Pulse Seismic Inc. · TSX:PSD
Pulse Seismic — Investor Presentation (March 2024)
36 slides from Pulse Seismic's investor presentation, March 2024
Slide 1: Corporate Presentation Year End 2023
Corporate Presentation Year End 2023
Slide 2: Advisories
ADVISORIES FORWARD-LOOKING NON-GAAP MEASURES INFORMATION This presentation contains non-GAAP measures. The Company’s continuous disclosure documents provide This presentation contains information that constitutes discussion and analysis of “EBITDA”, “EBITDA per share”, “forward-looking information”
Slide 3: We Are Canada's Largest Seismic Data Library Provider
WE ARE CANADA’S LARGEST SEISMIC DATA LIBRARY PROVIDER
Slide 4: Licensed Multiple Times
65,310 Sq. km of 3D seismic LICENSED MULTIPLE 829,207 Lin. km of 2D seismic TIMES DATA LIBRARY SALES • Oil and gas producers of all sizes and new energy companies license our digitally stored 2D and 3D data. • We are a pure-play seismic data library company. The library is our main asset. • Pulse op
Slide 5: Metrics That Matter
METRICS THAT MATTER EBITDA EBITDA SHAREHOLDER MARGIN FREE CASH FLOW We are a data-driven, cash- EBITDA is calculated as EBITDA plus non-cash and based business. Pulse’s earnings or loss from non-recurring expenses, less EBITDA margin, or cash operations before interest, interest on long-term debt ma
Slide 6: Key Trading Facts
KEY TRADING FACTS Information as at December 31, 2023, unless otherwise specified PULSE SEISMIC INC. Trading Symbols TSX: PSD OTCQX: PLSDF TSX: PSD Corporate Headquarters Calgary, Alberta, Canada OTCQX: PLSDF Stock Price $1.86 Shares Outstanding 52,621,863 Avg. Daily Trading Volume (Q4 2023) 13,639
Slide 7: 2023 Financial Results
2023 FINANCIAL RESULTS $39.1MM TOTAL REVENUE Total Capital Returned to Shareholders - $23.3MM $8.7MM equals 94% of 2023 Shareholder Free Cashflow SCB and SG&A EXPENSES • Dividends Declared - $21.4MM ($0.40375 per share) $30.4MM EBITDA • NCIB Shares Purchased - $1.9MM (1MM shares at average price of
Slide 8: The Company We Have Built
THE COMPANY WE HAVE BUILT Positioned for volatile commodity-price environment COSTS AND SPENDING CREDIT FACILITIES Pulse’s operating costs were $8.7M in 2023, generating The Company amended its credit facility positive EBITDA (78% of revenue) in February 2024 to save costs on and shareholder free ca
Slide 9: Value in Our Business
VALUE IN OUR BUSINESS
Slide 10: Understanding Our Business
UNDERSTANDING OUR BUSINESS Simplified geological column, greater Alberta What We Do: Deep Basin Pulse’s business model: To repeatedly relicense high-quality 2D and 3D data to traditional and new energy companies. Why 2D: 2D seismic allows exploration companies to plan broad land acquisition programs
Slide 11: 3D Seismic Enables Detailed Modelling of Geologically Complex Targets
3D SEISMIC ENABLES DETAILED MODELLING OF GEOLOGICALLY COMPLEX TARGETS › 3D seismic is more detailed and more expensive to shoot. › Critical for most horizontal drilling, unconventional plays like shale gas and tight light oil formations, as well as complex conventional drilling. › Pulse owns 65,310
Slide 12: Pulse: A Western Canada Market Leader
PULSE: A WESTERN CANADA MARKET LEADER ESTIMATED CANADIAN 2D MARKET ESTIMATED CANADIAN 3D MARKET SEI Seismic Sigma Exchange Sigma 68,000 Schlumberger 4,554 85,299 Others 10,827 829,207 PULSE 16,678 65,310 TGS Arcis 18,639 2D 3D (km2) PULSE (km) 39,552 SEI Seismic Exchange 2,767 Divestco (Charts exclu
