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FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc.

North American Energy Partners Inc. · Feb 2, 2010 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 1
    Investor Presentation February 2010 Rod Ruston Dave Blackley President & CEO Chief Financial Officer
  2. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 2
    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…
  3. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 3
    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…
  4. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 4
    About the Company Heavy Construction and Mining A leading mining and industrial construction contractor to western Canadian resource industries Founded in 1953 TSX and NYSE listings: NOA Pipeline Piling 4
  5. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 5
    Revenue by End Market Conventional Oil & Gas 5% Canadian Commercial and 8% 87% Oil Sands Public Construction 12 Months Ended December 31, 2009 5
  6. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 6
    Canadian Oil Sands Second largest recoverable oil reserves in the world* billions of barrels Alberta 300 Saskatchewan 264 250 Fort McMurray 200 173 150 132 115 Edmonton 102 100 92 80 50 0 Calgary Saudi Canada Iran…
  7. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 7
    Oil Sands in the Global Energy Context 20% of worlds Oil Supply Gap recoverable heavy oil and bitumen is located 120 Million Barrels/Day in Canadas oil sands 100 Canada is largest supplier of oil to US 80 90 mbd 76 US…
  8. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 8
    Leading Oil Sands Service Provider Over 30 years experience in the Canadian oil sands Relationships with all major producers Leading supplier of both mining and construction services Only mining contractor servicing all operational…
  9. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 9
    Active on Every Oil Sands Mining Site UTS years 0 5 10 15 20 25 30 CANADIAN SUNCOR FORT EXXON 32 NATURAL HILLS KEARL HORIZON SYNCRUDE 70 km AURORA TOTAL SHELL/ALBIAN JOCELYN JACKPINE AND MUSKEG RIVER SUNCOR…
  10. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 10
    Oil Sands Mining Projects Project Development Phase (3-4 years) Ongoing Operations Phase (30-40 years) Initial mine site development, project site development, Overburden removal, mine infrastructure development, airstrips, pipeline…
  11. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 11
    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…
  12. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 12
    Recurring Services Our largest and most stable source of revenue Oil Sands Revenue (Trailing 12 Months) Oil Sands Revenue Project Development Revenue C millions Recurring Services Revenue 900 800 700 600 500 400 300 15% 85%…
  13. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 13
    Stability of Recurring Services Supports the 30 to 40-year operational phase Secured by multi-year contracts, master services agreements and long-term customer relationships Operating oil sands mines are not designed for production…
  14. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 14
    Oil Sands Production Cost vs. Market Price 104 Canadian/barrel 100 90 77 80 68 69 70 60 44 40 50 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 YTD Dec 2009 Average oil price (WTI) Syncrude cash operating…
  15. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 15
    Why Producers Outsource Lower project cost and execution risk NAEP offers 30+ years experience across multiple sites NAEPs core capabilities are mining and construction; customers core capabilities are oil production More…
  16. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 16
    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 16
  17. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 17
    Large, Well Maintained Oil Sands Fleet Maximizes flexibility, minimizes risk Rented(2) Dec. 31, Nearest 10% Oil Sands Fleet by Category 2009 Competitor(1) Haul trucks 198 68 Leased 45% 45% Owned Shovels and excavators 118 14…
  18. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 18
    Barriers to Entry No new competitors entered the market during recent boom Unique operating conditions Harsh climate creates significant challenges for competitors unfamiliar with conditions Few long-term contracts increase…
  19. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 19
    Recurring Services Outlook Expanding market for recurring services Number of operational mines is growing Horizon (Canadian Natural) Operational Feb 2009 Jackpine 1 (Shell Albian) Under Construction Kearl (Exxon) Under Construction…
  20. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 20
    Project Development Outlook Improving environment for investment Oil prices strengthening Project costs coming down Industry consolidation creating better capitalized participants Project Status Jackpine (Shell Albian) Under…
  21. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 21
    Financial Performance Rolling LTM Revenue Rolling LTM EBITDA* (C millions) (C millions) 17% 17% 14% 15% 15% 16% 15% 15% 1,138 1,121 1,081 11% 176 170 990 973 162 871 146 861 135 751 129 124 716 120 98 Dec Mar Jun Sep Dec…
  22. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 22
    Ability to Generate Strong Free Cash Flow Fiscal 2007 to 2009 millions 400 Increase in Cash from Operating 350 and Investing Activities 300 250 Growth Capex (1) 200 150 Sustaining Capex (2) Working Capital (3) 100 Taxes (4) 50…
  23. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 23
    Financial Position Strong liquidity 90 million borrowing availability under our revolving credit facility, less 20 million letters of credit Cash balance of 96 million as at December 31, 2009 No short-term refinancing risk Senior…
  24. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 24
    Consolidated Revenue by Segment Piling Pipeline 10% 3% Heavy 87% Construction & Mining 12 Months Ended December 31, 2009 24
  25. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 25
    Heavy Construction & Mining Revenue and Gross Margin % millions 800 716 700 627 600 564 500 473 472 400 300 200 100 17% 16% 17% 15% 15% 0 FY 2007 FY 2008 FY 2009 9 months 9 months FY 2009 FY 2010 25
  26. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 26
    Heavy Construction & Mining Outlook Positive outlook for recurring services Canadian Natural overburden removal contract back to planned demand levels Continuing presence under new three-year contract with Shell Renewed and expanded…
  27. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 27
    Piling Revenue and Gross Margin % millions 200 180 162 160 155 140 133 120 109 100 80 60 50 32% 40 28% 25% 24% 20 18% 0 FY 2007 FY 2008 FY 2009 9 months 9 months FY 2009 FY 2010 27
  28. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 28
    Piling Outlook Commercial and industrial construction remains constrained Infrastructure spending expected to grow +50B of infrastructure spending budgeted for Ontario and Alberta over next 2-3 years Expansion into Ontario market…
  29. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 29
    Industrial Construction Outlook Potash Mine Expansions Rocanville, Mosaic and Allan (Saskatchewan) Hydro Electric Power and Run of River Projects Canadian Hydro Developers (BC) SAGD Projects ConocoPhillips Surmont II, Husky…
  30. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 30
    Pipeline Revenue and Gross Margin % millions 250 225 201 200 175 150 125 101 101 100 75 50 47 22% 22% 25 13% 19 7% 0 FY 2007 FY 2008 FY 2009 9 months 9 months FY 2009 FY 2010 -22% 30
  31. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 31
    Pipeline Outlook Market conditions remain competitive but new projects continue to be tendered Recent contract wins include: Three-year integrity contract with TransCanada Pipelines Ltd. Fraser River South Arm Crossing project for…
  32. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 32
    Pipeline Construction Outlook TMX Project Other pipeline opportunities: 2010 Anchor Loop Pembina (Nipisi) 270 km (20, 12 and 8 TMX-2 diameter) TMX-3 Williams Energy (Redwater ) 420 km (12 diameter) Enbridge Multi-year integrity…
  33. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 33
    Strategic Direction Short-Term Strategy: Pursue long-term strategic partnerships Carefully manage costs and liquidity Building on balance sheet strength Long-Term Strategy: Leverage and expand our integrated service offering…
  34. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 34
    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…
  35. FEBRUARY 2010 INVESTOR PRESENTATION – North American Energy Partners Inc. – slide 35
    Thank you

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