Investor Presentation Garnet Amundson, President & CEO January 2013 TSX: ESN Essential Energy Services
A Focused Story Coil Tubing: the largest coil tubing well service fleet in Canada Service Rigs: high-quality, geographically dispersed fleet Downhole Tools: conventional and multi-stage fracturing (MSFS) Oil and liquids-rich natural…
Where Earnings are Generated YTD Q3/12 Revenue YTD Q3/12 Gross Margin (% of Total Revenue) (% of Total Gross Margin) Downhole Tools & Downhole Rentals Tools & 77 MM Rentals Service Rigs 26 MM 60 MM Other Coil Well Well…
Oil and Horizontal Wells A Continued Focus Canada Increasing Oil and Horizontal Wells 2011: 12,877 wells 100% drilled; 16,071 well completions 80% 2012: 10,409 well 60% completions (CAODC forecast) 40% 200,000 producing wells…
Canadian Market Share Canadian Equipment Estimated Count Market Position Industry Essential(1) Coil tubing service rigs total 309(2) 46 1 Coil tubing service rigs deep 75(3) 27 1 Service rigs 1,001(4) 55 7 Downhole tools - - Top…
EBITDA History and Analyst Consensus 100 80 9 Millions 60 40 82 72 73 20 29 10 0 2009 2010 2011(1) 2012E(2) 2013E(2) ESN TEC - pre-acquisition (1) 2011 actual results includes Technicoil (TEC) earnings from Jun…
Strong Balance Sheet Long-term Debt (millions) Sep 30/12 Debt outstanding (1) 50 Debt to EBITDA (TTM) 0.6x Working capital in excess of debt 9 Substantial room on debt covenants Yes (1) Debt at Dec 19/12 was 32 million (after…
Growth - Investing in High Demand Equipment Capital Forecast (millions) 2012 2013(1) Growth 36 32 Maintenance / infrastructure 14 13 Total 50 45 New Assets in Service 2012 2013 Additions In-service Additions In-service Deep coil 1 Q4…
Operations Throughout the WCSB TSX:ESN TSX: ESN EssentialEnergy Essential EnergyServices ServicesLtd. Ltd. 11
Well Servicing Coil Tubing and Pumpers The largest coil tubing well service fleet in Canada Primarily focused on oil and liquids-rich natural gas plays Preferred for horizontal wells Rigless completions, fracture stimulation through…
Well Servicing Service Rigs Oil well focus, including oilsands Completions, workovers Production services, abandonments Quality mobile fleet and crews Equipment Count Dec/11 Dec/12 Dec/13 40 30 20 38 33 33 29 24 10…
Completion of Horizontal Wells Coil Tubing Service Rig Safe, efficient Safe alternative to coil tubing Works while well is flowing and Use of kill fluid to service a well under pressure Able to deal with a wide variety of…
Downhole Tools & Rentals Multi-stage fracturing (MSFS) on horizontal wells Conventional tools with an oil focus for production and completion work Impressive history of organic growth over many years TSX:ESN TSX: ESN…
Tryton Tools Business Model: Growth: Low capital intensity (12 million Business founded in 1997 of inventory) Introduced Tryton MSFS in Q2/09 High barriers to entry (people, Consecutive years of strong technology, customer trust)…
Tryton MSFS Keys to Success Experienced tool hands (requires diverse rig experience) Service and relationships High quality tool design quality control assembly, testing and installation Diversified manufacturing New technology to…
Key Takeaways Largest coil tubing well service fleet in Canada strong focus on deep coil tubing Complementary, geographically dispersed service rig business Innovative downhole tool business Disciplined capital spending while…
Corporate Data at Jan 9/13 Trading price 2.30 Market capitalization 285 million Enterprise value (based on Dec 19/12 debt) 317 million Shares outstanding 124 million 52-week range 1.75 - 2.92 52-week average daily volume approx.…
Deep Coil Tubing Well Service 3 months 9 months Utilization Q3/12 Q3/11 Q3/12 Q3/11 Deep coil tubing 79% 104% 71% 90% Masted and conventional with depth capacity up to 6,000 meters Masted rigs can switch the reels for different coil…
Coil Well Service Nitrogen and Fluid Pumpers Support the coil tubing fleet - provides circulation through coil tubing Deep coil jobs often require nitrogen and/or fluid pumping Recent builds reduce the need for sub-contracted…
Service Rigs 3 months 9 months Utilization Q3/12 Q3/11 Q3/12 Q3/11 Service rigs 45% 54% 49% 49% Focused on oil and liquids-rich natural gas work Broad geographic footprint throughout the WCSB with shops and support Experienced…
Tryton MSFS - Overview 3 months 9 months Q3/12 Q3/11 Q3/12 Q3/11 Number of MSFS jobs 89 85 210 167 Strong organic growth Specialized downhole tools to isolate and fracture multiple zones in a horizontal well an efficient and cost…
Colombia Operations commenced in Q2/11 Business model: modern equipment and procedures for significant customer efficiency Crews: 60 personnel, 90% Colombians / 10% Canadian ex- pats Equipment in-country: 2 coil tubing rigs…
Contact Information Garnet Amundson President & Chief Executive Officer Jeff Newman Chief Financial Officer Karen Perasalo Investor Relations 1100, 250 2nd Street SW Calgary, Alberta T2P 0C1 Telephone: (403) 513-7272 E-Mail:…
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