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Q2 2015 Earnings Call – Pulse Seismic Inc.

Pulse Seismic Inc. · Aug 7, 2015 · 39 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. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 1
    OUR LANDSCAPE Investors Presentation Q2 2015
  2. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 2
    PULSE PROFILE
  3. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 3
    PULSE: Canadas Leading Seismic Data Library Provider 28,400 Sq. km of 3D seismic LICENSED 340,000 Lin. km of 2D seismic MULTIPLE TIMES PARTICIPATION SURVEYS DATA LIBRARY SALES Pulse partners with oil and gas exploration Our 2D…
  4. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 4
    METRICS THAT MATTER: Shareholder Free Cash Flow and Cash EBITDA 0.08/common share Returning capital to our annual dividend shareholders is a priority 6.3 million in common share buybacks in 2014 We are a pure play Cash EBITDA is…
  5. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 5
    KEY TRADING Information as at June 30, 2015, unless otherwise specified Trading Symbols TSX: PSD FACTS OTCQX: PLSDF Corporate Headquarters Calgary, Alberta, Canada Stock Price 2.51 PULSE SEISMIC INC. Shares Outstanding 56,796,689…
  6. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 6
    JULY 31, 2015 STRONG 1.0mm 2.0mm BALANCE SHEET CASH LONG TERM DEBT 1.0mm 48.0mm 50 million, three-year extendible, revolving credit facility with current UNDRAWN PORTION maturity of February 13, 2018 NET DEBT OF REVOLVING CREDIT…
  7. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 7
    2015 YTD FINANCIAL RESULTS 11mm 7.8mm JUNE 30, 2015 TOTAL REVENUE DATA LIBRARY SALES 4.7mm 4.5mm CASH EBITDA SHAREHOLDER FREE CASH FLOW 2.5mm 5.5mm OPERATING LINE Long term DEBT *Information as at JUNE 30, 2015, unless…
  8. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 8
    HOW OUR BUSINESS WORKS
  9. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 9
    OUR LANDSCAPE IN WESTERN CANADA: GROWTH IN UNCONVENTIONAL PLAYS MONTNEY TIGHT SANDS PLAY LIQUIDS-RICH (DEEP BASIN) TARGETS 2.3 bcf/d estimated Montney gas DUVERNAY SHALE CARDIUM LIGHT OIL PLAY production, 2014 4-6 bcf/d forecast…
  10. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 10
    WESTERN CANADA: A WORLD-CLASS ENERGY- PRODUCING REGION LIQUIDS PIPELINES NATURAL GAS PIPELINES PROPOSED PIPELINES 3.2 million bbls/d crude oil production in Western Canada, 2013 13.9 bcf/d natural gas production in Western Canada,…
  11. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 11
    UNDERSTANDING OUR BUSINESS: Pulse Acquires High-Quality Data that Retains its Value Why 2D: 2D seismic allows exploration companies to plan land acquisition programs and exploration drilling concepts. Why Pulse 2D: Most of Pulses 2D…
  12. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 12
    2D SEISMIC DATA 2D SEISMIC SALES, 2010-2014 By Date of Seismic Recording RETAINS ITS VALUE 2% 1960s Last 5 Years Sales 13% 11% 1970s 1980s 1990s 2000s Our 2D Seismic Data Library Generates Revenue Continuously 2D data accounts for…
  13. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 13
    3D SEISMIC PROVIDES PINPOINT ACCURACY OF GEOLOGICALLY COMPLEX TARGETS 3D seismic is more detailed and more expensive to shoot Important for horizontal drilling, unconventional plays like shale and tight gas formations and complex…
  14. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 14
    PULSE SEISMIC: A Market Leader in Western Canada ESTIMATED CANADIAN 2D MARKET ESTIMATED CANADIAN 3D MARKET Others 7,000 Pulse Schlumberger 340,000 11,000 Pulse 28,400 TGS Arcis 2D 3D 14,810 Seitel Canada (km) (km2)…
  15. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 15
    OUR CUSTOMERS: DIVERSE AND LONG-TERM PULSE HAS A BASE OF 300 KEY FACTS CUSTOMERS A noteworthy amount of 3D data in the dry Concentrated in Albertas oil and natural natural gas area of northeast British gas industry Columbia has been…
  16. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 16
    DRIVERS OF DATA LIBRARY SALES NEW PROCESSING EXPLORATION Better New Discoveries Interpretation M&A, JVS AND NEW PIPELINES & ASSET SALES INFRASTRUCTURE New Players Economically Viable Development CROWN MINERAL LAND SALES NEW…
  17. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 17
    TYPES OF TRANSACTIONAL SALES PARTNERSHIPS & CORPORATE JOINT VENTURES MERGER/ACQUISITION ASSET SALE New technical or operational Buyer has 30 days to decide Seismic licenses do not participants must purchase a to pay a discounted…
  18. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 18
    CHANGING SEISMIC ANNUAL TRADITIONAL & TRANSACTION-BASED DATA SALES PROFILES SALES 50,000 44,874 45,000 Sales Breakdown 2D/3D (%) for the Six Months Ended June 30 40,000 100 35,000 33,121 90 86 83 80 30,000 70 25,000 60…
  19. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 19
    GROWING THE DATA LIBRARY: TWO APPROACHES PARTICIPATION SURVEYS ACQUIRE EXISTING DATA Surveys designed and managed by Pulse Purchase high-quality proprietary datasets and partly pre-funded by customer from competitors and E & P…
