the covenant relief period;
-- providing floating charge security over all of its North American assets
to both lenders;
-- a requirement to repay an additional $75 million of it senior notes and
an additional $75 million of its RCF by October 28, 2016, otherwise, the
interest rate on its senior notes and RCF will increase by a further 200
basis points;
-- a subordinated note based on make-whole amounts was delivered to the
senior noteholders; and
-- no distributions will be made until after the second quarter of 2017
assuming certain deferred obligations are paid at that time and the
ratio of Senior Consolidated Debt to EBITDA is less than or equal to
3.0x.



During the first quarter of 2015, a dividend payment of $22.4 million was made to shareholders. Given the weak economic outlook and the need to preserve liquidity, Trican's Board of Directors suspended the dividend to shareholders during the second quarter of 2015.

As at November 12, 2015 Trican had 148,918,046 common shares and 11,382,149 employee stock options outstanding.

During the first quarter of 2015, 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, 2016. During the first quarter of 2015, there were 187,674 common shares purchased through the NCIB utilizing an automatic share purchase plan, in an effort to offset the impact of exercised stock options during 2014.The cost of the common shares repurchased was funded by the proceeds of the exercised stock options during 2014. Trican has not repurchased any shares since the 2014 Year End Board meeting on February 25, 2015 and does not intend on repurchasing any additional shares under the current NCIB.

OUTLOOK

Canada

Canadian activity has increased from the lows experienced in April and May; however, it still remains depressed relative to prior year activity levels. Approximately 35% of our equipment fleet is expected to remain parked over the remainder of 2015 and into 2016 depending on oil and gas prices and industry activity levels. Management continues to be of the opinion that we have appropriately sized the Canadian operations to the current work scope, evidenced by our financial results in the third quarter. Our customer base has remained loyal and market share gains with active customers are expected to result in continued good utilization on our active equipment fleet during the fourth quarter and into 2016. Pricing appears marginally down early in the fourth quarter compared to the third, with a bottom resembling second quarter levels anticipated for December. Pricing is expected to remain largely consistent with current levels for the foreseeable future. Cost-optimization efforts will continue although management believes the bulk of our supplier cost savings have been realized. Market share gains and significant cost reductions seen in the third quarter make management cautiously optimistic that operating income margins can continue at these improved levels in the near term, although normal weather issues in the fourth quarter and the anticipation of an extended holiday slowdown will likely temper fourth quarter activity levels resulting in the fourth quarter results being below those experienced in the third quarter. As the price of oil remains volatile, management will continue to be vigilant in monitoring customer activity levels and profitability and will continue to quickly adjust as operating conditions change.

United States

U.S. industry activity continues to be weak and we anticipate industry activity in the fourth quarter to be down relative to the third quarter. The largest activity declines continue to be in the Permian, Eagle Ford and Bakken plays. Activity in the Marcellus region continues to be higher than our other operating regions, but is still being impacted by lower demand and pricing. As a result of low pricing and lower than accepted utilization in our Permian and Eagle Ford operations, management decided early in the fourth quarter to further adjust the size of our operations by parking two more Texas-based crews rather than continue to operate at unsustainable margins. Five of our six remaining crews are committed into 2016 and four of the crews are committed through to 2017 at acceptable pricing levels with anticipated high utilization. Going forward we will be running three crews committed to customers in the Marcellus, two crews in Oklahoma, and we will have one spot market crew available in the Marcellus. Although industry conditions are weakening sequentially in the U.S. due to an extended holiday slowdown and, we anticipate that our results will improve in the fourth quarter as a result of cost savings from shutting down our Texas fracturing crews and our remaining crews running at high utilization in positive contribution contracts through October and November. We will see a slowing of activity in December and if our customers shut down their programs earlier than we anticipate, it may have an impact on our predicted fourth quarter profitability. Pricing is down approximately 30% since the peak pricing levels experienced at the end of 2014 and management is of the opinion that pricing has stabilized for our operations going forward.

Cost reductions and sizing the business to current activity levels continues to be our primary focus. We have been successful in reducing the cost of key products by 15-25% to date and continue to work towards further reductions. Headcount has been reduced by 60% and we continue to evaluate and implement further cost improvements and efficiencies in an effort to generate consistent positive cash flow. Management is of the opinion that industry activity levels will not meaningfully increase in the near term. As such, continued vigilance on the U.S. operations' cost structure, keeping utilization high on our active equipment and quickly reacting to changes in customer work flow are critical to improving our profitability for this region. We are comfortable with our contract position entering 2016 and our customers' intent to keep utilization high on five of our six crews. We will look for opportunities to deploy additional equipment in the new year in our core areas to increase our leverage on our cost structure and improve operating results.

International

Notwithstanding the pending sale of our Kazakhstan business, our completion tools business in Norway and Russia has become our primary International operating area after the sale of our Russian pressure pumping business. Management is happy with the profitability and market share gains we have made in this region. While we will continue to focus on improving the profitability of our North American business during this downturn and strengthening it for an eventual turnaround, we believe we have substantial international operating experience and will continue to evaluate international opportunities that provide meaningful scale as they materialize in an effort to increase utilization on our substantial equipment fleet.

