Cathedral Energy Services Peters & Co. 2015 Energy Conference September 15-17, 2015
Presentation Overview Company Overview Cathedrals Services Corporate Strategy and Objectives 2015 Results Summary Appendices Appendix 1 Directional & Horizontal Drilling Overview Appendix 2 Flowback & Production Testing…
Company Overview Cathedral Overview Established 1998 High performance directional drilling services and dependable flowback and production testing solutions. Partnership approach with our customers to help them achieve higher…
Company Overview North American Coverage Cathedral operates in all key North American conventional and unconventional resource plays Canadian Operations Calgary (CORPORATE, SALES, MWD) Nisku (MOTORS) Estevan (MOTORS) Red Deer (F&PT)…
Company Overview Revenue Sources Flowback & Production Testing 24% 45% Canada 44% 55% U.S. Directional & Percentages based on 2014 results Horizontal Drilling 76% 6
Company Overview Cathedral Snapshot TSX: CET (as of Sept 8, 2015) 2014 Financial Performance 275 Million 38 Million Revenue EBITDAS 2015 Q2 Year to Date Performance 80 Million 4.5 Million Revenue EBITDAS Market Statistics Market…
Directional & Horizontal Drilling Services Better Performance Everyday Why our customers choose Cathedral Reduce drilling time Team depth and experience Solutions for challenging drilling environments Competitive…
Directional Drilling Strategic Positioning Services TIER 1 Integrated Service Companies Technologically advanced Focus on large international projects Packaged offering doesnt align with CATHEDRAL TIER 2+ North American a la…
Flowback & Production Testing Services Prepared / Dependable / Efficient Why our customers choose Cathedral Equipment suited to their needs High pressure testing services Critical sour services Inline testing / green…
The New Reality Strategy Yesterday Today & Tomorrow 80 to 100 Oil Price Era 60 to 80 Oil Price Era Theme WAS Theme IS Quickly bring on production Reduce capital costs E&P program capital cost Lower program costs matter was less…
The New Reality Plays to our Advantages Strategy We have technology and people that can offer customers a performance advantage Our services have demonstrated significant savings that reduce overall program costs In-house…
Corporate Objectives 2015 Business Priorities Adjust our cost structure and financial obligations to reflect the decline in activity levels and protect our balance sheet Preserve our key employee base so when industry…
Corporate Objectives Cost Structure Adjustments Labor rate reductions Wage rollbacks ranging from 5 to 20+% Workforce reduction (employees) 39% Reduction of benefits Job shifting Implementing business expense reductions in all…
Corporate Objectives Enhancing our Capabilities to position us to be a stronger company coming out of this downturn Profitable Revenue Growth Key Financial Improve EBITDA Margins Objectives Improve Return on Assets Deep focus on…
2015 Results 2015 Q2 Financial Highlights Q2 challenging on the backs of the oil price affecting E&P budgets and an early and lengthy spring break-up in Canada. Increase in motor rental revenue to 1.2 million compared to nominal…
2015 Results 2015 Results Highlights (in C millions) 2015 Q2 2015 Q1 2014 YE Revenue 29.7 50.1 275 EBITDAS (1.2) 5.8 38.5 Cash 0.8 6.7 5.1 Working capital (including cash) 18 25 38 Total shareholders equity 113 130 128…
Key Takeaways Summary Management team with enhanced focus on improving and growing the business Technological leader with distinctive competitive advantages Solid plan to manage through the downturn and position the company…
Thank you
APPENDIX 1 Directional & Horizontal Drilling Market: The majority of wells drilled today are horizontal or directional: United States 80% Canada 92% This trend is driven by the increased pay zone contact area of horizontal wells…
APPENDIX 1 Directional & Horizontal Drilling Bottom Hole Assembly Drill bit MWD/LWD Power Section Bearing Assembly Rotating Sliding 22
APPENDIX 1 Directional Drilling Value Proposition Cathedral provides a suite of high performance technologies and services that enable our customers to achieve accurate wellbore placement, enhanced drilling efficiencies, and lower…
APPENDIX 2 Flowback & Production Testing Market: Flowback services are a key aspect in the well fracking operation Capture and separate frac fluids and sand, water, oil and gas returned to the surface when the well is being…
APPENDIX 2 Flowback & Production Testing 25
APPENDIX 2 Flowback & Production Testing Value Proposition Cathedrals quality control and employee training programs ensure consistent, reliable, and dependable service while providing the highest level of environmental and safety…
APPENDIX 3 Management Team Cathedrals management team has one of the longest tenures of any team currently operating in the directional or flow back business today P. Scott MacFarlane with CET Randy Pustanyk President & CEO since 2001…
APPENDIX 3 Board of Directors Cathedrals board is independent, experienced, and highly focused on creating shareholder value Rod Maxwell Director Scott Sarjeant Director Chairman since 2000 Director since 2003 Managing Director,…
Loading...
