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1Q 2019 Earnings Presentation – Pulse Seismic Inc.

Pulse Seismic Inc. · May 9, 2019 · 43 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. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 1
    1 Corporate Presentation
  2. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 2
    WE ARE CANADAS LARGEST SEISMIC DATA LIBRARY PROVIDER Business Overview
  3. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 3
    4 PULSES BUSINESS MODEL 65,310 Sq. km of 3D seismic LICENSED MULTIPLE 829,207 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. 1Q 2019 Earnings 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 When we conduct business. Pulses operating cash participation surveys, we Cash EBITDA less interest margin on…
  5. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 5
    6 KEY TRADING FACTS PULSE SEISMIC INC. Information as at MARCH 31, 2019, unless otherwise specified TSX: PSD Trading Symbols TSX: PSD OTCQX: PLSDF OTCQX: PLSDF Corporate Headquarters Calgary, Alberta, Canada Stock Price 2.45…
  6. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 6
    7 FIRST QUARTER 2019 5.3MM DATA SALES FINANCIAL RESULTS 4.1MM CASH EXPENSES 3.1MM CASH EBITDA 2.7MM SHAREHOLDER FREE CASH FLOW 36.6 7 LONG-TERM DEBT Information as at March 31, 2019 unless otherwise specified.
  7. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 7
    8 SURVIVABILITY Positioned for an extended low- commodity-price environment COSTS AND SPENDING DEBT NO CAPITAL COMMITMENTS Pulses cash operating costs were At January 15, 2019 Pulse doesnt require labour crews 4.1M for Q1 2019.…
  8. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 8
    9 8 MM THE RESULT: A VERY STRONG BALANCE SHEET OPERATING LINE (22.0 MM UNDRAWN) (March 31, 2019) SENIOR DEBT: 15 MM 30MM, three year extendible, LONG-TERM DEBT revolving credit facility with current maturity of January 15, 2022.…
  9. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 9
    Value in Our Business
  10. 1Q 2019 Earnings 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. 1Q 2019 Earnings 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. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 12
    13 2D SEISMIC DATA 2D SEISMIC SALES, 2014-2018 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. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 13
    14 PULSES ACQUISITION HIGHLIGHTS On January 15, 2019, Pulse acquired 100 percent of the shares of Seitel Canada Ltd. Includes approximately 36,354 36,354 net square kilometres of 3D and 379,207 net 2D seismic data. Sq. km of 3D…
  14. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 14
    15 PULSE: A WESTERN CANADA MARKET LEADER ESTIMATED CANADIAN 2D MARKET ESTIMATED CANADIAN 3D MARKET 24,111 Others 2,768 Others Schlumberger 10,686 65,310 PULSE 829,207 PULSE 2D (km) TGS Arcis 17,733 3D (km2) SEI…
  15. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 15
    16 WESTERN CANADA KEY PULSE DATA LIBRARY AREAS Data Library Montney 2D Coverage 191,726 km Play Coverage 3D Coverage 40,274 km2 Deep Basin 2D Coverage 127,505 km 3D Coverage 24,109 km2 Duvernay 2D Coverage 265,008 km 3D…
  16. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 16
    17 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…
  17. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 17
    18 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…
  18. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 18
    19 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…
  19. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 19
    20 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…
  20. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 20
    21 TRADITIONAL & TRANSACTION-BASED SALES (MM) 50,000 44,877 91% 45,000 40,000 Traditional Sales In 2018 FLUCTUATING SEISMIC 35,000 33,121 31,762 30,000 DATA SALES PROFILES 25,000 20,000 19,163 19,473 19,114…
  21. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 21
    22 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…
  22. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 22
    23 GROWING THE SIZE OF THE SEISMIC DATA LIBRARY SEISMIC LIBRARY 900,000 70,000 January 15, 2019, Pulse acquired 800,000 60,000 100 percent of the shares of Seitel Canada Ltd. Includes approximately 700,000 36,354 net square…
  23. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 23
