Slide 1: The Power of Performance Q3 2024
THE POWER OF Performance Q3 2024
Slide 2: Advisories
ADVISORIES NON-GAAP MEASURES This presentation contains non-GAAP measures. The Company’s continuous disclosure documents provide FORWARD-LOOKING discussion and analysis of “EBITDA”, “EBITDA per INFORMATION share”, “EBITDA margin”, “shareholder free cash flow”, “shareholder free cash flow per share”,
Slide 3: Key Trading Facts
KEY TRADING FACT S Information as at September 30, 2024, unless otherwise specified Trading Symbols TSX: PSD OTCQX: PLSDF Corporate Headquarters Calgary, Alberta, Canada PULSE SEISMIC INC. Stock Price $2.31 TSX: PSD Shares Outstanding 50,935,563 OTCQX: PLSDF Avg. Daily Trading Volume (Q3 2024) 17,70
Slide 4: Our People: Executive Management Team and Directors
OUR PEOPLE EXECUTIVE MANAGEMENT TEAM DIRECTORS Robert Robotti, Board Chair Founder and CIO, Robotti & Company Advisors, LLC Independent Director Paul Crilly Independent Director Melanie Westergaard Independent Director Patrick Ward Independent Director Dallas Droppo Independent Director Neal Coleman
Slide 5: Financial Spotlight
FINANCIAL SPOTLIGHT mi il
Slide 6: Metrics That Matter
FINANCIAL SPOTLIGHT METRICS THAT MATTER SHAREHOLDER EBITDA MARGIN EBITDA FREE CASH FLOW We are a data-driven, EBITDA plus non-cash and EBITDA is calculated as cash-based business. Our non-recurring expenses, less earnings or loss from EBITDA margin, or cash current income tax and net of operations b
Slide 7: Q3 2024 YTD Financial Update
FINANCIAL SPOTLIGHT $17.8MM Q3 2024 Y TD FINANCIAL TOTAL REVENUE UPDATE • NCIB shares purchased: $3.7MM (1,686,300 shares at an average price of $2.17 per share) $6.1MM SCB and SG&A EXPENSES • Special dividend of $0.20 per share declared in December 2023, paid on January 8, 2024 • Regular quarterly
Slide 8: Shareholder Value Through Dividends and Share Purchases
FINANCIAL SPOTLIGHT SHAREHOLDER VALUE THROUGH DIVIDENDS AND SHARE PURCHASES TOTAL SPENDING ON DIVIDENDS AND DIVIDENDS AND SHARE PURCHASES SHARE PURCHASES ($MM) Dividends ($MM) Share Purchases ($MM) 21.4 $48.5 $MM 10.9 10.8 10.5 $138.3MM 8.4 8.4 2003-2023 7.1 6.3 5.4 $89.8 5.3 4.8 4.5 4.7 4.1 3.5 3.4
Slide 9: Historical Averages
FINANCIAL SPOTLIGHT HISTORICAL AVERAGES $35 $35,000 $0.50 $30 $30,000 $0.45 $0.40 $20 $25,000 $0.35 $MM $25 $20,000 $0.30 $0.25 $15 $15,000 $0.20 $10 $10,000 $0.15 $5 $5,000 $0.10 $0.05 $00 $0.00 Revenue EBITDA SFCF 2014-2023 2019-2023 2021-2023 Ten Years 2014-2023 Five Years 2019-2023 Three Years20
Slide 10: Returns
D R I V I N G S U S TA I N A B L E RETURNS
Slide 11: Growing the Seismic Library
D R I V I N G S U S TA I N A B L E R E T U R N S GROWING THE SEISMIC SIZE OF THE SEISMIC DATA LIBRARY LIBRARY 900,000 70,000 800,000 60,000 › January 15, 2019, we acquired 100 percent 700,000 of the shares of Seitel Canada Ltd. for $62.8MM. Included 36,354 net km2 of 3D 50,000 600,000 and 379,207 ne
Slide 12: Current Seismic Coverage
D R I V I N G S U S TA I N A B L E RETURNS CURRENT SEISMIC COVERAGE Western Canada’s Premium Licensable Seismic Dataset 65,310 Sq. km of 3D seismic 829,207 Lin. km of 2D seismic
Slide 13: Generating Revenue: Two Types of Data Library Sales
D R I V I N G S U S TA I N A B L E R E T U R N S GENERATING REVENUE: T WO T YPES OF DATA LIBRARY SALES TRADITIONAL SALE TRANSACTION-BASED SALE A licence of 2D or 3D data New fees on licensed seismic data from Pulse’s library triggered by a change in control over related to drilling in new the licens
Slide 14: Drivers of Traditional Data Library Sales
D R I V I N G S U S TA I N A B L E R E T U R N S DRIVERS OF TRADITIONAL DATA LIBRARY SALES CROWN MINERAL NEW NEW PIPELINES & NEW DRILLING LAND SALES PROCESSING EXPLORATION INFRASTRUCTURE TECHNOLOGY New players & Improved Oil and Gas Economically Plays Become Multizone Oil and Interpretation or New E
Slide 15: Types of Transaction-Based Sales
D R I V I N G S U S TA I N A B L E R E T U R N S T YPES OF TRANSACTION-BASED SALES PARTNERSHIPS & CORPORATE ASSET SALE JOINT VENTURES MERGER/ACQUISITION New technical or Buyer has 30 days to Seismic licence does not operational decide to pay a discounted transfer with the asset. Pulse participants m
