Cathedral Energy Services Annual and Special Meeting May 11, 2015 1 1
Cathedral Overview Operating in Canada and United States Cathedral Energy Services is a trusted partner to North American energy companies requiring high performance directional drilling services and dependable flowback and…
2014 Review 2014 Financial Highlights Revenues (in C millions) 18% EBITDAS 5% (in C millions) 50 17% 300 44% 250 275 40 41 200 225 39 203 30 33 150 20 100 10 50 0 0 2012 A 2013 A 2014 A 2012 A 2013 A 2014 A…
2014 Review Revenues by Geographic Area (in C millions) 2014 275M 5% 44% Head Office, Calgary Newest Facility, Oklahoma City 5 5
2014 Review Revenues by Service Line (in C millions) 2014 275M Flowback & Production Testing 67(24%) Directional & Horizontal Drilling 208 (76%) 6 6
2014 Review 2014 Accomplishments Introduction of new proprietary technologies, including: The HAWK a real time downhole drilling diagnostics system that optimizes drilling performance by minimizing wasted energy, increasing bit…
2015 Outlook 2015 Outlook Most analysts are anticipating a 4050% decline in capital spending by E&P companies in 2015 compared to 2014 40% to 45% in Canada 50% to 55% in US 2015 outlook is very uncertain at this point Canada…
2015 Outlook How We are Reacting 3 Priorities for our business in 2015 Adjust our cost structure and financial obligations to reflect the decline in activity levels and protect our balance sheet Preserve our key employee base…
2015 Outlook Cost Structure Adjustments Given 57% of our cost structure is labor, we have implemented: Wage rollbacks ranging from 5-20% Workforce reduction 1,000 at 2014 year end versus 800 at April 2015 27% reduction Reduction of…
2015 Outlook The New Reality Yesterday Today & Tomorrow 80 to 100 Oil Price Era 60 to 80 Oil Price Era THEME was THEME is Quickly bring on production Reduce capital costs E&P program capital cost was less of a Lower program costs…
2015 Outlook This Environment Plays to our Advantages Directional providers provide opportunity for high cost savings as their performance can significantly reduce overall program costs A day saved on drilling equates to 60,000 to…
2015 Outlook Recent Day Savings This graph illustrates an increase in Cathedrals drilling performance in a series of wells in the same plays over a six month period from Q4 2014 to Q1 2015. 13 13
2015 Outlook We are also Enhancing our Capabilities Better communicate our value proposition Strategic marketing Building drilling performance optimization capability Value added / partnership approach goes along with our mission…
2015 Results 2015 Q1 Results Highlights Revenue: 50 million EBITDAS: 5.8 million Positive impacts on margins from our cost containment initiatives Despite reduction in our average day rate for services provided we were able to…
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