Slide 13: Western Canada Data Library Play Coverage
WESTERN CANADA Data Library KEY PULSE DATA LIBRARY AREAS Play Coverage Montney 2D Coverage 191,726 km 3D Coverage 40,274 km2 Deep Basin 2D Coverage 127,505 km 3D Coverage 24,109 km2 Duvernay 2D Coverage 265,008 km 3D Coverage 24,313 km2 Cardium 2D Coverage 102,901 km 3D Coverage 9,642 km2
Slide 14: Our Customers: Diverse and Long-Term
OUR CUSTOMERS: DIVERSE AND LONG-TERM PULSE’S CUSTOMERS: › New energy customers include those › Concentrated in Alberta’s oil and exploring for hydrogen, lithium and natural gas and new energy geothermal, as well as related industries. resources such as helium, and those › 58% of purchases during the
Slide 15: Generating Revenue: Two Types of Library Data Sales
GENERATING REVENUE: TWO TYPES OF LIBRARY DATA SALES TRADITIONAL SALE TRANSACTION-BASED SALE A straightforward license New licensing fees on already- of 2D or 3D data from licensed library data triggered Pulse’s library related to by a change in control over the drilling in new areas or licensee or t
Slide 16: Drivers of Traditional Data Library Sales
DRIVERS OF TRADITIONAL DATA LIBRARY SALES
Slide 17: Types of Transaction-Based Sales
TYPES OF TRANSACTION-BASED SALES PARTNERSHIPS & CORPORATE JOINT VENTURES MERGER/ACQUISITION ASSET SALE New technical or Buyer has 30 days to Seismic licence does not operational participants decide to pay a transfer with the asset. must purchase a data discounted relicensing fee Pulse gains a potent
Slide 18: Seismic Data for Subsurface Exploration
SEISMIC DATA for SUBSURFACE EXPLORATION Existing and technology enhanced seismic data improves subsurface characterization for oil and gas and energy transition exploration. Pulse’s existing and technology optimized data improve subsurface characterization for structural mapping and validating and u
Slide 19: Data Sales Profiles
DATA SALES PROFILES Traditional Sales Transaction-Based Sales 35,775 TRADITIONAL & 31,762 TRANSACTION-BASED SALES (THOUSANDS OF DOLLARS) 24,051 19,607 19,114 16,629 14,985 12,923 11,763 11,095 10,119 9,970 19,606 9,112 6,740 12,942 4,369 4,028 949 233 2014 2015 2016 2017 2018 2019 2020 2021 2022 202
Slide 20: Growing the Size of the Seismic Data Library
GROWING THE SIZE OF THE SEISMIC DATA LIBRARY SEISMIC 900,000 70,000 800,000 LIBRARY 60,000 700,000 50,000 600,000 3D (sq. km) 500,000 40,000 › January 15, 2019, Pulse acquired 100 percent of 2D (km) the shares of Seitel Canada Ltd. for $62.8MM. Includes approximately 36,354 net square 400,000 30,000
Slide 21: Strategic Investments at Opportune Moments
STRATEGIC INVESTMENTS AT OPPORTUNE MOMENTS › Acquired seismic assets from Divestco in 2010. › Acquired 100% of shares of Seitel Canada Ltd. › Purchase price of $75.5MM included $55.5MM in cash plus 14.3MM Pulse › Purchase price of $58.6MM including common shares. $53.6MM cash on closing, $5MM deferr
Slide 22: Current Seismic Coverage
CURRENT SEISMIC COVERAGE Western Canada’s Premium Licensable Seismic Dataset 65,310 Sq. km of 3D seismic 829,207 Lin. km of 2D seismic
Slide 23: Value in Our Results
VALUE IN OUR RESULTS
Slide 24: Seismic Data Library Sales Strongly Correlate to Shareholder Free Cash Flow
SEISMIC DATA LIBRARY SEISMIC DATA LIBRARY SALES VS. SFCF PER SHARE SALES STRONGLY 70.0 0.90 CORRELATE TO 60.0 0.80 SHAREHOLDER FREE 0.70 ($/Diluted Weighted Share Outstanding) 50.0 CASH FLOW 40.0 0.60 0.50 ($MM) 30.0 0.40 0.30 20.0 0.20 10.0 0.10 0.0 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 25: How We Calculate Shareholder Free Cash Flow (SFCF)