Covenant and Debt Agreements

The company has reached an agreement with its lenders on revised covenant terms and expect the documentation to be finalized on November 13, 2015. We have seen substantial improvement in our operating income in the second half of the year and believe we will further reduce our U.S. losses in the upcoming quarters. We also maintain our dedication to strategic initiatives to reduce our debt levels and we believe that we can be successful in de-leveraging our balance sheet. We are confident that, if we are successful in doing so, this, together with our improvements in operating income achieved during the second half of 2015 and our continued focus on cost control, will allow us to continue to meet our covenants throughout 2016.

NON-IFRS DISCLOSURE

Adjusted profit / (loss), operating income / (loss), adjusted operating income / (loss) and funds provided by / (used in) operations do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-IFRS measures.

Adjusted profit / (loss), operating income / (loss), adjusted operating income / (loss) and funds provided by / (used in) operations have been reconciled to profit / (loss) and operating income / (loss) has been reconciled to gross profit / (loss), being the most directly comparable measures calculated in accordance with IFRS. The reconciling items have been presented net of tax, where applicable.



----------------------------------------------------------------------------
(thousands; unaudited) Three months ended Nine months ended
----------------------------------------------------------------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2015 2014 2015 2015 2014
----------------------------------------------------------------------------
Adjusted net income /
(loss) attributed to
owners of the Company ($53,554) $36,182 ($87,558) ($202,188) ($12,032)
Deduct:
Non-cash share-based
compensation expense
(net of non-
controlling interest) 752 2,304 1,294 3,571 6,384
Foreign exchange (gain)
/ loss (net of non-
controlling interest) (13,493) (4,293) 1,457 (37,892) (2,815)
Deferred tax asset
derecognition - - 193,700 193,700 -
Asset impairment 161,604 - - 161,604 -
----------------------------------------------------------------------------

Profit / (loss) for the
period (IFRS financial
measure) attributed to
owners of the Company ($202,417) $38,171 ($284,009) ($523,171) ($15,601)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(thousands; unaudited) Three months ended Nine months ended
----------------------------------------------------------------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2015 2014 2015 2015 2014
----------------------------------------------------------------------------
Funds provided by / (used
in) operations ($16,298) $102,144 ($57,460) ($106,331) $110,863
Charges to income not
involving cash
Depreciation and
amortization (48,633) (47,383) (47,773) (145,410) (135,895)
Amortization of debt
issuance costs (218) (216) (218) (654) (648)
Stock-based
compensation (752) (2,304) (1,294) (3,571) (6,384)
Gain / (loss) on
disposal of property
and equipment (210) (56) 1,259 849 444
Net finance costs (8,239) (8,873) (8,237) (26,150) (27,519)
Unrealized foreign
exchange gain / (loss) 38,975 5,848 (6,382) 59,250 3,207
Asset impairments (161,604) - - (161,604) -
Gain on sale of
discontinued
operations, net of
foreign currency
translation 1,617 - - 1,617 -
Income tax recovery /
(expense) (9,135) (9,931) (181,418) (171,216) 15,166
Adjust for interest and
tax outflows / (inflows)
Interest paid 3,181 4,488 13,140 21,405 24,250
Income tax (refund) /
paid (1,101) (5,546) 4,374 8,644 915
----------------------------------------------------------------------------

Profit / (loss) for the
period (IFRS financial
measure) attributed to
owners of the Company ($202,417) $38,171 ($284,009) ($523,171) ($15,601)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(thousands; unaudited) Three months ended Nine months ended
----------------------------------------------------------------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2015 2014 2015 2015 2014
----------------------------------------------------------------------------
Adjusted consolidated
operating income /
(loss) $20,122 $100,215 ($44,078) ($33,322) $126,457
Deduct:
Severance, base closure,
and professional costs 9,397 - 2,829 26,277 -
----------------------------------------------------------------------------
Consolidated operating
income / (loss) $10,725 $100,215 ($46,907) ($59,599) $126,457
Add:
Administrative expenses 13,901 27,317 23,575 57,693 91,958
Deduct:
Depreciation expense (48,633) (47,383) (47,773) (145,410) (135,895)
----------------------------------------------------------------------------

Consolidated gross profit
/ (loss) (IFRS financial
measure) ($24,007) $80,149 ($71,105) ($147,316) $82,520
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(thousands; unaudited) Three months ended Nine months ended
----------------------------------------------------------------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2015 2014 2015 2015 2014
----------------------------------------------------------------------------
Adjusted Canadian
operating income /
(loss) $37,413 $97,307 ($11,808) $38,912 $151,786
Deduct:
Severance costs 608 - 928 7,059 -
----------------------------------------------------------------------------
Canadian operating income
/ (loss) $36,805 $97,307 ($12,736) $31,853 $151,786
Add:
Administrative expenses 2,241 7,033 6,392 12,281 25,680
Deduct:
Depreciation expense (18,487) (17,576) (18,726) (55,815) (54,001)
----------------------------------------------------------------------------

Canadian gross profit /
(loss) (IFRS financial
measure) ($20,559) $86,764 ($25,070) ($11,681) $123,465
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(thousands; unaudited) Three months ended Nine months ended
----------------------------------------------------------------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2015 2014 2015 2015 2014
----------------------------------------------------------------------------
Adjusted U.S. operating
income / (loss) ($13,686) $19,566 ($22,739) ($43,283) $30,484
Deduct:
Severance and base
closure costs 594 - 1,901 9,351 -
----------------------------------------------------------------------------
U.S. operating income /
(loss) ($14,280) $19,566 ($24,640) ($52,634) $30,484
Add:
Administrative expenses 3,161 8,829 7,676 18,511 25,595
Deduct:
Depreciation expense (28,416) (28,701) (27,458) (84,661) (78,198)
----------------------------------------------------------------------------

