Corporate Overview Presentation February 2015 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 68.6 million common shares 4.2 million options and stock based compensation units 0.6 billion market capitalization Insiders own approximately 10% of common shares Average…
Corporate Overview Fraction - Full Service Water Management Solutions Fresh Water Access Trucking: Water Disposal Tank Mob/Demob Water Treatment & Pipeline Transfer of Recycling Other Services Source fluid Fraction Produced…
Corporate Overview Page 8
Capital Program 2014 Capital Program Capex increased to 107 million Canyon Technical Services: 30,000 HHP Coil equipment acquisition Sand and logistics equipment Nitrogen pumper and storage Cement and Acid pumpers Expanding GP…
Capital Program 2015 Capital Program 2015 capex budget 63 million Canyon Technical Services : 25,000 HHP Blending equipment Sand and logistics equipment Maintenance capital Fraction: Tanks, pumping equipment, hose and pipe…
Evolution of Canyon What is next The WCSB continues to evolve assets and capex controlled by the seniors and multi-nationals Transition period for Canyon preparing to be a much larger company Fraction represents first step in…
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 13
Trends in Pressure Pumping A Structural Shift in Well Stimulation
Trends in Pressure Pumping Page 15
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) WCSB Fracs per Well Summary WCSB Pad Drilling Summary 18 4,500 40% 16 4,000 35% 14 3,500 30% Total Wells Drilled on Pads 12 3,000 Fracs per well 25% 10 2,500 20% 8…
Trends in Pressure Pumping 1,100 Tonne Sand Plant Page 18
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 20
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 22
Investment Highlights
Investment Highlights Investment Highlights Growth decisions based on ROIC 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…