Divestco — Investor Presentation (February 2007)
23 slides from Divestco's investor presentation, February 2007
Slide 1: Investor Relations Presentation
Divestco Inc. Investor Relations Presentation February 2007 Software · Data · Services · Consulting
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: 38,500,000 Insider Ownership: >30% Employees: 520 52 Week High/Low: $7.00/2.27 Current Share Price: $4.00 Current Market Cap1: $154,000,000 Enterprise Value1,2: $176,500,000 1) Diluted, Pre-BGH Acquisition 2) Market Capitalization + Fund
Slide 4: Officers & Directors
Officers & Directors Stephen Popadynetz - CEO & Director Roderick Chisholm - Chief Financial Officer Terry Barnhart - President John Brussa - Chairman (2) Wade Brillon - Director Brent Gough - Director(1)(2)(3) M. Scott Ratushny - Director(1)(3) Edward L. Molnar - Director (1)(2) 1) Member of Audit
Slide 5: Sample Customer Profile
Sample Customer Profile 5 TSX:DVT
Slide 6: Competitive Advantage
Competitive Advantage • Software • Data • Services • 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 Data • Over 20 geological, geophysical and land • Over 120 datasets including proprietary leased applications for the oil and gas seismic and drilling data and a full suite professional (Geologist, Geophysicist, support data layers (log, well, drilling, and Landman and Engine
Slide 8: 2006 Operational Highlights
2006 Operational Highlights • Completed 2 Corporate Acquisitions for total consideration of approx. $20 million • Successfully raised $12.3 million in gross proceeds from an equity financing • Increased Revenue approximately 175% from 2005 • Acquired an additional 6,000 gross kilometers of 2D and ap
Slide 9: Growth Through Acquisition: 2007
Growth Through Acquisition: 2007 Divestco Announces Acquisition of “BlueGrouse Seismic Solutions” February 27, 2007 TERMS: • Ratio: 3.2 BGH Shares for 1DVT Share • 4.8M to 7.0M1 DVT Shares issued on a FD basis • BGH Value: Approximately 37.5M2 comprised of 18.5M in equity and 19M in debt of which 4.
Slide 10: Growth Through Acquisition: 2007 - Why BlueGrouse?
Growth Through Acquisition: 2007 Divestco Announces Acquisition of “BlueGrouse Seismic Solutions” Why BlueGrouse? • BlueGrouse has ownership in over 30,000 Km’s of 2D data and over 3000 Square Km’s of 3D Data • Large inventory of Projects for 2007/2008 • Natural fit to our Seismic Data, Archiving, A
Slide 11: Complimentary Databases
Complimentary Databases >90,000 Km’s of 2D Data >10,000 Square Km’s of 3D Data 11
Slide 12: Synergies
Synergies “THE DVT ADVANTAGE” • Processing: ~1.0M – 2.0M/year • Archiving: ~0.5M/year • Auditing: ~0.5M – 0.75M/year • Exchange: ~0.1M/year • Legal/Audit: ~0.3M/year • G&A: ~0.75M/year • TOTAL ANNUAL COST SAVINGS: 3.0M – 4.5M/year 12
Slide 13: Seismic Data Growth: 07/08
Seismic Data Growth: 07/08 CUTBANK RIDGE CONTINUES TO BE THE “GROWTH ENGINE” FOR DVT’S 3D SEISMIC BLUEGROUSE DATA ADDITIONS EXISTING DVT DATA 07/08 > $100M in New Shoots 13 TSX:DVT
Slide 14: Seismic Data Growth: 07/08
Seismic Data Growth: 07/08 Continued Focus on Multi- Zonal Ownership (Crown – Blue) Areas Burlington Lands EnCana Lands (Yellow) (Yellow) 14 TSX:DVT
Slide 15: Seismic Data Growth: 07/08
Seismic Data Growth: 07/08 NEW SEISMIC FRANCHISES BGH’S SNAKE CREEK DVT’S DEBOLT $22M in New Shoots $25M in New Shoots 15 TSX:DVT
Slide 16: Seismic Data Growth
Seismic Data Growth Upon completion of our 2007 seismic acquisition programs, and Merger with BGH Divestco expects to1: • Own/control > 90,000 Km’s of 2D Data • Own/control > 13,500 Square Km’s of 3D Data • Been involved in approximately $450MM of shot and purchased seismic since 2003 • Be the large
Slide 17: 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 2003 2004 2005 2006 17 TSX:DVT
Slide 18: Financial Highlights By Year
Financial Highlights By Year 120 100 Revenue 80 $ Millions EBITDA 60 Net Income 40 20 0 2002 2003 2004 2005 2006F 18 TSX:DVT
Slide 19: Sources of Revenue
Sources of Revenue Forecast 2006: $105 - 110M 9% 17% 8% 66% Services Data Software Consulting 19 TSX:DVT
Slide 20: Share Price Performance
Share Price Performance $7.50 1,400,000 $6.50 1,200,000 $5.50 1,000,000 Trading Volume Share Price $4.50 800,000 $3.50 600,000 $2.50 400,000 $1.50 200,000 $0.50 0 29-Nov-04 21-Jun-05 11-Jan-06 3-Aug-06 23-Feb-07 Provided by Blackmont Capital Inc. 20 TSX:DVT
Slide 21: Relative Performance
Relative Performance Total Return Comparison 350% (July 4, 2005 - February 26, 2007) 300% 250% 200% Total Return 153% 150% 100% 50% 35% 0% 19% -50% 4-Jul-05 30-Nov-05 28-Apr-06 24-Sep-06 20-Feb-07 DVT S&P/TSX Composite Index S&P/TSX Energy Index Provided by Blackmont Capital Inc. 21 TSX:DVT
Slide 22: Peer Comparison
Peer Comparison1 Enterprise P/E P / CF EV / EBITDA EV / Revenue (2) Value (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (C$MM) 2006E 2007E 2008E 2006E 2007E 2008E 2006E 2007E 2008E 2006E 2007E 2008E (4) CGG-Veritas $ 8,925.5 4.5x 4.5x N/A 1.9x 1.6x N/A 16.2x 8.4x N/A N/A N/A N/A (4) IHS Inc. $ 2,6
Slide 23: 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 23 TSX:DVT