Divestco — Investor Presentation (November 2007)
21 slides from Divestco's investor presentation, November 2007
Slide 1: Investor Relations Presentation November 2007
Investor Relations Presentation November 2007
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. “(the Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause t
Slide 3: Company Snapshot
Company Snapshot • Stock Symbol : DVT (TSX) • Shares Outstanding1: 42,500,000 • Insider Ownership: ~30% • Employees: 550 • 52 Week High/Low: $4.98/1.65 • Current Share Price: $2.00 • Current Market Cap1: $85,000,000 • Enterprise Value1,2: $132,628,000 1) Diluted 2) Market Capitalization + Funded Deb
Slide 4: Officers & Directors
Officers & Directors Stephen Popadynetz - CEO & Director Roderick Chisholm - Chief Financial Officer Todd Chuckry – President DVT LP & Director Terry Barnhart - President John Brussa - Chairman (2) Wade Brillon - Director Brent Gough - Director(1)(2)(3) M. Scott Ratushny - Director(1)(3) Edward L. M
Slide 5: Sample Customer Profile
Sample Customer Profile TSX: DVT 5
Slide 6: Competitive Advantage
Competitive Advantage • Software • Services • Data • Consulting Divestco is an aggressive acquisition minded company that offers superior software, services and data to the oil and gas industry. By implementing a strategy of integration between our offerings, we are creating a unparalleled set of bu
Slide 7: Business Model
Business Model Software Services • Over 20 geological, geophysical and • Data quality assurance and land leased applications for the oil and management services for geophysical gas professional (Geologist, and geological related information Geophysicist, Landman and Engineer) • Provides Seismic Surv
Slide 8: Long-Term Vision
Long-Term Vision Services Data Software Consulting 10% 12% 22% 25% 7% 25% 59% 40% Rev Mix 9 mos. YTD Target Revenue Mix 2011 TSX: DVT 8
Slide 9: 2007 Operational Highlights
2007 Operational Highlights • Closed $60MM Bank Facility with Wells Fargo Financial Corporation Canada • Acquired BlueGrouse Seismic Solutions Ltd. With a seismic database of 32,000 km of 2D and 3,500 sq. km of 3D (value $37.5MM) • Acquired the Geomatics Business unit of Veritas Energy Services Part
Slide 10: Seismic Data Acquisition
Seismic Data Acquisition 2 types of seismic data: - Two-dimensional (2D) -Three-dimensional (3D) All involve transmitting energy into the earth, and recording the energy reflected back from subsurface geologic structure Travel time and other attributes of the returning energy are used to derive a pi
Slide 11: Geophysical Seismic Image
Geophysical Seismic Image TSX: DVT 11
Slide 12: Divestco Seismic Data Set
Divestco Seismic Data Set ~100,000 km of 2D Data ~15,000 Square km of 3D Data TSX: DVT 12
Slide 13: Seismic Data Growth
Seismic 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 TSX: DVT 13
Slide 14: Seismic Data Growth
Seismic Data Growth Continued Focus on Multi-Zonal Ownership (Crown – Blue) Areas Burlington Lands EnCana Lands (Yellow) (Yellow) TSX: DVT 14
Slide 15: Outlook 2008
Outlook 2008 DVT Reaction to Alberta Royalty Review and Continued Low Natural Gas Prices • Maintain data sales focus in British Columbia and Saskatchewan • Maximize cash flow and reduce debt (reduce R&D and organic expansion in non-core areas) • Pursue overall less expansive strategy through acquisi
Slide 16: 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 16 Consecutive Quarters of Profitability and Growth TSX: DVT 16
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 YTD Q3 TSX: DVT 17
Slide 18: Share Price Performance
Share Price Performance $4.50 1,600,000 $4.00 1,400,000 $3.50 1,200,000 $3.00 1,000,000 Trading Volume Share Price $2.50 800,000 $2.00 600,000 $1.50 400,000 $1.00 $0.50 200,000 $- - 17-Nov-06 18-Mar-07 17-Jul-07 15-Nov-07 TSX: DVT 18 Provided by Blackmont Capital Inc.
Slide 19: Relative Performance
Relative Performance Total Returns 52-Weeks 40% 30% 20% 10% 9.2% 8.1% Total Return 0% -10% -20% -30% -40% -50% -42.6% -60% 17-Nov-06 18-Mar-07 17-Jul-07 15-Nov-07 DVT S&P/TSX Composite Index S&P/TSX Energy Index TSX: DVT 19 Provided by Blackmont Capital Inc.
Slide 20: Peer Comparison
Peer Comparison1 Enterprise P/E P / CF EV / EBITDA EV / Revenue (2) Value (3) (3) (3) (3) (3) (3) (3) (3) (C$MM) LTM 2007E 2008E LTM 2007E 2008E LTM 2007E 2008E LTM 2007E 2008E (4) CGG-Veritas $ 9,435 23.4x 19.1x 14.3x 9.7x 9.7x 9.0x 9.8x 6.6x 5.7x 3.6x 2.8x 2.5x (5) IHS Inc. $ 3,729 51.8x 39.3x 33.
Slide 21: 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 TSX: DVT 21