Vertex Resource Group Ltd. · TSXV:VTX
Vertex Resource — Investor Presentation (August 2022)
18 slides from Vertex Resource's investor presentation, Aug 17, 2022
Slide 1: Vertex Resource Group Ltd. Investor Presentation
VERTEX RESOURCE GROUP LTD. TSX:VTX INVESTOR PRESENTATION - AUGUST 17, 2022 VERSATILITY. EXPERTISE.
Slide 2: Disclaimer & Notice to Reader
DISCLAIMER & NOTICE TO READER This presentation is for discussion purposes only. The contents are not to be reproduced, summarized, or distributed. These materials have been prepared for information purposes only concerning Vertex and are not, under any circumstances, to be construed as an offering
Slide 3: Corporate Profile
CORPORATE PROFILE MARKET SUMMARY Current Stock Price (TSX:VTX) $0.40 (August 17, 2022) Common Shares Outstanding 110.2 Million Stock Options 2.7 Million Convertible Debentures 23.1 Million Fully Diluted Shares 136.0 Million Market Capitalization: $54.4 Million Debt: $64.2 Million Enterprise Value: $
Slide 4: Vertex
VERTEX Vertex is a leader in integrated environmental solutions. A strategic combination of equipment-based environmental and industrial solutions intermingled with a professional consulting division, providing leading edge scientific expertise to our customers. This combination of practical field a
Slide 5: Vertex's ESG Business Model
VERTEX’S ESG BUSINESS MODEL Vertex’s business model, solutions, Our Suite of Services are Built to Support: and strategy has always been built on: Enhanced Environmental Sustainable Development Stewardship Local Community Involvement Clean Energy Solutions - Including First Nations Health & Safety o
Slide 6: Vertex's ESG Alignment
VERTEX’S ESG ALIGNMENT Development, operation, and restoration, Vertex provides ESG aligned supply chain services from start to finish. We are trusted experts in our customers pursuit of more sustainable business practices. 5
Slide 7: Vertex ESG Approach
VERTEX ESG APPROACH SAFETY SUSTAINABLE GROWTH DATA-DRIVEN: ESG REDUCE EMISSION INTENSITY We are committed to being the safest environmental service business in North America. We aim to achieve this with our ambition to do NO HARM with zero lost time incidents, no spills and/or releases. Continued fo
Slide 8: Financials
FINANCIALS FINANCIAL SUMMARY Year ending December 31(C$ 000’s) 2019 2020 2021 2022 6 Months REVENUE 168,070 136,125 159,438 99,398 COST OF SALES 129,449 97,590 117,150 75,718 GROSS PROFIT 38,621 38,535 42,288 23,680 GROSS MARGIN 23% 28% 27% 23.8% SG&A 16,986 14,071 16,052 9,463 OTHER 1 -2,371 -2,364
Slide 9: Planned Debt Reduction
PLANNED DEBT REDUCTION OVERVIEW • Planned debt reduction of $20.0M (27.4%) by 2023 from cashflow, and reduction in NET DEBT OVERVIEW 1 working capital related to Provincial Reclamation Programs. • Extended the maturity of our credit facilities to May 2025. 90 • Vertex is targeting 2.0x – 2.5x total
Slide 10: Diversified Environmental Service Offering
DIVERSIFIED ENVIRONMENTAL SERVICE OFFERING ORGANIC GROWTH OPPORTUNITIES Vertex continues to focus on developing across multiple industries. Allowing us to broaden our services outside Western Canada. Emphasizing our two essential resources: People and Equipment. Pipelines, Utilities, Telecommunicati
Slide 11: Market Growth: E&P Operation & Maintenance Spending
MARKET GROWTH: E&P OPERATION & MAINTENANCE SPENDING E&P CAPEX AND MAINTENANCE INDUSTRY DETAILS 1,2 SPENDING TRENDS IN CANADA 1 • Operating expenditures by upstream and midstream companies are a continued requirement to support production and processing volumes. • Oil & Gas industry capital spending
Slide 12: Market Growth: New Funds for Abandonment & Reclamation
MARKET GROWTH: NEW FUNDS FOR ABANDONMENT & RECLAMATION TOTAL CONVENTIONAL A&R SPENDING IN THE WCSB - MARKET DETAILS EST. HISTORICAL AND FORECASTED 1 • Under the Liability Management Program, licensees are incentivized to reduce their decommissioning liability through abandonments and reclamation to
Slide 13: Market Growth: Funds for Abandonment & Reclamation
MARKET GROWTH: FUNDS FOR ABANDONMENT & RECLAMATION GOVERNMENT PROGRAMS FOR 2022 AVERAGE WELL SITE A&R COST ATTRIBUTION BY • Federal Government announced $1.7B for clean up of old SERVICE DISCIPLINE (%, ACCE) 1 oil and gas wells and $750M funding aimed at reducing methane emissions. • The above was $
Slide 14: Market Growth: Funds for Emission Reduction
MARKET GROWTH: FUNDS FOR EMMISION REDUCTION GOVERNMENT PROGRAMS FOR 2022 OPPORTUNITY FOR VERTEX • In addition to emissions detection and • OERD announced $24 million per year for on-going program is funding measurement, Vertex offers a wide range of energy RD&D projects that aim to reduce GHG emissi
Slide 15: Cordy Acquisition
CORDY AQUISITION Vertex acquired Cordy Oilfield Services Inc, (TSX:CKK), an environmental services and hydro-excavating provider in Alberta, Saskatchewan, and B.C. on April 25, 2022. Acquisition Rationale • Fleet of newer equipment with a skilled employee base. • Expands hydro-excavating business in
Slide 16: Vertex Investment in Technology
VERTEX INVESTMENT IN TECHNOLOGY RESEARCH & DEVELOPMENT • RESTARTTM, an innovative and cost-effective approach to the process of reforestation & revegetation. • Vertex Honey-Bee Project, integrating honey-bees as part of the reclamation process and increasing the bee population in Western Canada. • R
Slide 17: Vertex Strategic & Management Strengths
VERTEX STRATEGIC & MANAGEMENT STRENGTHS STRATEGIC STRENGTHS • Disciplined Capital Allocation & Cost Reduction Practices. • Continue Investing in Technology to Improve Operational Efficiencies and Bring Value to Clients. • Geographic & Service Offering Footprint Expansion into Attractive Growth Marke
Slide 18: Vertex Resource Group Ltd. Contact
CONTACT 161-2055 Premier Way Sherwood Park, AB T8H 0G2 (780) 464-3295 info@vertex.ca Terry A. Stephenson Sherry Bielopotocky President and Chief Executive Officer Chief Financial Officer tstephenson@vertex.ca sbielopotocky@vertex.ca VERTEX RESOURCE GROUP LTD. TSX:VTX Analyst Coverage Acumen Capital
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