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2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp.

Savanna Energy Services Corp. · Jan 14, 2014 · 38 slides

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Slides

  1. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 1
    Savanna Energy Services Corp. JANUARY 14-16, 2014 AltaCorp/ATB 2nd Annual Energy Services, Diversified Industries & Ag Conference 1
  2. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 2
    FORWARD LOOKING INFORMATION This document contains statements that constitute forward-looking statements within the meaning of applicable securities legislation. These forward looking statement include, among others, the companys…
  3. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 3
    Financial Data Share Price (January 6, 2014) 8.32 52-week share price range 6.45- 8.56 Market Capitalization (November 6, 2013) 729 million Shares Outstanding (fully diluted) 87.6 million Annual Dividend per Share (paid monthly) 0.36…
  4. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 4
    ASSET MIX AND BOOK VALUE (as at September 30, 2013) DRILLING RIGS Book Value 802 million 51 Deep Telescopic Doubles and Triples (3000 - 5000m)-52 rigs TDS Platform (3000m Vertical, 4400+m Horizontal)-23 rigs CT-1500 (Hybrid,…
  5. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 5
    COMPANY OVERVIEW Service lines Drilling (76% long-reach horizontal) Workover Rigs Rental Equipment (drilling & workover) Geographies Canada Bakken; Oilsands; Cardium; Montney/Doig; Viking; Shaunovan; Peace River Arch, Deep Basin…
  6. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 6
    REVENUE SPLIT BY GEOGRAPHY 100% 90% 80% 70% 60% International 50% 40% Canada 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD* 2015 TARGET IS 50:50 CANADA:INTERNATIONAL * September 30, 2013 6
  7. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 7
    CANADA Tele-Doubles TDS CT-1500 Service Rigs 7
  8. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 8
    UNITED STATES Tele-Doubles and Triples TDS Workover Rigs 8
  9. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 9
    AUSTRALIA CT-1500 Workover Rigs 9
  10. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 10
    SAVANNA 2013-14 UPDATE TO LONG TERM STRATEGY PLAN PROGRESS Get Deeper Upgrade rig capacity 76% of fleet capable of long reach horizontal drilling Design and Build Rigs for the Future Upgrades to current fleet continue Build of…
  11. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 11
    Drilling TELESCOPIC DOUBLES AND TRIPLES Represents 46% of NBV 51% of gross margin (rolling 12M - September 30, 2013) Advantages Health, Safety and Environment All rigs since 2010 use AC electric power with bi-fuel capacity…
  12. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 12
    Drilling TOP DRIVE SINGLES (TDS) Represents 13% of NBV 13% of gross margin (rolling 12M - September 30, 2013) 8 - TDS-2200 Shaunavon, Heavy oil and Viking 15 - TDS-3000 Permian, Cardium, Shaunavon, Heavy oil, Viking Advantages…
  13. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 13
    Coring & Drilling CT-1500 Hybrid Drilling Rigs Represents 12% of NBV 11% of gross margin (rolling 12M - September 30, 2013) Canada: Coring Oil sands Australia: Coal Seam Gas (CSG) Advantages Health, Safety and Environment Less…
  14. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 14
    WORKOVER RIGS Represents 22% of NBV 19% of gross margin (rolling 12M - September 30, 2013) Advantages North America Modern, high capacity rig platform Canadian rigs are free standing (no rig anchors) Leverage to increased…
  15. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 15
    EQUIPMENT RENTALS Represents 5% of NBV 6% of gross margin (rolling 12M - September 30, 2013) 63M invested in various oilfield equipment and auxiliary supplies Advantages Wellsite shacks, boilers, tanks, annulars, pumps, diverters,…
  16. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 16
    FORT MCKAY-SAVANNA ENERGY SERVICES LIMITED PARTNERSHIP First Nation Partnership to Drive Success in the Oilsands Fort McKay First Nations INFLUENCE Located in the heart of the oilsands Agreements in place with producers Progressive…
  17. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 17
    Q3 2013 INCOME STATEMENT NINE MONTHS At September 30, 2013 Stated in thousands of dollars, except per share amounts: NINE MONTHS ENDED: 2013 2012 CHANGE Revenue: 519,584 515,572 1% Operating expenses: 364,620 354,600 3%…
  18. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 18
    Q3 2013 INCOME STATEMENT THREE MONTHS At September 30, 2013 Stated in thousands of dollars, except per share amounts: THREE MONTHS ENDED: 2013 2012 CHANGE Revenue: 170,611 158,748 7% Operating expenses: 119,988 111,086 8%…
  19. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 19
    EBITDAS AND REVENUE (IN THOUSANDS OF DOLLARS) 900,000 800,000 700,000 600,000 500,000 Revenue EBITDA 400,000 300,000 200,000 22% 23% 31% 23% 100,000 49% 27% 18% 33% 13% 17% 29% -13% 0 2001 2002 2003 2004 2005 2006…
  20. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 20