U.S. gross loss (IFRS
financial measure) ($39,535) ($306) ($44,422) ($118,784) ($22,119)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(thousands; unaudited) Three months ended Nine months ended
----------------------------------------------------------------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2015 2014 2015 2015 2014
----------------------------------------------------------------------------
Adjusted International
Operating Income $1,637 $1,343 $3,178 $1,943 ($258)
Deduct: Severance costs 222 - - 222 -
----------------------------------------------------------------------------
International operating
income $1,415 $1,343 $3,178 $1,721 ($258)
Add:
Administrative expenses 434 1,083 1,098 2,197 4,929
Deduct:
Depreciation expense (545) (481) (525) (1,682) (1,155)
----------------------------------------------------------------------------

International gross
profit (IFRS financial
measure) $1,304 $1,945 $3,751 $2,236 $3,516
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(thousands; unaudited) Three months ended Nine months ended
----------------------------------------------------------------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2015 2014 2015 2015 2014
----------------------------------------------------------------------------
Adjusted Corporate
operating loss ($5,242) ($18,001) ($12,709) ($30,894) ($55,555)
Deduct:
Severance and
professional costs 7,973 - - 9,645 -
----------------------------------------------------------------------------
Corporate operating loss ($13,215) ($18,001) ($12,709) ($40,539) ($55,555)
Add:
Administrative expenses 8,065 10,372 8,409 24,704 35,754
Deduct:
Depreciation expense (1,185) (625) (1,064) (3,252) (2,541)
----------------------------------------------------------------------------

Corporate gross loss
(IFRS financial measure) ($6,335) ($8,253) ($5,364) ($19,087) ($22,342)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Stated in thousands; unaudited) September 30, December 31,
2015 2014
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $75,623 $82,423
Restricted cash and cash equivalents (note
4) 194,779 -
Trade and other receivables 259,964 627,749
Current tax assets 973 837
Inventory (note 9) 164,300 245,358
Prepaid expenses 24,377 32,647
Assets held for sale (note 3) 11,697 -
----------------------------------------------------------------------------
731,713 989,014
Property and equipment (note 9) 1,089,941 1,286,754
Intangible assets 31,641 36,251
Deferred tax assets 537 162,411
Other assets 4,163 6,399
Goodwill (note 9) 19,250 56,035
----------------------------------------------------------------------------
$1,877,245 $2,536,864
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade and other payables $183,220 $367,619
Current tax liabilities 487 898
Current portion of loans and borrowings
(note 4) 293,500 19,335
----------------------------------------------------------------------------
477,206 387,852

Loans and borrowings (note 4) 459,388 758,545
Deferred tax liabilities 94,800 104,240

Shareholders' equity
Share capital (note 5) 570,337 571,050
Contributed surplus 71,417 67,846
Accumulated other comprehensive gain /
(loss) 53,046 (26,462)
Retained earnings 152,458 672,846
----------------------------------------------------------------------------
Total equity attributable to equity holders of
the Company 847,258 1,285,280
Non-controlling interest (1,408) 947
----------------------------------------------------------------------------
$1,877,245 $2,536,864
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial
statements.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME

Three Months Nine Months
Ended September 30, Ended September 30,

(Stated in thousands, except per
share amounts; unaudited) 2015 2014 2015 2014

----------------------------------------------------------------------------

Continuing operations
Revenue $325,535 $688,489 $927,581 $1,710,097
Cost of sales (note 8) 349,542 608,340 1,074,897 1,627,577
----------------------------------------------------------------------------
Gross (loss) / profit (24,007) 80,149 (147,316) 82,520
Administrative expenses (note 8) 13,901 27,317 57,693 91,958
Other (income) / expense (103) 951 (965) (1,522)
----------------------------------------------------------------------------
Results from operating activities (37,805) 51,881 (204,044) (7,916)
Finance income (350) (810) (1,124) (1,927)
Finance costs 8,589 9,683 27,274 29,446
Foreign exchange gain (13,482) (4,272) (38,019) (2,769)
Asset impairment (note 9) 161,604 - 161,604 -
----------------------------------------------------------------------------
(Loss) / Profit before income tax (194,166) 47,280 (353,779) (32,666)
Income tax expense / (recovery)
(note 10) 9,135 9,931 171,216 (15,166)
----------------------------------------------------------------------------
(Loss) / Profit from continuing
operations ($203,301) 37,349 ($524,995) (17,500)
----------------------------------------------------------------------------

Discontinued operations
Net profit from discontinued
operations, net of taxes (note 3) 676 3,469 2,564 5,656
----------------------------------------------------------------------------
(Loss) / Profit for the period ($202,625) $40,818 ($522,431) (11,844)
----------------------------------------------------------------------------

Other comprehensive (loss) / income

Unrealized (loss) / gain on hedging
instruments (23) (554) 3,333 (2,137)
Foreign currency translation 4,529 206 26,657 (2,960)
Foreign currency translation loss
upon disposition of Russian
pressure pumping business (note
3) 49,502 - 49,502 -
----------------------------------------------------------------------------
Total comprehensive (loss) / profit
for the period ($148,617) $40,470 ($442,939) (16,941)
----------------------------------------------------------------------------

