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3Q 2018 Corporate Presentation – Pulse Seismic Inc.

Pulse Seismic Inc. · Nov 30, 2018 · 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. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 1
    1 Corporate Presentation
  2. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 2
    WE ARE CANADAS LEADING SEISMIC DATA LIBRARY PROVIDER Business Overview
  3. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 3
    4 PULSES BUSINESS MODEL 28,956 Sq. km of 3D seismic LICENSED MULTIPLE 450,000 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. 3Q 2018 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. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 5
    6 KEY TRADING FACTS PULSE SEISMIC INC. Information as at SEPTEMBER 30 2018, unless otherwise specified TSX: PSD Trading Symbols TSX: PSD OTCQX: PLSDF OTCQX: PLSDF Corporate Headquarters Calgary, Alberta, Canada Stock Price…
  6. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 6
    7 YEAR TO DATE 2018 5.9MM FINANCIAL RESULTS DATA SALES 3.8MM CASH EXPENSES 1.8M CASH EBITDA 2.1M SHAREHOLDER FREE CASH FLOW 0 7 LONG-TERM DEBT Information as at September 30, 2018 unless otherwise specified.
  7. 3Q 2018 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 September 30, 2018, Pulse doesnt require labour crews 3.8MM…
  8. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 8
    9 0 drawn THE RESULT: A VERY STRONG BALANCE SHEET OPERATING LINE OF CREDIT (September 30, 2018) 0 30MM, three-year extendible, LONG-TERM DEBT revolving credit facility with current maturity of February 13, 2021. 40MM…
  9. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 9
    Value in Our Business
  10. 3Q 2018 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. 3Q 2018 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. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 12
    13 2D SEISMIC DATA 2D SEISMIC SALES, 2013-2017 RETAINS ITS VALUE BY DATE OF SEISMIC RECORDING 1960s 1% Our 2D seismic data library continues to 2000s 13% 9% 1970s generate revenue. 2D data shot decades ago remains valuable…
  13. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 13
    14 PULSE: A WESTERN CANADA MARKET LEADER ESTIMATED CANADIAN 2D MARKET ESTIMATED CANADIAN 3D MARKET 18,092 Others 2,768 Others Schlumberger 10,686 28,956 PULSE 450,000 PULSE Seitel Canada 646,149 2D (km) TGS Arcis…
  14. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 14
    15 WESTERN CANADA KEY PULSE DATA LIBRARY AREAS Data Library Montney 2D Coverage 103,800 km Play Coverage 3D Coverage 20,266 km2 Deep Basin 2D Coverage 61,233 km 3D Coverage 13,739 km2 Duvernay 2D Coverage 159,592 km 3D…
  15. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 15
    16 OUR CUSTOMERS: DIVERSE AND LONG-TERM PULSE S 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 Basin. 54% of…
  16. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 16
    17 GENERATING REVENUE: TWO TYPES OF LIBRARY DATA SALES TRADITIONAL SALE TRANSACTION-BASED SALE A straightforward New licensing fees on already- purchase of 2D or 3D data licensed library data triggered from Pulses library by a…
  17. 3Q 2018 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. 3Q 2018 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. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 19
    20 TRADITIONAL & TRANSACTION-BASED SALES (MM) 50,000 44,877 45,000 27% 40,000 Traditional Sales In 2017 CHANGING SEISMIC 35,000 33,121 31,762 30,000 DATA SALES PROFILES 25,000 20,000 19,163 19,473 19,114 16,629…
  20. 3Q 2018 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. 3Q 2018 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. 3Q 2018 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. 3Q 2018 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. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 24
    25 CURRENT SEISMIC COVERAGE Western Canadas Premium Licensable Seismic Dataset 28,956 Sq. km of 3D seismic 450,000 Lin. km of 2D seismic 2D Data 3D Data
  25. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 25
    Value in Our Results
  26. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 26
    27 RETURN ON NET SURVEY COSTS VS. DATA LIBRARY SALES PARTICIPATION SURVEYS 2000-2017 26 45 24 244% 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. 3Q 2018 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 7.4 871% DETAILED METRICS 7.0 6.6 Total Return on Pulse Net Cost 6.0 Cash Return (MM) Seven surveys shot: 1,104 sq. km 5.0 Gross…
  28. 3Q 2018 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. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 29
    30 Three months ended September 30, Nine months ended September 30, HOW WE CALCULATE (MM except per share) 2018 2017 2018 2017 2017 Full Year Data library sales 1.6 32.4 5.9 38.1 43.5 SHAREHOLDER FREE Participation survey…
  30. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 30
    31 Three months ended September 30, Nine months ended September 30, Years ended (thousands of Canadian dollars except December 31, 2018 THIRD per share data and numbers of share) 2018 2017 2018 2017 2017 Revenue QUARTER…
  31. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 31
    Value for Shareholders
  32. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 32
    33 SHAREHOLDER VALUE THROUGH DIVIDENDS AND SHARE PURCHASES (MM) DIVIDENDS AND SHARE PURCHASES 12.0 10.8 10.9 10.5 10.0 TOTAL SPENDING ON DIVIDENDS 8.4 8.4 AND SHARE PURCHASES (MM) 8.0 7.1 6.3 Share Purchases 6.0 5 5.3…
  33. 3Q 2018 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 0 2010 2011 2012 2013 2014 2015 2016 2017 Shareholder Free…
  34. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 34
    35 EIGHT-YEAR ALLOCATION OF FUNDS 2010-2017 FUNDS AVAILABLE (MM) FUNDS ALLOCATED (MM) Unallocated working capital, 23 including cash of 27 MM Long Term Common Share 45 38 Debt Purchases 23 Debt Cash and 73 Repayments…
  35. 3Q 2018 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. 3Q 2018 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. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 37
    Financial Appendix
  38. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 38
    39 (thousands of Canadian dollars) (unaudited) September 30, 2018 December 31, 2017 Assets Cash and cash equivalents 20,568 27,422 CONSOLIDATED Trade and other receivables Current tax assets 2,508 1,701 5,536 - STATEMENTS OF…
  39. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 39
    40 Three months ended September 30, Nine months ended September 30, (thousands of Canadian dollars except per share data) 2018 2017 2018 2017 CONSOLIDATED Revenue Data library sales 1,606 32,428 5,875 38,076 STATEMENTS OF…
  40. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 40
    41 Nine months ended September 30, CONSOLIDATED (thousands of Canadian dollars) (unaudited) 2018 2017 Cash flows provided by (used in): Operating: STATEMENT OF Net earnings (loss) and comprehensive income (loss) (2,754) 13,776…
  41. 3Q 2018 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 54.0 53.1 (Millions of Shares Outstanding)…
  42. 3Q 2018 Corporate Presentation – Pulse Seismic Inc. – slide 42
    Pulse Seismic Inc. 2700, 421 7th Avenue SW. Calgary, Alberta T2P 4K9 2016 Toll-free: 1.877.460.5559 Telephone: 1.403.237.5559 Email: infopulseseismic.com

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