Questor Technology Inc. · TSXV:QST
Questor Technology — Q3 2019 Earnings Presentation
26 slides from Questor Technology's earnings presentation, November 2019
Slide 1: Changing the way the world handles waste gas
Investor Presentation November 2019 1 Q3 2019 Changing the way the world handles waste gas Environmental Intelligent Innovative Protection Solutions Design
Slide 2: Forward Looking Statements
Investor Presentation November 2019 2 Q3 2019 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 guarant
Slide 3: We are Questor
Investor Presentation November 2019 3 Q3 2019 We are Questor ▪ Founded in 1994 and listed in 1998 ▪ Headquarters Calgary, AB with field hubs across North America ▪ Clean Balance Sheet with no debt ▪ Technology considered best in class ▪ Proven technology that is key to meeting the tough global regul
Slide 4: What We Do
Investor Presentation November 2019 4 Q3 2019 What We Do ▪ High efficiency waste gas combustion systems and power generation systems / water treatment solutions from waste heat ▪ Worldwide effective management of CH4, H2S, VOC, HAP and BTEX gases ensuring sustainable development ▪ Solutions for land
Slide 5: Investor Information
Investor Presentation November 2019 5 Q3 2019 Investor Information Share Information 3 Year Share Price Performance Common Shares 27.2 million Warrants Nil Current share price $4.26 (11/18/2019) 52 Week Hi-Low $2.73-$5.36 Q3’2019 EPS $0.23 Market Cap $116.9 Million Financial Information (Q3 2019) EB
Slide 6: Consistent Revenue Growth
Investor Presentation November 2019 6 Q3 2019 Consistent Revenue Growth Gross Revenue Adj. EBITDA 25 23 23 15 19 12 $Millions (Cdn.) 20 11 $Million (Cdn.) 10 8 15 10 8 7 5 5 1 0 0 0 2015 2016 2017 2018 Q3'2019 2015 2016 2017 2018 Q3'2019 Rental Revenue USA Revenue 20 25 22 16 20 $Million (Cdn.) Mill
Slide 7: The Problem we are Solving
Investor Presentation November 2019 7 Q3 2019 The Problem we are Solving Emission Community Safety, Energy Compliance Acceptance Operating & Efficiency VOCs, HAPs, Capital Cost Power generation Methane, GHG Reductions from waste heat, fuel emissions gas use reduction, Process heat
Slide 8: Creating Value from Waste
Investor Presentation November 2019 8 Q3 2019 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 Combust
Slide 9: Leadership Team
Investor Presentation November 2019 9 Q3 2019 Leadership Team Audrey Audrey Mascarenhas has worked in energy for over 35 years with Gulf Canada Resources Ltd. and Questor Technology Inc. She holds a Bachelor’s degree in Mascarenhas Chemical Engineering from the University of Toronto and a Master’s D
Slide 10: Board of Directors
Investor Presentation November 2019 10 Q3 2019 Board of Directors Audrey Stewart Jim Jean-Michel Mascarenhas Hanlon Inkster Gires President and CEO Chairman Mr. Hanlon had a long and Entrepreneur and Mr. Gires was previously the distinguished career with businessman. Jim has President & CEO Total E&
Slide 11: Financial Performance
Investor Presentation November 2019 11 Q3 2019 Financial Performance 25 23 23 Revenue Profit 19 20 Adjusted EBITDA $Millions (Cdn.) 15 12 11 10 8 8 7 7 6 5 4 1 0 0 2015 2016 2017 2018 Q3'2019
Slide 12: Revenue by Region
Investor Presentation November 2019 12 Q3 2019 Revenue by Region 25 Canada USA 20 International $Million (CAD) 15 10 5 0 2015 2016 2017 2018 Q3'2019
Slide 13: Business Segment Revenue
Investor Presentation November 2019 13 Q3 2019 Business Segment Revenue 18 Sales 16 Rental 14 Services 12 Million $ (CAD) 10 8 6 4 2 0 2015 2016 2017 2018 Q3'2019
Slide 14: Rental Fleet Expansion
Investor Presentation November 2019 14 Q3 2019 Rental Fleet Expansion 25 140 Rental Fleet at Cost Gross Margin Capacity 120 20 Rental Revenue Capacity 100 Units at End of Quarter Number of Units $ Millions CAD 15 80 60 10 40 5 20 0 0 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3F
Slide 15: Colorado
Investor Presentation November 2019 15 Q3 2019 Colorado ▪ Air quality issues: non-attainment zones ▪ Lack of gas pipeline take away capacity ▪ Senate Bill 181 has created a framework for industry and community to work together ▪ Questor has established a strong market presence and significantly redu
Slide 16: North Dakota
Investor Presentation November 2019 16 Q3 2019 North Dakota ▪ Over 40% of the rental fleet is committed to contracts ranging in term from 6 months to 24 months in Colorado, Texas and North Dakota ▪ Questor was independently field tested in North Dakota and Colorado and, once again, confirmed its per
Slide 17: North Dakota Testing
Investor Presentation November 2019 17 Q3 2019 North Dakota Testing
Slide 18: New Mexico / Texas
Investor Presentation November 2019 18 Q3 2019 New Mexico / Texas Permian – TX/NM Bakken - ND ▪ > 600 MMscf/d currently flared with ▪ 520 MMscf/d flared representing 20% of pipeline capacity at 98% total gas production ▪ Opportunity for a 180 unit rental fleet ▪ Regulator recognition of Questor’s 99
Slide 19: Mexico
Investor Presentation November 2019 19 Q3 2019 Mexico ▪ Methane emission reduction target of 75% by 2025 from oil and gas industry ▪ Fines and oil production curtailment for non compliance ▪ Currently executing two large projects - $ 8.5MM ▪ 13 sites cleanly combusting vented Methane. 3 sites genera
Slide 20: Growth Opportunity in Canada
Investor Presentation November 2019 20 Q3 2019 Growth Opportunity in Canada ▪ Tall Stacks – Lower capital costs and compliant performance. ▪ Still column vapours from Dehydration units ▪ Regulation compliance Methane, H2S, SOx, and BTEX ▪ Provincial and Federal regulation – Clean air regulations
Slide 21: Waste Heat: Recovery and Use
Investor Presentation November 2019 21 Q3 2019 Waste Heat: Recovery and Use ▪ Clean heat is extracted ▪ Thermal energy used to generate power – 77kW to 1.5MW ▪ Same system used for water treatment (currently under development) ▪ Flue gas stream also used directly as heat or to exchange with glycol o
Slide 22: GEMMA
Investor Presentation November 2019 22 Q3 2019 Continuous Efficient 24/7/365 deployment of monitoring of unit technician location and resources when performance required Proactive A.I. calculation of preventative carbon emission maintenance to reduction data for ensure smooth reporting and Emissions
Slide 23: Questor's Market Drivers
Investor Presentation November 2019 23 Q3 2019 Questor’s Market Drivers ▪ US EPA/State, Mexico and Canadian regulation focused on air quality and non-attainment zone emissions: Methane, HAP and VOC’s ▪ Recognition of Questor’s 99.99% combustion efficiency – advantage in meeting air quality emission
Slide 24: Best Practices
Investor Presentation November 2019 24 Q3 2019 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.
Slide 25: ESG – Social license
Investor Presentation November 2019 25 Q3 2019 ESG – 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 M
Slide 26: Thank You
Investor Presentation November 2019 26 Q3 2019 Thank You Audrey Mascarenhas +1 403 608 8606 amascarenhas@questortech.com www.questortech.com