(Loss) / Profit attributable to:
Owners of the Company (201,741) 41,640 (520,607) (9,945)
Non-controlling interest (884) (822) (1,824) (1,899)
----------------------------------------------------------------------------
(Loss) / Profit for the period ($202,625) $40,818 ($522,431) (11,844)
----------------------------------------------------------------------------

Total comprehensive (loss) / profit
attributable to:
Owners of the Company (147,743) 41,292 (441,099) (15,042)
Non-controlling interest (874) (822) (1,840) (1,899)
----------------------------------------------------------------------------
Total comprehensive (loss) / profit
for the period ($148,617) $40,470 ($442,939) (16,941)
----------------------------------------------------------------------------

(Loss) / Profit per share, basic
and diluted (note 6)
----------------------------------------------------------------------------
Continuing operations ($1.35) $0.26 ($3.52) ($0.11)
Discontinued operations - $0.02 $0.02 $0.04
Net (loss) / profit ($1.35) $0.28 ($3.50) ($0.07)
----------------------------------------------------------------------------
Weighted average shares outstanding
- basic 148,918 149,630 148,930 149,231
Weighted average shares outstanding
- diluted 148,918 150,113 148,930 149,231
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial
statements.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Accumulated
other
(Stated in thousands; Contributed comprehensive
unaudited) Share capital surplus (loss) / gain
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Balance at January 1, 2014 $559,723 $63,074 ($1,020)
Loss for the period - - -
Foreign currency translation - - (2,959)
Dividends to equity holders
($0.15 per share) - - -
Share-based payments
transactions - 6,384 -
Share options exercised 13,517 (3,579) -
Unrealized loss on cash flow
hedge - - (2,137)
Investment in subsidiary - - -
----------------------------------------------------------------------------
Balance at September 30, 2014 $573,240 $65,879 ($6,116)
----------------------------------------------------------------------------


Balance at January 1, 2015 $571,050 $67,846 ($26,462)
Loss for the period - - -
Foreign currency translation - - 26,673
Share-based payments
transactions - 3,571 -
Shares cancelled under NCIB (713) - -
Unrealized gain on cash flow
hedge - - 3,333
Acquisition of NCI without a
change in control - - -
Investment in subsidiary - - -
Foreign currency translation
loss upon disposition of
Russian pressure pumping
business (note 3) 49,502
----------------------------------------------------------------------------
Balance at September 30, 2015 $570,337 $71,417 $53,046
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial
statements.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-
(Stated in thousands; Retained controlling Total
unaudited) earnings Total interest equity
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Balance at January 1, 2014 $725,172 $1,346,949 $3,553 $1,350,502
Loss for the period (9,945) (9,945) (1,899) (11,844)
Foreign currency translation - (2,959) (1) (2,960)
Dividends to equity holders
($0.15 per share) (22,438) (22,438) - (22,438)
Share-based payments
transactions - 6,384 - 6,384
Share options exercised - 9,938 - 9,938
Unrealized loss on cash flow
hedge - (2,137) - (2,137)
Investment in subsidiary - - 2,574 2,574
----------------------------------------------------------------------------
Balance at September 30, 2014 $692,789 $1,325,792 $4,227 $1,330,019
----------------------------------------------------------------------------


Balance at January 1, 2015 $672,846 $1,285,280 $947 $1,286,227
Loss for the period (520,607) (520,607) (1,824) (522,431)
Foreign currency translation - 26,673 (16) 26,657
Share-based payments
transactions - 3,571 - 3,571
Shares cancelled under NCIB (295) (1,008) - (1,008)
Unrealized gain on cash flow
hedge - 3,333 - 3,333
Acquisition of NCI without a
change in control 514 514 (514) -
Investment in subsidiary - - (1) (1)
Foreign currency translation
loss upon disposition of
Russian pressure pumping
business (note 3) - 49,502 - 49,502
----------------------------------------------------------------------------
Balance at September 30, 2015 $152,458 $847,258 ($1,408) $845,850
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial
statements.

CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS
Three Months Nine Months
Ended September 30, Ended September 30,
(Stated in thousands; unaudited) 2015 2014 2015 2014
----------------------------------------------------------------------------
Cash Provided By / (Used In):
Operations
Net (loss) / profit from
continuing operations (203,301) 37,349 (524,995) (17,500)
Charges to income not involving
cash:
Depreciation and amortization 48,633 47,383 145,410 135,895
Amortization of debt issuance
costs 218 216 654 648
Stock-based compensation 752 2,304 3,571 6,384
Gain on disposal of property and
equipment 210 56 (849) (444)
Net finance costs 8,239 8,873 26,150 27,519
Unrealized foreign exchange gain (38,975) (5,848) (59,250) (3,207)
Asset impairments 161,604 - 161,604 -
Gain on sale of discontinued
operations, net of foreign
currency translation (1,617) - (1,617) -
Income tax expense / (recovery) 9,135 9,931 171,216 (15,166)
Change in inventories 21,432 (17,755) 40,967 (38,626)
Change in trade and other
receivables (20,747) (157,528) 346,822 (164,786)
Change in prepaid expenses 10,765 2,676 11,725 2,222
Change in trade and other payables 9,076 61,422 (183,105) 99,612
Interest paid (3,181) (4,488) (21,405) (24,250)
Income taxes paid / (refund) 1,101 5,546 (8,644) (915)
----------------------------------------------------------------------------
Continuing operations 3,344 (9,863) 108,254 7,386
Discontinued operations 2,427 22,458 12,395 33,068
----------------------------------------------------------------------------
Cash flow from operating
activities 5,771 12,595 120,649 40,454

