Investor Presentation June 2011 Rod Ruston David Blackley Chief Executive Officer Chief Financial Officer
Forward-Looking Statements The information provided in this presentation contains forward-looking statements and information which reflect the current view of North American Energy Partners with respect to future events and financial…
Overview Heavy Construction and Mining Founded in 1953 TSX and NYSE listings: NOA Current share price: 8.82 52 week high/low: 14.23/7.15 Market capitalization: 319.7 million Shares outstanding: 36 million 52 week average…
Presentation Agenda Oil sands realities Opportunities About the company Financial results Segment performance and opportunities
Reality 1: Oil Sands Mines Keep Operating Low sensitivity to oil prices Competitive unit costs achieved at full capacity High risk of employee loss/ plant damage during shutdowns
Reality 2: SAGD Will Not Replace Mining SAGD and mining are geologically distinct processes Mining SAGD Typical size: 100-300k bpd Typical size: 10-50k bpd Base load production to feed upgrader Supplements mining production Draws on…
Reality 3: Producers Outsource Seasonal work Part-time labour requirement Short-term equipment requirement Outsource Specialized knowledge & equipment Non core to oil production
Reality 4: Demand is Growing
The Opportunity Largest heavy construction and mining contractor in high growth oil sands market Poised to benefit from recently announced oil sands development Position further entrenched by recent competitor difficulties…
About the Company Largest Construction & Mining Contractor in the Oil Sands Expertise 30+ years in Northern Albertas harsh Revenue by End Market operating environment Canadian Knowledge to come up with best solutions 9% Oil Sands…
First On, Last Off Project Development Phase (3-4 years) Ongoing Operations Phase (30-40 years) Initial mine site development, project site Overburden removal, mine infrastructure development, development, airstrips, pipeline…
Swing Supplier NAEP achieves higher equipment utilization rates by working on every major site in the oil sands Single Customer Fixed production capacity Excess production requirement Multiple Customers NAEP demand
Active on Every Oil Sands Mining Site Future Opportunities: undefined civil earthworks scopes, long-term overburden Current Activity: 10-year overburden and scope (volumes and duration dyke construction (presently suspended due UTS…
Project Lifecycles Project Development Recurring Services Engineering Commissioning and Design and Start-up Proceeding Initial Operational Delayed Construction Phase Syncrude - Base Syncrude - Aurora Syncrude Aurora South…
Tailings & Environmental Services Engineered Earth Fluids Transfer & Pipeline & infrastructure Hydraulic Transport Structures Pond Closure & Tailings Management Final Reclamation Land Reforming 17
Fluid Fine Tailings Inventory Projections New regulations require dramatic reduction in tailings inventory FFT Inventory (Millions m3) Bitumen Production (Millions bbls/d) 6,000 3.0 Forecast Mined Bitumen Production 5,000 2.5 4,000…
Low Risk/High Growth Business Model Construction & Mining Piling Pipeline Recurring services Leveraged to high- Suited to cyclical provide stable base growth construction industry with low markets capital commitment Oil sands…
Financial Performance Rolling LTM Revenue Rolling LTM EBITDA* (C millions) (C millions) 17% 17% 16% 14% 15% 14% 12% 10% 10% 973 904 139 861 862 858 798 129 751 761 124 120 122 716 114 105 87 84 Mar Jun Sep Dec Mar Jun…
Heavy Construction & Mining Revenue and Gross Margin % 2011 revenue and margins negatively impacted by 42.5 million revenue writedown related to overburden removal contract with Canadian Natural millions 800 716 700 666 667…
Oil Sands Outlook Production capacity Oil Sands Investment increasing billions 35 All active oil sands mines expected to be operating 30 29 later this year 26 27 27 25 Kearl mine scheduled to begin production in 2012 20 18…
Piling Revenue and Gross Margin % 2011 revenue up 54% YOY on improved market conditions, larger projects and contribution from Ontario and Cyntech operations Improving margins reflect stronger economic & competitive conditions…
Piling Opportunities Rebounding commercial and industrial construction sectors Robust growth in the oil sands and Ontario Cyntech acquisition generating new opportunities Screw piling, pipeline anchors and tank services create…
Pipeline Revenue and Gross Margin % Contracts in BC contributed to a 60.5 million increase in 2011 revenues Margins affected by project scope, start-up delays and adverse weather on northern BC contracts; completion delays on a…
Pipeline Construction Outlook TMX Project Other pipeline opportunities: 2011 Anchor Loop TCPL (Tanghe Creek) 120 km (48) TMX-2 TCPL (Horn River) Mainlines 500 km (36) TMX-3 Enbridge (Woodland) Extension 385 km (36) Enbridge (L18)…
Investment Highlights Largest construction and mining contractor in the oil sands Solid core business of recurring services with high barriers to entry and near-term growth potential Investment in Canadas oil sands without direct…
Thank you
Appendix
Active on Every Oil Sands Mining Site Future Opportunities: undefined civil earthworks scopes, long-term overburden Current Activity: 10-year overburden and scope (volumes and duration dyke construction (presently suspended due UTS…
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