Western Energy Services Corp. · TSX:WRG
Western Energy Services — Shareholder Meeting (May 2012)
19 slides from Western Energy Services's shareholder meeting presentation, May 10, 2012
Slide 1: 2012 Annual General Meeting
2012 Annual General Meeting May 10, 2012 WRG
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING INFORMATION This presentation may contain certain statements or disclosures relating to Western Energy Services Corp. (“Western”) that are based on the expectations of its management as well as assumptions made by and information currently available to Western which may co
Slide 3: Management Team with a Track Record of Success
Management Team with a Track Record of Success Former Chairman of SES Holdings Limited, the parent company of Saxon Energy Services Inc. Dale E. Tremblay Former President & CEO and Director of Saxon Energy Services Inc. Chairman & CEO Former Senior Vice President Finance and CFO of Precision D
Slide 4: Strong Corporate Governance
Strong Corporate Governance Independent Board Members Chairman and CEO of the Mullen Group Murray K. Mullen Director of ShawCor Ltd. Lead Director Former Director of Precision Drilling Corporation Director of Mullen Group Ltd. Steve C. Grant Former Director of Precision Drilling Corporatio
Slide 5: Company Snapshot
Company Snapshot Contract Drilling Services Well Servicing Provided through Horizon Drilling Inc. in Canada Provided through Matrix Well Servicing Inc. Stoneham Drilling Corporation in the U.S. 5 WRG
Slide 6: Summary of the Business
Summary of the Business Western has 45 drilling rigs Sixth largest drilling fleet in Canada (40 rigs in Canada, 5 rigs in U.S.) In addition, five 4,500m new builds Western has five new built service rigs In addition, announcement of five service rigs to be constructed Western has premium
Slide 7: Company History
Company History Recapitalization completed in December 2009 laid foundation for sustainable growth Appointment of new Board of Directors C$7 million private placement (new Board and Management subscribed for C$4.8 million thereof) Completed 11 transactions in 25 months Two equity issuances
Slide 8: Corporate Overview
Corporate Overview Common shares Basic 58.5 Million Diluted 63.2 Million Current share price (as at May 9, 2012) $7.56 52 Week Range $5.80 – $9.90 Market capitalization (f.d.) $477.8 Million Net debt $133.7 Million Enterprise value (f.d.) $611.5 Million Working capital (excl. current-portion of LTD)
Slide 9: Q1 2012 – WRG Consolidated Results
Q1 2012 – WRG Consolidated Results Financial Highlights (Thousands CDN$) Q1 2012 2011 Total Q4 2011 Q3 2011 Q2 2011 Q1 2011 2010 Total Revenue 110,887 262,519 101,300 80,786 30,340 50,093 56,009 Gross Margin 50,213 114,837 47,171 35,004 11,274 21,388 22,902 EBITDA 44,242 99,324 41,473 30,392 8,534 1
Slide 10: Proven Record of Growth and Profitability
Proven Record of Growth and Profitability Revenue (millions) EBITDA (millions) EBITDA as % Of Capital Assets Revenue (millions) 111 101 44 41% 40% 500 41 38% 38% 474 35% 448 427 81 30 29% 28% 23% 50 19 188 197 30 9 27 9 118 16 5 (8%) 90 91 11 3 2 (0.1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Capital Expenditures
Capital Expenditures 2012 Capital Expenditures 2012 CAPITAL EXPENDITURES (C$mm) 2012 Forecast Spend Growth capital expenditures $ 71.0 Maintenance capital expenditures Normalized maintenance CAPEX $ 28.0 2011 carry-forward maintenance CAPEX $ 11.0 One time purchase of spare rotational equipment $ 15
Slide 12: Western’s Drilling Rig Fleet
Western’s Drilling Rig Fleet Horizon Drilling Inc. Stoneham Drilling Corporation Single Double Horizon #9 Triple Horizon #4 1000hp AC Single Stoneham #18 850hp Telescopic Double 1500hp AC Triple 12 WRG
Slide 13: WCSB Well Licenses Support a Strong Near-Term Outlook
WCSB Well Licenses Support a Strong Near-Term Outlook Canadian Wells Drilled – Operating Days Well Licenses by Objective 6,000 180,000 Wells Drilled – Operating Days (CAODC) 158,420 158,427 Oil 160,000 145,118 145,730 5,000 Gas 134,816 Number of Well Licenses 140,000 120,961 119,300 120,000 4,000 10
Slide 14: WCSB Industry Rigs Targeting Oil
WCSB Industry Rigs Targeting Oil Industry Western 100% 15.0% 90% 35.3% 80% 44.4% Percentage of Drilling Rigs Focused on Oil 54.3% 70% 57.9% 61.4% 76.3% 60% 50% 85.0% 40% 64.7% 30% 55.6% 45.7% 20% 42.1% 38.6% 23.7% 10% 0% (1) 2006 2007 2008 2009 2010 2011 Western Oil Gas Source: Baker Hughes; 2011 nu
Slide 15: Utilization and Day Rates
Utilization and Day Rates Western’s premium rig fleet has realized above average utilization and industry leading day rates in the WCSB Approximately 96% of Western’s rigs are Efficient Long Reach (ELR™) with a depth capacity of >3,000 meters Western’s US rigs have realized strong utilization
Slide 16: Matrix Well Servicing Inc.
Matrix Well Servicing Inc. 16 WRG
Slide 17: Matrix Well Servicing Inc.
Matrix Well Servicing Inc. Organic growth strategy to target opportunity in well servicing industry Initial operations are targeting heavy oil and conventional oil wells in Lloydminster area Western rigs employ innovative design 17 WRG
Slide 18: What Differentiates Western?
What Differentiates Western? Large cap management team running a small to mid-cap company Positioned to grow with top tier assets and employees generating above average utilization and day rates Reliability, horsepower, technical ability, and mobility are critical to operators seeking to optim
Slide 19: Western Energy Services Corp.
Western Energy Services Corp. For further information please contact: Dale E. Tremblay Alex MacAusland Jeffrey K. Bowers Email: dtremblay@wesc.ca Email: amacausland@wesc.ca Email: jbowers@wesc.ca Office: 403-984-5929 Office: 403-984-5932 Office: 403-984-5933 Cell: 403-973-9439 Cell: 403-819-9855 Cel
Western Energy Services — Shareholder Meeting (May 2012) on 6ix