Questor Technology Inc. · TSXV:QST
Questor Technology — H1 2019 Earnings Presentation
28 slides from Questor Technology's earnings presentation, 2019
Slide 1: Questor Technology Inc. 1H 2019
1H 2019 Solutions Powered By Clean Combustion Environmental Intelligent Social Protection Solutions License Questor Technology Inc. 20 Years Providing Solutions Eliminating the Need to Vent or Flare Gas
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information presented today may constitute forward-looking statements. Such statements reflect the Company’s current expectations, estimates, projections and assumptions. These forward-looking statements are not guarantees of future performance and are subject to c
Slide 3: Corporate Profile
Corporate Profile Founded in 1994 and listed in 1998 on the TSX Venture Exchange “QST”. HQ Calgary, AB Strong, experienced management team and Board of Directors Clean balance sheet with no debt Technology considered best in class U.S. and Canadian patent - original expires November 2019 –
Slide 4: Investor Information
Investor Information Share Information 1 Year Share Price Performance Common Shares 27.2 million Warrants Nil Current share price $4.53 (09/04/2019) 52 Week Hi-Low $2.05-$5.36 1H EPS $0.16 Market Cap $125.4 Million Financial Information (1H 2019) Revenue $15.1 million Major Shareholders Cash $9.5 mi
Slide 5: Consistent Revenue Growth
Consistent Revenue Growth Gross Revenue Adj. EBITDA 25 23 14 19 12 $Million (Cdn.) 20 12 $Millions (Cdn.) 15 10 8 15 7 8 10 8 6 7 4 5 2 1 0 0 0 2015 2016 2017 2018 1H2019 2015 2016 2017 2018 1H2019 Rental Revenue USA Revenue 20 25 22 16 Million $ (CAD) 20 17 $Million (Cdn.) 15 11 15 10 9 11 10 5 3 3
Slide 6: What We Do
QUESTOR is a leading provider of What We Do 99.99% efficient, safe, reliable and regulatory compliant patented waste gas combustion systems across an array of industries. QUESTOR specializes in the clean combustion of waste gases, methane, VOC’s, HAP’s and BTEX, addressing air quality and GHG emissi
Slide 7: The Problem We Are Solving
The Problem We Are Solving BEFORE QUESTOR Community acceptance; operating and capital cost reductions; safety; energy efficiency; emission regulations: VOC, HAP’s, methane, air quality, GHG emissions, low carbon operations, green/closed loop completions, no flaring, no venting, no odors 7
Slide 8: Creating Value From Waste
Creating Value From Waste Clean Emissions Solutions 99.99% Combustion Efficiency Clean Emissions - CO2 and Water Pad and Well Site Operations Water Vaporization Waste Gases (Under Development) Drilling and Completions Operations Heat Energy Clean Combustion Device ORC Heat to Power Gas and Oil Proce
Slide 9: Board of Directors
Board of Directors Jim Inkster Stewart Hanlon – Chairman Entrepreneur and businessman. Mr. Hanlon had a long and Jim has provided twenty years of distinguished career with Gibson insight in assisting management in Energy Inc. a Canadian-based building the firm base on which the midstream energy comp
Slide 10: Questor Team Profile
Questor Team Profile Audrey Mascarenhas – President and CEO Dan Zivkusic – CFO Robert Miller – President, ClearPower Systems CPA, CMA with over 20 years in the oil and gas industry in the E&P and service Mechanical engineer with over 45 years of sectors. Senior executive finance extensive experience
Slide 11: Financial Performance
Financial Performance 25 23 Revenue 20 19 Profit Adjusted EBITDA 15 $Millions (Cdn.) 15 12 10 8 8 7 7 7 5 4 4 1 0 0 2015 2016 2017 2018 1H2019 11
Slide 12: Revenue by Region
Revenue by Region 25 International 20 USA Canada $Million (Cdn.) 15 10 5 0 2015 2016 2017 2018 1H2019 12
Slide 13: Business Segments
Business Segments Rentals Sales Field Combustion Services 13
Slide 14: Business Segment Revenue
Business Segment Revenue 18 16 16 Sales 14 Rental 12 Services 11 Million $ (CAD) 10 9 8 6 6 5 4 4 4 3 3 3 2 2 2 1 1 1 0 2015 2016 2017 2018 1H2019 14
