Ensign Energy Services Inc. · TSX:ESI
Ensign Energy Services — Investor Presentation (November 2006)
48 slides from Ensign Energy Services's investor presentation, November 2006
Slide 1: Corporate Presentation – November 2006
Corporate Presentation – November 2006
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, national and economic conditions, foreign exchange ra
Slide 3: Agenda
Agenda CORPORATE PROFILE INDUSTRY STATISTICS CANADIAN OPERATIONS UNITED STATES OPERATIONS INTERNATIONAL OPERATIONS FINANCIAL OVERVIEW
Slide 4: Corporate Profile
Corporate Profile =a Driving to Zero injuries - Incidents ae
Slide 5: Corporate Profile
Corporate Profile • Oilfield services • Drilling • Coalbed methane / oilsands coring • Underbalanced drilling • Oilfield rentals • Camps and catering • Well servicing • Production testing • Mechanical wireline • Manufacturing • Transportation • Operates in Canada, the United States and International
Slide 6: Current Operations
Current Operations Canada United States Oman Thailand Venezuela Libya Gabon Indonesia Australia Argentina New Zealand CORPORATE PROFILE
Slide 7: Commitment to Customer Service
Commitment to Customer Service • Committed to providing a safe working environment • Focus on recruitment, training and personnel development • In-house engineering expertise • Design and construction of specialty equipment • Operational standards maintained at highest levels CORPORATE PROFILE
Slide 8: Industry Statistics
Industry Statistics
Slide 9: Canadian Drilling Rig Activity
Canadian Drilling Rig Activity 700 600 500 Rigs Drilling 400 300 200 100 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Baker Hughes INDUSTRY STATISTICS
Slide 10: United States - Rockies Rig Activity
United States - Rockies Rig Activity 350 300 250 200 Rig Count 150 100 50 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Anderson Report INDUSTRY STATISTICS
Slide 11: United States - California Rig Activity
United States - California Rig Activity 75 60 45 Rig Count 30 15 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Munger Report INDUSTRY STATISTICS
Slide 12: International Rig Activity
International Rig Activity 800 600 Rig Count 400 200 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Baker Hughes INDUSTRY STATISTICS
Slide 13: Canadian Operations
Canadian Operations
Slide 14: Canadian Operations
Canadian Operations 2006 Est. Mkt. Share Drilling Drilling Rigs 161 22% Coring & Specialty Drilling Rigs 21 30% Underbalanced Drilling Units 18 54% Well Service Service Rigs 105 15% Coiled Tubing Units 11 6% Production Services Wireline Units 39 18% Production Testing Units 36 13% Oilfield Equipment
Slide 15: Drilling Inventory
Drilling Inventory Total: 182 Drilling Rigs 100 78 Rigs 80 60 40 37 Rigs 26 Rigs 20 Rigs 21 Rigs 20 0 Triple Double Single ADR Coring CANADIAN OPERATIONS
Slide 16: Ensign Rig #111
Ensign Rig #111 Driving to Zero’ iy. Injuries - Incidents,
Slide 17: Encore Rig #415
Encore Rig #415
Slide 18: Underbalanced Drilling Services
Underbalanced Drilling Services • 18 Underbalanced Drilling Units • Incorporating use of Interactive- Process-Control technology CANADIAN OPERATIONS
Slide 19: Oilfield Equipment Rentals
Oilfield Equipment Rentals • Extensive inventory of specialty drill pipe, BOPs, loaders, tanks, pumps and rig matting • Camps and Catering division established; expanding from 24 camps to 39 camps (15 new camps on order) CANADIAN OPERATIONS
Slide 20: Well Servicing Inventory
Well Servicing Inventory Total 105 Service Rigs and 11 Coiled Tubing Units 80 60 40 20 0 Medium/Heavy Mobile Double Single Slant Single Coiled Tubing Double CANADIAN OPERATIONS
Slide 21: Well Servicing Rig
Well Servicing Rig
Slide 22: Coiled Tubing Unit
Coiled Tubing Unit
Slide 23: Manufacturing & Production Services
Manufacturing & Production Services • 36 Wireline Units • added 3 units in 2006 • 41 Production Testing Units • added 7 units in Canada • 10 Production Testing Units (U.S.) • adding 2 more units through 2006 • New 50,000 square foot manufacturing facility CANADIAN OPERATIONS
Slide 24: Oilfield Services • What's new
Oilfield Services • What’s new • ADRTM “Slant” Rig proven up and orders received for 2 ADR-S Rigs on Take or Pay contracts • Commissioned 3 – 4000 m AC “state of the art” Triple Drilling Rigs in Q2 2006 • 7 completely refurbished drilling rigs under long-term contracts CANADIAN OPERATIONS
Slide 25: Future Growth Strategy
Future Growth Strategy • Continued consolidation • Specialty equipment • ADRTM with and without coiled tubing capability • ADRTM depth expansion and “Slant” version • New frontiers • Arctic • Coalbed methane and oilsands coring CANADIAN OPERATIONS
