Ensign Energy Services Inc. · TSX:ESI

Ensign Energy Services — Investor Presentation (March 2014)

33 slides from Ensign Energy Services's investor presentation, March 2014

  1. Slide 1: Corporate Presentation

    Corporate Presentation March 2014

  2. Slide 2: Advisory Regarding Forward-Looking Statements

    Disclaimer Advisory Regarding Forward-Looking Statements This presentation contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. These statements are not guarantees of future performance and are subject to certain risks and the

  3. Slide 3: Ensign Delivers

    Ensign Delivers Companies that bring forward cost cutting solutions for their clients are those that will grow and succeed!

  4. Slide 4: Current Operations

    Current Operations Canada United States Kurdistan Libya Oman Venezuela Australia Gabon New Zealand Argentina

  5. Slide 5: Diversified Services – by Revenue

    Diversified Services – by Revenue Drill Rigs Service Rigs Directional Drilling Frac Flowback Units Core Rigs / Services Oilfield Rentals Other: - MPD / UBD Packages - Wireline Units - Transportation

  6. Slide 6: Strong Presence in North American Resource Plays

    Strong Presence in North American Resource Plays 229 Horn River Montney Oil Sands Cardium Drill Rigs Bakken Utica United States Canada San Jonah Joaquin Niobrara Basin Piceance Marcellus Granite Woodford Wash 112 Monterey Barnett Haynesville 117 Tuscaloosa Permian Eagle Ford As at March 18, 2014 * E

  7. Slide 7: Substantial & Growing International Presence

    Latin/South America, Australasia, Middle East - North Africa 56 Substantial & Growing International Presence MENA Drill rigs – 15 Drill Rigs Venezuela Drill rigs – 7 Workover rigs – 1 New Zealand Australia Drill rigs – 18 Drill rigs – 2 Workover rigs – 2 Workover rigs – 1 Argentina Drill rigs – 8 Wo

  8. Slide 8: Service Rigs

    Service Rigs 140 Horn River Montney Oil Sands Service Rigs Cardium Bakken Utica United States Canada Niobrara San Jonah Joaquin Piceance Basin Granite Marcellus Wash Woodford 45 Monterey Barnett Haynesville 95 Tuscaloosa Permian Eagle Ford As at March 18, 2014

  9. Slide 9: Frac Flowback Units - Opsco

    Frac Flowback Units - Opsco 96 Horn River Montney Oil Sands Frac-Flowback Cardium Units Bakken Utica United States Canada San Niobrara Jonah Joaquin Basin Piceance Granite Marcellus Wash Woodford Barnett 46 Monterey Haynesville 50 Tuscaloosa Permian Eagle Ford As at March 18, 2014

  10. Slide 10: Directional Drilling Services

    Directional Drilling Services 77 Kits Directional and horizontal Vertical United States Canada Ensign Directional Drilling Services Growth 80% 100 70% 80 # Kits (Ensign) 60% 60 29 50% 40 48 40% 30% 20 20% 0 2008 2009 2010 2011 2012 2013 As at March 18, 2014

  11. Slide 11: Core Rigs & Services

    Core Rigs & Services Oil Sands 29 Core Rigs As at March 18, 2014

  12. Slide 12: Managed Pressure Drilling

    Managed Pressure Drilling Flow control at surface  1700 wells experience  Lower well costs  Safer operations

  13. Slide 13: Rental Divisions

    Rental Divisions Grande Prairie, AB Nisku, AB Peace River, AB Red Deer, AB Whitecourt, AB Brooks, AB Edson, AB Oxbow, SK Williston, ND Denver, CO Bakersfield, CA

  14. Slide 14: Ensign continues to lead technical innovation

    Ensign continues to lead technical innovation 100% Growth of ADR® type walking pad rigs continues around the world. % Fleet  FASTER  FARTHER 50%  SAFER 0%

  15. Slide 15: Natural Gas Powered Rigs

    Natural Gas Powered Rigs  Reduced emissions 30%  Reduced fuel costs  Improve domestic energy security  Flexible fuel source capable  CNG (compressed natural gas)  PG (produced gas)  LNG (liquefied natural gas) Natural gas is a viable cost effective fuel alternative for land rigs that reduces

