Corporate Overview Presentation June 2015 FRACTURING ACIDIZING COILED TUBING CEMENTING
Corporate Overview
Corporate Overview Summary Canyon provides well stimulation services throughout the WCSB: Hydraulic fracturing High-rate nitrogen fracturing Coiled tubing Chemical stimulation Remedial cementing Full service water management…
Corporate Overview Capitalization Equity Capitalization 68.8 million common shares 5.7 million options and stock based compensation units 0.5 billion market capitalization Insiders own approximately 10% of common shares Average…
Corporate Overview Fraction - Full Service Fluid Management Solutions Fresh Water Access Water Disposal Fresh Fluid Hauling Water Treatment & Recycling Pipeline Transfer of Other Services Source fluid Water Treatment &…
Corporate Overview Page 8
Evolution of Canyon Changes in our Industry Oil price collapse and associated drilling activity declines Tough pricing environment Better labour environment Provincial Government now NDP Impact unknown The WCSB assets and capex…
Evolution of Canyon Goals for 2015 Control costs and financial leverage Focus on core customers Offer integrated fluid management services Reorganization / optimization of certain business processes Opportunities for significant…
Evolution of Canyon Acquisition Criteria Goal to build a bigger company Long-term believers in the energy sector Canada focus Explore all services lines ROIC focus Looking at both large and small Similar approach to cost…
Evolution of Canyon Canyon Certified Page 12
Trends in Pressure Pumping A Structural Shift in Well Stimulation
Trends in Pressure Pumping Page 14
Trends in Pressure Pumping Industry Trends New plays such as Duvernay are very pumping intensive 75% of wells drilled Hz with multistage fracturing designs Hz sections continue to lengthen Frac density / stages per well still growing…
Trends in Pressure Pumping Industry Trends (contd) Canyon - Fracturing Demand per Well 800 6,000 700 5,000 600 Tonnes of Proppant 4,000 500 M3 of Fluid 400 3,000 300 2,000 200 1,000 100 0 0 2011 2012 2013 2014…
Trends in Pressure Pumping Industry Trends (contd) Canyon - Meters Per Well By Play 6,000 5,000 4,000 2011 Meters 3,000 2012 2013 2,000 2014 2015 1,000 0 Bakken Cardium Duvernay Montney Shaunavon Viking…
Trends in Pressure Pumping Natural Gas Fired Pumps Page 18
Trends in Pressure Pumping 1,100 Tonne Sand Plant Page 19
Trends in Pressure Pumping LNG Exports Export capacity and potential drilling demand: 7 facilities proposed for the west coast of Canada 8 14 bcf/d of export capacity planned Approx. 200 wells/year per 1.0 bcf/d of production…
Trends in Pressure Pumping LNG Exports (contd) Risks: Timing and approvals Off-take agreements Labour Logistics US competition Public regulation Opportunities Term of contracts Utilization and pricing stability Page 21
Technology and the Environment
Technology and the Environment Flexible chemistries PSAC public relations Water sources campaign Fluid recycling Natural gas fired pumps Chemical and fluid systems Foams (CO2 and N2) Page 23
Investment Highlights
Investment Highlights Investment Highlights Growth decisions based on ROIC WCSB pressure pumping market has the best near-term fundamentals 85% of revenue generated from the deep basin Committed to growth per share in each of…