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Cowen and Company 4th Annual Energy Conference – SaExploration

SaExploration · Dec 1, 2014 · 21 slides

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Slides

  1. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 1
    NASDAQ: SAEX C O W E N A N D C O M PA N Y 4 T H A N N UA L U LT I M AT E ENERGY CONFERENCE NEW YORK, NY
  2. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 2
    Corporate Profile Summary Ticker Symbol: Nasdaq: SAEX Stock Price (as of 11/25/14): 4.45 52-Week Range: 3.67 - 10.00 30-Day Avg. Volume (as of 11/25/14): 40,032 Total Shares Outstanding: 14,870,549 Market Capitalization:…
  3. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 3
    Company Overview Business Overview Global Footprint International logistics and geophysical services company founded in 2006 Provides vertically-integrated logistical support and exploration services to oil and gas industry Unique…
  4. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 4
    Key Investment Highlights FULL SERVICE Majority of revenue is earned through logistics-related activities performed in-house LOGISTICS PROVIDER Vertically-integrated model allows customers to work with one company instead of multiple…
  5. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 5
    Differentiated Business Model What We Do What We Do Not Do Work on a 100% fully funded and contracted basis Invest in or build multi-client libraries that are with dependable blue-chip customers dependent on future sales of speculative…
  6. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 6
    Full Service Logistics Provider On average, approximately 80% of SAEs revenues are earned through logistics-related activities performed in-house Camp Program Planning & Survey & Recording & Services & Drilling Design Permitting…
  7. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 7
    Market Opportunity Projected 2014 Global E&P Capex Historical E&P Capex vs. Production 723 billion 15-17 billion market market 12% Data Library Sales Exploration 16% 8% Data Processing Geophysics < 4% 3-5% Land Equipment…
  8. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 8
    International Focus on Niche Markets NORTH AMERICA A stable and mature 3D market where wireless technology is the norm SHALLOW-WATER Tax incentives for exploration in Alaska are leading to Exploration activities have increased…
  9. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 9
    Extensive Experience in Challenging Environments LOCATIONS TERRAIN RECENT SERVICES PROVIDED Recently completed a 6-month 2D & 3D project with nearly 2,000 management and staff and over 100 certified mountain climbers BOLIVIA, BRAZIL,…
  10. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 10
    Quality, Health, Safety & Environment (QHSE) Historical Lost-Time Injury (LTIF) & Total Recordable Case (TRCF) Frequencies vs OGP Targets 2.00 1.60 1.20 1.08 TRCF - LTIF 0.80 0.40 0.09 0.00 Nov-13 Dec-13 Jan-14…
  11. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 11
    Blue Chip Customer Base Members of the management team have long-standing relationships extending over 30 years with many of the largest IOCs, NOCs and independents Most historical revenue generated through repeat customer sales and…
  12. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 12
    Stable Level of Contracted Cash Flow Adjusted Historical Backlog (1)(2) Current Backlog and Bids Outstanding (2) 322.3 291.9 265.5 203.1 171.1 Backlog Bids O/S 150.4 203 million 427 million 113.2 86.7 Q4 12 Q1 13 Q2 13 Q3…
  13. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 13
    Period Performance (1) ( in millions) Total Revenue Gross Profit ex Depr (2) Revenue growth was primarily +71% +75% the result of overall increased +127% 298.6 activity within core geographic 62.5 markets 174.6 n/a International…
  14. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 14
    Growth Driven Financial Profile ( in millions) Total Revenue Gross Profit and Margins ex Depreciation (1) 84.6 369.3 70 30% 56.2 57.8 60 28% 257.4 245.3 50 25% 180.8 40 33.0 23% 133.8 24% 23% 30 21.9 22% 20% 20 18% 18% 10…
  15. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 15
    Capital Structure Revolving Credit Facility Capitalization and Liquidity Profile Closed 20 million senior secured September 30, revolving credit facility on November 6, ( in millions) 2013 2014 2014, provided by Wells Fargo UNAUDITED…
  16. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 16
    Positive Progress PROMISE ACTION RESULT Reduced potential dilution to Simplify equity structure and Exchanged 96% of all warrants existing stockholders and reduce share price overhang in February 2014 increased public float Hired…
  17. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 17
    Strategic Direction Growth Catalysts Near-term growth expected to include meaningful contribution from Alaska, which should provide onshore and offshore activity with a significant ramp-up during the upcoming winter season on the North…
  18. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 18
    Contacts Investor Contact SAE Canada SAE Bolivia Ryan Abney 3333 8th Street SE, 3rd Floor Av. Iberica, Calle 3 Oeste No 11 Calgary, AB T2G 3A4 Barrio Las Palmas, Bolivia Vice President, Capital Markets O: (403) 776-1950 O: (591) 3…
  19. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 19
    Appendix
  20. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 20
    Executive Management Years Experience Mr. Hastings joined SAE in 2011 after his initial investment in the Company in 2008 Founded Fairweather Geophysical, which was the long-time leading provider of seismic services in Alaska before…
  21. Cowen and Company 4th Annual Energy Conference – SaExploration – slide 21
    Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation UNAUDITED Year Ended December 31, Three Months Ended Sept. 30, Nine Months Ended Sept. 30, LTM ( in 000's) 2011 2012 2013 2013 2014 2013 2014 9/30/2014 Net income (loss)…

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