Act Energy Technologies Ltd. · TSX:ACX
Act Energy Technologies — Cathedral Energy Services — Investor Presentation (September 2023)
13 slides from Act Energy Technologies's investor presentation, Sep 8, 2023
Slide 1: September 2023 Corporate Presentation
SEPTEMBER 2023 CORPORATE PRESENTATION CATHEDRALENERGYSERVICES.COM
Slide 2: Completing the Value Chain Through Strategic Acquisition of Differentiated Technology
Completing the Value Chain Through Strategic Acquisition of Differentiated Technology Provides Cathedral with industry leading proprietary MWD products Cathedral estimates that approximately 40% of the active drilling rigs in the onshore U.S. are currently operating with either Rime's complete Slick
Slide 3: Overview of Cathedral Energy Services
Overview of Cathedral Energy Services Significant Canadian & U.S. footprint with focus on adding size and scale Fully integrated supplier of premium downhole directional technology Comprehensive suite of services, including high-performance mud motors, MWD & RSS Strong alignment of Board and Managem
Slide 4: Overview of Operating Locations
Overview of Operating Locations NEBC Montney Revenue by Country(1) Alberta United States Canada AB Montney Deep Basin Duvernay SE Sask North Dakota Bakken ~28% + ~72% Rockies Rockies Marcellus Texas Anadarko Permian Haynesville Active Basin / Play Eagle Ford Operating Regions 1. Represents revenue b
Slide 5: Strategy Overview
Strategy Overview Cathedral’s Key Focus Areas Cathedral’s Core Technology Expand Current Energy Technology Rental Offerings ▪ Flexibility with multiple mud motor ▪ Enables evolving “a la carte” direct-to-customer market product lines High ▪ Further room for expansion through consolidation Performanc
Slide 6: Overview of Recent Acquisitions (2021 – Present)
Overview of Recent Acquisitions (2021 – Present) 8 Acquisitions July 2021 June 2022 June 2022 October 2022 $6.4 Million $9.5 Million $1.8 Million $5.0 Million Since 2021 MWD, Motors MWD, Motors MWD in MWD, Motors development ~$229 2021 2022 2023 Million Total Transaction Value July 2021 February 202
Slide 7: Capitalization Overview & Consensus Estimates
Capitalization Overview & Consensus Estimates Capitalization Overview Consensus Estimates(2) | 2023E Adj. EBITDAS (C$MM) $150 $101 $99 $99 $98 $98 $97 $100 $50 - Consensus Estimates(2) | 2024E Adj. EBITDAS (C$MM) $180 $145 $143 $143 $142 $142 $139 $120 $60 - Notes: 1. Based on loans and borrowings p
Slide 8: Balance Sheet – Conservative Approach Through the Cycle
Balance Sheet – Conservative Approach Through the Cycle Net Debt Trajectory • Size and scale has substantially improved Free 120 Cash Flow profile Altitude Acquisition Rime Acquisition 100 • On track for significant debt reduction this year 80 60 • Any potential Acquisitions will require ≤ 1.0x Net
Slide 9: Size and Scale Matter
Size and Scale Matter • The market awards larger OFS companies with higher valuations • Enterprise Value of $1.0bn is a key threshold for multiple expansion in OFS • Large Caps in OFS can aim for a 3.0- 5.0x EV/EBITDA multiple Source: Stifel SEPTEMBER 2023 CORPORATE PRESENTATION CATHEDRALENERGYSERVI
Slide 10: Investment Summary
Investment Summary 1 Focused in premier North American resource plays and high-quality producers 2 Maximizing margins through vertically integrated directional drilling offering 3 Disciplined approach to M&A and capital allocation 4 Strong outlook for the business 5 ESG is a priority in corporate de
Slide 11: Corporate Management Team
Corporate Management Team Corporate Management Team Tom Connors Randy Pustanyk President, Chief Executive Officer, & Director Executive VP & Director Scott MacFarlane Suzanne Davies Interim Chief Financial Officer Vice President Legal, Corporate Secretary Mike Hearn Randi Hannon SVP, Corporate Devel
Slide 12: Forward Looking Statements & Disclaimers
FORWARD LOOKING STATEMENTS & DISCLAIMERS Forward-Looking Information This presentation contains statements and information that may constitute "forward-looking information" within the meaning of applicable securities legislation, including statements identified by the use of words such as "will", "e
Slide 13: Forward Looking Statements & Disclaimers
FORWARD LOOKING STATEMENTS & DISCLAIMERS Forward-Looking Information Outside Research Definitions (continued) “Net Debt to EBITDA” as defined by ATB Capital Markets is Net debt divided by current-year, 12-month EBITDAS (adjusted by Cathedral to current year for comparability) “Net Debt to EBITDA” as
Cathedral Energy Services — Investor Presentation (September 2023) on 6ix