Expro Group Holdings N.v. · NYSE:XPRO
Expro — Frank's International — Investor Presentation (December 2013)
26 slides from Expro's investor presentation, Dec 2, 2013
Slide 1: Investor Presentation Fourth Quarter 2013
Investor Presentation Fourth Quarter 2013 Exhibit 99.1 Investor Presentation Fourth Quarter 2013
Slide 2: Corporate Information and Disclaimer
Corporate Information Keith Mosing Chairman, President and CEO John Walker Vice President, International Operations John Sinders Senior Vice President, Finance and Investor Relations Mark Margavio Vice President and CFO Thomas Dunavant Investor Relations Manager Ph: (713) 358-7343 thomas.dunavant@fr
Slide 3: Outline
Outline FI Overview Industry Update – Rig Counts FI Business Segments Services US Land Offshore (US and International) Tubular Sales Financial Update
Slide 4: Frank's: A Leading Global Provider of Tubular Services
Tubular Services Critical to Drilling and Completion Frank’s is a Market Leader Frank’s Financial Results Demonstrate Value Frank’s Unique Set of Capabilities Frank’s: A Leading Global Provider of Tubular Services $3.3 bn market growing at ~13% / year (1) Key to successful and safe well completion R
Slide 5: Strong Position in Deep Water Markets
Frank’s Offshore Exposure (% of Total Revenue) Typical Industry Casing Costs per Well (2) Frank’s Offshore Exposure By Segment (3) Strong Position in Deep Water Markets 1) Per IHS. 2) “Casing & Tubing Running Market” analysis prepared by Spears & Associates, May 2013. 3) 2012 revenue by segment. Opp
Slide 6: Focused Provider of Tubular Services
Focused Provider of Tubular Services Structural String Conductor String Surface Casing Intermediate Casing Liner Strings Production Liner and Tie Back String 7” x 9 7/8” @ 19,000’ Rig Floor 75’ 36” @ 5,000’ 28” @ 6,000’ 22” @ 8,000’ 18” @ 9,000’ 16” @ 12,000’ 13 5/8” @ 13,000’ 11 7/8” @ 17,000’ 9 7/
Slide 7: Specialized Tools Provide Unique Solutions
Solutions – Frank’s Proprietary Tools Challenge Onshore Offshore Cobra – Completion Control Line Manipulating System Fluid Grip Automated Tong 1250 Ton Landing String Handling Tools Clamp Type Elevator Specialized Tools Provide Unique Solutions Over 100 patents issued and 37 patents pending Automate
Slide 8: Deepest Completed Well
Deepest Completed Well Casing and landing string installation for the Chevron Northwood well in the U.S. Gulf of Mexico, to a total depth of 31,866 feet in a water depth of 6,000 feet (2013)
Slide 9: Greatest Hook Load
Greatest Hook Load Broke our own record for greatest hook load recorded at 1,140 tons while lifting 24,500 feet of combined casing and landing string for Shell’s Stones development in the U.S. Gulf of Mexico (2012)
Slide 10: Hostile Environment
Hostile Environment Selected for BP’s Shah Deniz Project, an ongoing multiple well project offshore of Azerbaijan due to its ability to provide “zero marking” handling of corrosion-resistant alloy tubulars (2006 – present)
Slide 11: Well Integrity
Well Integrity Provided all tubular services for the relief well drilled by BP to contain the Macondo well in the U.S. Gulf of Mexico (2010)
Slide 12: Outline
Outline FI Overview Industry Update – Rig Counts FI Business Segments Services US Land Offshore (US and International) Tubular Sales Financial Update
Slide 13: Worldwide Offshore Rig Count Continues to Increase
Worldwide Offshore Rig Count Continues to Increase Total Semi-Submersible and Drillship count increasing 8% in 2014 Anticipated Newbuilds 2014 – 27 Drillships and 6 Semi-Submersibles Gulf of Mexico rig activity increasing with newbuilds – all Drillships 2015 – 17 Drillships and 7 Semi-Submersibles S
Slide 14: US Land Rig Count Decreasing
US Land Rig Count Decreasing Overall US Land rig count has decreased with a decline in gas rigs Horizontal drilling has steadily increase from 2011 to 2013, averaging 62.4% of rigs Overall well count has remained flat at 9,175 for 3Q13 Source: Baker Hughes IR
Slide 15: Outline
Outline FI Overview Industry Update – Rig Counts FI Business Segments Services US Land Offshore (US and International) Tubular Sales Financial Update
Slide 16: US Land Segment
US Land Segment Competitive environment - Increased pricing pressure Recent revenue decline – focused on maintaining margins More complex well architecture in oil basins creates opportunity for FI FI has ability to relocate crews and equipment to areas of demand
Slide 17: Offshore (Gulf of Mexico and International)
Offshore (Gulf of Mexico and International) Increasing deep and ultra-deep rig count Deep and Ultra-Deep water drilling increases well complexity FI has high market share in deep and ultra-deep water Opportunity for FI to growth geographically YTD Revenue growth in US Offshore and International mark
Slide 18: Tubular Sales Segment (Formerly Pipe & Products)
Tubular Sales Segment (Formerly Pipe & Products) Specialize in large OD pipe for conductor casing and TLP tendons Manufacture a range of connectors for large OD pipe (20”–36”+) 80 acre Port of Iberia facility
Slide 19: Global Footprint Provides Access to Attractive Markets
Frank’s U.S. Operations Frank’s International Operations Global Footprint Provides Access to Attractive Markets Over 90 sales and support offices in 60 countries Operations in nearly all major markets
Slide 20: Outline
Outline FI Overview Industry Update – Rig Counts FI Business Segments Services US Land Offshore (US and International) Tubular Sales Financial Update
Slide 21: Financial & Investment Highlights
Financial & Investment Highlights Attractive End-Markets Driven by Continued Oil & Gas Exploration and Development Global Market Leader Focused Service Provider with Unique Engineering Capabilities and Favorable Reputation Strong Position in Deep Water Offshore Markets Historically Maintenance CapEx
Slide 22: International
iNTERRATIONAL
Slide 23: Increasing Well Complexity Driving Financial Results
Numerous Domestic Acquisitions Accelerated International Expansion Financial Crisis / GOM Moratorium Increasing Well Complexity Increasing Well Complexity Driving Financial Results 1) Adjusted EBITDA is a non-GAAP financial measure. See reconciliation of net income to adjusted EBITDA included in the
Slide 24: Tubular Services: A Growing Market Worldwide
$1,510 $1,425 $1,340 $1,243 $1,075 $875 $2,175 $2,025 $1,765 $1,600 $1,275 $1,050 Tubular Services Market By Geography Tubular Services Market by Location $3,050 $2,800 $2,475 $2,074 $1,725 $1,600 $4,560 $4,225 $3,815 $2,800 $2,475 $3,317 $0 $1,000 $2,000 $3,000 $4,000 $5,000 2013E 2014E 2015E Onsho
Slide 25: Attractive End Markets Driven by Energy Growth and Development
Projected Global Energy Demand Global Offshore Equipment & Service Market DW Rigs - 5 Largest Offshore Drillers Global Oilfield Equipment & Service Market Attractive End Markets Driven by Energy Growth and Development Source: IEA Energy Outlook 2012. Source: “Casing & Tubing Running Market” analysis
Slide 26: Frank's International
FRANKS INTERNATIONAL
Frank's International — Investor Presentation (December 2013) on 6ix