Ensign Energy Services Inc. · TSX:ESI

Ensign Energy Services — Investor Presentation (October 2023)

16 slides from Ensign Energy Services's investor presentation, October 2023

  1. Slide 1: Investor Presentation Fall 2023

    INVESTOR PRESENTATION Fall 2023

  2. Slide 2: Forward-looking Statements

    Forward-looking Statements Disclaimer & Advisory This presentation contains forward-looking statements based upon current expectations that involve several business risks and uncertainties. These statements are not guarantees of future performance and are subject to certain risks and the user should

  3. Slide 3: Our Global Reach

    Our Global Reach Technically advanced, emission-friendly, global onshore drilling contractor 8 COUNTRIES 4,000+ $3.1 Bn 232 94 PEOPLE ASSETS 1 DRILLING RIGS SERVICE RIGS 60% Canada United States Oman Revenue Kuwait Distribution1 Venezuela Bahrain 24% Argentina Australia 16% 1As of June 30, 2023 3

  4. Slide 4: Ensign: Built to emphasize capital efficiencies and prioritize free cash flow

    Ensign Built to emphasize capital efficiencies and prioritize free cash flow Committed to maintenance capital and selective DISCIPLINED upgrade program to ensure asset strength and financial CAPITAL STRATEGY flexibility Relatively young fleet with predictable and lower maintenance requirements into

  5. Slide 5: Strategically Positioned in US Basins

    Strategically Positioned in US Basins With the rights rigs for the right basins UNITED STATES MARKET  85 marketed rigs, built for purpose and basin specific 85  Over 70% of the US fleet is high-spec rigs, with majority NIOBRARA located in the Permian basin 15 Rigs GRANITE  The remaining <1000 HP

  6. Slide 6: Focused on Execution in Canada

    Focused on Execution in Canada Well positioned in the active regions CANADIAN MARKET  Diverse fleet spec to suit diverse basins across the western Canadian provinces 115  Over 40% of the marketed fleet is under term contract1  Majority of rigs working in most active and economic Canadian plays (M

  7. Slide 7: Strong International Exposure

    Strong International Exposure High-Spec assets on longer term contracts  Over 50% of marketed international fleet is under term WA / NT MIDDLE EAST contract1 QUEENSLAND CSG 8 Rigs AUSTRALIA 1000 – 3600 HP VENEZUELA AUSTRALIA 8 Rigs  Largest drilling contractor with leading market share in 3 KUWAIT

  8. Slide 8: Building Contract Book

    Building Contract Book As leading-edge pricing stabilizes, we continue to build term across global contracts Across global operations, approximately $952 mm in forward contracted revenue with 50% of our marketed fleet contracted, of those contracted rigs 36% are under long term contracts (≥6 months)

  9. Slide 9: Disciplined Cost Structure Enabling Margin Expansion

    Disciplined Cost Structure Enabling Margin Expansion Low fixed cost, high variable cost business model G&A % of Revenue1 Industry leading overhead cost efficiency 12% Flexibility in Capital Expenditures 10% • Investing the in long economic life of our drilling assets 10% (~30 years) versus average a

  10. Slide 10: Strategic Capital Allocation

    Strategic Capital Allocation Reducing Total Debt Improving Funds Flow from Operations $400 Strategic, counter-cyclical acquisitions heading into a constructive market $350 2023 debt reduction target of $200 mm, 2023-2025 debt $300 reduction target of $600 mm1 $250 Millions (CAD) $200 $1,800 $150 $1,

  11. Slide 11: Technology and Innovation

    Technology and Innovation Enhancing profitability and commercial models through innovation Automation Technology Low cost, high value, and high margin drilling solutions Adaptable to any AC rig Easily customized to basin specifics and individual customer needs Performance Securing optimal Analytics

  12. Slide 12: Incremental Revenue Streams

    Incremental Revenue Streams Integrated business models OUR CORE BUSINESS is drilling onshore wells around the world, accounting for approximately 90% of our total revenue 94 SERVICE RIGS COMPLIMENTARY BUSINESSES  Completion services  Production services  Rentals MPD UNITS VALUE ADDED  Augments E

  13. Slide 13: Alternative Power Solutions

    Alternative Power Solutions Maintaining operational performance while reducing on-site fuel emissions Highline Hybrid (electric grid-tied) Hydrogen (Battery Energy Natural Gas Bi-Fuel Systems) 100% 100% 45-50% 35-45% 20-25% reduction reduction reduction reduction reduction Note: Emission reductions

  14. Slide 14: Commitment to Sustainability

    Commitment to Sustainability ENVIRONMENT SOCIAL GOVERNANCE 32% of our total marketed fleet is TIRI continues to outperform the 22% of board members are equipped with emission reducing industry IADC average benchmark women solutions, with the majority of Approximately, 20% women in 78% independent bo

  15. Slide 15: Enduring Value Proposition

    Enduring Value Proposition Creating upside for customers and investors TECHNOLOGY Enhancing profitability through innovation and advanced LEADERSHIP technologies BALANCED Positioned to deliver in any environment in key basins PORTFOLIO worldwide CAPITAL Disciplined investment to ensure financial fle

  16. Slide 16: Ensign Energy Services Inc. contact

    ENSIGN ENERGY SERVICES INC. 400 –400 5 Ave 5 Ave SW, SW Calgary, Calgary, AB0L6 AB, T2P T2P 0L6 403.262.1361 403.262.1361 www.ensignenergy.com | ESI.TO www.ensignenergy.com ir@ensignenergy.com ESI.TO

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