Western Energy Services Corp. · TSX:WRG
Western Energy Services — Shareholder Meeting (May 2014)
14 slides from Western Energy Services's shareholder meeting presentation, May 6, 2014
Slide 1: Annual and Special Meeting
Annual and Special Meeting WRG May 6, 2014
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING INFORMATION This presentation may contain certain statements or disclosures relating to Western Energy Services Corp. (“Western”) that are based on the expectations of its management as well as assumptions made by and information currently available to Western which may co
Slide 3: Western Energy Services Corp. Well Managed Service Company
Western ENERGY SERVICES CORP. WWW.WESC.Ca Well Managed Service Company Current share price $ as at May 5, 2014 e Book value per share (f.d.) oa x 7.52 Best-in-class People and Equipment Strong Customer Base Capacity for Sustainable Growth 6@ee6 710” Total return on investment* 161” Annualized return
Slide 4: Operating Highlights
Operating Highlights First Quarter Year Ended December 31 Operating Highlights 2014 2013 % Change 2013 2012 % Change Contract drilling Canadian Operations Rig fleet (end of period) 49 45 9% 47 44 7% Operating revenue per revenue day (CDN$) 26,403 25,392 4% 24,829 26,190 (1) (5%) Drilling rig utiliza
Slide 5: Financial Highlights
Financial Highlights First Quarter Year Ended December 31 Financial Highlights (Thousands CDN$) 2014 2013 % Change 2013 2012 % Change Operating Revenue 149,627 90,080 66% 353,124 282,856 25% Gross Margin 67,629 40,945 65% 147,559 131,063 13% Gross Margin as a percentage of operating revenue 45% 45%
Slide 6: 2014 Capital Expenditures $104 Million
2014 Capital Expenditures $104 Million Consolidated Capital Spending - Expansion vs. Maintenance & Consolidated Capital Spending By Critical Spares Entity Critical Spares 10% ($10 million) Stoneham 16% Maintenance Aero Expansion 30% 11% ($32 million) Horizon 60% 63% ($62 million) Eagle 10% 6
Slide 7: Western Today
Western Today Canadian Based Well Servicing Rigs Canadian Rental Equipment Locations U.S. Based Drilling Rigs Canadian Based Drilling Rigs Western 7 ENERGY SERVICES CORP.
Slide 8: What Has Changed Since Our Last AGM?
What Has Changed Since Our Last AGM? Integrated Eagle Well Servicing and Aero Rental Services into our business after acquiring IROC on April 22, 2013 – Increased our service rig fleet to 65 rigs – Added $35 million of oilfield rental equipment assets Launched 4 additional rigs into our Canadian dri
Slide 9: Geographical Diversity Drives Strong Customer Base
Geographical Diversity Drives Strong Customer Base 9
Slide 10: Western's Competitive Advantage
Western’s Competitive Advantage Modern efficient fleet – Average age of drilling rig fleet ~ 6 years – Average age of well servicing fleet ~ 4 years Pad drilling capability 6th largest drilling rig fleet in Canada 7th largest service rig fleet in Canada Experienced management team 10
Slide 11: Premium Drilling Utilization and Day Rates
Premium Drilling Utilization and Day Rates Western’s premium drilling rig fleet has consistently realized above average utilization and industry leading day rates in Canada Canadian Drilling Utilization Rates (1) Canadian Drilling Day Rates (2) (3) 85 81 81 $40,000 76 79 $34,329$33,507 71 $35,000 $3
Slide 12: Top Tier Well Servicing Utilization
Top Tier Well Servicing Utilization Quality equipment and strong employee base drives higher utilization Canadian Well Servicing Rig Utilization Rates 78 70 73 74 69 66 63 63 62 63 63 63 53 51 Percent 51 57 43 51 42 52 44 42 41 30 33 28 28 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13
Slide 13: Continued Strategic Growth
Continued Strategic Growth Western’s key initiatives: – Stay financially flexible with a well structured balance sheet – Continue to offer a quarterly dividend – Focus on capital discipline while maintaining the ability to respond to strategic initiatives across all divisions – Ensure safe and effic
Slide 14: Western Energy Services Corp.
Western ENERGY SERVICES CORP. WWW.WESC.Ca Well Managed Service Company Current share price $ as at May 5, 2014 e Book value per share (f.d.) oa x 7.52 Best-in-class People and Equipment Strong Customer Base Capacity for Sustainable Growth 6@ee6 710” Total return on investment* 161” Annualized return
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