Slide 1: Investor Presentation
May 2024 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” and/or “forward-looking information” under applicable securities laws (collectively referred to as “forward-looking statements”). All statements other than statements of historical facts contained in this presentation
Slide 3: Overview of Pason
Overview of Pason Leading global provider of end-to-end data solutions for well construction INNOVATIVE 40+ years of distinctive technology, support and service capabilities High barriers to entry driven by scope of technology, service intensity and required scale Strong cash-generating capability w
Slide 4: Board of Directors
Board of Directors Marcel Kessler* T. Jay Collins Jon Faber* Non-Executive Chair Chair, Human Resources and President & Chief Executive Officer Joined Pason Board in 2012 Compensation Committee Joined Pason Board in 2020 Joined Pason Board in 2012 Sophia Langlois Ken Mullen Laura Schwinn Director Ch
Slide 5: Strong and Committed Management Team
Strong and Committed Management Team Jon Faber* Celine Boston Kevin Boston Craig Bye Natalie Fenez John Gurski President & Chief Executive Chief Financial Officer VP, Commercial VP, R&D - Cloud Platforms & VP, Legal & Corporate President, Energy Toolbase Officer With Pason since 2020 With Pason sinc
Slide 6: Intelligent Wellhead Systems Acquisition
Intelligent Wellhead Systems Acquisition 2019- Initial common share investment 2020 ($25 million) Data Wellsite Aggregation Common share investment Automation and 2021 ($7 million ) Management Common share investment 2022 ($8 million) 2022- Preferred share investment 2023 ($25 million) Automating wo
Slide 7: The Data Behind Well Construction
The Data Behind Well Construction Capture Aggregate Display Transmit Store Deliver Visualize Leverage Managing end-to-end well construction data Enabling customer Automation Safety Collaboration Reporting Analytics priorities Real-Time Decision Making Page 7
Slide 8: Superior Service Model
Superior Service Model Customer Support Service Phone Hardware Field Software Email Installation Office Communications Chat Monitoring Analytics Third Party Field Tech Real Time Advice Page 8
Slide 9: The Intelligence Layer in the Solar + Energy Storage Industry
The Intelligence Layer in the Solar + Energy Storage Industry Model the site Review energy costs Analyze Incorporate PV Create a proforma and rate switch incentives generation cash flow model scenarios Real-time Control advisory the assets Grid services Electric bill Solar Manual and revenue savings
Slide 10: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue and Adjusted EBITDA $ Adjusted EBITDA as a % of Revenue in CAD millions Increasing revenue per day and operating leverage drives attractive margins on lower industry activity Adjusted EBITDA is calculated in ‘Non-GAAP Reconciliation’ on page 23 this Investor Prese
Slide 11: Free Cash Flow Generation
Free Cash Flow Generation Net Capital Expenditures 1 Free Cash Flow 2 in CAD millions in CAD millions Lower capital intensity supports meaningful Free Cash Flow generation 1. Net Capital Expenditures includes additions to property, plant, and equipment and development costs, net of proceeds on dispo
Slide 12: Commitment to Shareholder Returns
Commitment to Shareholder Returns Dividends and Share Repurchases Dividends Per Share in CAD millions CAD/share Demonstration of commitment to shareholder returns through share repurchases and dividends Page 12
Slide 13: First Quarter 2024 Highlights
First Quarter 2024 Highlights Fixed cost Record quarterly business model $42 MILLION North American drives strong $105 MILLION ADJUSTED Revenue per operating IN REVENUE EBITDA Industry Day1of leverage through $1,000 revenue growth $12 MILLION $74M IN FREE CASH TOTAL CASH Acquired FLOW WITH NO DEBT R
Slide 14: Well-Positioned for Growth
Well-Positioned for Growth Favourable Macro Trends… …Coupled with Organic Opportunities ▪ Drilling activity based on global energy ▪ Product adoption, realized pricing and market supply/demand share growth ▪ Use of data for automation and ▪ New technology development analytics ▪ Completions activity
Slide 15: Summary of Key Industry Metrics
Summary of Key Industry Metrics Drill Complete Produce Store Use US land rigs US drilled but US oil production US storage of crude Global oil demand uncompleted wells (millions of barrels and petroleum (“DUCs”) per days) products (billions of barrels) Current2 596 rigs 4,522 DUCs 13.1 million barrel
Slide 16: Growth in North American Drilling
Growth in North American Drilling North American Revenue per Industry Day1 Consistent growth in North American Revenue per Industry Day drives significant outperformance of industry conditions 1. Revenue per Industry Day is defined as the total revenue generated from the North American Drilling segm
Slide 17: Additional Growth Opportunities
Additional Growth Opportunities International Drilling Revenue Solar & Energy Storage Revenue Revenue by Segment 14% CAGR 67% CAGR Growing revenue in International coupled with meaningful Drilling segment with growing and entry into Completions Market traction in Solar & Energy adoption of advanced
Slide 18: Environmental, Social & Governance
Environmental, Social & Governance ENVIRONMENTAL SOCIAL GOVERNANCE • Developing products that drive • Unique and inspiring workplace culture • Experienced, independent and increased drilling and completions with a focus on total employee well- diverse Board of Directors efficiency, helping reduce ca
Slide 19: Value Proposition Summary
Value Proposition Summary Clear Strong margins Well market and positioned leader free cash flow for growth generation Distinctive Outstanding technology financial position profile Innovative Profitable Responsible Page 19
Slide 20: Pason Systems contact details
Pason Systems 6130 Third Street SE Calgary, AB T2H 1K4 Canada Phone: 403.301.3400 Web: — www.pason.com Email: investorrelations@pason.com Page 20
Slide 21: Appendix
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Slide 22: Historical Financial Information
Historical Financial Information $CAD 000s 2018 2019 2020 2021 2022 2023 Revenue 306,393 295,642 156,636 206,686 334,998 369,309 Adjusted EBITDA 1 145,987 129,644 39,540 72,520 159,510 171,466 as a % of revenue 48% 44% 25% 35% 48% 46% Investments in R&D and IT 2 31,462 32,164 27,468 32,903 38,066 42
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation $CAD 000s 2018 2019 2020 2021 2022 2023 Net income (loss) 62,944 53,803 5,134 31,925 105,726 95,827 Add: Income taxes 29,158 20,193 4,864 11,738 33,405 34,346 Depreciation and amortization 34,855 40,830 34,417 25,689 20,842 27,216 Stock-based compensation 12,313 10,840 4,840