Energy & Environmental Services Inc. · OTC:EESE
Energy & Environmental Services — Investor Presentation (June 2018)
24 slides from Energy & Environmental Services's investor presentation, June 2018
Slide 1: Investor Update
ENERGY & ENVIRONMENTAL SERVICES, INC JUNE 2018 INVESTOR UPDATE OTC STOCK SYMBOL EESE
Slide 2: Forward Looking Statement & Risk Factors
FORWARD LOOKING STATEMENT & RISK FACTORS FORWARD-LOOKING STATEMENTS ABOUT OUR GROWTH STRATEGIES, ANTICIPATED TRENDS IN OUR BUSINESS AND OUR FUTURE RESULTS OF OPERATIONS. IN ADDITION, THE WORDS “BELIEVE”, “MAY”, “COULD”, “WILL”, “WHEN”, “ESTIMATE”, “CONTINUE”, “ANTICIPATE”, “INTEND”, “EXPECT” AND SIM
Slide 3: EES Vision Statement and Purpose
EES VISION STATEMENT: EES is one company united by common core values, committed to our employees, our customers and our products. We are dedicated to our vision and passion to produce the most innovative specialty products on the planet. EES PURPOSE: Our true passion is to produce the most innovati
Slide 4: EES 1 Company United: Core Values
EES 1 company UNITED CORE VALUES: Respect: Having a deep admiration for our employees and their hard work and dedication. Integrity: Our reputation is paramount and built on a high standard of integrity. We are only as good as our word. Accountability: Accountable to our shareholders, employees, cus
Slide 5: Teamwork
“TRAM wW ORK Coming together is a beginning. Keeping together is progress. Working together is success. EES 1 Company UNITEFPD
Slide 6: Our Team's Recent Success
OUR TEAM’S RECENT SUCCESS • EXPERIENCED 100% INCREASE IN TOTAL REVENUE FY2017 OVER FY2016: $3.8 MILLION VS $1.9 MILLION • INCREASED REVENUE 110% Q1 2018 OVER Q1 2017 • CUT EXPENSES 18.8% OVER SAME TIME PERIOD • VORTEX PREMIUM COATED PUMP BARREL JOINT VENTURE: PRODUCT IS BEING PRODUCED AND SOLD! • OP
Slide 7: 2018 Strategy
2018 STRATEGY • INCREASE MARKET SHARE: AGGRESSIVELY EVALUATE GROWTH OPPORTUNITIES THRU ORGANIC GROWTH, MERGERS & ACQUISITIONS • OPERATE WITHIN CASHFLOW • EFFICIENT OPERATIONS: CONTINUING TO FOCUS ON DRIVING DOWN COST • REINVEST AVAILABLE CASH FOR INCREASED PROFITABILITY • CONTINUE TO PREPARE THE COM
Slide 8: How Do We Get Listed on the Nasdaq?
HOW DO WE GET LISTED ON THE NASDAQ? • INCREASE REVENUE: • EXPAND FRAC/STIM DIVISION TO SNYDER FACILITY AND GAIN MARKET SHARE IN THE PERMIAN BASIN. • ACQUIRE PROD CHEMICAL COMPANIES TO BRING US CLOSER TO THE MARKET (VERTICAL INTEGRATION). • EXPAND OUR ABILITY TO COAT PIPE (MORE OVENS AND MORE COATING
Slide 9: General Overview: EES Business Segments
GENERAL OVERVIEW EES BUSINESS SEGMENTS • ENDURO-TECH: CHEMICAL MANUFACTURING • ENDURO-BOND: PROTECTIVE COATINGS • FARM/RANCH: ENZYMES AND MICROBES • VORTEX: EQUIPMENT MANUFACTURING 9
Slide 10: Chemical Manufacturing Segment
CHEMICAL MANUFACTURING SEGMENT GENERATED $30MM IN REVENUE 2014 • ENDURO-TECH FRAC & STIMULATION PRODUCT LINE: LIQUIDS & SOLIDS • ENDURO-TECH™ SOLIDS DURING FRACTURING HELPS DELAY PRODUCTION DECLINE • ENDURO TECH PRODUCTION CHEMICAL PRODUCT LINE: LIQUIDS & SOLIDS • ENDURO-TECH™ SOLIDS USED TO TREAT A
Slide 11: Factors in Our Favor: Increasing Demand for Frac Fluids
FACTORS IN OUR FAVOR INCREASING DEMAND FOR FRAC FLUIDS: OVER 7,000 DUCS *DUCS ARE DRILLED AND UNCOMPLETED WELLS 11
Slide 12: Protective Coatings Segment: Enduro-Bond Products
PROTECTIVE COATINGS SEGMENT ENDURO-BOND PRODUCTS ENDURO-BOND® ENDURO-BOND® PLUS ENDURO-BOND® DURASHIELD ENDURO-BOND® ULTRASHIELD • MORE THAN A COATING TO PROTECT YOUR INVESTMENT • AN ALTERNATIVE FOR EXPENSIVE STAINLESS STEEL 12
Slide 13: Endurobond – Our Proprietary Formula
