Canaccord Genuity Global Resources Conference Garnet Amundson, President & CEO October 17, 2012 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 Q2/12 Revenue YTD Q2/12 Gross Margin (% of Total Revenue) (% of Total Gross Margin) Downhole Tools & Downhole Rentals, 30% Tools & 51 MM Rentals, 42% Service Rigs, 25% Other, 10% 43 MM…
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: 11,834 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) 45 1 Coil tubing service rigs deep 75(3) 25 1 Service rigs 1,019(4) 53 7 Downhole tools - - Top…
EBITDA History and Analyst Consensus 100 80 9 Millions 60 92 85 40 72 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) June 30/12 Debt outstanding 41 Debt to EBITDA (TTM) 0.5x Working capital in excess of debt 6 Substantial room on debt covenants Yes Credit Facility: 100 million May 30/14 maturity…
Growth - Investing in High Demand Equipment Capital Forecast (millions) 2012 2013(1) Growth 43 11 + TBA Maintenance / infrastructure 14 TBA Total 57 TBA New Assets in Service 2012 2013(1) Additions In-service Additions In-service Deep…
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 26 26 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: Low capital intensity (14 million of inventory) High barriers to entry (people, technology) Strong return on investment Growth: Introduced Tryton MSFS in Q2/09 Three years of strong organic growth 82%…
Tryton MSFS Keys to Success Experienced tool hands (requires diverse rig experience) Diversified manufacturing High quality tool design quality control assembly, testing and installation Service and relationships 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 Oct 10/12 Trading price 2.44 Market capitalization 303 million Enterprise value (based on Aug 8/12 debt) 354 million Shares outstanding 124 million 52-week range 1.57 - 2.92 52-week average daily volume approx.…
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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