Hunting PLC · LSE:HTG

Hunting — FY2006 Earnings Presentation

37 slides from Hunting's earnings presentation, 2007

1. Slide 1: Hunting PLC Annual Results 2006

2. Slide 2: Results Summary

   Results Summary Revenue £1,810m (2005 – £1,522m) + 19% EBITDA £119.6m (2005 – £71.4m) + 67% Profit from Operations £86.3m (2005 – £44.9m) + 92% (After Exceptionals) Profit before tax £80.8m (2005 - £40.9m) + 98% Tax charge 35.4% (2005 – 35.9%) Basic EPS 37.6p (2005 – 21.2p) + 77% Dividend 7.5p (2005

3. Slide 3: Revenue and Profit from Operations

   Revenue and Profit from Operations Year End December 2006 December 2005 Profit from Profit from Revenue Operations Revenue Operations £m £m £m £m Gibson Energy - Marketing 1,147.9 13.0 1,016.7 10.7 - Other 281.1 34.3 197.7 11.1 Hunting Energy 266.1 37.0 214.6 24.2 Others 115.3 7.0 92.9 1.5 1,810.4 9

4. Slide 4: Financial

   Financial December December 2006 2005 Net Borrowings £69.3m £97.0m Gearing 33% 53% Interest Cover 11.3x 7.1x 4

5. Slide 5: Capital Expenditure

   Capital Expenditure December December 2006 2005 £m £m Gibson Energy 21.6 16.1 Hunting Energy 30.8 14.8 Other Activities 1.8 2.0 54.2 32.9 Split: Maintenance 27.4 15.0 New business 26.8 17.9 54.2 32.9 5

6. Slide 6: Cash Flow

   Cash Flow December December 2006 2005 £m £m Cash from operations 93.3 54.8 Capital Expenditure (54.2) (32.9) Interest (8.1) (4.0) FREE CASH FLOW 31.0 17.9 Acquisitions (1.0) (9.7) Disposals __ 3.2 Rights Issue __ 48.1 Dividends (8.2) (5.6) Other 5.9 (20.3) Decrease in Debt 27.7 33.6 6

7. Slide 7: Profit Before Tax, Earnings Per Share, Profit From Operations, Dividend

   Profit Before Tax Earnings Per Share 2006 | 2006 [NNT 2005 1 ° | 2005 rT4 -t 4 rT - Bett asi | 2003 tt+-+-+-+4 + tl 2003; Le va ca a FE ED HH | me it 1 TT | 1 | © 5 10 15 20 25 30 35 40 45 SO 55 GO 65 70 75 80 85 90 95 100 0 2 4 6 B W 12 14 16 16 20 22 24 26 28 30 32 4 6 38 40 Profit From Operations

8. Slide 8: Hunting PLC Corporate Strategy

   Hunting PLC Corporate Strategy  Maximise Global Footprint  Continuance of Market Share Strength  Proprietary Technologies  Asset Utilisation 8

9. Slide 9: Gibson Energy

   Gibson Energy 4, ly @ csuac 9

10. Slide 10: Gibson Energy

    Gibson Energy : OE Bele

11. Slide 11: Gibson Energy Profit from Operations

    Gibson Energy Profit from Operations December December 2006 2005 £m £m Marketing 13.0 10.7 Truck Transportation 9.6 4.9 Terminals and Pipelines 5.3 5.7 Canwest Propane and Natural Gas Liquids 5.2 3.0 Moose Jaw Refinery 14.2 (2.5) 47.3 21.8 11

12. Slide 12: Marketing Activities

    Gibson Energy Marketing Activities  Buy, sell trade 250k bbls/day  Crude Oil – Light, Heavy, Bitumen  Diluent (Natural Gas Condensate)  LPG, Natural Gas, Propane  Wellsite Fluids  Eleven strategically placed custom terminals used for quality management  Specialized skills in trading, risk man

13. Slide 13: Marketing Opportunities

    Gibson Energy Marketing Opportunities  Expansion of assets  Physical and financial  Athabasca heavy oil volume growth  Increased gas market share  Expansion of Wellsite Fluids business  Emerging Carbon Dioxide markets  Volatility 13

14. Slide 14: Truck Transportation Activities

    Gibson Energy Truck Transportation Activities  600 tractor units, 1,000 trailer units – largest crude oil fleet in Western Canada  250,000 bpd hauling capacity  HSE excellence  Synergies between business units 14

15. Slide 15: Truck Transportation Opportunities

    Gibson Energy Truck Transportation Opportunities  Tar sand growth  Enhanced margins in growing business environment  Diversify by growing chemical, asphalt and Wellsite Fluid hauling  Lead industry in “next generation” trailers  Invest replacement capital in multi-functional trailers  State of

16. Slide 16: Hardisty Terminal

    Gibson Energy Hardisty Terminal  Largest of the Gibson Terminal facilities  1.6 million barrels of storage  250k bpd throughput  Strategic location 16

17. Slide 17: Edmonton South Terminal

    Gibson Energy Edmonton South Terminal  451,500 Barrels of Storage  Handles diesel produced by Suncor facility in Fort McMurray  Receives product by pipeline and load to rail and trucks  Receives crude oil and condensate by pipeline, truck and rail in support of Gibson Marketing blending operatio

18. Slide 18: Edmonton North Terminal

    Gibson Energy Edmonton North Terminal  New facility – 310K barrel capacity  Pipeline connected to feeder pipeline systems to facilitate receipt of crude oil and condensate in support of Gibson Marketing blending operations  Connected to Enbridge mainline and Transmountain export pipelines  Exclu

