Ensign Energy Services Inc. · TSX:ESI
Ensign Energy Services — Investor Presentation (January 2017)
20 slides from Ensign Energy Services's investor presentation, January 2017
Slide 1: Corporate Presentation – January 2017
Corporate Presentation – January 2017
Slide 2: Disclaimer
Disclaimer Advisory Regarding Forward-Looking Statements This presentation contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. These statements are not guarantees of future performance and are subject to certain risks and the
Slide 3: Business right-sized to ensure profitability over the long haul
Business has been right-sized to ensure profitability over the long haul at significantly depressed utilization levels Ensign’s Global Skills Standard (GSS) sets industry standard for competency based training $3.5 billion invested to replenish worldwide fleet with hi-tech / hi-performance ADR rigs
Slide 4: Geographic Diversification
Geographic Diversification Revenue Geographic Segmentation1 Canada United States 27% 35% International 38% Canada MENA 90% Drilling & Rig Services United States Kurdistan Completion & 10% Production Services Oman Venezuela Australia MAJOR ASSET SNAPSHOT 2 • 170 Marketed Drilling Rigs Argentina • 109
Slide 5: Drilling & Rig Services – North America
Drilling & Rig Services – North America 58 68 Horn River Montney Oil Sands 33 Cardium 31 Bakken Utica San Joaquin Jonah Niobrara Basin Piceance 26 Granite Marcellus Wash Woodford Monterey Barnett Haynesville Tuscaloosa Permian Eagle Ford As of December 31, 2016 United States Canada -5- TSX : ESI
Slide 6: Drilling & Rig Services - International
Drilling & Rig Services - International 1 Substantial & growing international presence 60 # Rigs 50 40 30 MENA 20 Drilling rigs – 10 2002 2016 VENEZUELA AUSTRALIA Drilling rigs – 4 Drilling rigs – 19 Workover rigs – 4 ARGENTINA Drilling rigs – 7 As of December 31, 2016 1. Includes W/O rigs -6- TSX :
Slide 7: Completion & Production Services
Completion & Production Services 44 65 Horn River Montney Oil Sands Cardium Bakken Utica Niobrara San Jonah Joaquin Piceance Basin Granite Marcellus Wash Woodford 47 50 Monterey Barnett Haynesville Tuscaloosa Permian Eagle Ford As of December 31, 2016 United States Canada -7- TSX : ESI
Slide 8: Fleet Transition – hi-tech, hi-performance
Fleet Transition – hi-tech, hi-performance ADR type rigs ADR newbuilds (incl. major retrofits) 350 Rig Fleet from Acquisitions (less decommissions) 1200 PAD rigs 300 Horsepower (fleet avg.) 1000 250 800 $3.5 bln 200 $3.5 bln Horsepower # Rigs 600 150 400 100 200 50 0 0 After decommissions, average a
Slide 9: Solid Customer Base – Worldwide
Solid Customer Base – Worldwide • Stable revenue-stream • Worldwide operations 30% • Diversified credit risk 70% • Balance mix with majors • Opportunities to leverage other LOB (vertical integration) Mid Cap/Juniors Worldwide Majors/NOC -9- TSX : ESI
Slide 10: Standardized Crew Training Worldwide
Standardized Crew Training Worldwide • Lower cost • Higher efficiency Service Quality Delivery Superior Consistency Level of Worldwide Service - 10 - TSX : ESI
Slide 11: ADR – The Rig Type with More
ADR – The Rig Type with More • Walk with accuracy Depth Flexibility – The ADR walks on both X + Y axis, for the best mobility and flexibility of any rig on the market 1000 HP • Safety from the ground up – The ADR is designed and built by Ensign, a worldwide leader in 1500 HP oilfield safety • Move i
Slide 12: Directional Drilling Services
Directional Drilling Services - the move to lower cost integrated services • Full Service Provider • In-house repair facilities • Patented design mud motors • Best in class MTBF ① • Growing organic opportunity (1) Mean Time Between Failures - 12 - TSX : ESI
Slide 13: Safety Performance
Safety Performance 8 Man Hours LTI Freq TRI Freq 25 7.09 7.13 7 20 6 5.57 Injury Frequency (200,000 Man Hours) 5 15 4.65 Man Hours 4.00 4 3.21 3.11 10 3 2.45 2.21 1.96 2 1.67 1.36 5 1.23 1.14 1.07 0.86 1.02 1 0.70 0.63 0.47 0.56 0.49 0.47 0.36 0.27 0.26 0 0 2004 2005 2006 2007 2008 2009 2010 2011 20
Slide 14: Dividends per Common Share
Dividends per Common Share $0.60 16% Compound Annual Growth Rate $0.50 • 2012 $0.4250 per share • 2013 $0.4475 per share $0.40 • 2014 $0.4725 per share • 2015 $0.4800 per share $0.30 • 2016 $0.4800 per share $0.20 Current Yield 5.0% $0.10 $0.00 As of December 31, 2016 - 14 - TSX : ESI
Slide 15: Debt Metrics
Debt Metrics $ millions Equity Net Debt Net Debt / Equity 2,500 50% 45% 2,000 40% 1,500 35% 1,000 30% 500 25% 0 20% Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 - 15 - TSX : ESI
Slide 16: Revenue - EBITDA
Revenue - EBITDA $ millions 400 100% Revenue EBITDA (Adjusted) EBITDA / Revenue 350 300 75% 250 200 50% 150 100 25% 50 - 0% Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 EBITDA/Share 0.46 0.44 0.47 0.39 0.21 0.28 - 16 - TSX : ESI
Slide 17: Revenue Distribution
Revenue Distribution 2015 Revenue Distribution CDA USA INT'L 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ESI Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Source: Company Public documents - 17 - TSX : ESI
Slide 18: Strategic priorities
− maintain high quality fleet and continue to manage fleet within the context of supporting Ensign’s brand − retain our best people, maintain our employee base and continue Global Skills Training (GST) program − ensure we build ample liquidity by reducing debt & conserve capital − continue down the
Slide 19: Investment highlights
• management aligned with shareholders (high level of ownership) • consistent dividend history • well positioned globally • best positioned for opportunistic growth in 2016 • low fixed cost/high variable cost business model • conservative balance sheet • ADR fleet worldwide ensures high utilization
Slide 20: ensignenergy.com
ensignenergy.com - 20 - TSX : ESI
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