  16. Slide 16: Highly Trained Crews – ADR Simulator

    Highly Trained Crews ADR® Simulator

  17. Slide 17: ADR Ensign Automated Drill Rig

    ADR ENSIGN| Automated Drill Rig: Driving to Zero a 4

  18. Slide 18: ADR Ensign Automated Drill Rig

    ADR "ENSIGN Automated Drill Rig: Driving to Zero a 4

  19. Slide 19: ADR Ensign Automated Drill Rig

    ADR ENSIGN| Automated Drill Rig: q YS : . 1600 HP é v= ie _ 2000 HP x Driving to Zero a 4

  20. Slide 20: Automated Drill Rig

    Ly . ‘4 ra \ \: | (| \ i u ) 5 y yy) es! pe A nL j s! QU “NY y | sath NSAP Ait GUNS SELES DS \ } 5 KN i Al \ > AW : aii = ro aN ~ J ) ve wo i. . a | ‘ NX a » da & ay ‘\ S Won ft } 4 Sal , b) ‘sui s y Automated Drill Rig: \DI A se 1500 HP} 2000 HP

  21. Slide 21: High Quality Fleet – Designed by Ensign, for Ensign

    High Quality Fleet – Designed by Ensign, for Ensign

  22. Slide 22: Safety Awareness

    Safety Awareness 10 25 9.09 M Manhours LTI Freq TRI Freq 9 8 20 7.09 7.13 7 Injury Frequency (200,000 man hours) 6 5.57 15 Man Hours 5 4.65 4.00 4 10 3.21 3.11 3 2.45 2.21 2 1.67 5 1.46 1.36 1.23 1.14 0.86 0.70 1 0.47 0.56 0.63 0.49 0.36 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

  23. Slide 23: Trading Data

    Trading Data  TSX: ESI  Common shares outstanding 153.3 million  Market capitalization $2.5 billion  Dividends: 17% compound annual growth rate since 1995  2009 $0.3425 per share  2010 $0.3575 per share  2011 $0.3900 per share  2012 $0.4250 per share  2013 $0.4475 per share

  24. Slide 24: Dividends per Common Share

    Dividends per Common Share $0.50 $0.45 17% Compound Annual Growth Rate $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00

  25. Slide 25: Debt to Equity

    Debt to Equity $ millions, years ended December 31 2,000 Debt (Excludes revolving operating facility) 1,800 Equity 1,600 1,400 1,200 1,000 800 600 400 200 0 2009¹ 2010 2011 2012 2013 1 Not restated for IFRS

  26. Slide 26: Revenue - Geographic Segmentation

    Revenue - Geographic Segmentation Year ended December 31, 2013 32% 26% Canada United States International 42%

  27. Slide 27: Revenue

    Revenue $ millions, years ended December 31 2,500 2,000 1,500 1,000 500 0 2009¹ 2010 2011 2012 2013 2014e² 1 Not restated for IFRS 2 Estimate based on range of analysts forecasts

  28. Slide 28: Adjusted EBITDA

    Adjusted EBITDA $ millions, years ended December 31 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 2009¹ 2010 2011 2012 2013 2014e² 1 Not restated for IFRS 2 Estimate based on range of analysts forecasts

  29. Slide 29: Net Income

    Net Income $ millions, years ended December 31 350 300 250 200 150 100 50 0 2009¹ 2010 2011 2012 2013 2014e² 1 Not restated for IFRS 2 Estimate based on range of analysts forecasts $ per share 0.82 0.78 1.39 1.42 0.84 0.94 – 1.24

  30. Slide 30: Return on Equity

    Return on Equity Percent, years ended December 31 15 10 5 0 2009¹ 2010 2011 2012 2013 2014e² 1 Not restated for IFRS 2 Estimate based on range of analysts forecasts

  31. Slide 31: Financial Summary

    Financial Summary $ millions, three and twelve months ended December 31 4th Quarter Q4 YTD % % 2013 2012 change 2013 2012 change Revenue 536.0 530.1 1 2,098.0 2,197.3 (5) Adjusted EBITDA 112.5 123.9 (9) 485.7 561.0 (13) Income 26.9 48.5 (45) 128.9 217.5 (41) Per share $0.18 $0.32 (44) $0.84 $1.42 (4

  32. Slide 32: Future Growth Strategy – Taking a Bigger Piece of the Pie

    Future Growth Strategy – Taking a Bigger Piece of the Pie  Expand ADR® fleet worldwide Rig  Expand integrated rig – directional drilling value proposition Other Daily  Expand market presence in every Rig Costs current market  Dove-tail complementary services

  33. Slide 33: Thank You

    ensignenergy.com Thank You

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