Investing
Proceeds from a loan to unrelated
third-party 1,227 842 3,849 3,692
Purchase of property and equipment (654) (23,998) (18,025) (54,470)
Proceeds from the sale of property
and equipment 1,109 34 4,315 834
Payment of deferred consideration - - - (650)
Restricted cash (194,779) - (194,779) -
----------------------------------------------------------------------------
Continuing operations (193,097) (23,122) (204,640) (50,594)
Consideration on sale of
discontinued operations 184,292 - 184,292 -
Discontinued operations 43 (3,895) (2,715) (14,158)
----------------------------------------------------------------------------
Cash flow from investing
activities (8,762) (27,017) (23,063) (64,752)

Financing
Net proceeds from issuance of
share capital - 666 - 9,938

Repurchase and cancellation of
shares under NCIB - - (1,008) -
Funds (repaid) / received from
bank loans - (1,676) - 13,579
Funds drawn / (repaid) on
revolving credit facility 40,295 23,636 (84,787) 156,743
Repayment of long-term debt - - - (80,483)
Dividend paid - (22,438) (22,366) (44,776)
----------------------------------------------------------------------------
Continuing operations 40,295 188 (108,161) 55,001
Discontinued operations - - - -
----------------------------------------------------------------------------
Cash flow from financing
activities 40,295 188 (108,161) 55,001

Effect of exchange rate changes on
cash 765 (87) 3,775 (758)
----------------------------------------------------------------------------

Increase / (decrease) in cash and
cash equivalents
Continuing operations 35,599 (32,884) (16,480) 11,035
Discontinued operations 2,470 18,563 9,680 18,910
Cash and cash equivalents, beginning
of period 37,554 108,135 82,423 63,869
----------------------------------------------------------------------------
Cash and cash equivalents, end of
period $75,623 $93,814 $75,623 $93,814
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial
statements.



SELECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS

NOTE 4 - LOANS AND BORROWINGS

Long term debt



September 30, December 31,
2015 2014
----------------------------------------------------------------------------
Notes payable $479,872 $426,897
Finance lease obligations 17,135 21,423
Revolving credit facilities 295,539 357,260
Hedge receivable (33,091) (17,478)
----------------------------------------------------------------------------
Total 759,455 788,102
Current portion of loans and borrowings 309,223 19,335
Current portion of hedge receivable (15,724) -
Current portion of finance lease
obligations(1) 6,567 10,222
----------------------------------------------------------------------------
Non-current $459,389 $758,545
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Current portion of finance lease obligations is included in trade and
other payables.



Notes payable

As at September 30, 2015, Trican had the following Senior Notes outstanding:



Senior
Unsecured
Notes Amount Date Issued Maturity Rate
----------------------------------------------------------------------------
Series C CAD $45 million April 28, 2011 April 28, 2016 5.22%
Series D CAD $15 million April 28, 2011 April 28, 2021 6.11%
Series E USD $65 million April 28, 2011 April 28, 2016 4.61%
Series F USD $80 million April 28, 2011 April 28, 2018 5.29%
Series G USD $105 million April 28, 2011 April 28, 2021 5.90%
Series A USD $16.67 million November 19, 2012 November 19, 2015 4.05%
Series A USD $16.67 million November 19, 2012 November 19, 2017 4.05%
Series A USD $16.67 million November 19, 2012 November 19, 2019 4.05%
Series H CAD $ 20 million September 3, 2014 September 03, 2024 5.75%



On September 25, 2015, Trican, its lenders and senior noteholders reached an agreement in principle amending the terms of the current credit agreements (the "Amending Agreement"). Trican, its lenders and the senior noteholders have negotiated the terms of the formal documentation to implement the Amending Agreement, which document reflects the same terms and conditions as the Amending Agreement on November 13, 2015. As at September 30, 2015, Trican is in compliance with the terms of the amended agreement.

Key terms under the Amending Agreement include: a reduction in the availability of the revolving credit facility ("RCF") from $575 million to $410 million; a 300 basis point increase to the interest rates on the senior notes and RCF during the covenant relief period; providing floating charge security over all of its North American assets to both lenders; a requirement to repay an additional $75 million of it senior notes and an additional $75 million of its RCF by October 28, 2016, otherwise, the interest rate on its senior notes and RCF will increase by a further 200 basis points; a subordinated note based on make-whole amounts was delivered to the senior noteholders; and no distributions will be made until after the second quarter of 2017 assuming certain deferred obligations are paid at that time and the ratio of Senior Consolidated Debt to EBITDA is less than or equal to 3.0x.