  20. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 20
    GROWING THE SEISMIC Size of the Seismic Data Library LIBRARY THROUGH 2D (km) 3D (sq. km) HIGH DEMAND DATA 400,000 30,000 350,000 25,000 300,000 20,000 250,000 3D (km2) 2D (km) 200,000 15,000 150,000 10,000…
  21. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 21
    2010 TRANSFORMATIONAL ACQUISITION Pulse Seismic Data Pre-Purchase Pulse Seismic Data Po st-Purchase 3D Seismic 3D Seismic Acquired seismic assets from Divestco in 2010 2D Seismic 2D Seismic Purchase price of 75.5 million including…
  22. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 22
    RESULTS
  23. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 23
    RETURN ON NET PARTICIPATION SURVEY NET SURVEY COSTS VS. DATA LIBRARY SALES COSTS, 2000-2015 40 26 24 Total survey cost 220 million 35 22 Pulse net survey cost 67 million 30 20 Pulse Net Cost (CdnMM) 18 Data library sales 130…
  24. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 24
    IT ALL ADDS UP: CASH RETURN ON 2004 NET SURVEY COST 9.0 CASH RETURN ON 2004 8.0 8.0 NET SURVEY COST 7.0 670% 6.6 Total Return on 7 surveys shot: 1,104 sq. km Pulse Net Cost 6.0 Gross CAPEX: 25 million Cash Return (MM)…
  25. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 25
    SEISMIC DATA CORRELATION OF SEISMIC DATA LIBRARY SALES TO SFCF PER SHARE LIBRARY SALES & SFCF PER SHARE 0.80 (/Diluted Weighted Shares Outstanding) 0.59 0.49 0.47 (CdnMM) 0.34 0.36 0.35 0.28 0.08 2007 2008…
  26. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 26
    SHAREHOLDER FREE Q2 June 30, June 30, (MM except per share) 2015 2014 2015 YTD 2014 YTD CASH FLOW (SFCF) Data library sales 6.5 7.3 7.8 35.7 Participation survey revenue - - 3.2 - CALCULATION Less: Salaries, internal commissions…
  27. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 27
    STRONG
  28. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 28
    STRONG SHAREHOLDER DIVIDENDS AND SHARE PURCHASES (MM) VALUE THROUGH 12.0 DIVIDENDS AND SHARE 10.8 10.5 PURCHASES 10.0 8.4 8.4 8.0 7.1 6.3 6.0 5.4 4.8 4.7 4.5 4.0 3.5 2.2 2.3 2.3 2.0 1.7 1.7 1.3 1.0 0.5…
  29. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 29
    STRONG RETURNS SFCF, CASH EBITDA & LONG-TERM DEBT AT YEAR-END 2010-2014 WITH SHRINKING 70.0 LONG-TERM DEBT 60.0 61.7 54.7 50.0 50.0 46.7 40.0 ( MM) 30.0 26.7 27.9 28.6 27.7 23.9 22.1 21.7 19.6 20.7 20.0…
  30. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 30
    HISTORICAL ALLOCATION OF FUNDS: FIVE YEARS (2010-2014) FUNDS AVAILABLE (MM) FUNDS ALLOCATED (MM) Cash in Bank Common Share 19 Purchases 28 Shareholder Free Debt Repayments Cash Flow 69 142 Debt Financing 46 Equity Financing…
  31. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 31
    2014 CAPITAL 2014 CAPITAL ALLOCATION (MM) ALLOCATION Stable annual dividend 4.7 Share buyback totaling 6.3 million (2.1 million common shares) Long-term debt reduced by 16.6 million Stable annual dividend totalling 4.7 million…
  32. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 32
    REASONS TO INVEST IN PULSE High barriers to entry Joint venture and M&A Strong balance sheet replacement value of our activity leads to Historical cash margins seismic data library potential transaction- of 75-85% on our data…
  33. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 33
    OUR PEOPLE EXECUTIVE MANAGEMENT TEAM Neal Coleman Pamela Wicks Jeff Bectold Trevor Meier President and Chief Vice President Vice President Vice President Executive Officer Finance and Chief Operations Sales & Marketing Financial…
  34. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 34
    FINANCIAL APPENDICES
  35. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 35
    CONSOLIDATED (thousands of Canadian dollars) J une 30, 2015 December 31, 2014 Assets STATEMENTS OF Cash and cash equivalents - 901 Trade and other receivables 8 ,897 7,083 Prepaid expenses 2 83 275 FINANCIAL POSITION Total…
  36. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 36
    CONSOLIDATED (thousands of Canadian dollars) Three months ended March 31 Six months ended June 30 2015 2014 2015 2014 STATEMENTS OF Revenue Data library sales 6 ,461 7,321 7 ,777 12,827 COMPREHENSIVE Participation surveys Total…
  37. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 37
    CONSOLIDATED (thousands of Canadian dollars) For the six months ended June 30 2015 2014 Ca sh flows provided by (used in): STATEMENT OF O p erating: Net earnings (loss) and comprehensive income (loss) ( 4,387) (2,432) CASH FLOWS…
  38. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 38
    CAPITAL SHARES OUTSTANDING AT YEAR-END (MM) STRUCTURE 70 66 62 61 59 60 57 57 Authorized unlimited common and preferred 53 shares 50 56,796,689 common shares outstanding (millions of shares outstanding) (June 30, 2015)…
  39. Q2 2015 Earnings Call – Pulse Seismic Inc. – slide 39
    PULSE SEISMIC INC. 2400, 639 5TH Avenue S.W. Toll-free: 1.877.460.5559 Calgary, Alberta T2P 0M9 Telephone: 1.403.237.5559 Email: infopulseseismic.com

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