Questor Technology Inc. · TSXV:QST
Questor Technology — Q3 2017 Earnings Presentation
26 slides from Questor Technology's earnings presentation, 2017
Slide 1: Q3 FY 2017 Presentation
Questor CQ ceearrower Q3 FY 2017 Presentation COST EFFECTIVE EMISSION SOLUTIONS Best Available Technology, Regulatory Compliance, Public Engagement, Cost Savings, Air Quality, Methane Gas Elimination, GHG Emissions Reduction, Energy Efficiency, Clean Power Generation TSXV: QST | WWW.QUESTORTECH.COM
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 c
Slide 3: What We Do
What We Do Questor is a leading provider of safe, reliable, efficient and 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 other sources to g
Slide 4: The Problem We Are Solving
The Problem We Are Solving Before Questor incinerators With Questor incinerators Community Acceptance; Operating and Capital Cost Reductions; Emission Regulation; VOC, HAP’s, methane, air quality, GHG emissions, low carbon operations, green or closed loop completions, no flaring, no venting, no odou
Slide 5: Corporate Profile
Corporate Profile • Canadian company founded in 1995 • Listed in 1998 on the TSX Venture Exchange - QST • 26,000,000+ shares outstanding • US and Canadian incineration patent - 2019 • Diversified product offering covering Including Water Vaporization, Combustion and Heat to Power • Global operations
Slide 6: Investor Information
21 Investor Information Share Information (as of Q3 2017) 12 Month Share Price Performance Shares Outstanding 26,457,370 Warrants nil Options (issued/outstanding) 1,283,000 Current share price $2.48 52 Week Hi-low $0.58 - $2.54 Market Cap $65,614,000 Financial Information (as of Q3 2017) Founded 199
Slide 7: Board of Directors
Board of Directors Audrey Mascarenhas – President and CEO Chemical Engineer with Master’s degree in Petroleum. Over 35 years of oil and gas experience. 17 years with Gulf Canada Resources prior to joining Questor in 1999. SPE Distinguished lecturer. E&Y Entrepreneur of the Year (Prairie region) in C
Slide 8: 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 9: Global and US experience
Global and US experience Egypt, Russia, Caribbean, Indonesia, Thailand, China, Germany, France, Italy California, Colorado, Kentucky, Mississippi, New York, North Dakota, Ohio, Pennsylvania, Texas, Utah, West Virginia, Wyoming
Slide 10: Oil & Gas Solutions
Oil & Gas Solutions 99.99% Combustion Efficiency Clean Emissions - CO2 and Water Pad and Well Site Operations Waste Gas Water Vaporization Drilling and Completion Operations Clean Combustion Device Gas and Oil Processing ORC Heat to Power Upstream, Midstream and Downstream
Slide 11: Colorado’s Journey
Colorado’s Journey Newer tighter oil and gas plays challenge the norm • Air quality issues – non-attainment zones • Communities requesting moratoriums created the need for an emphasis on social license and community acceptance • 85% of the Colorado’s revenue is from O&G • Needed to create a win-win
Slide 12: Colorado Hybrid Rental / Sales Model
Colorado Hybrid Rental / Sales Model • Reduced Costs by 15 - 20% and footprint by 30% • Integrated complete total system solution • Tall unit for flow-backs and high initial production rates • Rented top of stack removed for permanent production • Unit handles all the gas streams on site - closed lo
Slide 13: Extraction Oil & Gas – Hybrid Units
Extraction Oil & Gas – Hybrid Units Questor’s units resulted in Extraction obtaining the following metrics 30% reduction in lease size 20% reduction in pad costs
Slide 14: Financial Performance
Financial Performance 13,000 12,000 11,000 10,000 9,000 8,000 $M (Cdn.) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 -1,000 2012 2013 2014 2015 2016 Q3 2017 YTD Revenue Profit EBITDA
Slide 15: Business Segments
Business Segments Sales Rentals (Permanent Facilities) (Well tests, Pipeline/Plant blowdowns) Field Combustion Services
Slide 16: Business Segment Revenues
Business Segment Revenues 14.0 12.0 10.0 MM$ (CAD) 8.0 6.0 4.0 2.0 0.0 2013 2014 2015 2016 Q3 2017 YTD Sales Rental Services
Slide 17: Rental Fleet Expansion
Rental Fleet Expansion 16 70 14 60 12 50 10 40 $ MM 8 30 6 20 4 2 10 0 0 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Rental Fleet at Cost Rental Revenue Capacity Gross Margin Capacity Units at end of Quarter
Slide 18: Revenue by Region
Revenue by Region 14,000 13,000 12,000 11,000 10,000 9,000 $M (CAD) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2012 2013 2014 2015 2016 Q3 2017 YTD Canada USA International
Slide 19: US Market Opportunity
US Market Opportunity • Large market with similar business principles • Increased emission regulation and community concerns creating the push • Canada regulations will lag behind hence our short term focus is in the US • State of Colorado has taken a lead role in regulating quality, high-performanc
Slide 20: Pathway to success in the US Market
Pathway to success in the US Market • Finding our industry champions • Focus on the seven most prolific areas, which account for 92% of US production growth and increased capital spending • Understanding our value proposition • Focusing on where we can be successful • Adapt and be flexible to the va
Slide 21: Growth Strategy - Expansion
Growth Strategy - Expansion • Invested and reallocated capital to Colorado • Opening an office and hiring local technicians has been a positive step and contributing factor to Questor’s recent successes and future growth • Industry has noticed our top level service and high-quality product. We are w
Slide 22: Growth Strategy – Diversification
Growth Strategy – Diversification • Diversify our technology enabling us to serve different industries • ClearPower has developed commercial technology that utilizes waste heat to generate power with zero emissions. Significant waste heat available in many industry processes. Focused on the 77kW to
Slide 23: Growth Strategy – Strategic Relationships
Growth Strategy – Strategic Relationships • Developing strategic relationships to expand into new markets. This could include M&A and distributorships • We understand M&A strategy produces relatively low success rate as measured by rate of return. The opportunity would require the following key comp
Slide 24: Clean Technology Market
Clean Technology Market • Estimated to grow from $1 to $3 trillion globally and be the 3rd largest global industrial sector by 2020 • Exxon and 10 global E&P companies - $1B commitment to reducing their methane emissions • US EPA/state regulation focused on methane, HAP and VOC’s – non- attainment z
Slide 25: Questor’s Solution
Questor’s Solution • Cost Reduction • Public Confidence • Environmental Protection • Increased Air Quality • Reduced Emissions Questor Technology Inc. 2240, 140 – 4 Avenue S.W. Calgary, Alberta, Canada. T2P 3N3 ClearPower Systems Inc. Questor Solutions and Technology 15330 Flight Path Drive Brooksvi
Slide 26: Solutions Powered by Clean Combustion
Solutions Powered by Clean Combustion Thank you www.questortech.com Audrey Mascarenhas President & CEO 403-608-8606 / 207-313-1630 amascarenhas@questortech.com