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2Q17 Corporate Presentation – Pulse Seismic Inc.

Pulse Seismic Inc. · Sep 15, 2017 · 42 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. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 1
    1 Corporate Presentation
  2. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 2
    WE ARE CANADAS LEADING SEISMIC DATA LIBRARY PROVIDER Business Overview
  3. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 3
    4 PULSES BUSINESS MODEL 28,647 Sq. km of 3D seismic LICENSED MULTIPLE 447,000 Lin. km of 2D seismic TIMES GROWTH DATA LIBRARY SALES 1. Pulse acquires existing 2D and 3D datasets Oil and gas producers of all sizes license…
  4. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 4
    5 METRICS THAT MATTER OPERATING CASH MARGIN CASH EBITDA SHAREHOLDER FREE CASH FLOW We are a data-driven, cash-based We deduct participation business. Pulses operating cash survey revenue from Cash EBITDA less interest margin on…
  5. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 5
    6 KEY TRADING FACTS PULSE SEISMIC INC. Information as at June 30, 2017, unless otherwise specified TSX: PSD Trading Symbols TSX: PSD OTCQX: PLSDF OTCQX: PLSDF Corporate Headquarters Calgary, Alberta, Canada Stock Price 2.60…
  6. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 6
    7 2.9MM SECOND QUARTER 2017 DATA SALES FINANCIAL RESULTS Outperforming the Energy Services 1.4MM Sector in a Low-Commodity-Price CASH EXPENSES Environment 1.5MM CASH EBITDA 1.6MM SHAREHOLDER FREE CASH FLOW 0 7 LONG-TERM…
  7. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 7
    8 SURVIVABILITY Positioned for an extended low- commodity-price environment LOW COSTS AND SPENDING NO DEBT NO CAPITAL COMMITMENTS Pulses cash operating costs were At June 30, 2017, we had Pulse doesnt require labour crews 1.4MM…
  8. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 8
    9 0 drawn THE RESULT: A VERY STRONG BALANCE SHEET OPERATING LINE OF CREDIT (June 30, 2017) 0 30MM, three-year extendible, LONG-TERM DEBT revolving credit facility with current maturity of February 13, 2020. 40MM accordion…
  9. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 9
    Value in Our Business
  10. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 10
    11 UNDERSTANDING OUR BUSINESS Simplified What We Do: Pulses business model is to acquire geological column, high-quality 2D and 3D seismic data sets, then to repeatedly re-license the greater Alberta data. Deep Basin Second…
  11. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 11
    12 3D SEISMIC ENABLES DETAILED MODELLING OF GEOLOGICALLY COMPLEX TARGETS 3D seismic is more detailed and more expensive to shoot. Critical for most horizontal drilling, unconventional plays like shale gas and tight light oil…
  12. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 12
    13 2D SEISMIC DATA 2D SEISMIC SALES, 2012-2016 RETAINS ITS VALUE BY DATE OF SEISMIC RECORDING 1960s 2% Our 2D seismic data library continues to 2000s 14% 10% 1970s generate revenue. 2D data shot decades ago remains valuable…
  13. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 13
    14 PULSE: A WESTERN CANADA MARKET LEADER ESTIMATED CANADIAN 2D MARKET ESTIMATED CANADIAN 3D MARKET 7,600 Others Schlumberger 10,700 28,600 PULSE 447,000 PULSE Seitel Canada 650,000 2D (km) TGS Arcis 16,000 3D…
  14. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 14
    15 WESTERN CANADA KEY PULSE DATA LIBRARY AREAS Data Library Montney 2D Coverage 103,584 km Play Coverage 3D Coverage 19,957 km2 Deep Basin 2D Coverage 60,734 km 3D Coverage 13,490 km2 Duvernay 2D Coverage 158,726 km 3D…
  15. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 15
    16 OUR CUSTOMERS: DIVERSE AND LONG-TERM PULSE HAS A BASE OF 300 CUSTOMERS Majority of customers focused on Concentrated in Albertas oil and natural gas liquids-rich natural gas and light oil in Albertas industry. greater Deep…
  16. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 16
    17 GENERATING REVENUE: TWO TYPES OF LIBRARY DATA SALES TRADITIONAL SALE TRANSACTIONAL SALE A straightforward New licensing fees on purchase of 2D or 3D data already-licensed library from Pulses library data triggered by a…
  17. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 17
    18 DRIVERS OF TRADITIONAL EXPLORATION DATA LIBRARY SALES New Discoveries NEW PIPELINES & NEW PROCESSING INFRASTRUCTURE Economically Better Viable Interpretation Development CROWN MINERAL LAND SALES NEW DRILLING…
  18. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 18
    19 TYPES OF TRANSACTION-BASED SALES PARTNERSHIPS & CORPORATE JOINT VENTURES MERGER/ACQUISITION ASSET SALE New technical or operational Buyer has 30 days to decide Seismic licence does not participants must purchase a to pay a…
  19. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 19
    20 TRADITIONAL & TRANSACTION-BASED SALES (MM) 50,000 44,877 45,000 40,000 CHANGING SEISMIC 70% 35,000 33,121 Traditional Sales DATA SALES PROFILES 30,000 In 2016 25,000 20,000 19,163 19,473 19,114 16,629…
  20. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 20
    21 GROWING THE DATA LIBRARY: TWO METHODS More Data Increases Future Revenue-Generating Capacity ACQUIRE EXISTING DATA PARTICIPATION SURVEYS Pulse purchases high-quality proprietary datasets Surveys designed and managed by…
  21. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 21