    2014 PRIORITIES General: Focus on execution utilization, costs, efficiencies Health, Safety & Environment continuous improvement Systems alignment with National Oil Companies and Majors continuous improvement North America: Greater…
  21. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 21
    2014 CAPITAL FOCUS (millions) Australia 5 Rig delivery 40.2 Workover Rigs North Dakota 6 2.6 Initiate Triple rigs 2 North America (1) 28.0 Maintenance/Upgrades(2) 52.0 Facilities & Infrastructure(3) 22.8 TOTAL 145.6_ (1) Initial…
  22. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 22
    2014 FINANCING CAPACITY Available (millions) Senior Notes (2018 maturity) 175 Revolver (5 bank syndicate 2017 maturity) 200 Optional Accordion (1) 50 Partnership Financing 20 Other Financing 20 Max Available 465 Estimated Debt Dec…
  23. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 23
    SAVANNAS ORGANIC GROWTH OPPORUNITIES Strong opportunities for growth in all of Savannas service lines Drilling High Mobility/capacity AC Triples (Canada & USA) SAGD Drilling Triples (Fort McKay) Ultra-Deep Highly Mobile AC Doubles…
  24. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 24
    INVESTMENT SUMMARY WHY SAVANNA Equipment: Long-reach horizontal drilling fleet Service rig fleet - size and location leverage Oilfield Rentals complement drilling and service rig fleet Competitive Advantage in Australia (established…
  25. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 25
    Savanna Energy Services Corp. www.savannaenergy.com infosavannaenergy.com 25
  26. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 26
    APPENDIX BOARD OF DIRECTORS EXECUTIVE MANAGEMENT ADDITIONAL FINANCIAL INFORMATION CANADIAN WELL COUNT, DEPTH AND DAYS ABORIGINAL PARTNERSHIPS ENVIRONMENTAL SUSTAINABILITY ANALYST COVERAGE 26
  27. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 27
    BOARD OF DIRECTORS President and CEO of Twin Butte Energy Ltd.; former CEO and Chair of the Board JAMES SAUNDERS of Director of Prairie Schooner Petroleum Ltd.; brings over 26 years of CHAIR diversified technical and management…
  28. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 28
    EXECUTIVE MANAGEMENT KEN MULLEN One of the founders of Savanna in 2001; former President and CEO of Plains Energy PRESIDENT & CHIEF EXECUTIVE OFFICER Services Ltd. GEORGE CHOW One of the founders of Savanna in 2001; responsible for all…
  29. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 29
    NET DEBT TO EQUITY (IN THOUSANDS OF DOLLARS) 1,000,000 800,000 600,000 400,000 Equity Net Debt 200,000 18% 16% 13% 16% 13% 18% 18% 3% 5% -22% 18% 10% 2% 0 -200,000 * Net Debt Gross debt less working…
  30. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 30
    REVENUE BY DIVISION 100% 90% 80% 70% 60% 50% Oilfield Services Contract Drilling 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 September 30
  31. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 31
    CANADA AVERAGE DAYS AND DEPTH PER WELL Data and estimates courtesy of FirstEnergy Capital Corp. 12 3,000 10 2,500 Average Days per Well (left axis) 8 2,000 6 1,500 Average Depth per Well in metres (right 4 1,000 axis) 2…
  32. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 32
    CANADIAN WELL COUNT AND DEPTH Data and estimates courtesy of FirstEnergy Capital Corp. 25,000 10,000 9,000 Wells Drilled (left axis) 20,000 8,000 7,000 Average Well Depth in metres 15,000 6,000 (right axis) 5,000 Linear…
  33. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 33
    CANADA TOTAL DAYS DRILLED Data and estimates courtesy of FirstEnergy Capital Corp. 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e…
  34. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 34
    ABORIGINAL PARTNERSHIPS Eighteen (18) rigs in partnerships with nine (9) First Nation communities: Dene Tha First Nation 2 Drilling Rigs Saddle Creek Cree Nation 3 Drilling Rigs Blood Tribe 1 Drilling Rig Duncans First Nation 1…
  35. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 35
    ABORIGINAL PARTNERSHIPS STRUCTURE Drilling and oilfield services Multi-directional partnerships which create meaningful relationships Benefits for all three stakeholders Savannas Aboriginal Training Program offers training for…
  36. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 36
    ENVIRONMENTAL SUSTAINABILITY We minimize the rigs environmental footprint through: Efficiency Reducing the number of building and loads (increase mobility, decrease transportation costs and associated emissions) Patented Hybrid rigs…
  37. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 37
    ANALYST COVERAGE FIRM ANALYST Alta Corp. Capital Dana Benner BMO Capital Markets Michael Mazar CIBC World Markets Jon Morrison Cormark Securities Todd Garman Desjardins & Co Jamie Murray FirstEnergy Capital Kevin Lo Peters & Co. Jeff…
  38. 2ND ANNUAL ENERGY SERVICES DIVERSIFIED INDUSTRIES & AG CONFERENCE – Savanna Energy Services Corp. – slide 38
    Savanna Energy Services Corp. www.savannaenergy.com infosavannaenergy.com 38

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