    24 WE ARE A GROWTH COMPANY Strategic Investments at Opportune Moments Acquired seismic assets from Divestco in 2010. Acquired 100% of shares of Seitel Canada Ltd. Purchase price of 75.5MM included 55.5MM in cash plus 14.3MM Pulse…
  24. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 24
    25 PULSE AND SEITEL DATA SALES (MM) TEN YEAR SALES HISTORY 350.0 Pulse Seitel 306.0 300.0 266.5 250.0 DATA LIBRARY SALES REVENUE 200.0 PULSE AND SEITEL 2009-2018 150.0 125.0 100.0 100.0 68.1 48.9 50.0 10.2 4.3 0.0…
  25. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 25
    26 CAPITAL INVESTMENTS SINCE 2010 3D Seismic Data Acquired by Purchase and Participation Survey As at January 1 km2 added km2 added 12,913 Pulse net investment in seismic data (Millions) 2010 13,533 2010 77.6 2011 26,446 68…
  26. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 26
    27 CURRENT SEISMIC COVERAGE Western Canadas Premium Licensable Seismic Dataset 65,310 Sq. km of 3D seismic 827,207 Lin. km of 2D seismic
  27. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 27
    Value in Our Results
  28. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 28
    29 RETURN ON NET SURVEY COSTS VS. DATA LIBRARY SALES PARTICIPATION SURVEYS 2000-2018 26 24 251% 45 40 Return of Data Sales 22 on Pulse Net Cost Total gross survey costs: 219 MM 20 35 Prefunding: 153 MM 18 30 Data…
  29. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 29
    31 SEISMIC DATA LIBRARY SEISMIC DATA LIBRARY SALES VS. SFCF PER SHARE SALES STRONGLY 70.0 0.90 CORRELATE TO 0.80 SHAREHOLDER FREE 60.0 0.70 CASH FLOW (/Diluted Weighted Share Outstanding) 50.0 0.60 40.0 0.50…
  30. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 30
    32 Three months ended March 31, (MM except per share) 2019 2018 2018 Full Year Data library sales 5.3 2.3 10.1 HOW WE CALCULATE Other Revenue Participation survey revenue 0.1 - - - 0.1 - SHAREHOLDER FREE Less: Salaries,…
  31. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 31
    33 Three months ended March 31, 2019 FIRST QUARTER (thousands of Canadian dollars except per share data and numbers of share) Years ended 2019 2018 December 31, 2018 HIGHLIGHTS Revenue Data library sales 5,277 2,289 10,188…
  32. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 32
    Value for Shareholders
  33. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 33
    35 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 Share 6.3 Purchases 6.0 5 5.3…
  34. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 34
    36 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 0 2010 2011 2012 2013 2014 2015 2016 2017 2018…
  35. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 35
    37 NINE-YEAR ALLOCATION OF FUNDS 2010-2018 FUNDS ALLOCATED (MM) FUNDS AVAILABLE (MM) Unallocated working capital, 27 including cash of 27 MM Long Term 45 Debt Common Share Purchases 39 Equity Debt Financing 73 Repayments…
  36. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 36
    38 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…
  37. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 37
    39 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…
  38. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 38
    Financial Appendix
  39. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 39
    41 (thousands of Canadian dollars) (unaudited) March 31, 2019 December 31, 2018 Assets Cash and cash equivalents 1,302 23,016 CONSOLIDATED Trade and other receivables 5,111 3,314 Current tax assets 1,190 1,036 Prepaid expenses 689…
  40. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 40
    42 Three months ended March 31, CONSOLIDATED (thousands of Canadian dollars) (unaudited) 2019 2018 Revenue Data library sales 5,277 2,289 STATEMENTS OF Other revenue Participation surveys 143 - 39 - COMPREHENSIVE Total…
  41. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 41
    43 Three months ended March 31, (thousands of Canadian dollars) (unaudited) 2019 2018 Cash flows provided by (used in): CONSOLIDATED Operating: Net loss and comprehensive loss (2,671) (696) STATEMENT OF Adjustment for:…
  42. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 42
    44 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 54.0 53.1 (Millions of Shares Outstanding)…
  43. 1Q 2019 Earnings Presentation – Pulse Seismic Inc. – slide 43
    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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