CIBC World Markets 2013 Energy Conference April 17, 2013 TSXV: CWC
Forward Looking Statements Certain statements contained in this presentation, including statements which may contain words such as could, should, expect, estimate, believe, likely, will or statements relating to oil and gas service…
Who Are We Directors Management Experience Jim Reid, Chairman Duncan Au, President & CEO 23 years Alexander Greene Kevin Howell, Chief Financial Officer 16 years Darwin McIntyre, VP Operations Wade McGowan 33 years (Eastern) Gary…
Capitalization & Trading Highlights Shares outstanding April 5, 2013 155.1 million Share price April 5, 2013 0.73 Market capitalization 113.2 million Net debt December 31, 2012 32.1 million Enterprise value 145.3 million 2013 EBITDA…
Total Return Performance Share Dividend Total Total Share Price Per Return Return Price Gain Share % Dec. 31, 2010 0.25 n/a n/a n/a n/a Dec. 31, 2011 0.59 0.34 nil 0.34 136% Dec. 31, 2012 0.70 0.11 0.065 0.175 30% Apr. 5,…
Stock Price Performance 2 Years 6
Financial Results & Position 2013 ( millions) Analyst 2012 2011 2010 Consensus Revenue 117.5 112.3 109.5 68.9 EBITDAS1 29.2 25.0 28.5 13.0 Funds from Operations1 29.2 25.0 28.5 13.0 Net Income (Loss) 9.0 4.8 12.7 (2.8) Long-Term…
TTM Revenue & EBITDAS Growth Rate 8
What Do We Do Well Servicing Other Oilfield Services 68 Service Rigs 7 Snubbing 8 Coil Tubing 11 Well Testing 2012 REVENUE 2012 EBITDA 8% 5% Well Servicing Well Servicing Other Oilfield 95% Other Oilfield 92% Services…
Well Servicing - Service Rigs 68 active service rigs (39 singles, 26 doubles, 3 slants) 6th largest service rig fleet in WCSB with average age of 6 years Depths from 1,500 to 5,000 meters Completions, maintenance, workovers &…
Well Servicing Service rigs go back to the same oil well on average 7 to 8 times in its life. Repeatable production work. Not solely dependent on drilling activity. Over 80% of work focused on maintenance, workovers & abandonments.…
Utilization vs. Well Completion WCSB Service Rig Utilization vs. Canadian Well Completions Source: AltaCorp Capital Research Morning Note, March 11, 2013 with data from CAODC and JuneWarren-Nickles Energy Group 12
Service Rig Market Apr. 13 vs. Apr. 11 Canadian Service Rig Market - April 2013 vs. April 2011 Service Rigs Apr. 2013 Apr. 2011 Increase % Increase Total Total (Decrease) (Decrease) Precision Drilling Corporation 182 197 (15) -8%…
WCSB Service Rig Count Western Canadian Service Rig Count. How Does Break-up Look Source: AltaCorp Capital - Research Morning Note, March 25, 2013 compiled from CAODC data Note: CAODC service rig data is less reliable than its…
Service Rig Utilization CWC vs. Industry Source: First Energy Capital 15
Well Servicing - Coil Tubing 8 coil tubing units (3 Class I, 3 Class II, 2 Class III) Depths from 1,500 to 4,000 meters Horizontal completions, workovers, clean-outs 16
Coil Tubing Count - Worldwide 17
Coil Tubing Market 2012 Canadian Coil Tubing Market - January 2012 Coil Tubing Market of Units Share Essential Energy Services 49 15.9% Trican Well Service 23 7.4% Calfrac Well Services 20 6.5% Schlumberger 17 5.5% Baker Hughes /…
Coil Tubing Quarterly Utilization Company of Units Q4 2012 Q3 2012 Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Essential 19 16% 15% 7% 25% 30% 25% 18% 34% CWC 8 30% 22% 9% 90% 37% 26% 10% 55% Other large coil tubing providers…
Other Oilfield Services 7 snubbing units 11 well testing units 20
Where Do We Work Across entire WCSB From NE BC to SE Saskatchewan in all the oil plays. 21
Fundamental Growth Drivers Horizontal & multi-stage fracing wells drilled in WCSB have paybacks of 8 to12 months, but decline rates of 50% to 60% in the first year. E&P customers need to continue drilling to replace rapidly declining…
Strategy Continue to expand the service rig fleet with newest and most relevant equipment. Average age of CWCs service rigs is 6 years compared to much older iron in the hands of the Top 4 service rig competitors. Rig hands want to…
Replacement Value On Feb. 22, 2013 Western Energy Services (WRG) announced they are acquiring IROC Energy Services (ISC). IROC is selling to Western at a price of 3.10 per share. If Western had made a similar offer for CWC on a…
Potentially More Upside to Stock Price Market Price Market Price Potential Price December 31, 2012 April 5, 2013 December 31, 2013 2012 EBITDA 24,216 EV/2012 EBITDA multiple 5.8 2013 EBITDA (analyst consensus) 28,200 28,200 EV/2013…
Why Buy CWC Continued Growth in Highest Demand Assets resulting in Increased Cash Flows. Ability to pay Sustainable Dividend with a high yield and manageable payout ratio. Accretive Acquisition opportunities exist in the…
Contact Info CWC Well Services Corp. Suite 755, Bow Valley Square III 255 5th Avenue SW Calgary, AB T2P 3G6 Phone: (403) 264-2177 Fax: (403) 264-2842 E-mail: infocwcwellservices.com Website: www.cwcwellservices.com Duncan…
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