Our Opportunity & Our Plan Canaccord Genuity Global Resources Conference October 2014
RightPeople,RightRigs,RightPartners,RightAttitude CanElson Financial Overview Common Shares2 92.5 million Current Share Price1 5.70 / share Market Capitalization 527 million Debt (less cash)2 36 million Enterprise Value 563…
RightPeople,RightRigs,RightPartners,RightAttitude CanElsons Strategic Growth a. 2008 Formed, raising Translating Shareholder Investment to Shareholder Growth 44MM at 2.00/share with experienced drilling Capitalization (000s) Net…
RightPeople,RightRigs,RightPartners,RightAttitude Geographic Position & Outlook British Columbia Alberta Saskatchewan North Dakota Texas Mexico 4 Rigs 11 Rigs 13 Rigs 6 Rigs 14 Rigs 2 Rigs (2 Svc) Demand for Deep Basin well…
RightPeople,RightRigs,RightPartners,RightAttitude North American Resource Plays Depths, Economics & Activity Levels 120% Resource Plays CanElson is Actively Drilling with Tele-Doubles Marcellus Resource Plays CanElson has…
RightPeople,RightRigs,RightPartners,RightAttitude Drilling Rig Fleet Vertical Depth & Operating Areas 0 3,300 6,600 Meters 9,900 Feet 13,200 16,500 19,800 23,100 BC (4) Alberta (11) Saskatchewan/Manitoba (13)…
RightPeople,RightRigs,RightPartners,RightAttitude Setting the Pace for Horizontal Wells in the Permian Basin CanElson Tele-Double Drilling Curves The chart shows horizontal wells drilled by a CanElson Mechanical Tele-Double for one…
RightPeople,RightRigs,RightPartners,RightAttitude Financial Performance Net Debt to Trailing Twelve Month Funds Flow Notes CanElson has consistently maintained a strong balance sheet, with debt leverage ratios significantly below…
RightPeople,RightRigs,RightPartners,RightAttitude Financial Performance Trailing Twelve Month Free Cash Flow Yield Notes Continue to pay a strong dividend (0.06/share quarterly) Continue to maintain industry leading balance sheet…
RightPeople,RightRigs,RightPartners,RightAttitude Financial Performance Trailing Twelve Month Return On Equity Going Forward Seek out Win-Win scenarios, by providing the best results for Customers and Shareholders Less drilling…
RightPeople,RightRigs,RightPartners,RightAttitude Corporate Directory Head Office Analyst Coverage 700, 808 4th Avenue SW AltaCorp Capital Inc. Dana Benner Calgary, AB T2P 3E8 Canaccord Genuity John Bereznicki FirstEnergy Capital…
Appendix 1: Experienced Board Elson J. McDougald Founding CEO and Chairman of Western Lakota Energy Services Inc. Executive Chairman Founding CEO and Chairman of Tetonka Drilling Inc. & Laredo Drilling Inc. Donald R. Seaman Founding…
Appendix 2: Experienced Management Team Randy Hawkings, COO of Western Lakota Energy Services Inc. P.Eng, 35 years of domestic and international E&P and energy services experience President, CEO & Director Worked as drill site engineer,…
Appendix 3: Economics of a CDI Mechanical Tele-double vs. a Typical Industry AC Triple *The CanElson Mechanical Tele-Double has drilled horizontal wells to 6,200 meters measured depth (20,200 ft measured depth) **Payback is calculated…
Appendix 4: Financial Results For the three months ended June 30, For the six months ended June 30 Full Year 2014 2013 % Change 2014 2013 % Change 2013 Services Revenue 61.9 37.5 65 % 159.0 109.8 45 % 257.0 Adjusted EBITDA 16.3 9.0…
Appendix 5: 2014 Capital Program & Rig Assembly Schedule 2014 Capital Program (109.1 million): Spare equipment facility & Upgrades & Capital Expenditures ( millions) overhead maintenance Expansion CanGas Total Capital expenditures for…