19. Slide 19: Canwest Operations

    Gibson Energy Canwest Operations  Second largest propane company in Canada  Operations in British Columbia, Alberta, Saskatchewan, Washington and North Dakota  45 branches and service locations  175 fully equipped, delivery and service vehicles 19

20. Slide 20: 20

    20

21. Slide 21: Moose Jaw Refinery

    Gibson Energy Moose Jaw Refinery  Processing and Distribution – 16,000 bpd  Road asphalt  Roofing Flux  Tops and distillate  Wellsite Fluids  Off-road diesel fuel Moose Jaw Refinery % Sales Volume by Product Well S ite Fluids 22% Tops 32% Asphalt 46% 21

22. Slide 22: Moose Jaw Refinery Opportunities

    Gibson Energy Moose Jaw Refinery Opportunities  Plant utilisation  Roofing Flux market growth  Expanded frac/distillate/diesel/tops  Regional storage  Taking advantage of multiple crude stream access 22

23. Slide 23: Hunting Energy

    Hunting Energy 23

24. Slide 24: Hunting Energy Profit From Operations

    Hunting Energy Profit From Operations December December 2006 2005 £m £m Well Completion 26.2 12.2 Well Construction 8.8 6.7 Exploration & Production 2.0 5.3 37.0 24.2 24

25. Slide 25: Hunting Energy Business Platforms

    Hunting Energy Business Platforms  Well Completion:  Providing the market manufactured products, proprietary technologies, engineering expertise and services in both below and above the well head for oil and gas wells.  Well Construction:  Providing the market manufactured products, engineering

26. Slide 26: Hunting Energy Well Completion

    Hunting Energy Well Completion  Global Manufacturing:  Accessories and Completion Equipment for Oil and Gas Wells  Specialty Threading  Print Work Manufacturing  OEM Manufacturing  OCTG:  Casing for Global Markets  2 Step Tubing for U.S. Markets  Thread Protectors  Well Intervention:  Dow

27. Slide 27: Hunting Energy Well Construction

    Hunting Energy Well Construction  Mud Motors:  Improve Drilling Timelines  Trenchless Technologies:  Products and Services enhancing Underground Construction  Premium Connections:  Technologies for Deeper Drilling Activities  Engineered Products Providing “Well Insurance” 27

28. Slide 28: Well Construction and Well Completion % of Revenue

    Hunting Energy Well Construction % of Revenue Mud Motors Canadian Ops 27% 31% Well Completion % of Revenue Well Intervention 7% Premium U. S. M anf Trenchless Connections U. S. Pipe 21% 19% Technologies 23% 15% Asia Pacific Ops 7% Holland 6% Canadian M anf. Aberdeen 4% 40% 28

29. Slide 29: Well Revenue Generators by Depth of Well

    Hunting Energy Well “Revenue Generators” by Depth of Well 0 – 5000ft 10,000-15,000ft 15,000ft + Well Completion: Well Completion: Well Completion: Accessories Premium Tubing, Premium Premium Tubing, Premium Thread Compounds Connections, Coiled Tubing Connections, Completion Products, Completion Asse

30. Slide 30: Exploration & Production

    Hunting Energy Exploration & Production  Number of wells drilled through 2006 - 18  Number of Successes: 15 Oil Wells: 1  Offshore: 10 Gas Wells: 10  Onshore: 5 Gas and Oil Wells: 4  Reserve replacement for 2006: 94%  2006 production: 380,628 net equivalent barrels from 276 individual wells 30

31. Slide 31: Hunting Energy Opportunities

    Hunting Energy Opportunities  Geographical expansion  Environmentally sound thread compound  Titanium  Annular Pressure Release System  Expansion of Chinese relationship  Continued investment in human capital  Expansion of product offering  Growth of “above the wellhead” technology 31

32. Slide 32: Others Profit From Operations

    Others Profit From Operations December December 2006 2005 £m £m Gibson Shipbrokers 3.0 2.5 Hunting Energy France 1.2 1.1 Others 2.8 (2.1) 7.0 1.5 32

33. Slide 33: Rig Count

    Rig Count US Average Canadian Average International Average Annual Rig Count Annual Rig Count Annual Rig Count 1750 550 1050 500 1000 1500 450 950 400 900 1250 350 850 1000 300 800 250 750 750 200 700 '02 '03 '04 '05 '06 '07 '08 '09 '10 '02 '03 '04 '05 '06 '07 '08 '09 '10 '02 '03 '04 '05 '06 '07 '08

34. Slide 34: Average Oil and Gas Pricing

    Average Oil and Gas Pricing $75.00 $8.00 $65.00 $7.00 $55.00 $6.00 $45.00 $5.00 $35.00 $4.00 $25.00 $3.00 $15.00 $2.00 $5.00 $1.00 2002 2003 2004 2005 2006 Oil Gas Source: EIA 34

35. Slide 35: Conclusions

    Hunting PLC Conclusions  Continued Strong Commodity Fundamentals  Continued E&P Spend and Project Development  Geopolitical Uncertainty  Challenged Production Capability  Reserve Replacements / Depletion Rates  OPEC Cartel  Non-OPEC Supplies  U.S. Dollar Value  Demand will Continue to Rise

36. Slide 36: Outlook

    Hunting PLC Outlook  Hunting Will Continue:  Maximise asset utilisation  Increase capacity with customer assurances  Push new technologies, products and services further  Examine acquisition opportunities that meet financial criteria  Deliver results 36

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Hunting — FY2006 Earnings Presentation on 6ix