AGENDA WHO WE ARE MARKET OPPORTUNITIES MARKET ENVIRONMENT & ACTIONS TAKEN 2016 OUTLOOK UNLOCKING OPERATING LEVERAGE OUR KEY PRIORITIES 2
WHO WE ARE Leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from oil and gas exploration and production waste streams.…
WHO WE ARE Leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from oil and gas exploration and production waste streams.…
NEWALTA GEOGRAPHICALLY Newalta has a network of over 40 commercial facilities which also act as critical infrastructure support for our onsite operations Includes three facilities in the Bakken, ND Drill site presence in…
2015 Heavy Oil Revenue HEAVY OIL (145M) SAGD Plant 28% 72% Facilities Onsite Heavy Oil has eight facilities receiving Fort McMurray third party waste Facility Leveraged facility network to support all current SAGD and…
HEAVY OIL - Onsite Onsite operates on customers sites involved in heavy oil mining and in situ production; critical mass of waste generated at site makes onsite capital investment more economical than offsite transportation costs. Fee…
2015 Oilfield Revenue OILFIELD (183M) 28% Gold Creek MPF 72% Facilities Drilling Services Over 35 facilities receiving third party waste Niton Junction Facility Recently imported knowledge obtained from Heavy Oil to…
OILFIELD Facilities Facility Type/Services Waste Streams Fluid processing Drilling Water disposal Completions Thermal desorption Landfill Production Sale of recovered oil 9
OILFIELD Drilling Services Drill Site Environmental Solids control equipment Projects Drilling waste management Drill cuttings management services Proprietary data capture solution Site remediation 10
MARKET TAILWIND TRENDS DRILLING Increasing volumes generated per well Longer horizontals require higher quality oil, drives enhanced recovery Higher regulatory standards New technologies / techniques increase PRODUCTION…
INCREASING PREVALENCE OF PAD DRILLING Pad Drilling Trends1 Significant shift in drilling practices towards Multi-Well Pads as Percentage of Total Horizontal Wells Drilled 80% higher efficiency pad drilling Canada United States…
UNITED STATES INCREASING WELL COMPLEXITY Rig Count by Trajectory Drilling Rig Depth Rating Rig Count Percent Horizontal Depth Rating (ft) Vertical Horizontal % Horizontal 10,000 to 12,999 13,000 to 15,999 16,000 to 19,999 Over 20,000…
Integrated Service Model 15
SOLUTION FOR ANADARKO IN DJ BASIN Drill Site At the drilling location 1 Newalta processes Anadarkos returning drilling mud to maximize the beneficial reuse of the fluids on location and minimize waste sent for disposal off site 5…
SOLUTION FOR ANADARKO Reduced invert drilling mud lost to cuttings down to 6% from 30% while maintaining a drill rate of a mile a day Deployed and commissioned within 20 days Savings of approximately 50% on disposal costs and 50%…
Modular Processing Solution at Anadarko DJ Basin in Colorado
MARKET ENVIRONMENT OVER PAST TWO YEARS WTI oil price and drilling activity declines in excess of 50% WTI Active Rigs(1) 2014 93 370 2015 49 184 2016F 45 151 (1) Source: CAODC Step changes in oil price in H2 2015, Q1 2016 drove…
ACTIONS TAKEN TO STRENGTHEN BALANCE SHEET Cost rationalization to drive in excess of 50 million in annualized savings Dividend reduction, and subsequent suspension Reduced capital spending -- 2016 capex target of 15 million In…
Q2 2016 RESULTS Results above guidance: Q2 revenue of 41.8 million and Adjusted EBITDA of 2.3 million Excluding Fort McMurray wildfires, Adjusted EBITDA would have been 6.8 million Contracts providing steady cash flow, 26% of TTM…
2016 OUTLOOK Second half 2016 expected to be substantially stronger than first half supported by improved commodity prices, slow but steady increase in production volumes to our facilities, improved drill site performance, and impact…
OPERATING LEVERAGE 10% to 40% recovery 5% to 10% incremental return 10% to 40% on 200 million recovery invested in 2014 and 2015 Minimal new capital required to deliver operating leverage 23 Oil price and activity…
OVERVIEW OF DEBT Debt capital structure comprised of senior secured and unsecured instruments with laddered maturity dates Instrument Amount Maturity Credit Facility (160 million total capacity) 58 million1 July 2018 Unsecured…
CREDIT FACILITY Total borrowing capacity 160 million 102 million unused capacity at Q2 2016 Covenant package provides flexibility in current operating environment Total Debt to EBITDA waived through Q1 2018 Staged thresholds for…
OUR KEY PRIORITIES REVENUE/EBITDA GROWTH THROUGH OPPORTUNITY DEVELOPMENT RELENTLESS COST MANAGEMENT CASH OPTIMIZATION OPERATING LEVERAGE ON RECOVERY We will protect our balance sheet and survive through this sustained…
NEWALTA OVERVIEW As at August 4, 2016 TTM Revenue as at June 30, 2016 239 million Market capitalization 232 million Enterprise value 564 million Share price 2.63 Shares outstanding 88.1 million 52 week low-high 1.45 - 13.91…
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