Calfrac Well Services Ltd. · TSX:CFW
Calfrac Well Services — Investor Presentation (December 2020)
11 slides from Calfrac Well Services's investor presentation, Dec 18, 2020
Slide 1: Investor Presentation: Closing of our Recapitalization Transaction
December 18, 2020 Calfrac Well Services Ltd. Investor Presentation: Closing of our Recapitalization Transaction All dollar amounts in Canadian currency unless specified
Slide 2: Highlights
Highlights ▪ Calfrac’s Recapitalization Transaction restructures the Company’s balance sheet, providing significant debt and interest cost reductions ▪ Injection of $60 million of incremental capital ensures strong liquidity going into 2021 ▪ Geographic footprint and strategy are unchanged ▪ Interna
Slide 3: Recapitalization Transaction Summary
Recapitalization Transaction Summary ▪ Senior Unsecured Notes – US$432 million of face value – exchanged for common equity − Receive 86% of equity before warrants, backstop fees and equity-linked compensation − Earn a further 6% of equity for early consent − Current shareholders retain 8% ownership
Slide 4: Comparison of Debt, Maturities and Interest Expense
Comparison of Debt, Maturities and Interest Expense Then (Q3/20) Now (Pro Forma) ▪ ~ $900 million of debt ▪ ~$325 million of debt − Excludes $28 million of IFRS Lease Obligations − Excludes $28 million of IFRS Lease Obligations ▪ Debt load: ~5.5x 2019 EBITDA ▪ Debt load: 2.0x 2019 EBITDA ▪ Bank Cred
Slide 5: Calfrac at a Glance
Calfrac at a Glance Company Overview Equipment Footprint by Geography (at Q3/2020) ▪ Founded in 1999, Calfrac is a leading provider of specialized oilfield services, particularly focused on the completion and stimulation of oil and Total natural gas wells Fracturing (HP 000’s) 871 274 123 77 1,345 ▪
Slide 6: Cost Management and Capital Discipline Continue
Cost Management and Capital Discipline Continue ▪ Continue to seek out incremental benefits from ERP system introduction − Focus on operational support and administrative functions − Push to improve reporting cycles and visibility on results internally ▪ Building on ability to use operational data t
Slide 7: Pro Forma Capital Structure
Pro Forma Capital Structure (C$ in millions) Current Pro Forma As at Q3/2020 At Close With Warrant Conversion With 1.5L Conversion 1 CAD Revolving Term Loan Facility $165.0 $105.0 $105.0 $105.0 2 1.5L Convertible PIK Notes Due 2023 (10% PIK) $0.0 $60.0 $60.0 $0.0 3 10.875% 2L Secured Notes Due 2026
Slide 8: Pro Forma Ownership Structure
Pro Forma Ownership Structure Warrant 1.5L Investor Current Close Conversion Conversion G2S2 0.0% 37.9% 32.8% 38.2% MATCO 19.8% 1.5% 4.0% 11.5% Other Former Noteholders 0.0% 18.5% 16.0% 21.6% Wilks Brothers 19.7% 7.2% 8.9% 4.4% AIMCo 16.5% 7.6% 8.8% 4.3% Other 44.0% 27.3% 29.5% 20.0% Total 100.0% 10
Slide 9: Calfrac Outlook Summary - Operational
Calfrac Outlook Summary - Operational ▪ Canadian operations continue to see strong demand relative to the pullback of Q2/20 − Calfrac is marketing 3 crews with the ability to field 4 periodically − Fully booked through Q1; visibility into summer limited to a small number of clients − Natural gas lik
Slide 10: Calfrac Outlook Summary - Corporate
Calfrac Outlook Summary - Corporate ▪ Priority for capital allocation remains supporting operational and client needs, debt reduction − Continuing to evaluate new technology and innovation − Field data management − Maintenance process enhancements − Emission reduction technology ▪ Board of Directors
Slide 11: Forward Looking Statements
Forward Looking Statements Certain statements contained in this Presentation constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statement
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