Three months ended December 31, Years ended December 31, (thousands of dollars except per share) 2023 2022 2023 2022 Data library sales 16,833 2,411 39,036 9,345 HOW WE Other revenue Less: 28 28 91 225 CALCULATE Salaries, internal commissions and benefits 2,630 1,106 6,500 4,470 SHAREHOLDER Other SG
Slide 26: Q4 and Annual Highlights 2023
Three months ended December 31, Years ended December 31, (thousands of Canadian dollars except per share data and numbers of share) 2023 2022 2023 2022 Total Revenue 16,861 2,439 39,127 9,570 2023 Amortization of seismic data library 2,270 2,416 9,103 9,818 Net earnings (loss) 8,307 (1,948) 15,007 (
Slide 27: Value for Shareholders
VALUE FOR SHAREHOLDERS
Slide 28: Shareholder Value Through Dividends and Share Purchases
SHAREHOLDER VALUE THROUGH DIVIDENDS DIVIDENDS AND SHARE PURCHASES ($MM) AND SHARE PURCHASES Dividends ($MM) Share Purchases ($MM) 21.4 TOTAL SPENDING ON DIVIDENDS AND SHARE PURCHASES ($MM) 10.9 10.8 10.5 $48.5 8.4 8.4 7.1 $138.3MM 6.3 5.3 4.8 4.5 4.7 5 4.1 3.5 3.4 2003-2023 0.02 2.8 0.31 2.7 2.3 2.2
Slide 29: Ten-Year Allocation of Funds
TEN-YEAR ALLOCATION OF FUNDS 2014-2023 FUNDS AVAILABLE ($MM) FUNDS ALLOCATED ($MM) Long Term Debt Unallocated $36 working $27 capital Common Share Cash and $19 Purchases Working Capital Debt $7 $58 Repayments $1 Equity Financing Dividend Net Capital Payments $70 $35 Expenditures $165 Shareholder Fre
Slide 30: Our People
OUR PEOPLE EXECUTIVE MANAGEMENT TEAM Neal Coleman Pamela Wicks Trevor Meier President & CEO Vice President Finance Vice President & Chief Financial Sales and Marketing Officer DIRECTORS Robert Robotti, Chair of Pulse Seismic Melanie Westergaard Dallas Droppo President and CIO, Robotti & Company Advi
Slide 31: Financial Appendix
FINANCIAL APPENDIX
Slide 32: Consolidated Statements of Financial Position
(thousands of Canadian dollars) De ce m be r 3 1 , 2 0 2 3 December 31, 2022 Asse ts Cash and cash equivalents 1 5 ,9 4 8 5,822 Trade and other receivables 6 ,2 8 1 1,088 CONSOLIDATED Current tax assets - 398 Prepaid expenses 292 430 To tal curre nt asse ts 2 2 ,5 2 1 7,738 STATEMENTS Seismic data l
Slide 33: Consolidated Statements of Comprehensive Earnings (Loss)
Years ended December 31, (thousands of Canadian dollars) 2023 2022 Revenue CONSOLIDATED Data library sales Other revenue 39,036 91 9,345 225 STATEMENTS OF Total revenue 39,127 9,570 COMPREHENSIVE Operating expenses Amortization of seismic data library 9,103 9,818 EARNINGS (LOSS) Salaries, internal c
Slide 34: Consolidated Statement of Cash Flows
Years ended December 31, (thousands of Canadian dollars) 2023 2022 Cash flows provided by (used in): Operating: CONSOLIDATED Net earnings (loss) and comprehensive income (loss) Adjustment for: 15,007 (7,907) STATEMENT OF Amortization of seismic data library 9,103 9,818 Depreciation 80 257 Income tax
Slide 35: Capital Structure: Shares Outstanding at Year-End
CAPITAL STRUCTURE SHARES OUTSTANDING AT YEAR-END 67.2 66.0 › Authorized unlimited number of 61.1 59.3 common and preferred shares (MILLIONS OF SHARES OUTSTANDING) 57.2 55.9 55.6 54.0 53.8 53.8 53.8 53.8 53.6 52.6 › 52,621,863 common shares outstanding (December 31, 2023) 2010 2011 2012 2013 2014 201
Slide 36: Pulse Seismic Inc.
Pulse Seismic Inc. 2700, 421 7th Avenue SW. Calgary, Alberta T2P 4K9 Toll-free: 1.877.460.5559 Telephone: 1.403.237.5559 Email: info@pulseseismic.com