Questor Technology Inc. · TSXV:QST
Questor Technology — Shareholder Meeting (May 2018)
26 slides from Questor Technology's shareholder meeting presentation, May 30, 2018
Slide 1: Solutions Powered By Clean Combustion – Annual General Meeting
Solutions Powered By Clean Combustion Environmental Intelligent Innovative Protection Solutions Design Annual General Meeting May 30th, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information presented today may constitute forward-looking statements. Such statements reflect the Company’s current expectations, estimates, projections and assumptions. These forward-looking statements are not guarantees of future performance and are subject to c
Slide 3: Questor Corporate Profile
Questor Corporate Profile • Canadian company founded in 1994 • Listed in 1998 on the TSX Venture Exchange – “QST” • 26.5 million shares outstanding • U.S. and Canadian incineration patent – 2019 • Diversified product offering – clean combustion (99.99%), water treatment and heat to power • Global op
Slide 4: What We Do
What We Do Questor is a leading provider of safe, reliable, efficient and compliant waste gas combustion systems across an array of industries. We specialize in waste gas combustion equipment addressing air quality and emissions. We recover the waste heat from clean combustion and other sources to g
Slide 5: The Problem We Are Solving
The Problem We Are Solving Before Questor Community Acceptance; Operating and Capital Cost Reductions; Safety; Energy Efficiency; Emission Regulations:- VOC, HAP’s, methane, air quality, GHG emissions, low carbon operations, green/closed loop completions, no flaring, no venting, no odours
Slide 6: Creating Value From Waste Gas
Creating Value Creating Value From Waste Gas Low Pressure Multiple Waste Gas Streams Heat Recovery Heat to Power Generation Enclosed Combustion Device (>99.99% Combustion Efficiency) a ww Water Vaporization
Slide 7: Investor Information
Investor Information Share Information (as at Q1 2018) 12 Month Share Price Performance Shares Outstanding 26,457,370 Warrants Nil Options 1,628,500 (issued/outstanding) Current share price $3.75 52 Week Hi-low $1.02 - $3.95 Market Cap $99.2 million Financial Information (as at YE 2017) Revenue $19,
Slide 8: Board of Directors
Board of Directors Audrey Mascarenhas – President and CEO Chemical Engineer with Master’s degree in Petroleum. Over 35 years of oil and gas experience. 17 years with Gulf Canada Resources prior to joining Questor in 1999. U of C Engineering Industry advisor. Alberta Energy Futures Lab Fellow. Chair
Slide 9: Questor Team Profile
Questor Team Profile Audrey Mascarenhas – President and CEO Dan Zivkusic– CFO CPA, CMA with over 20 years in the oil and gas industry in the E&P and service sectors. Senior executive finance experience in E&P, pressure pumping, artificial lift systems, managed pressure drilling and testing. John Sut
Slide 10: Financial Performance
Financial Performance 13,000 10,500 Revenue 8,000 Profit EBITDA $M (Cdn.) 5,500 3,000 500 -2,000 2013 2014 2015 2016 2017 Q1'18
Slide 11: First Quarter Financial Performance Comparison
First Quarter Financial Performance Comparison 7,000,000 6,000,000 5,000,000 $Millions 4,000,000 3,000,000 2,000,000 1,000,000 0 Q1'17 Q1'18
Slide 12: Global and US Experience
Global and US Experience California, Colorado, Kentucky, Mississippi, New York, North Dakota, Ohio, Pennsylvania, Texas, Utah, West Virginia, Wyoming Egypt, Russia, Caribbean, Indonesia, Thailand, China, Germany, France, Italy
Slide 13: Business Segments
Business Segments Sales (Permanent Facilities) Rentals: Well tests, Pipeline/Plant blowdowns Field Combustion Services
Slide 14: Business Segment Revenues
Business Segment Revenues 25.0 20.0 15.0 MM$ (CAD) 10.0 5.0 0.0 2013 2014 2015 2016 2017 Q1'18 Sales Rental Services
Slide 15: Clean Technology Market
Clean Technology Market • Estimated to grow from $1 to $3 trillion globally and be the 3rd largest industrial sector by 2020 • Top 10 global E&P companies committed $1B to reducing their methane emissions • US EPA/State regulation focused on methane, HAP and VOC’s – Non- attainment zones. Canadian/U
Slide 16: Market Drivers
Market Drivers • US EPA/State regulation focused on air quality and non-attainment zone emissions: methane, HAP and VOC’s • Gas flaring, fugitive emissions and venting are one of the biggest sources of methane emissions • Methane is 84x more potent than CO2 – clean combustion reduces GHG emission 30
Slide 17: Rental Fleet Expansion
Rental Fleet Expansion 18 80 16 70 14 60 12 50 10 $ M CAD 40 8 30 6 20 4 2 10 0 0 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Rental Fleet at Cost Rental Revenue Capacity Gross Margin Capacity Units at end of Quarter
Slide 18: Revenue by Region
Revenue by Region 25,000 20,000 15,000 $M (CAD) 10,000 5,000 0 2013 2014 2015 2016 2017 Q1'18 Canada USA International
Slide 19: United States Revenue
United States Revenue United States Revenue $14,000,000 $12,000,000 $10,000,000 $8,000,000 Axis Title $6,000,000 $4,000,000 $2,000,000 $- Q1'17 Q1'18 Total $2,729,596 $5,748,242 Incinerator & Combustion Services $273,949 $504,086 Incinerator Rental Income $1,236,218 $4,219,890 Sale of Goods $1,219,4
Slide 20: Colorado Operations
Colorado Operations “Newer tighter oil and gas plays challenge the norm” Air quality issues – non-attainment zones Stringent EPA and state regulations Communities requesting moratoriums – emphasis on social license and community acceptance Green or closed-loop completions – no flaring, no ve
Slide 21: Colorado Hybrid Rental / Sales Model
Colorado Hybrid Rental / Sales Model Integrated total system solution – D&C and production operations Rental Tall unit for flow-backs and high initial production rates Rental top of stack removed for permanent production Unit handles all the gas streams onsite – closed loop Regulatory comp
Slide 22: Extraction Oil & Gas – Hybrid Units
Extraction Oil & Gas – Hybrid Units Questor’s units resulted in Extraction obtaining: Rental unit 30% reduction in lease size 20% reduction in pad cost Hybrid Units
Slide 23: US Market Opportunity
US Market Opportunity Large market with similar business principles Increased emission regulation and community concerns creating the push Canada regulations will lag behind US; hence, Questor’s focus on US market State of Colorado has taken lead role in regulating quality, high-performance
Slide 24: Growth Strategy - Expansion
Growth Strategy - Expansion Positioned Questor as a scalable business in a rapidly expanding market Continued to invest and grow in Colorado Create similar “hub” in the Marcellus - similar regulation contemplated Explore the potential in the Permian to create a “hub” Poised to create addit
Slide 25: Growth Strategy - Diversification
Growth Strategy - Diversification Diversified technology solution offerings – Questor combustion unit power and water treatment – expansion into other industries • ClearPower - waste heat conversion to power with zero emissions significant global industrial market - 77kW to 1.5MW • Developing techno
Slide 26: Contact Information
Contact Information Audrey Mascarenhas, President & CEO Toll Free: 1.844.477.8669 www.questortech.com www.clearpowersystems.com Questor Technology Inc. Calgary, AB, Denver CO, Brooksville FL