Divestco — Investor Presentation (January 2007)
22 slides from Divestco's investor presentation, January 2007
Slide 1: Investor Relations Presentation January 2007
Divestco Inc. Investor Relations Presentation January 2007 Software · Data · Services · Consulting
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. “(the Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause t
Slide 3: Company Snapshot
Company Snapshot Stock Symbol : DVT (TSX) Shares Outstanding1: 38,000,000 Insider Ownership: >30% Employees: 520 52 Week High/Low: $7.00/2.27 Current Share Price: $3.75 Current Market Cap1: $142,500,000 Enterprise Value1,2: $165,000,000 1) Diluted 2) Market Capitalization + Funded Debt - Cash Calgar
Slide 4: Officers & Directors
Officers & Directors Stephen Popadynetz - CEO & Director Roderick Chisholm - Chief Financial Officer Terry Barnhart - President John Brussa - Chairman (2) Wade Brillon - Director Brent Gough - Director(1)(2)(3) M. Scott Ratushny - Director(1)(3) Edward L. Molnar - Director (1)(2) 1) Member of Audit
Slide 5: Sample Customer Profile
Sample Customer Profile 5 TSX:DVT
Slide 6: Competitive Advantage
Competitive Advantage • Software • Data • Services • Consulting Divestco is an aggressive acquisition minded company that offers superior software, services and data to the oil and gas industry. By implementing a strategy of integration between our offerings, we are creating a unparalleled set of bu
Slide 7: Business Model
Business Model Software Data • Over 20 geological, geophysical and land • Over 120 datasets including proprietary leased applications for the oil and gas seismic and drilling data and a full suite professional (Geologist, Geophysicist, support data layers (log, well, drilling, and Landman and Engine
Slide 8: 2006 Operational Highlights
2006 Operational Highlights • Completed 2 Corporate Acquisitions for total consideration of approx. $20 million • Successfully raised $12.3 million in gross proceeds from an equity financing • Increased Revenue approximately 175% from 2005 (based on 2006 guidance) • Acquired an additional 6,000 gros
Slide 9: Growth Through Acquisition 2006 (Geo-X Processing)
Growth Through Acquisition 2006 Acquired Geo-X Processing for $12.7MM on May 1, 2006 • Provides full-range high resolution, onshore 2D & 3D seismic data processing services • Approx. 25% market share in Western Canada • Adds a suite of proprietary algorithms to interpret seismic data • Provides natu
Slide 10: Growth Through Acquisition 2006 (Cavalier Land)
Growth Through Acquisition 2006 Acquired Cavalier Land for $7.5MM on July 18, 2006 • Provides acquisition of surface , freehold mineral and crown acquisition services • Approx. 15-20% market share in Western Canada • Proven track record of growth with CAGR of 23% since inception in 1993 • Provides n
Slide 11: Seismic Data Growth: 05/06
Seismic Data Growth: 05/06 Approx. $70MM In Seismic Acquired Tremblay 3D Upper Cutbank 3D 360 Square Km’s 312 Square Km’s Kamisak Lake 3D 120 Square Km’s Lockhorn 3D 410 Square Km’s Red Willow East 3D 215 Square Km’s Calahoo Lake 3D Red Willow North 3D 113 Square Km’s 102 Square Km’s 11 TSX:DVT
Slide 12: Seismic Data Growth: 06/07
Seismic Data Growth: 06/07 >$100M in potential Seismic Programs in AB & BC Coldstream Upper Cutbank North 175 Square Km’s 285 Square Km’s EXISTING DATA 06/07 DATA SHOOTS Hourglass West 420 Square Km’s TWIN LAKES 378 Square Km’s Hourglass East 332 Square Km’s Windsor/Wapiti Wapiti 380 Square Km’s 247
Slide 13: Seismic Data Growth: 06/07
Seismic Data Growth: 06/07 Different Zonal Ownership (Crown – Blue) Burlington Lands EnCana Lands (Yellow) (Yellow) 13 TSX:DVT
Slide 14: Seismic Data Growth
Seismic Data Growth Upon completion of our 06/07 seismic acquisition programs, Divestco expects to1: • Own/control > 60,000 Km’s of 2D Data • Own/control > 10,000 Square Km’s of 3D Data • Been involved in approximately $300MM of shot and purchased seismic since 2003 • Be the largest acquirer of seis
Slide 15: Financial Highlights by Quarter
Financial Highlights by Quarter 40 35 Revenue 30 25 $ Millions EBITDA 20 15 Net Income 10 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2003 2004 2005 2006 15 TSX:DVT
Slide 16: Financial Highlights By Year
Financial Highlights By Year 120 100 Revenue 80 $ Millions EBITDA 60 Net Income 40 20 0 2002 2003 2004 2005 2006F 16 TSX:DVT
Slide 17: Sources of Revenue
Sources of Revenue Forecast 2006: $105 - 110M 9% 17% 8% 66% Services Data Software Consulting 17 TSX:DVT
Slide 18: 2006 Guidance
2006 GUIDANCE • Gross Revenue of $105-110 million • EBITDA of $65-70 million ($1.86-$2.00 Diluted Share1) • Net Income of $22-25 million ($0.63- $0.71 Diluted Share1) 1) based on estimated 35,000,000 weighted average diluted shares 18 TSX:DVT
Slide 19: Share Price Performance
Share Price Performance $7.50 1,400,000 $6.50 1,200,000 $5.50 1,000,000 Trading Volume Share Price $4.50 800,000 $3.50 600,000 $2.50 400,000 $1.50 200,000 $0.50 0 29-Nov-04 12-Jun-05 24-Dec-05 7-Jul-06 18-Jan-07 Provided by Blackmont Capital Inc. 19 TSX:DVT
Slide 20: Relative Performance
Relative Performance Total Return Comparison 350% (July 4, 2005 - January 19, 2007) 300% 250% 200% Total Return 150% 139% 100% 50% 28% 14% 0% -50% 4-Jul-05 21-Nov-05 10-Apr-06 28-Aug-06 15-Jan-07 DVT S&P/TSX Composite Index S&P/TSX Energy Index 20 TSX:DVT
Slide 21: Peer Comparison
Peer Comparison1 Enterprise P/E P / CF EV / EBITDA EV / Revenue (2) Value (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (C$MM) 2006E 2007E 2008E 2006E 2007E 2008E 2006E 2007E 2008E 2006E 2007E 2008E (4) CGG-Veritas $ 8,415.3 4.2x 4.1x N/A 1.8x 1.5x N/A 15.2x 7.9x N/A N/A N/A N/A (4) IHS Inc. $ 2,5
Slide 22: Questions?
Questions? Thank you for your interest For further information, please contact: Stephen Popadynetz, CEO 403.218.6466, stephen@divestco.com Roderick Chisholm, CFO 403.218.6450, rod.chisholm@divestco.com investor.relations@divestco.com 22 TSX:DVT