Slide 16: Traditional and Transaction-Based Sales
D R I V I N G S U S TA I N A B L E R E T U R N S Traditional Sales Transaction-Based Sales DATA SALES 35,775 31,762 PROFILES 24,051 ( in thousands of dollars) 19,607 TRADITIONAL AND 19,114 TRANSACTION-BASED 16,629 14,985 SALES 12,923 11,763 11,095 10,119 9,970 19,606 9,112 6,740 12,942 4,369 4,028 9
Slide 17: Building Resilience for a Profitable Future
BUILDING RESILIENCE FOR A PROFITABLE FUTURE
Slide 18: A Strong Position
B U I L D I N G R E S I L I E N C E F O R A P R O F I TA B L E F U T U R E A STRONG POSITION LICENCE AGREEMENTS LOW-COST BUSINESS MODEL We are positioned for a volatile 〉 Seismic data is licensed to customers. We retain ownership of 〉 Our team of 15 people manages a digital asset using commodity-pri
Slide 19: Ten-Year Allocation of Funds 2014-2023
B U I L D I N G R E S I L I E N C E F O R A P R O F I TA B L E F U T U R E TEN-YEAR ALLOCATION OF FUNDS 2014-2023 FUNDS AVAILABLE ($MM) FUNDS ALLOCATED ($MM) 2023 Ending Cash $33 Long Term Debt and Unallocated $16 2014 Opening Working Capital Cash and Working Capital Common Share $8 Purchases $19 De
Slide 20: Seismic Data Library Sales Strongly Correlate to Shareholder Free Cash Flow
B U I L D I N G R E S I L I E N C E F O R A P R O F I TA B L E F U T U R E SEISMIC DATA LIBRARY SALES STRONGLY CORRELATE TO SHAREHOLDER FREE CASH FLOW SEISMIC DATA LIBRARY SALES VS. SFCF PER SHARE 70.0 0.90 0.80 60.0 0.70 ($/Diluted Weighted Share Outstanding) 50.0 0.60 40.0 0.50 ($MM) 30.0 0.40 0.3
Slide 21: How EBITDA Converts to Shareholder Free Cash Flow
B U I L D I N G R E S I L I E N C E F O R A P R O F I TA B L E F U T U R E HOW EBITDA CONVERT S TO SHAREHOLDER FREE CASH FLOW Three months ended September 30, Nine months ended September 30, ($MM except per share) 2024 2023 2024 2023 2023 Full Year Data library sales 2,726 5,103 17,803 22,266 39,127
Slide 22: Why Invest in Pulse
B U I L D I N G R E S I L I E N C E F O R A P R O F I TA B L E F U T U R E WHY INVEST IN PULSE COMPETITIVE STRENGTHS OPPORTUNITIES TIME-TESTED BUSINESS MODEL › High barriers to entry for exploration › New takeaway capacity in 2024 and › Strong balance sheet and production (E&P) companies 2025 expect
Slide 23: Our Purpose and Impact
OUR PURPOSE AND IMPACT mi il
Slide 24: Understanding Our Business
O U R P U R P O S E A N D I M PA C T UNDERSTANDING OUR BUSINESS WHAT WE DO: Our business model: To repeatedly relicense high-quality 2D and 3D data to traditional and new energy companies. Simplified WHY 2D: geological column, 2D seismic allows energy companies to greater Alberta plan broad land acq
Slide 25: 3D Seismic Enables Detailed Modelling of Geologically Complex Targets
O U R P U R P O S E A N D I M PA C T 3D SEISMIC ENABLES DETAILED MODELLING OF GEOLOGICALLY COMPLEX TARGET S 〉 Seismic is critical for derisking horizontal drilling, unconventional plays like shale gas and tight light oil formations, as well as complex conventional drilling. 〉 We have unique 3D seism
Slide 26: A Western Canada Market Leader
O U R P U R P O S E A N D I M PA C T A WESTERN CANADA MARKET LEADER ESTIMATED CANADIAN 2D MARKET ESTIMATED CANADIAN 3D MARKET SEI Seismic Sigma Exchange 68,000 4,554 Sigma 85,299 Schlumberger 10,827 Others 829,207 PULSE 16,678 TGS Arcis 65,310 PULSE 18,639 2D (km) 3D (km2) SEI Seismic Exchange 39,55
Slide 27: Seismic Data for Subsurface Exploration
OUR PURPOSE A N D I M PA C T SEISMIC DATA FOR SUBSURFACE EXPLORATION Energy transition has contributed to data licensing revenue in recent years. Existing and technology enhanced data improve subsurface characterization for structural mapping and validating and understanding the properties of subsur
Slide 28: Pulse Seismic Inc. contact details
Pulse Seismic Inc. Phone: info@pulseseismic.com Suite 2700 403.237.5559 www.pulseseismic.com 421 7th Avenue SW Toll-free: Calgary, AB T2P 4K9 1.877.460.5559