TSX:CFW CALFRAC WELL SERVICES LTD.calfrac.investorroom.com/download/Calfrac...– Added over 300 field personnel across North America – WCSB local market essentially at full employment

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TSX:CFW

CALFRAC WELL SERVICES LTD.Investor Presentation – Q2/2017

Certain information contained within this presentation and statements made in conjunction with this presentation constitute forward-looking statements. These statements relate to future events or the future performance of the Company. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate,” “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “forecast”, “can” and similar expressions. In particular, forward-looking statements in this presentation include, but are not limited to, statements with respect to future capital expenditures, future financial resources, anticipated equipment utilization levels, future oil and gas well activity, projections of market prices and costs, outcomes of specific events and trends in the oil and gas industry.

The forward-looking statements within this presentation and made in conjunction with this presentation are derived from certain assumptions and analyses made by the Company based on its experience and perception of historical trends, current conditions, expected future developments and other factors that it believes are appropriate in the circumstances, including assumptions and analyses relating to: the economic and political environment in which the Company operates; the Company’s expectations for its customers’ capital budgets and geographical areas of focus; the effect unconventional oil and gas projects have had on supply and demand fundamentals for oil and natural gas; the Company’s existing contracts and the status of current negotiations with key customers and suppliers; the effectiveness of cost reduction measures instituted by the Company; and the likelihood that the current tax and regulatory regime will remain substantially unchanged. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from the Company’s expectations. Such risks and uncertainties include the items discussed under the heading “Business Risks” in the Company’s 2015 Annual Report and under the heading “Risk Factors” in the Company’s most recently filed Annual Information Form. Consequently, all of the forward-looking statements contained within this presentation and made in conjunction with this presentation are qualified by these cautionary statements and there can be no assurance that actual results or events anticipated by the Company will be realized or that they will have the expected consequences or effects on the Company or its business or operations.

Other than as required by applicable securities laws, the Company assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

Forward Looking Statement

© Calfrac Well Services Ltd. 2


Company Snapshot

* As at 16:00:00 ET on 5/1/2017

TSX Stock Symbol: CFWShare Price* $3.3430-Day Average Volume* 800,000Market Capitalization* $458.1 million Enterprise Value* $1,357 millionShares Outstanding* 136.7 millionInsider Ownership ~25%

Canada Frac Crew Operator (2012). Calfrac Well Services Photo

Full Service Pressure Pumping

Canada Fleet:392,000 HHP – 207,000 HHP Active13 Coiled Tubing Units – 8 Active

U.S. Fleet:627,000 HHP – 319,000 HHP ActiveCementing Units – 11 Units IdleCoiled Tubing Units – 5 Units Idle

Latin America Fleet:131,000 HHP14 Cementing Units7 Coiled Tubing Units

Russia Fleet:70,000 HHP7 Coiled Tubing Units – 6 Active

As at March 31, 2017


Active Rig Counts: North America & International


- U.S. land rig count up ~100% from trough, still ~55% below 2014

- WCSB Q1 rig count in line with 2015, up ~80% from 2016

- E&P Spending forecast to be up 40+% in 2016

Source: Baker Hughes

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Sep‐14 Jan‐15 May‐15 Sep‐15 Jan‐16 May‐16 Sep‐16 Jan‐17

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f Rigs

Lower 48 Active Land Rig Count

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100

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300

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500

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700

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Num

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f Active WCSB Land

Rigs

2014 2015 2016 2017

Pumping Intensity Could Sell Out Lower 48 Market


2014

- 800 rigs4,000 – 6,000 tons/well

- 2 rigs/ spread- 400 spreads required

- Average spread size growing

- ~10MM active HHP

- Demand for full reactivation to 13MM HHP

- 1,800 rigs1,000 – 5,000 tons/well

- 3 rigs / spread- 600 spreads required

- Spreads typically 30,000 HHP

- Fully booked fracturing market

- 18MM HHP in Lower 48

2017

- Per well metrics growing- Sand & Fluid

- Fracture design evolving- Higher Rates- Higher Pressure

- Improved Productivity- More Redundancy

- Multiple E&P’s projecting programs with 2 rig/spread in recent presentations


U.S. Intensity Continues To Increase

Source: Rystad Energy, Morgan Stanley

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1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17

Permian

Eagle Ford

Midcon

Bakken

Marcellus/Utica

Niobrara

Proppant Tonnage per Well (U.S. Land)


Canadian Intensity Following US Trends

Source: Frac Database, TD Securities

0.0

0.5

1.0

1.5

2.0

2.5

2013 2014 2015 2016 2017F

Well Count Proppant per Well Total Demand

Proppant use per wellmore than double 2013 level

Well count down 43% from 2014 peak

Well count recovery (2016 +40%) impliesfracturing demand in line with 2014WCSB Fleet 10% smaller than 2014

MANAGING THE RECOVERY



Margin Trend Reversal Underway

Source: Company Reports, Morgan Stanley

2017?

