Trican Well Service (TCW) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands geographic and commodity diversification, increasing scale and operational expertise in oilier plays in Alberta and Saskatchewan, and enhancing service offerings across drilling, completion, and production lifecycles.

• Both companies share customer-focused, value-based business models and corporate values, making integration culturally straightforward and supporting long-term growth.

• Provides opportunities for complementary completions and cementing solutions, leveraging best practices and infrastructure from both companies.

• Supplements organic growth profile and leverages idle assets for increased utilization and business line expansion.

• Builds on Iron Horse's 20+ year track record and premium service reputation.

Financial terms and conditions

• Purchase price is approximately $77.35 million in cash plus 33.76 million common shares, with an acquisition multiple of less than 3x EBITDA.

• Major Iron Horse shareholders are subject to a 12-month lock-up on received shares.

• Net debt/EBITDA expected to be below 0.5x at close, with deleveraging to current levels by end of 2026.

• Dividend to increase by 10% to $0.055 per share per quarter, first paid September 30, 2025, contingent on deal closing.

• The deal is accretive to EBITDA, free cash flow, and earnings.

Synergies and expected cost savings

• Immediate and significant accretion to EBITDA, free cash flow, and earnings, with double-digit accretion across key metrics.

• G&A and maintenance capital as a percentage of revenue will decrease, boosting free cash flow and earnings.

• Spare equipment from the acquirer will be utilized by Iron Horse, reducing growth capital needs to nearly zero.

• Efficiency improvements and scale to reduce costs for both company and clients.

• Combined infrastructure allows for expansion with minimal capital expenditure.