North American Construction Group Ltd. · TSX:NOA

North American Construction — Q1 2016 Earnings Presentation

20 slides from North American Construction's earnings presentation, April 2016

  1. Slide 1: Investor Presentation First Quarter Ended March 31, 2016

    Investor Presentation First Quarter Ended March 31, 2016

  2. Slide 2: Company Overview

    Company Overview Mining Mining  Founded in 1953  TSX and NYSE listings: “NOA”  Current share price*: $2.74 (CAD)  52 week high/low: $1.95/$3.69  Market capitalization: $86.79 million  Shares outstanding: 32.3 million  Average daily share volume (3month):  NYSE: 45,167  TSX: 18,140  Annual

  3. Slide 3: Debt Reduction

    Debt Reduction • Debt excludes operating lease obligations related to building lease commitments • July 8, 2015 NAEP entered into the Sixth Amended and Restated Credit Agreement with existing banking syndicate • August 14, 2015 NAEP completed a redemption of $37.5 million of its Series 1 Debentures

  4. Slide 4: Enterprise Value, Tangible Book Value, and Price per Share

    Enterprise Value, Tangible Book Value, and Price per Share Period Ending December 31, March 31, 2011 2012 2013 2014 2015 2016 Net Debt ($ million) 461.82 390.13 123.32 128.60 78.73 68.44 Equity ($ million) 236.34 120.35 215.43 128.52 81.88 86.65 Enterprise Value ($ million) 698.16 510.49 338.75 257.

  5. Slide 5: HC&M – Five Year Financial History

    HC&M – Five Year Financial History *Results may be subject to seasonality. See pg. 5 of the March 31, 2016 Financial Statements for further details

  6. Slide 6: Activities That Benefit Our Shareholders

    Activities That Benefit Our Shareholders Share Purchase Program  In March 2016, we commenced a NYSE normal course issuer bid (“NCIB”) for the purchase and cancellation of up to 1,657,514 voting common shares, this represented approximately 5% of the issued and outstanding shares. As at March 31, 20

  7. Slide 7: Improved Credit Facility

    Improved Credit Facility Highlights - July 8, 2015 Amended and Restated Credit Facility  Expires September 30, 2018  Maximum borrowing increased from $85 million to $100 million including a $30M term facility with a 7 year repayment schedule  Improved borrowing base using a cumulative calculation

  8. Slide 8: First On, Last Off

    First On, Last Off Project Development Phase (3-4 years) Ongoing Operations Phase (30-40 years)  Initial mine site development, project site  Overburden removal, mine infrastructure development, development, airstrips, piping reclamation, tailing ponds remediation, equipment and labour supply Buil

  9. Slide 9: Significant Heavy Construction & Mining Contractor in the Oil Sands

    Significant Heavy Construction & Mining Contractor in the Oil Sands  Expertise  30+ years in Northern Alberta’s harsh operating environment  Knowledge to come up with best solutions for customers  Broad Service Offering  Unique suite of services across project lifecycle  Operational Flexibilit

  10. Slide 10: Strategic Focus

    Strategic Focus  Pursue operational excellence in safety, productivity and customer satisfaction  Continued strengthening of balance sheet  Debt reduction, fleet rationalization and cash-flow improvement  Grow revenue from activity on existing mine sites, incremental work on new sites, and alter

  11. Slide 11: Outlook for Revenue Growth

    Outlook for Revenue Growth  Continued activity on existing mine sites as owners grow production  Continued work at Kearl under the five-year agreement  Continued support of production efforts at Horizon, Base Plant and Millennium  Recent penetration of Steepbank and Aurora  Continue building vo

  12. Slide 12: Active Oil Sands Clients

    Active Oil Sands Clients Key Customer Contracts  5-year master services agreement at Base Plant and Aurora SUNCOR FORT HILLS mines, expires August 2020 CANADIAN NATURAL EXXON HORIZON KEARL  5-year master services agreement covering mining services TOTAL JOSLYN SHELL/ALBIAN JACKPINE AND MUSKEG & co

  13. Slide 13: Potential Production Expansion on Oil Sands Mine Sites

    Potential Production Expansion on Oil Sands Mine Sites Mine Production Capacity 2013 407,000 bbl/d 2014 407,000 bbl/d Current 407,000 bbl/d Future Growth Potential 791,000 bbl/d SUNCOR FORT HILLS CANADIAN NATURAL EXXON 2013 501,000 bbl/d HORIZON KEARL 2014 501,000 bbl/d TOTAL SHELL/ALBIAN Current 50

  14. Slide 14: Mining Production in Alberta’s Oil Sands

    Mining Production in Alberta’s Oil Sands

  15. Slide 15: Construction Opportunities in Western Canada

    Construction Opportunities in Western Canada Infrastructure Opportunities Estimated Cost ($B) Completion Location LNG - Pacific Northwest/PETRONAS 10.0 2019 Lelu Island, BC Southwest Calgary Ring Road 5.5 2022 Calgary, AB LNG Export Terminal 5.0 TBD Kitimat, BC Calgary Transit - Green Line 5.0 2024

  16. Slide 16: Thank You

    THANK YOU 16

  17. Slide 17: Appendix

    APPENDIX

  18. Slide 18: Large, Well Maintained Equipment Fleet

    Large, Well Maintained Equipment Fleet Category Own Lease Rental Total SHOVELS 2 0 0 2 EXCAVATORS (≥100T) 9 3 0 12 EXCAVATORS (<100T) 20 31 5 56 RIGID FRAME TRUCKS (>200T) 28 15 15 20%58 RIGID FRAME TRUCKS (100T to 200T) 56 18 0 74 RIGID FRAME TRUCKS (<100T) 6 2 0 8 ARTICULATED TRUCKS 5 14 0 40% 19

  19. Slide 19: WCSB Crude Oil Takeaway Capacity

    WCSB Crude Oil Takeaway Capacity source: CNRL IR Presentation 201601

  20. Slide 20: Forward-Looking Statements

    Forward-Looking Statements The information provided in this presentation contains forward-looking statements and information which reflect the current view of North American Energy Partners with respect to future events and financial performance. Actual results could differ materially from those con

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