ENDUROBOND – OUR PROPRIETARY FORMULA • ENDURO-BOND® IS A DRY POWDER COATING PROCESS THAT WILL MAKE DUCTILE IRON AND CARBON STEEL VALVES PERFORM LIKE STAINLESS STEEL. • PROTECTS WHERE OTHERS FAIL. NOT A PAINT; IT IS MORE DURABLE THAN PLASTICS, CERAMICS AND EPOXY. • PRODUCES A SMOOTH, EVEN 1-2 MILS OF
Slide 14: Enduro-Bond Has Been Approved by These Companies
ENDURO-BOND® HAS BEEN APPROVED BY THESE COMPANIES • BALON CORPORATION • STANLEY FILTER • WEIR SEABOARD • EMERSON AUTOMATED SOLUTIONS • WELLHEAD SYSTEMS INC. • SANDRIDGE XTO DEVON • FMC • CITATION OIL AND GAS • DNOW ODESSA PUMP • CHAPARRAL ENERGY • DOVER WELLMARK NORRISEAL • CONTINENTAL RESOURCES • K
Slide 15: Enduro-Bond Distribution to the Market
ENDURO-BOND DISTRIBUTION TO THE MARKET 1. OPECO: 7 STATES; 38 EMPLOYEES • 4 AUTHORIZED MANUFACTURER REPRESENTATIVES WITH OVER 40 AGENTS IN 20 STATES: • THE NORTHEAST REGION (ILLINOIS, INDIANA, KENTUCKY, WEST VIRGINIA, MICHIGAN, OHIO AND PENNSYLVANIA) 2. REP SALES: 7 STATES; 12 EMPLOYEES • THE SOUTHE
Slide 16: Enzymes & Microbes Segment
ENZYMES & MICROBES SEGMENT • FEED SUPPLEMENTS: LIQUID & DRY RESEARCH UNIVERSITY TEST RESULTS BY YEAR END • FERTILIZER PRODUCTS: LIQUID & DRY CURRENTLY SOLD IN KS. OK. TX. CO. NE. NC. SD. LA. • ODOR ELIMINATION PRODUCTS LAUNCH IN 2018 PROVEN SUCCESSFUL IN CHICKEN COOPS AND HORSE STALLS 16
Slide 17: Farm & Ranch Strategy
FARM & RANCH STRATEGY • GOAL #1: CREATE NEW REVENUE STREAM OUTSIDE OF THE OIL & GAS INDUSTRY… • HIRED A MICROBIOLOGIST IN 2013 TO BEGIN IMPLEMENTING ENZYMES & MICROBES INTO OUR COMPANY • PURCHASED ECOZYME SYSTEMS TECHNOLOGIES INTELLECTUAL PROPERTY IN 2015 • RELOCATED OPERATION TO EDMOND OKLAHOMA TO
Slide 18: Equipment Manufacturing Segment: Specialty Barrel Market
EQUIPMENT MANUFACTURING SEGMENT SPECIALTY BARREL MARKET • VORTEX PREMIUM COATED PUMP BARREL OPERATION VORTEX PROVIDES A PRODUCT THAT IS LOWER COST AND PROVIDES SUPERIOR SERVICE TO THE OIL AND GAS PRODUCER. 18
Slide 19: Vortex Premium Coated Pump Barrels
VORTEX PREMIUM COATED PUMP BARRELS • The pump barrel is the metal cylinder in which the plunger of a sucker rod reciprocates and is an integral part of most downhole pump systems used in oil & gas wells. • Enduro-Bond Manufacturing Company, a wholly owned subsidiary of EES, will receive payment for
Slide 20: Size of the Market
SIZE OF THE MARKET COMPANY * ESTIMATED SALES DOVER H-F 400,000,000 WEATHERFORD 380,000,000 SCHLUMBERGER - DON NAN 380,000,000 SCOTT BARRELS 200,000,000 LUFKIN - QUINN 40,000,000 JOHN CRANE 20,000,000 PRECISION 8,000,000 CATALYST 6,000,000 TOTAL MARKET $1,434,000,000.00 Total U.S. Rod Pump Market at
Slide 21: Vortex Channel to the Market
VORTEX CHANNEL TO THE MARKET 21
Slide 22: OPECO's States of Operation
OPECO’S STATES OF OPERATION Kansas, Oklahoma, Arkansas, Panhandle of Texas, East Texas, Louisiana, Mississippi, & Alabama • 8 Warehouse Locations • 60,000 total sq ft • 38 Total Employees • 18 Outside Salesmen • 7 Inside Sales • 13 Support Personnel • $4.3 Million Total Inventory • 25 sales and deli
Slide 23: OPECO Down Hole Advantage
OPECO DOWN HOLE ADVANTAGE • CROSSOVER CUSTOMER BASE OF EXISTING CUSTOMERS TO VORTEX PRODUCTS • CROSSOVER HOOK-UP PRODUCTS TO END USERS • ADVANTAGE OF SINGLE SOURCING • STUFFING BOXES, PACKING, POLISHED RODS AND LINERS, AND ETC. • UTILIZE ALL PERSONNEL TO INCREASE FIELD SERVICEABILITY • OUT PERFORM T
Slide 24: Conclusion
CONCLUSION • Q1 2018 STARTED WITH A 110% INCREASE IN REVENUE VERSUS Q1 2017 • EXPENSES ARE DOWN ALMOST 20% OVER THE SAME PERIOD • OUR PEOPLE ARE OUR NUMBER ONE ASSET. • WE EMPLOY CORE VALUES TO EVERYTHING WE DO EVERYDAY. *SERVICE *RESPECT *INTEGRITY * ACCOUNTABILITY! • EXPERIENCED TEAM CAPABLE OF EX
Energy & Environmental Services — Investor Presentation (June 2018) on 6ix