INVESTOR PRESENTATION Enercoms The Oil & Gas Conference 20 August 19,2015 Denver, CO
Outline Company Overview, Vision and Strategy Operations Financials Investment Highlights 2 6/23/15
Vision To create a multi-faceted oilfield service company through both organic growth and acquisitions which provides our customers with best-in-class operators and the highest quality equipment and service in a cost effective…
History and Acquisitions July 2012 Founded October 2012 - Acquired Austin Chalk Petroleum Services April 2014 Acquired United Centrifuge USA July 2014 Acquired Evolution Guidance Systems August 2014 Equipment Acquisition from…
Leadership Team Munawar Micki H. Hidayatallah Chairman & CEO Mark C. Patterson- President & COO Alya Hidayatallah CFO 5 6/23/15
Leadership Team Track Record Worked together as a successful and effective team at Allis-Chalmers Energy (Allis) Micki founded Allis in 2001 to create a best-in-class global oilfield services provider Allis achievements from 2001 to…
Executing Our Strategy Completed 3 acquisitions in 2 years and invested more than 25.0 million in CAPEX enabling us to execute our 3 point growth strategy: 1 Expand and diversify the customer base Expand the geographic footprint to…
Transition Period: First Half 2015 Mitigating the Impact of Current Market Conditions Pricing sacrificed for utilization Cost Controls Expanded product offerings in all markets served Added new revenue stream 8 6/23/15
OPERATIONS
Product and Service Offerings Solids Control and Closed Loop Systems Fluid Delivery Systems with Surface Rental Equipment and Containment Directional Drilling and MWD Service 10 6/23/15
Strengths Product differentiation Complete service offerings Large geographic footprint Diversified customer base 11 6/23/15
400bbl Vertical MCTs w/ Pump and Containment 12 6/23/15
Centrifuge 13 6/23/15
Directional Products & Services Well Planning & Engineering Services Directional Drilling Packages Measurement & Logging-While-Drilling (MLWD) HawkEye Real Time 3D Survey Software SURQC Survey Correction Software Onsite…
Hawkeye RT Software 15 6/23/15
Down-hole MWD w/ Real Time Survey 16 6/23/15
Products & Services Survey Specifications Survey Acceptance Criteria - Utilize most current version of Geodetic Magnetic Model: HDGM (preferred) or BGGM - Ensure sufficient non-mag spacing to keep estimated azimuth interference <…
Basins In Which We Operate Mississippian Cana Woodford Appalachian Granite Wash Marcellus/Utica Barnett Permian Haynesville- Bossier Eagle Ford Tuscaloosa Woodbine 18 6/23/15
Customer Diversification Customer Profile: Mid-Large cap Customer Diversification 120 100.00% E&P companies operating in the 90.00% major North American shale plays 100 80.00% Number of revenue generating 80 70.00% 60.00%…
Consolidation and Reorganization Created a fully integrated organization Consolidated all facets of HSE & QA/QC Focused management of all aspects of Sales, Marketing and Business Development 20 6/23/15
The Aly Promise Defined by product differentiation and the ability to provide exclusive and highly customizable services, we guarantee premium quality, competitive pricing, less downtime and a streamlined solution for your…
FINANCIALS
Non-GAAP Financial Measures We disclose and discuss EBITDA as a non-GAAP financial measure in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange…
Historical Financial Results 2013 2014 Revenues 18.4 42.5 % growth year-over-year NA 130.77% Cost of Revenues 9.9 23.4 Gross Margin 8.5 19.2 % of revenues 46.38% 45.06% SG&A 4.2 8.3 EBITDA 4.3 10.9 % of revenues 23.44%…
Pro Forma Historical Financial Results 2013 2014 Revenues 30.7 47.3 % growth year-over-year NA 54.02% Cost of Revenues 16.0 25.8 Gross Margin 14.7 21.5 % of revenues 47.77% 45.50% SG&A 5.3 9.4 EBITDA 9.4 12.2 % of…
2nd Half 2015 Outlook 2nd Half 2015 Average price of crude oil 40 -50/bbl Average price of natural gas 2.50 - 3.00/mcf Average number of rigs operating in the US 750 900 Revenue 12.5 -17.5 million EBITDA 2.0 - 3.5 million 26…
2nd Half 2015 Outlook Expect revenue to increase slightly when compared to 1H15 Stable pricing Utilization increases Expect EBITDA margins of 15-25% 10% payroll cuts 25-30% decrease in headcount Elimination of sub-rental and third…
2016 - 2017 Outlook 2016 2017 Average price of crude oil 55 - 75/bbl 70 - 90/bbl Average price of natural gas 2.75 - 3.25/mcf 3.50 - 4.25/mcf Average number of rigs 900 950 950 1100 operating in the US Revenue 45 55 million 75…
2016 - 2017 Outlook Expect significant revenue increases 5-10% annual price increase in 2017 Approaching full utilization at end of 2016 Invest in new equipment for directional drilling and solids control product lines in 2H16 and…
2016 - 2017 Outlook Expect EBITDA margins of 20-30% in 2016 and 25-35% in 2017 Benefit of increased activity spread across fixed costs Benefit of pricing increases which fall directly to the EBITDA line 30 6/23/15
Well-Positioned in Uncertain Market Conditions Ability to adjust capital structure as market conditions change Strong banking relationships provide ability to refinance Senior Secured Debt upon close of minimum equity raise of 3.0…
APPENDIX
Reconciliation of Net Income to Adjusted EBITDA For the Years Ended December 31, 2013 2014 Components of EBITDA: Net Income 0.7 2.6 Non-GAAP Adjustments: Depreciation and Amortization 2.4 5.0 Interest Expense, Net 0.6 1.3 Income…
Reconciliation of Pro Forma Net Income to Pro Forma Adjusted EBITDA For the Years Ended December 31, 2013 2014 Components of EBITDA: Net Income 2.3 3.0 Non-GAAP Adjustments: Depreciation and Amortization 4.1 5.6 Interest Expense,…
Loading...
