Corporate Overview Presentation August 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 Full service water management solutions…
Corporate Overview Capitalization Equity Capitalization 68.5 million common shares 4.1 million options and stock based compensation units 1.1 billion market capitalization Insiders own approximately 10% of common shares Average…
Corporate Overview Fraction Energy Services Ltd. (Fraction) Acquisition Full service water management solutions company with operations in NE BC and NW AB. Acquired effective July 1, 2014 Consideration includes: Issuance of 5.4…
Corporate Overview Full Service Water Management Solutions Fresh Water Sourcing Trucking: Water Disposal Tank Mob/Demob Water Treatment & Other Services Delivery Transfer Recycling Fraction Produced Water Wellsite Storage…
Capital Program 2014 Capital Program Capex increased to 95 million Building: 30,000 HHP Sand and logistics equipment Nitrogen pumper and storage Cement and Acid pumpers Coil equipment Expanding GP base Water management logistics…
Capital Program 2014 Capital Program Four deep coiled tubing packages consisting of twin fluid pumpers, BOPs, injectors & three cranes Water management logistics equipment Reviewing additional long lead time items Exit 2014 at…
Trends in Pressure Pumping A Structural Shift in Well Stimulation
Trends in Pressure Pumping Page 12
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) Historical Fractures Per Well - Western Canada 16.0 35,000 14.0 14.39 30,000 12.0 25,000 11.65 11.45 Number of Fractures 11.22 10.72 10.57 10.0 20,000…
Trends in Pressure Pumping Industry Trends (contd) WCSB Pad Drilling Summary 4,500 40% 4,000 35% 3,500 30% Total Wells Drilled on Pads 3,000 25% 2,500 20% 2,000 15% 1,500 10% 1,000 500 5% - 0% 2009 2010 2011 2012…
Trends in Pressure Pumping 1,100 Tonne Sand Plant Page 16
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 18
Evolution of Canyon What is next The WCSB continues to evolve assets and capex controlled by the seniors and multi-nationals Market firmed in Q1 achieved some cost recovery The deep basin will be the centre of activity First to…
Evolution of Canyon What is next (contd) Fraction represents first step in developing comprehensive service solutions for water and fracture fluid management Expect better pricing in 2nd half of 2014 What has Canyon done to make…
Evolution of Canyon Canyon Certified Page 21
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 23
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…
Loading...