In addition, the financial covenants have been amended as follow:



-- no financial covenants will be applicable for the third and fourth
quarters of 2015;
-- maximum Debt to Capitalization test will no longer apply;
-- a minimum quarterly EBITDA of CAD$20 million for the first quarter of
2016;
-- a minimum cumulative EBITDA of CAD$50 million for the third quarter of
2015, fourth quarter of 2015 and first quarter of 2016 to be applied at
the end of the first quarter of 2016;
-- the ratio of Senior Consolidated Debt to EBITDA shall not exceed 5.0x
for the second quarter of 2016; 4.5x for the third quarter of 2016; 4.0x
for the fourth quarter of 2016; 3.5x for the first quarter of 2017; and
3.0x for the second quarter of 2017 and thereafter; and
-- a minimum Consolidated EBITDA to Consolidated Interest Expense Ratio
shall not be less than: 2.5x for the second quarter of 2016; 2.75x for
the third quarter of 2016; and 3.0x for the fourth quarter of 2016 and
thereafter.



At September 30, 2015, Trican was holding $194,779 of restricted cash and cash equivalents. This amount represents the net proceeds from the sale of its Russian business, which was being held to be applied against its outstanding debt per the terms of its agreement in principle with its lenders and senior noteholders. Trican expects to allocate these funds to its lenders and senior noteholders on November 13, 2015 as per the terms of its finalized amended agreements.

NOTE 6 - (LOSS) / PROFIT PER SHARE



For the three months For the nine months
ended, September 30, ended September 30,
2015 2014 2015 2014
----------------------------------------------------------------------------
Weighted average number of
common shares 148,918,046 149,629,774 148,929,656 149,231,423
Diluted effect of stock
options - 483,675 - -
----------------------------------------------------------------------------
Diluted weighted average
number of common shares 148,918,046 150,113,449 148,929,656 149,231,423
----------------------------------------------------------------------------

For the three months For the nine months
ended September 30, ended September 30,
Attributable to owners of
the Company 2015 2014 2015 2014
----------------------------------------------------------------------------
Net (loss) / profit from
continuing operations ($202,417) 38,172 ($523,171) (15,602)
----------------------------------------------------------------------------
Per share - basic and
dilutive ($1.35) $0.26 ($3.52) ($0.11)
Net profit from discontinued
operations 676 3,469 2,564 5,656
----------------------------------------------------------------------------
Per share - basic and
dilutive $- $0.02 $0.02 $0.04
----------------------------------------------------------------------------
Net (loss) / profit (201,741) 41,640 (520,607) (9,945)
Per share - basic and
dilutive ($1.35) $0.28 ($3.50) ($0.07)
----------------------------------------------------------------------------



All of the outstanding options have been excluded from the diluted weighted-average number of common shares as the Company incurred a net loss in the nine months ended September 30, 2015. In the third quarter of 2014, outstanding options of 7.1 million were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive.

All of the outstanding options have been excluded from the diluted weighted-average number of common shares as the Company incurred a net loss in the nine months ended September 30, 2015, and 2014.

NOTE 10 - INCOME TAXES



Three months ended September 30, 2015 2014
----------------------------------------------------------------------------
Current income tax expense $16,305 $3,421
Deferred income tax (recovery) / expense (7,170) 6,510
----------------------------------------------------------------------------
$9,135 $9,931
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Nine months ended September 30, 2015 2014
----------------------------------------------------------------------------
Current income tax expense $7,899 $2,041
Deferred income tax (recovery) / expense 163,317 (17,207)
----------------------------------------------------------------------------
$171,216 ($15,166)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



The net income tax provision differs from that expected by applying the combined federal and provincial income tax rate of 26.09% (2014 - 25.26%) to income / (loss) from continuing operations before income taxes for the following reasons:



Nine months ended September 30, 2015 2014
----------------------------------------------------------------------------
Expected combined federal and provincial
income tax ($88,290) ($5,488)
Change in recognized deductible temporary
differences 160,685 -
Statutory and other rate differences (35,829) (9,056)
Non-deductible expenses 4,460 1,160
Changes to deferred income tax rates 4,827 -
Stock based compensation 927 1,526
Translation of foreign subsidiaries (19,249) (2,081)
Unrecognized current year losses 141,002 -
Adjustments related to prior years 4,283 (596)
Recognition of previously unrecognized tax
losses (1,369) (1,232)
Other (231) 601
----------------------------------------------------------------------------
$171,216 ($15,166)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



During the second quarter of 2015, the Company derecognized deferred tax assets of $193.7 million related to its US operations due to a combination of factors which include losses in recent prior periods, current period losses and near term challenging market conditions. The Company has $792.3 million of net deductible temporary difference at September 30, 2015, which includes loss carry forwards of approximately $879.8 million that will expire between 2029 and 2035.

NOTE 13 - OPERATING SEGMENTS

The Company operates in Canada and the U.S. along with a number of international regions, which include Russia, Kazakhstan, Algeria, Australia, Saudi Arabia, Colombia and Norway. As of the third quarter of 2015, the profits and losses associated with Russia, Australia and Algeria have been classified as discontinued operations. Each geographic region has a General Manager who is responsible for the operation and strategy of his region's business. Personnel working within the particular geographic region report to the General Manager; the General Manager reports to the executive management team.

The Company provides a comprehensive array of specialized products, equipment, services and technology to customers through three operating divisions:



-- Canadian operations provide cementing, fracturing, coiled tubing,
nitrogen, geological, acidizing, reservoir management, industrial
cleaning and pipeline, and completion systems and downhole tool
services, which are performed on new and existing oil and gas wells.
-- U.S. operations provide cementing, fracturing, coiled tubing, nitrogen,
acidizing and completion systems and downhole tool services, which are
performed on new and existing oil and gas wells.
-- International operations provide cementing, fracturing, coiled tubing,
acidizing, nitrogen, and completion systems and downhole tool services,
which are performed on new and existing oil and gas wells.