Slide 26: United States Operations
United States Operations Driving to Zero injuries - Incidents, ia
Slide 27: United States Operations
United States Operations 2006 Est. Mkt. Share Marketed Drilling Rigs Rocky Mountain Region 47 22% California 18 30% 65 Marketed Well Servicing Rigs Rocky Mountain Region 9 UNITED STATES OPERATIONS
Slide 28: Oilfield Services Inventory
Oilfield Services Inventory Total: 74 Drilling Rigs 40 33 Rigs 30 24 Rigs 20 10 7 Rigs 9 Rigs California 1 California 13 California 1 California 3 0 Triple Double Single ADR Well Servicing UNITED STATES OPERATIONS
Slide 29: Self Moving Pad Rig
Self Moving Pad Rig f Driving to Zero injuries - Incidents,
Slide 30: Thums Island Project
Thums Island Project ‘vm - _ a - - - - _ - - Be
Slide 31: Drilling
Drilling • What’s new • Action Well Services integrated into U.S. operations – renamed as Ensign United States Well Servicing • Transferred 2 Canadian rigs to United States • Constructing 10 drilling rigs and 2 new ADRs under long-term contracts for the United States market; scheduled delivery of on
Slide 32: Future Growth Strategy
Future Growth Strategy • Continued consolidation • Expand services spectrum in the United States • Continue to develop growth opportunities in existing markets UNITED STATES OPERATIONS
Slide 33: International Operations
International Operations Driving to Zero Injuries - Incidents
Slide 34: International Operations
International Operations 2006 Marketed Drilling Rigs Australia 6 Southeast Asia 3 Middle East 4 Africa 8 Argentina 6 New Zealand 1 Venezuela 10 38 Marketed Workover Rigs Argentina 4 New Zealand 1 Australia 3 Venezuela 1 9
Slide 35: Oilfield Services Inventory
Oilfield Services Inventory 20 18 Rigs 16 Rigs 15 10 9 Rigs 5 4 Rigs 0 Triple Double Single Workover INTERNATIONAL OPERATIONS
Slide 36: Ensign International Rig 18
Ensign International Rig 18
Slide 37: Oilfield Services
Oilfield Services • What’s new • Term contracts for deep capacity drilling rigs in Libya and Thailand • New long term contracts in Argentina including one additional drilling rig transferred from Venezuela • Transferred 2 rigs from Ecuador to Argentina – 2 year contracts INTERNATIONAL OPERATIONS
Slide 38: Future Growth Strategy
Future Growth Strategy • Continued consolidation • Aggressively pursue long-term international contracts • Potential for redeployment of existing rigs and equipment from other divisions • Use of North American expertise and technology INTERNATIONAL OPERATIONS
Slide 39: Financial Overview
Financial Overview
Slide 40: Trading Data
Trading Data • TSX: ESI • Common shares outstanding 151.8 million • Market capitalization $2.9 billion • Dividends • 2002 $0.1025 per share • 2003 $0.1175 per share • 2004 $0.1450 per share • 2005 $0.1700 per share • 2006E $0.2750 per share FINANCIAL OVERVIEW
Slide 41: Debt to Equity
Debt to Equity $ millions, years ended December 31 800 Debt 700 Equity 600 500 400 300 200 100 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 FINANCIAL OVERVIEW
Slide 42: Revenue
Revenue Geographic Segmentation 60% Canada 15% United States International 25% FINANCIAL OVERVIEW
Slide 43: Revenue
Revenue $ millions, years ended December 31 2100 1800 1500 1200 900 600 300 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006e* * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW
Slide 44: Income
Income $ millions, years ended December 31 350 300 250 200 150 100 50 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006e* $ per share 0.55 0.36 0.21 0.60 0.69 0.35 0.66 0.79 1.12 1.94 - 2.14 * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW
Slide 45: Return on Equity
Return on Equity percent, years ended December 31 60 50 40 30 20 10 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006e* * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW
Slide 46: Q2 2006 Summary
Q2 2006 Summary ($ millions, except per share data) Six months ended June 30, June 30, % 2006 2005 Change Revenue 925.5 671.7 38 Adjusted income 182.9 93.2 96 Per share $1.21 $0.62 95 Income 174.5 79.5 119 Per share $1.15 $0.53 117 Cash flow 210.9 132.2 60 Per share $1.39 $0.88 58 Dividends per shar
Slide 47: Why Ensign is a Solid Investment
Why Ensign is a Solid Investment • Diverse operations • Opportunistic growth strategy • Commitment to safety and customer service • Financial strength and discipline
Slide 48: www.ensignenergy.com
Ma Eife] ENERGY SERVICES INC. www.ensignenergy.com Focus Innovate Deliver
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