    22 GROWING THE SIZE OF THE SEISMIC DATA LIBRARY SEISMIC LIBRARY 500,000 35,000 On January 26, 2016, Pulse 450,000 30,000 acquired approximately 400,000 107,000 net kilometres of 2D seismic data and 87 net square 350,000…
  22. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 22
    23 WE ARE A GROWTH COMPANY Strategic Investments at Opportune Moments Acquired seismic assets from Divestco in 2010. Purchase price of 75.5MM included 55.5MM in cash plus 14.3MM Pulse common shares. 100% increase in Pulses 3D…
  23. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 23
    24 CAPITAL INVESTMENTS SINCE 2010 3D Seismic Data Acquired by Purchase and Participation Survey As at January 1 km2 added km2 added Pulse net investment in seismic data (Millions) 2010 12,913 13,533 2010 77.6 2011 26,446 68 2012…
  24. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 24
    25 CURRENT SEISMIC COVERAGE Western Canadas Premium Licensable Seismic Dataset 28,647 Sq. km of 3D seismic 447,000 Lin. km of 2D seismic 2D Data 3D Data
  25. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 25
    Value in Our Results
  26. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 26
    27 RETURN ON NET SURVEY COSTS VS. DATA LIBRARY SALES PARTICIPATION SURVEYS 2000-2016 26 45 24 215% 40 22 Return of Data Sales on Pulse Net Cost 35 20 Total gross survey costs: 219 MM 18 30 Prefunding: 153 MM Data…
  27. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 27
    28 CASH RETURN ON 2004 NET SURVEY COST IT ALL ADDS UP: 9.0 8.0 2004 SURVEYS 8.0 DETAILED METRICS 7.0 6.6 731% Total Return on 6.0 Pulse Net Cost Cash Return (MM) Seven surveys shot: 1,104 sq. km 5.0 Gross capital…
  28. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 28
    29 SEISMIC DATA LIBRARY SEISMIC DATA LIBRARY SALES VS. SFCF PER SHARE SALES ARE STRONGLY 70.0 0.90 CORRELATED TO 0.80 SHAREHOLDER FREE 60.0 0.70 CASH FLOW (/Diluted Weighted Share Outstanding) 50.0 0.60 40.0…
  29. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 29
    30 Three months ended June 30, Six months ended June 30, (MM except per share) 2017 2016 2016 Full Year Data library sales 2.9 2.8 5.6 4.6 14.3 SHAREHOLDER FREE Participation survey revenue - - - - - CASH FLOW (SFCF) Less:…
  30. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 30
    31 (thousands of Canadian dollars except Years ended Three months ended June 30, Six months ended June 30, per share data and numbers of share) December 31, 2017 SECOND QUARTER 2017 2016 2017 2016 2016 HIGHLIGHTS Revenue Data…
  31. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 31
    Value for Shareholders
  32. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 32
    33 SHAREHOLDER VALUE THROUGH DIVIDENDS AND SHARE PURCHASES (MM) DIVIDENDS AND SHARE PURCHASES 12.0 10.8 10.5 10.0 TOTAL SPENDING ON DIVIDENDS 8.4 8.4 AND SHARE PURCHASES (MM) 8.0 7.1 Share 6.3 Purchases 6.0 5 4.8 4.7…
  33. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 33
    34 STRONG RETURNS SFCF, CASH EBITDA & LONG-TERM DEBT (MM) WITH SHRINKING 70 LONG-TERM DEBT 61.7 60 50 46.7 40 (MM) 30 26.7 22.1 20 10 5.5 0 0 0 2010 2011 2012 2013 2014 2015 2016 Shareholder Free Cash Flow…
  34. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 34
    35 FIVE-YEAR ALLOCATION OF FUNDS 2011-2016 FUNDS AVAILABLE (MM) FUNDS ALLOCATED (MM) Cash and Unallocated working capital, 18.5 11 including cash of 6 MM Equity Working Capital 3.5 Common Share Financing Purchases 32…
  35. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 35
    36 REASONS TO INVEST IN PULSE COMPETITIVE STRENGTHS OPPORTUNITIES TIME-TESTED High barriers to entry both for Industry M&A activity creates BUSINESS MODEL E&P companies shooting own potential for transaction- Strong balance…
  36. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 36
    37 OUR PEOPLE EXECUTIVE MANAGEMENT TEAM Neal Coleman Pamela Wicks Trevor Meier President and Chief Vice President Vice President Executive Officer Finance and Chief Sales and Marketing Financial Officer DIRECTORS Robert…
  37. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 37
    Financial Appendix
  38. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 38
    39 (thousands of Canadian dollars) June 30, 2017 December 31, 2016 Assets CONSOLIDATED Cash and cash equivalents Trade and other receivables 8,263 4,341 5,847 5,809 STATEMENTS OF Prepaid expenses 363 364 Total current…
  39. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 39
    40 (thousands of Canadian dollars except per share data) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 CONSOLIDATED Revenue Data library sales 2,929 2,779 5,648 4,550 STATEMENTS OF Participation…
  40. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 40
    41 (thousands of Canadian dollars) Six months ended June 30, 2017 2016 Cash flows provided by (used in): CONSOLIDATED Operating: Net loss and comprehensive loss (4,928) (5,935) STATEMENT OF Adjustment for: Amortization of…
  41. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 41
    42 CAPITAL STRUCTURE SHARES OUTSTANDING AT YEAR-END (MM) 80.0 70.0 67.2 66.0 Authorized unlimited number of 61.1 59.3 common and preferred shares 60.0 57.2 55.6 55.9 53.1 (Millions of Shares Outstanding) 55,337,560…
  42. 2Q17 Corporate Presentation – Pulse Seismic Inc. – slide 42
    Pulse Seismic Inc. 2700, 421 7TH Avenue S.W. Calgary, Alberta T2P 4K9 2016 Toll-free: 1.877.460.5559 Telephone: 1.403.237.5559 Email: infopulseseismic.com

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