CFW Q1 Result

Our License to Operate

Plan ▪ Do ▪ Assess ▪ AdjustHSE

QUALITY

SUPPLY CHAIN Evaluate ▪ Negotiate ▪ Finalize ▪ Implement

Monitor ▪ Refine ▪ Execute ▪ Improve

Calfrac employee on a Canadian hydraulic fracturing job. Calfrac Well Services Photo

TECHNOLOGY Research ▪ Develop ▪ Test ▪ Refine

Calfrac sand terminal in Whitecourt, Alberta. Calfrac Well Services Photo


Field Staff Recruiting– Added over 300 field personnel across North America– WCSB local market essentially at full employment– Safety and operating competency focus for new hires

Increased Field Pay and Salaries– Fulfills a promise made to employees

Rotational Employee Program Reactivated

Biggest Challenge to Growth in North America


Managing The Recovery – People

Equipment reactivations progressing– Costs meeting expectations (~$2 million per spread)– Coiled Tubing Unit reactivations in Canada to support increased fracturing demand

– To date: ► Added 1 fleet in Canada (Viking – 15,000 HHP) ► Adding 2 fleets in the U.S. during Q2 2017 (Colorado – 65,000 HHP)

In discussions in all areas of North America for further reactivations

Will not sacrifice profitability or safety/flawless execution culture – Seek to use reactivation discussions as pricing catalyst


Managing The Recovery – Equipment

Maintain investment in technology– Have generated 47 new products in 2015-2017– Research continues in all applications

Increasing focus on equipment– Intensity increases continue across North America– Move to stainless steel fluid ends– API Q2 framework generates significant operating data for analysis/action


Managing The Recovery – Technology

Reactivation costs are consistent with forecasts– Costs driven by previous decisions

► Park in working condition or park at failure– Less than $2 million for a small (~20,000 HHP) fracturing fleet– Up to $3 million for a larger (~40,000 HHP) fracturing fleet

Increased capital spend to support larger active fleets– Typical maintenance capital items– No surprises to date on life-cycle spending (fluid ends, etc.)

Looking at balance sheet in the longer term– Mid-cycle cash flow– Capital expansion plans– Interest payments– Maturity of term debt– Currency mix


Managing The Recovery – Finance

“Amateurs talk about tactics, but professionals study logistics.” -- General Robert Barrow, Commandant, USMC

“The line between disorder and order lies in logistics…” -- Sun Tzu


Logistics – Calfrac’s In-House Advantage


Sand Mine Rail Transload Trucking Well Site

Calfrac Fleet 1,000+ CWS long-term leased railcars and growing CWS owned sand and nitrogen trucks

Long-term rail contracts from CWS contracted mines to our major storage terminals Ability to influence rail service / expedite railcars Preferential treatment on permits / no permits required to CWS exclusive terminals

Sand terminals US: 7 locations, 70,000+ ton of sand storage Canada: 4 CWS exclusive core locations over 45,000 MT Complimented by 5 shared terminals with 10,000 MT of dedicated storage CWS manages >90% of Canadian sand, ~50% of U.S. sand requirements

CWS Approach

CWS purchase 90%+ of our Northern White sand at the mine / manage our own logistics

CWS managed rail logistics / railcars including managing freight, tracking and expediting cars and railroad relationship

Diversified sand supplier and mine base with access to all rail lines

Diversified storage terminals served by varying rail lines (When available)

Allocate sand for a particular job and utilize safety stock to manage constraints (Mine, car, rail / job delays)

CWS Sand Management Differentiators


Sand Mine Rail Transload Trucking Well Site

Competitor Approach

Purchase sand from sand supplier at terminal locations /rely on sand supplier logistics

Rely on sand suppliers to track and expedite rail shipments and manage inventory to meet upcoming job requirements

Rely on sand suppliers to determine where product will be sourced which rail lines will be utilized.

Sand suppliers look to sell / turn sand as quickly, often redistributing “Allocated” sand to other pumpers during job delays

Supply Chain Flexibility, Adaptability, and Control are key CWS differentiators

Canadian Transload Locations


Exclusive Sand Terminal Locations:• Taylor, BC• Whitecourt, AB• Kuusamo, AB• Glidden, SKMerchant Terminal Location:• Grande Prairie

FINANCIAL INFORMATION



The Balance Sheet

Neuquén, Argentina Frac Operation (2014). Calfrac Well Services Photo

Term Debt US$600 million with an interest rate of 7.5% Matures in 2020

Second Lien Term Loan $200 million with an interest rate of 9.0% Matures in 2020

Credit Facilities Loan facility $300 million (largely undrawn) Matures in 2018

Recent Equity Financing Raised $60 million, proceeds used to fund second

equity cure ($25 million) and provide additional liquidity– 1st equity cure elected in Q2 - flexibility

Capital Program 2017 capital budget set at $45 million

THANK YOU!

Documents

TSX:CFW CALFRAC WELL SERVICES LTD.calfrac.investorroom.com/download/Calfrac...– Added over 300 field personnel across North America – WCSB local market essentially at full employment