Questor Technology Inc. · TSXV:QST
Questor Technology — Q2 2018 Earnings Presentation
25 slides from Questor Technology's earnings presentation, October 2018
Slide 1: Questor Technology Inc. Q2 2018
Questor Technology Inc. Solutions Powered By Clean Combustion Environmental Intelligent Innovative Protection Solutions Design 20 Years Providing Efficient Q2 2018 and Effective Clean Combustion October, 2018 Calgary, Alberta Solutions
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information presented today may constitute forward- looking statements. Such statements reflect the Company’s current expectations, estimates, projections and assumptions. These forward-looking statements are not guarantees of future performance and are subject to
Slide 3: What We Do
What We Do Questor is a leading provider of 99.99% efficient, safe, reliable and regulatory compliant waste gas combustion systems across an array of industries. We specialize in waste gas combustion equipment addressing air quality and emissions. We recover the waste heat from clean combustion and
Slide 4: The Problem We Are Solving
The Problem We Are Solving Before Questor Community acceptance; operating and capital cost reductions; safety; energy efficiency; emission regulations:- VOC, HAP’s, methane, air quality, GHG emissions, low carbon operations, green/closed loop completions, no flaring, no venting, no odours 3
Slide 5: Creating value from Waste gases
Creating value from Waste gases Oil and Gas Solutions 99.99% Combustion Efficiency Clean Emissions - CO2 and Water Pad and Well Site Operations Waste Gases Water Vaporization Drilling and Completions Operations Clean Combustion Device Gas and Oil Processing ORC Heat to Power Upstream, Midstream and
Slide 6: Questor Corporate Profile
Questor Corporate Profile • Canadian company founded in 1994 • Listed in 1998 on the TSX Venture Exchange – “QST” • 26.5 million shares outstanding • U.S. and Canadian incineration patent – 2019 • Diversified product offering – clean combustion (99.99%), water treatment and heat to power • Global op
Slide 7: Investor Information
Investor Information Share Information (Q2’18 YTD) 12 Month Share Price Performance Common Shares 26,465,370 issued/outstanding Warrants Nil Current share price $2.58 52 Week Hi-low $1.42 - $4.55 Q2 YTD Earnings per $0.15 share (basic) Market Cap $68.3 million Financial Information (Q2’18 YTD) Major
Slide 8: Board of Directors
Board of Directors James Inkster – Chairman Entrepreneur and businessman. Jim has provided twenty years of insight in assisting management in building the firm base on which the Corporation’s growth plans are materializing. Jean-Michel Gires Jean-Michel Gires previous President & CEO Total E&P Canad
Slide 9: Questor Team Profile
Questor Team Profile Audrey Mascarenhas – President and CEO Dan Zivkusic– CFO CPA, CMA with over 20 years in the oil and gas industry in the E&P and service sectors. Senior executive finance experience in E&P, pressure pumping, artificial lift systems, managed pressure drilling and testing. John Sut
Slide 10: Financial Performance
Financial Performance Revenue 18,000 Profit 15,500 Adjusted 13,000 EBITDA 10,500 $000's (Cdn.) 8,000 5,500 3,000 500 -2,000 2013 2014 2015 2016 2017 Q2 '18 YTD 9
Slide 11: Q2 YTD Financial Performance
Q2 YTD Financial Performance 14,000 Revenue 12,000 Profit 10,000 Adjusted $000's (Cdn.) 8,000 EBITDA 6,000 4,000 2,000 0 Q2'17 YTD Q2'18 YTD 10
Slide 12: Business Segments
Business Segments Sales Rentals Field Combustion Services 11
Slide 13: Revenue by Region
Revenue by Region 25,000 20,000 Canada USA International $000's (CAD) 15,000 10,000 5,000 0 2013 2014 2015 2016 2017 Q2 '18 YTD 12
Slide 14: United States Revenue
United States Revenue $14,000,000 $11,730,155 $12,000,000 $10,000,000 $8,000,000 $6,959,749 $6,000,000 $4,000,000 $2,000,000 $- Q2'17 YTD Q2'18 YTD Incinerator & Combustion $608,461 $1,368,695 Services Incinerator Rental Income $3,603,086 $7,690,539 Sale of Goods $2,748,202 $2,670,921 13
Slide 15: Business Segment Revenues
Business Segment Revenues 25.0 Sales Rental Services 20.0 Million $ (CAD) 15.0 10.0 5.0 0.0 2013 2014 2015 2016 2017 Q2 '18 YTD 14
Slide 16: Rental Fleet Expansion
Rental Fleet Expansion 18 81 Units 90 16 64 Units 80 14 70 12 60 $ Millions CAD 10 39 Units 50 8 40 10 Units 6 30 4 20 2 10 0 0 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Rental Fleet at Cost Rental Revenue Capacity Gross Margin Capacity Units at end of Quarter 15
Slide 17: Extraction Oil & Gas – Hybrid Units
Extraction Oil & Gas – Hybrid Units 30% reduction in lease size 20% reduction in pad cost Incremental 400 bbls/d production Rental unit Hybrid Units 16
Slide 18: Emissions Control Value Proposition
Emissions Control Value Proposition Significant driver for clean combustion is the VOC limits imposed, especially in non-attainment zones Many Facilities are capped on annual VOC emissions All combustors assumed to perform at 95% destruction efficiency – QUAD “0” testing Questor unit field t
Slide 19: Colorado
Colorado Air quality issues – non-attainment zones Lack of gas pipeline take away capacity Win-win created with stringent regulations – no flaring, no venting, no odors Residents will be voting on proposition 112 on November 6, 2018. (drilling set-backs at 2,500 feet) Existing clients with
Slide 20: U.S. Market Expansion Opportunity
U.S. Market Expansion Opportunity Increased emission regulation, lack of take away gas capacity and community concerns creating the push Canada regulations will lag behind US; hence, Questor’s focus on US market State of Colorado has taken lead role in regulating quality, high-performance emis
Slide 21: Opportunity in Texas and North Dakota
Opportunity in Texas and North Dakota Permian • 350 MMscf/d currently flared with pipeline capacity at 98% • Opportunity for a 180 unit rental fleet • 3370 well drilled but uncompleted due to lack of P/L capacity • Moved rental units in October to Midland, Texas yard for demonstrations Bakken • 220
Slide 22: Questor’s Market Driver
Questor’s Market Driver • US EPA/State regulation focused on air quality and non- attainment zone emissions: Methane, HAP and VOC’s • 99.99% combustion efficiency – advantage in meeting air quality emission regulations (VOC’s) – 400bbls/d incremental oil production on a 12 well pad site • Gas flarin
Slide 23: Clean Technology Market
Clean Technology Market • Estimated to grow from $1 to $3 trillion globally and be the 3rd largest industrial sector by 2020 • Top 10 global E&P companies committed $1B to reducing their methane emissions – OGCI • Some E&P CEO’s publically stating target emission reductions • US EPA/State regulation
Slide 24: Growth Strategy - Diversification
Growth Strategy - Diversification Diversified technology solution offerings – power and water Questor combustion unit treatment – expansion into other industries ClearPower - waste heat conversion to power with zero emissions significant global industrial market - 77kW to 1.5MW Developing tech
Slide 25: Contact
COST REDUCTION PUBLIC FOR CLIENTS CONFIDENCE QUESTOR SOLUTIONS AND TECHNOLOGY INC Audrey Mascarenhas President and CEO 1.403.608.8606 1.207.313.1630 ENVIRONMENTAL www.questortech.com PROTECTION www.clearpowersystems.com Questor Technology Inc. #2240, 140-4th Avenue S.W. Calgary, Alberta, Canada. T2P