Slide 15: Rental Fleet Expansion
Rental Fleet Expansion 25 140 Rental Fleet at Cost Gross Margin Capacity 120 20 Rental Revenue Capacity Units at End of Quarter 100 $ Millions CAD Number of Units 15 80 60 10 40 5 20 0 0 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 15
Slide 16: Colorado
Air quality issues: non- Colorado attainment zones Lack of gas pipeline take away capacity Win-win created with stringent regulations Senate Bill 181 has created a framework for industry and community to work together Questor has established a strong market presence and significantly reduc
Slide 17: Units in Colorado
Units in Colorado 30% reduction in lease size, 20% reduction in pad cost; Incremental 400 bbls/d production Rental unit Production Units 17
Slide 18: Rental Fleet Expansion to Texas & North Dakota
Over 40% of the rental fleet is Rental Fleet committed to contracts ranging in term from 6 months to 24 Expansion to Texas months in Colorado, Texas and & North Dakota North Dakota Questor was independently field tested in North Dakota and Colorado and, once again, confirmed its performance in e
Slide 19: North Dakota Testing
North Dakota Testing Test Result ‘Combustor Parameter Test 1 Test 2 Test 3 Testa Average VOC DRE % 99.997% 99.998% 100% 100% 100% SITE 1 NOx (Ib/MMBtu) 0.158 0.200 0.233 0.232 0.206 QS000-17-164 (west) CO (Ib/MMBtu) 0.110 0.074 0.017 0.067 0.067 Stack Temperature (F) 1125 1412 1649 1823 1502 VOC DRE
Slide 20: New Mexico / Texas
New Mexico / Texas Permian – TX/NM Bakken - ND > 600 MMscf/d currently flared with 520 MMscf/d flared representing 20% pipeline capacity at 98% of total gas production Opportunity for a 180 unit rental fleet Deployed 42% of the current rental fleet to the area. 4021 wells drilled but not c
Slide 21: New Growth Opportunity in Mexico
Methane emission New Growth reduction target of 75% by 2025 from oil and gas industry Opportunity in Mexico’s environmental Mexico regulations will reward companies that harness benefits from associated gas Fines and oil production curtailment for non compliance Currently executing two large
Slide 22: Growth Opportunity in Canada
Growth Opportunity in Canada Tall Stacks Dehy’s Regulation compliance Methane, H2S, SOx, and BTEX Provincial and Federal regulation 22
Slide 23: Waste Heat: Recovery and Use
Waste Heat: Recovery and Use Clean heat is extracted Thermal energy used to generate power Same system used for water treatment Flue gas stream also used directly as heat or to exchange with glycol or heat medium 200 kW ORC “containerized” for Mexico Oil and Gas Projects 23
Slide 24: Emission Data
Emission Data methane { hydrogen sulfide WU URI 10}sanH
Slide 25: Questor's Market Drivers
US EPA/State, Mexico and Canadian Questor’s regulation focused on air quality and non-attainment zone emissions: Market Drivers Methane, HAP and VOC’s Recognition of Questor’s 99.99% combustion efficiency – advantage in meeting air quality emission regulations (VOC’s) – resulting in incremental
Slide 26: Best Practices
Best Practices 5.6.1 Dominion is specifying a Questor brand flare/incinerator for all glycol dehydration plants, and must be included as the base proposal. 26
Slide 27: Social License
Social License “They’re called thermal oxidizers, and could provide a safer, more efficient way to flare natural gas.” “A typical flare stack burns at about 800 degrees Fahrenheit, but the oxidizers heat up to 1,200 to 1,800 degrees, said JoDell Mizoue, WPX environmental manager. She said that highe
Slide 28: Contact
COST REDUCTION FOR PUBLIC QUESTOR SOLUTIONS AND TECHNOLOGY INC CLIENTS CONFIDENCE Audrey Mascarenhas President and CEO 1.403.539.4369 1.403.608.8606 1.713.261.4599 www.questortech.com www.clearpowersystems.com Questor Technology Inc. 2240, 140 – 4 Avenue SW Calgary, Alberta, Canada. T2P 3N3 1.403. 5