Trican, Canyon merge to create Canada’s largest frack fleet

By Luke Geiver | March 22, 2017

Trican Well Service Ltd. and Canyon Services Group Inc. have formed a single company after Trican acquired all shares of Canyon. The transaction gives Trican a combined total of 675,000 horsepower of fracturing capacity. Trican is now western Canada’s largest energy services firm. After the transaction, Trican will also offer cementing, coiled tubing, nitrogen, industrial services and fluids management.

“As we look at our businesses today, both companies’ available horsepower is fully committed and we have increased visibility on strong activity through the third and fourth quarters of 2017,” said Dale Dusterhoft, Trican’s president and CEO. “Job sizes and horsepower per job continue to increase and the combined company will have the ability to respond to these changes in the market.”

Dusterhoft said both he and Brad Fedora, president and CEO of Canyon, are seeing a situation in the Canadian market where both horsepower and sand volumes are increasing rapidly per well. “We are living in a very different world now,” he said. “These trends are putting strains on both of our respective companies,” adding that “Scale allows us to run a very efficient organization.”

Q1 activity levels were higher than either company anticipated and both firms believe activity and job sizes will continue to pick up throughout the year. Trican and Canyon each has parked equipment. Trican has 250,000 hp of parked equipment and Canyon has 25,000 hp of parked equipment with another 75,000 hp in need of workers. The equipment that is in service for both firms is totally booked out for the remainder of the year. “We are not seeing any pullback with commodity prices,” Dusterhoft said, adding that many firms were okay with $50 oil due to hedging programs already established.

With very little customer overlap, both companies see a strong growth opportunity through their combined efforts. In 2016, Trican exited the U.S. pressure pumping market through a deal with Keane Group. The deal included a non-compete clause for Trican to serve the U.S. until the end of 2018, however, Trican believes its investment into Keane will pay off for the company as activity in the U.S. continues to increase.