Divestco — Shareholder Meeting (May 2008)
23 slides from Divestco's shareholder meeting presentation, May 6, 2008
Slide 1: 2008 Annual General Meeting
2008 Annual General Meeting Presented by Stephen Popadynetz and Roderick Chisholm May 6, 2008 Integrated Solutions for the Oil & Gas Industry
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. (“Divestco” or the “Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors whi
Slide 3: Company Snapshot
Company Snapshot Stock Symbol : DVT (TSX) Shares Outstanding: 41,800,000 Insider Ownership: ~28% Employees: 500 52 Week High/Low: $4.15/1.61 Current Share Price: $2.50 Current Market Cap: $104,500,000 Enterprise Value(1): $159,790,000 (1) Market Capitalization + Funded Debt - Cash Integrated Solutio
Slide 4: Board of Directors
Board of Directors John Brussa - Chairman(2) Wade Brillon - Director Brent Gough - Director (1,2,3) M. Scott Ratushny - Director (1,3) Edward L. Molnar - Director (1,2) Stephen Popadynetz - Director & CEO (1) Member of Audit Committee (2) Member of Compensation Committee (3) Member of Corporate Gove
Slide 5: Officers
Officers Stephen Popadynetz - Chief Executive Officer Roderick Chisholm - Chief Financial Officer Steve Sinclair-Smith - Chief Operating Officer Terry Barnhart - President Lonn Hornsby - SVP Operations, Divestco LP Danny Chiarastella - VP Finance Mathew Hepton - VP Software Development Oliver Kuhn -
Slide 6: Integrated Business Model
Integrated Business Model Software Services Over 20 geological, geophysical and land Data quality assurance and management applications services for geophysical and geological Used by customers worldwide and related information installed on over 35,000 desktops Provides Seismic Survey Audit, Core so
Slide 7: 2007 Revenue Breakdown
2007 Revenue Breakdown 69% 61% 70 60 50 Millions ($) 40 2006 30 16% 21% 2007 20 8% 11% 7% 7% 10 0 Softw are Consulting Services Data Integrated Solutions for the Oil & Gas Industry 5/7/2008 7
Slide 8: Long-Term Vision
Long-Term Vision Services Data Software Consulting 10% 25% 25% 40% Target Revenue Mix 2011 Integrated Solutions for the Oil & Gas Industry 5/7/2008 8
Slide 9: 2007 Operational Highlights
2007 Operational Highlights Closed a $60MM Bank Facility with Wells Fargo Financial Corporation Canada Secured appropriate long-term office space to centralize operations, allow for growth and realize internal synergies (Centennial Place - 15 year lease commencing in 2010 for 9 floors) Excluding Blu
Slide 10: 2007 Acquisition Highlights
2007 Acquisition Highlights Acquired BlueGrouse Seismic Solutions Ltd. with a seismic database of 32,000 km of 2D and 3,500 sq. km of 3D (value $38.5MM) Acquired the Geomatics Business unit of Veritas Energy Services Partnership (value $3.2MM) Acquired Spectrum Seismic Processing Partnership (value
Slide 11: 2008 Initiatives & Outlook
2008 Initiatives & Outlook Strengthen balance sheet and pursue less expansive seismic field acquisition strategy Only complete accretive data and/or software acquisitions Focus on “right-sizing” overall staffing levels within business units affected by the Alberta Royalty Review and overall industry
Slide 12: Divestco Seismic Data Set
Divestco Seismic Data Set >104,000 km of 2D Data >16,500 Square km of 3D Data Integrated Solutions for the Oil & Gas Industry 5/7/2008 12
Slide 13: Data Areas of Interest
Data Areas of Interest Montney Basin Horn River Basin >12,000 km of 2D Data >3,800 km of 2D Data >7,800 Square km of 3D Data >1,000 Square km of 3D Data Integrated Solutions for the Oil & Gas Industry 5/7/2008 13
Slide 14: Divestco Data Growth
Divestco Data Growth CUTBANK RIDGE CONTINUES TO BE THE “GROWTH ENGINE” FOR DVT’S 3D SEISMIC DIVESTCO CONTROLS THE LARGEST BC 3D DATA SET IN THE INDUSTRY Integrated Solutions for the Oil & Gas Industry 5/7/2008 14
Slide 15: Seismic Data Growth
Seismic Data Growth Upon completion of our 2008 seismic acquisition programs Divestco expects to(1): Own/control ~ 120,000 km of 2D Data Own/control ~ 20,000 square km of 3D Data Be involved in over $500MM of shot and purchased seismic since 2003 Be the acquirer of choice for seismic data in the WCS
Slide 16: Financial Review
Financial Review 2006 Results 2007 Results % Change Revenue $106.5M $116.1M 9% EBITDA $63.7M $61.7M -3% Net Income $19.6M $17.5M -11% Funds from $1.94/share $0.91/share -53% Operations(1) EPS(1) $0.60/share $0.45/share -25% (1) Basic weighted average shares outstanding Integrated Solutions for the O
Slide 17: Financial Highlights by Year
Financial Highlights by Year 120 100 Revenue 80 $ Millions EBITDA 60 Net Income 40 20 0 2002 2003 2004 2005 2006 2007 Integrated Solutions for the Oil & Gas Industry 5/7/2008 17
Slide 18: Financial Highlights by Quarter
Financial Highlights by Quarter 40 35 Revenue 30 25 $ Millions EBITDA 20 15 Net Income 10 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 Consecutive Quarters of Profitability and Growth Integrated Solutions for the Oil & Gas Industry 5/7/2008 18
Slide 19: Share Price Performance
Share Price Performance $5.00 2,000,000 $4.50 1,800,000 $4.00 1,600,000 $3.50 1,400,000 Trading V olume $3.00 1,200,000 S hare P rice $2.50 1,000,000 $2.00 800,000 $1.50 600,000 $1.00 400,000 $0.50 200,000 $- 0 2-Jan-07 24-Mar-07 13-Jun-07 2-Sep-07 22-Nov-07 11-Feb-08 2-May-08 Provided by National B
Slide 20: Relative Performance
Relative Performance Total Returns Jan. 2, 2007 - May 5, 2008 60% 40% 20% 25% 10% Return 0% -11% -20% -40% -60% 2-Jan-07 24-Mar-07 13-Jun-07 2-Sep-07 22-Nov-07 11-Feb-08 2-May-08 DVT S&P/TSX Composite Index S&P/TSX Energy Index Provided by National Bank Financial Integrated Solutions for the Oil & G
Slide 21: Historical Performance
Historical Performance Integrated Solutions for the Oil & Gas Industry 5/7/2008 21
Slide 22: Questions?
Questions? Thank you for your interest For further information, please contact: Stephen Popadynetz, CEO 403.218.6466, stephen@divestco.com Roderick Chisholm, CFO 403.218.6450, rod.chisholm@divestco.com investor.relations@divestco.com Integrated Solutions for the Oil & Gas Industry 5/7/2008 22
Slide 23: Integrated Solutions for the Oil & Gas Industry
Integrated Solutions for the Oil & Gas Industry 5/7/2008 23