Information regarding the results of each geographic region is included below. Performance is measured based on revenue and gross profit as included in the internal management reports, which are reviewed by the Company's executive management team. Each region's gross profit is used to measure performance as management believes that such information is most relevant in evaluating regional results relative to other entities that operate within the industry. Transactions between the segments are recorded at fair value and have been eliminated upon consolidation.



United
Canadian States International
Operations Operations Operations(i) Corporate Total
----------------------------------------------------------------------------
Three months ended
September 30, 2015
----------------------------------------------------------------------------
Revenue $193,435 $120,621 $41,974 $- $356,030
Gross profit /
(loss) 20,559 (39,535) 4,782 (6,336) (20,530)
Finance income - - - (350) (350)
Finance costs - - - 8,589 8,589
Tax expense 7,881 46 3,047 - 10,974
Depreciation and
amortization 18,486 28,416 2,595 1,185 50,682
Asset Impairment 26,491 135,113 - - 161,604
Capital
expenditures 517 124 - 13 654
----------------------------------------------------------------------------

Three months ended
September 30, 2014
Revenue $360,895 $314,575 $95,155 $- $770,625
Gross profit /
(loss) 86,765 (305) 11,309 (8,256) 89,513
Finance income - - - (810) (810)
Finance costs - - - 9,683 9,683
Tax expense /
(recovery) 16,883 (6,356) 526 - 11,053
Depreciation and
amortization 17,577 28,702 6,423 624 53,326
Capital
expenditures 6,255 13,126 8,142 369 27,892

United
Canadian States International
Operations Operations Operations(i) Corporate Total
----------------------------------------------------------------------------
Nine months ended
September 30, 2015
----------------------------------------------------------------------------
Revenue $497,960 $401,437 $163,354 $- $1,062,751
Gross (loss) /
profit (11,681) (118,784) 14,489 (19,088) (135,064)
Finance income - - - (1,124) (1,124)
Finance costs - - - 27,274 27,274
Tax (recovery) /
expense (3,534) 171,231 6,686 - 174,383
Depreciation and
amortization 55,814 84,662 10,710 3,252 154,438
Asset Impairment 26,491 135,113 - - 161,604
Capital
expenditures 15,138 1,911 3,014 1,342 21,405
----------------------------------------------------------------------------

Nine months ended
September 30, 2014
Revenue $886,174 $793,178 $269,089 $- $1,948,441
Gross profit /
(loss) 123,467 (22,117) 23,895 (22,346) 102,899
Finance income - - - (1,927) (1,927)
Finance costs - - - 29,446 29,446
Tax expense /
(recovery) 11,388 (25,781) 1,408 - (12,985)
Depreciation and
amortization 54,003 78,198 20,474 2,538 155,213
Capital
expenditures 15,280 22,159 28,861 2,624 68,924

United
Canadian States International
Operations Operations Operations(i) Corporate Total
----------------------------------------------------------------------------

As at September 30,
2015
----------------------------------------------------------------------------
Assets $827,901 $713,057 $73,463 $262,824 $1,877,245
Goodwill 19,250 - - - 19,250
Property and
equipment 523,099 535,191 19,826 11,825 1,089,941
Assets held for
sale - - 11,697 - 11,697
----------------------------------------------------------------------------

As at December 31,
2014
----------------------------------------------------------------------------
Assets $1,004,817 $1,225,885 $246,188 $59,974 $2,536,864
Goodwill 41,809 - 14,226 - 56,035
Property and
equipment 560,222 640,920 68,607 17,005 1,286,754
----------------------------------------------------------------------------



(i) Discontinued operations have been included in the operating segment "International Operations".

In the first quarter of 2015, the Company corrected the carrying amount of property and equipment at December 31, 2014, to account for a transfer of assets that took place in the fourth quarter of 2014. Equipment transferred out of the United States and International operations had carrying amounts of $75,204 and $5,348, respectively. This equipment was transferred to the Canadian operation with a total carrying amount of $80,552.

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.

Reconciliation of information on operating segments to IFRS measures



For the three
months ended For the nine months
September 30, ended September 30,
2015 2014 2015 2014
----------------------------------------------------------------------------
Revenue
Total revenue for operating
segments $356,030 $770,625 $1,062,751 $1,948,441
Elimination of discontinued
operations (30,495) (82,136) (135,170) (238,344)
----------------------------------------------------------------------------
Consolidated revenue from
continuing operations 325,535 688,489 927,581 1,710,097
----------------------------------------------------------------------------
Gross (loss) / profit
Total gross (loss) / profit for
operating segments (20,530) 89,513 (135,064) 102,899
Elimination of discontinued
operations (3,477) (9,364) (12,252) (20,379)
----------------------------------------------------------------------------
Consolidated gross (loss) / profit
from continuing operations (24,007) 80,149 (147,316) 82,520
----------------------------------------------------------------------------
Tax expense / (recovery)
----------------------------------------------------------------------------
Total tax expense / (recovery) for
operating segments 10,974 11,053 174,383 (12,985)
----------------------------------------------------------------------------
Elimination of discontinued
operations (1,839) (1,122) (3,167) (2,181)
----------------------------------------------------------------------------
Tax expense / (recovery) from
continuing operations 9,135 9,931 171,216 (15,166)
----------------------------------------------------------------------------
Depreciation and amortization
----------------------------------------------------------------------------
Total depreciation and
amortization for operating
segments 50,682 53,326 154,438 155,213
----------------------------------------------------------------------------
Elimination of discontinued
operations (2,049) (5,943) (9,028) (19,318)
----------------------------------------------------------------------------
Depreciation and amortization from
continuing operations 48,633 47,383 145,410 135,895
----------------------------------------------------------------------------
Capital expenditures
----------------------------------------------------------------------------
Total capital expenditures for
operating segments 654 27,892 21,405 68,924
----------------------------------------------------------------------------
Elimination of discontinued
operations - (3,894) (3,380) (14,454)
----------------------------------------------------------------------------
Capital expenditures from
continuing operations 654 23,998 18,025 54,470
----------------------------------------------------------------------------



