Ces Energy Solutions Corp · TSX:CEU
Ces Energy Solutions — Investor Presentation (August 2021)
15 slides from Ces Energy Solutions's investor presentation, August 2021
Slide 1: Leading Provider of Consumable Chemical Solutions
Leading Provider of Consumable Chemical Solutions August 2021
Slide 2: Forward Looking Information and Statements
Forward Looking Information and Statements Certain statements in this presentation may constitute forward-looking information or forward-looking statements (collectively referred to as “forward-looking information”) which involves known and unknown risks, uncertainties and other factors which may ca
Slide 3: Leading Provider of Consumable Chemical Solutions
Leading Provider of Consumable Chemical Solutions North American Vertically Decentralized Low capital operations in Resilient & provider of integrated intensity & key attractive countercyclical molecular level consumables strong free cash markets balance sheet chemical business model flow generation
Slide 4: Adding Value Through Technology & Customer Service
Adding Value Through Technology & Customer Service Analyze & Solve Evolving Client Needs Study Data & Identify, Samples in Recommend & Laboratories Produce Chemical Treatments Optimize Chemical Solutions to Maximize Monitor ROI Deliver Effectiveness Solution to Well Site Use chemistry, polymers and
Slide 5: Well Positioned for Growth With Decentralized Model
Well Positioned for Growth With Decentralized Model DRILLING FLUIDS COMPLETION CHEMICALS PRODUCTION CHEMICALS PIPELINES & MIDSTREAM INDUSTRIAL/ COSMETICS/OTHER Allocation of capital dedicated to the most attractive basins and markets while leveraging decentralized entrepreneurial model and basic che
Slide 6: Quality Customer Base
Quality Customer Base Top 50 Customer Breakdown – TTM Q2 2021 68% Public Companies 32% Private Companies 70% of top 50 public company revenue was from customers with Market Top 50 Public Customers – By Market Capitalization1 Capitalizations of $10 - $300Bn 70% $10Bn to $300Bn C$Bn $1 - $10Bn 23% $0
Slide 7: Low Capital Intensity
Low Capital Intensity CES – Historical Capital Spend1 180 10.0% 160 9.0% 140 8.0% Adjusted EBITDAC 7.0% 120 6.0% $MM 100 Net Capex 5.0% 80 4.0% Significant expansion 60 capex largely complete Net Capex as a % of 3.0% Revenue 40 2.0% 20 1.0% 2021 total capex estimated to be up to - 0.0% Expansion Pro
Slide 8: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation LTM Free Cash Flow1 180 $70 Since 2006 IPO, ~C$340 million in 160 $60 dividends paid to shareholders and 140 grew PP&E base to ~C$293 million $50 120 $40 Since July 2018, ~C$54.2 million in 100 share buybacks representing 10% of $MM 80 $30 shares outstanding since in
Slide 9: Resilient & Countercyclical Balance Sheet
Resilient & Countercyclical Balance Sheet Historical Leverage & Working Capital $65M Working Capital Harvest on Flat YoY 500 Revenue $84M Working 450 Capital 400 Harvest Total debt primarily comprised of working capital 350 300 Monetization of working capital 250 returns cash to the Company during l
Slide 10: Prudent Capital Structure & Liquidity Profile
Prudent Capital Structure & Liquidity Profile Current Capitalization Maturity Schedule Share Price (August 12, 2021) $1.55 Shares Outstanding (August 12, 2021) 255,019,727 500 Senior Notes MARKET CAPITALIZATION $395MM Dividend Yield (August 12, 2021)1 4.1% 400 Credit Facility 300 Capacity Senior Cre
Slide 11: Improving Trends and Stable End Markets
Improving Trends and Stable End Markets Drilling Fluid Chemical Requirements Increasing North American Crude Oil Production by Basin1 20.0 $120 $100 Vertical Horizontal 15.0 Avg. WTI ($US/bbl) $80 Well Well MMbbl/d Drilling Fluids: Drilling Fluids: 10.0 $60 2–5% 5 – 10 % of total well cost of total
Slide 12: Contact information
Contact information CES Energy Solutions Suite 1400, 332 – 6th Avenue SW Calgary, Alberta Canada T2P 0B2 T 403.269.2800 F 403.266.5708 Toll Free 1.888.785.6695 TSX | CEU WWW.CESENERGYSOLUTIONS.COM/IR 12
Slide 13: Appendix
wh Ged APPENDIX
Slide 14: Historical Financial Information
Historical Financial Information (C$000’s) 2018 2019 2020 LTM Q2 2021 Revenue $1,271,051 $1,277,257 $888,047 $893,338 Adjusted Gross Margin $284,263 $273,377 $179,567 $190,160 % of Revenue 22.4% 21.4% 20.2% 21.3% Adjusted Gross Margin (excluding depreciation) $325,548 $325,241 $231,291 $237,583 % of
Slide 15: Free Cash Flow Calculation
Free Cash Flow Calculation (C$000’s) LTM Q2 2020 LTM Q3 2020 LTM Q4 2020 LTM Q1 2021 LTM Q2 2021 Cash provided by operating activities 188,406 198,121 156,679 138,560 51,298 Change in non-cash working capital (78,369) (111,408) (84,326) (84,990) 25,071 Funds Flow from Operations 110,037 86,713 72,35
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