Phx Energy Services Corp. · TSX:PHX
Phx Energy Services — Phoenix Technology Income Fund — Investor Presentation (February 2005)
10 slides from Phx Energy Services's investor presentation, Feb 28, 2005
Slide 1: Presented by John Hooks & Cameron Ritchie
Presented by: John Hooks & Cameron Ritchie February 28, 2005 1
Slide 2: Market Data and Financial Highlights
Market Data PHX.UN Exchange Toronto Stock Exchange Shares Outstanding (February 15, 2005) 20.6 million Share Price (February 15, 2005) $5.75 / share 52 Week High / Low $5.90 / 2.51 Distributions (February 15, 2005) $0.04 month / $0.48 year Market Capitalization (February 15, 2005) $118.45 million Tr
Slide 3: Balance Sheet and Yield Comparison
Balance Sheet Stated in (000’s) Dec. 31, 2004 Dec. 31, 2003 Working Capital 12,213 13,509 Fixed Assets 22,164 16,895 Total Assets 52,554 42,489 Long Term Debt 3,275 3,500 Unitholder’s Capital 39,426 28,064 Yield Comparison As of February 15, 2005 Mkt. Cap. Current Unit Annual ($ millions) Yield Pric
Slide 4: Yield Comparison and Phoenix Drilling Systems
Yield Comparison v Implied price of Phoenix per unit using average yield of 6.88% = $ 6.97 v Implied price of Phoenix per unit using Cathedral’s yield of 7.14% = $ 6.72 Phoenix Drilling Systems # MWD Operating Systems January 1, 2002 17 January 1, 2003 31 January 1, 2004 37 January 1, 2005 50 Year E
Slide 5: Horizontal & Directional Drilling; Current Loop Telemetry
Horizontal & Directional Drilling v 32 positive and negative pulse Measurement While Drilling “MWD” Systems. v 18 Electromagnetic (“EM”)Phoenix developed Closed Loop Telemetry (“CLT”) Systems. v 5 additional CLT systems in construction for February 2005 delivery. v CLT manufacturing expands current
Slide 6: Emerging Market
Emerging Market v Alberta’s oil sands are arguably the largest oil deposit in the world. v Estimates as high as 1.6 trillion barrels are located in the Athabasca, Cold Lake and Peach River tar sands. v Current technology can recover 174 billion barrels. – Approximately 20% can be mined from the surf
Slide 7: Technology Required
Technology Required v To align or pair the wells, the wells must be drilled horizontally. v Operators demand high speed data to guide the drilling bit. Electromagnetic (EM) transmission is required. v Highly accurate streering aligns wells and can only be attained with near bit sensor technology. v
Slide 8: Inclination at Bit Outlook
Inclination at Bit Outlook v In 2005 Phoenix Technology Income fund predicts that 25,000 wells will be drilled in western Canada. v Phoenix expects that approximately 25% of wells will utilize horizontal / directional drilling. v Growth in Canada and in the United States through: – Expansion of cust
Slide 9: Emerging New Markets for Phoenix; Directors and Officers
Emerging New Markets for Phoenix v Under-balanced Market – Currently two suppliers v Steam Assisted Gravity Drainage (“SAG-D”) – Currently 2-3 Suppliers v Coal-Bed Methane (“CBM”) – Phoenix experience derived from US operations v US Operations – Presently deploy 20 MWD operating systems from a fleet
Slide 10: Locations
Locations Head Office Suite 630, 435 - 4th Ave SW Calgary, Alberta T2P 3A8 Canadian Operations and R&D 11560 - 42nd Street SE Calgary, Alberta T2Z 4E1 US Operations 1724-B Townhurst Drive Houston, Texas 77043 - and- 3146 Willer Drive Casper, Wyoming 82604 9
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