Corporate Overview Presentation February 2014 FRACTURING ACIDIZING COILED TUBING CEMENTING
Corporate Overview
Corporate Overview Canyon provides well stimulation services throughout the WCSB: Hydraulic fracturing High-rate nitrogen fracturing Coiled tubing Chemical stimulation Remedial cementing Currently focused exclusively on…
Corporate Overview Capitalization Equity Capitalization 62.5 million common shares 3.8 million options and stock based compensation units 750 million market capitalization Insiders own approximately 10% of common shares Average…
Trends in Pressure Pumping A Structural Shift in Well Stimulation
Trends in Pressure Pumping Page 8
Trends in Pressure Pumping Industry Trends Deep Basin licensing on the rise since start of Q3/13 New plays such as Duvernay are very pumping intensive 75% of wells drilled Hz with multistage fracturing designs Hz sections continue to…
Trends in Pressure Pumping Industry Trends (contd) Page 10
Trends in Pressure Pumping 1,100 Tonne Sand Plant Page 11
Trends in Pressure Pumping LNG Exports Export capacity and potential drilling demand: 7 facilities proposed for the west coast of Canada 8 14 bcf/d of export capacity planned Approx. 200 wells /year per 1.0 bcf/d of production…
Trends in Pressure Pumping LNG Exports (contd) Risks: Timing and approvals Off-take agreements Labour Logistics US competition Public regulation Opportunities Term of contracts Utilization and pricing stability Page 13
Evolution of Canyon What is next Market firming up but still expect tough pricing and lots of competition The WCSB has changed again assets and capex controlled by the seniors and multi-nationals The deep basin will be the centre…
Evolution of Canyon What is next (contd) What has Canyon done to make sure it will benefit from the changes: Organizational development (safety, training, HR, culture, etc) Attract and retain the right people Equipment design…
Evolution of Canyon Canyon Certified Page 16
Technology and the Environment
Technology and the Environment Flexible chemistries PSAC public relations Water sources campaign Fluid recycling Natural gas fired pumps Chemical and fluid systems Foams (CO2 and N2) Page 18
Investment Highlights
Investment Highlights Investment Highlights Focused on Canada WCSB pressure pumping market has the best near-term fundamentals 85% of revenue generated from the deep basin Committed to growth per share in each of assets, cash…