FORWARD-LOOKING STATEMENTS (To be updated in the next version)

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," "forecast", "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 intended use of the net proceeds from the sale of the Company's
Russian pressure pumping business;
-- the potential sale of the Company's Kazakhstan pressure pumping
business, including (i) the potential for Trican to successfully
negotiate and enter into a definitive agreement with respect thereto,
(ii) the steps to completion of the sale, including expectations
regarding required approvals, and (iii) the timing of closing of the
transaction;
-- expectation that the formal documentation to implement the Amending
Agreement for the Corporation's credit agreements will be finalized on
November 13, 2015 on the same terms and conditions as the Amending
Agreement;
-- expectation that Trican will be able to reduce the Company's debt levels
and successfully de-leverage the Company's balance sheet;
-- expectation that if the Company is able to reduce debt levels and
successfully de-leverage the Company's balance sheet, it will be able to
meet the covenants under its revolving credit facility and senior
unsecured notes throughout 2016;
-- expectation regarding Trican's ability to adjust Trican's active
equipment fleet and cost structure in the U.S. and Canada depending on
activity and pricing levels;
-- expectation of good utilization of Trican's Canadian fleet during the
fourth quarter and into 2016 due to a loyal customer base and market
share gains;
-- expectation regarding Trican's capital spending to be approxiamately $30
million during 2015 and the expectation that capital expenditures will
be kept to a minimum until operating conditions improve;
-- expectation that 35% of Trican's Canadian equipment fleet will remain
parked over the remainder of 2015 and into 2016 depending on oil and gas
prices and industry activity levels;
-- expectation that Trican's fourth quarter operating income margin in the
U.S. will meaningfully increase sequentially over third quarter due to
significant cost savings and high utilization;
-- expectation that, as a result of Trican's parked equipment, the
Company's amount of maintenance capital required will be reduced
throughout the current economic downturn;
-- expectation that Trican's remaining crews in the U.S. will continue to
be at high utilization, that our customers will keep utilization high on
five of six crews, and that profitability in the U.S. will improve and
that Trican will reduce U.S. losses in upcoming quarters;
-- expectation that industry activity in the U.S. market in the fourth
quarter will be down relative to the third quarter and that industry
activity levels will not meaningfully increase in the near term;
-- expectation that pricing for the Company's operations will remain
largely consistent with current levels for the foreseeable future;
-- expectation that operating income margins in Canada may continue at
current improved levels in the near term;
-- expectation that the price of oil will remain volatile;
-- expectation that further cost improvements and efficiencies can be
identified and implemented, and if implemented, may generate consistent
positive cash flow;
-- expectation that the Company may be able to identify additional
international opportunities that could increase utilization of the
Company's equipment fleet; and
-- Trican's intent not to repurchase any additional shares under the
current NCIB.



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: Trican's ability to successfully negotiate and enter into an agreement for the sale of its Kazakhstan pressure pumping business and complete such sale, substantially on the terms and within the timeframe described herein; Trican's ability to continue its operations for the foreseeable future and to realize its assets and discharge its liabilities and commitments in the normal course of business; Trican being successful in executing and closing the formal documentation to implement the Amending Agreement with its lenders, Trican being successful meeting its covenants with its lenders; industry activity levels, including its effect of reducing the Company's capital and maintenance expenditures; the completion of currently planned worked activities by our customers, the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services and pricing that can be obtained for those products and services; the ability to achieve planned cost reductions; 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: failure to meet the agreed upon covenants with the Company's lenders; failure to complete the sale of the Company's Kazakhstan pressure pumping business on the terms described herein, or at all; fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; competitive and business conditions in the markets where the Company operates; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining and defending 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 provided herein as a result of the risk factors set forth under the section entitled "Risks Factors" in our Annual Information Form dated March 25, 2015. 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.

Trican undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward looking information.

Additional information regarding Trican including Trican's most recent annual information form is available under Trican's profile on SEDAR (www.sedar.com).

Requests for shareholder information should be directed to the undersigned.

FOR FURTHER INFORMATION PLEASE CONTACT:
Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
(403) 266 - 0202
(403) 237 - 7716 (FAX)
ddusterhoft@trican.ca


Trican Well Service Ltd.
Michael Baldwin
Senior Vice President, Finance & CFO
(403) 266 - 0202
(403) 237 - 7716 (FAX)
mbaldwin@trican.ca


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

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