Ensign Energy Services Inc. · TSX:ESI
Ensign Energy Services — Investor Presentation (November 2005)
36 slides from Ensign Energy Services's investor presentation, November 2005
Slide 1: Corporate Presentation – November 2005
Corporate Presentation – November 2005 AROUND THE CLOCK AROUND THE WORLD
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, national and economic conditions, foreign exchange ra
Slide 3: Agenda
Agenda CANADIAN OPERATIONS UNITED STATES OPERATIONS INTERNATIONAL OPERATIONS FINANCIAL OVERVIEW
Slide 4: Corporate Profile
Corporate Profile • Oilfield services • Drilling • Coalbed methane / oilsands coring • Underbalanced drilling • Oilfield rentals • Camps and catering • Well servicing • Production testing • Mechanical wireline • Manufacturing • Operates in Canada, the United States and internationally • 6,000 person
Slide 5: Current Operations
Current Operations Canada United States Oman Venezuela Libya Ecuador Gabon Indonesia Australia Argentina New Zealand
Slide 6: Commitment to Customer Service
Commitment to Customer Service • Committed to providing a safe working environment • Focus on recruitment, training and personnel development • In-house engineering expertise • Design and construction of specialty equipment • Operational standards maintained at highest levels
Slide 7: Canadian Operations
Canadian Operations
Slide 8: Canadian Operations
Canadian Operations 2005 Est. Mkt. Share Drilling Drilling Rigs 159 22% Coring & Specialty Drilling Rigs 16 30% Underbalanced Drilling Units 18 54% Well Service Service Rigs 105 15% Coiled Tubing Units 11 6% Production Services Wireline Units 32 18% Production Testing Units 36 13% Oilfield Equipment
Slide 9: ADR – Award Winning Technology
ADR – Award Winning Technology
Slide 10: Drilling Inventory
Drilling Inventory Total: 175 Drilling Rigs 100 78 Rigs 80 60 40 37 Rigs 27 Rigs 17 Rigs + 3 Rigs being built 20 16 Rigs 0 Triple Double Single ADR Coring CANADIAN OPERATIONS
Slide 11: Underbalanced Drilling Services
Underbalanced Drilling Services • 18 Underbalanced Drilling Units • Incorporating use of Interactive- Process-Control technology CANADIAN OPERATIONS
Slide 12: Oilfield Equipment Rentals
Oilfield Equipment Rentals • Extensive inventory of specialty drill pipe, BOPs, loaders, tanks, pumps and rig matting • Camps and Catering division established with 21 camps CANADIAN OPERATIONS
Slide 13: Well Servicing Inventory
Well Servicing Inventory Total 105 Service Rigs and 11 Coiled Tubing Units 80 60 40 20 0 Medium/Heavy Mobile Double Single Slant Single Coiled Tubing Double CANADIAN OPERATIONS
Slide 14: Manufacturing & Production Services
Manufacturing & Production Services Opsco Energy Industries • 32 Wireline Units • 36 Production Testing Units • New 40,000 square foot Manufacturing facility CANADIAN OPERATIONS
Slide 15: Oilfield Services
Oilfield Services • What’s new • Constructing 10 ADRTM-1000 with CT • New Manufacturing facility became operational in April 2005 • Acquired assets of Midnight Sun Drilling in October 2005 • 3 triple drilling rigs under construction for delivery in Q1 2006 CANADIAN OPERATIONS
Slide 16: Future Growth Strategy
Future Growth Strategy • Continued consolidation • Specialty equipment • ADRTM with and without coiled tubing capability • New frontiers • Arctic • Coalbed methane and oilsands coring CANADIAN OPERATIONS
Slide 17: United States Operations
Fs Driving to Zero injuries - Incidents, ENSIGN
Slide 18: United States Operations
United States Operations 2005 Est. Mkt. Share Marketed Drilling Rigs Rocky Mountain Region 41 22% California 16 30% 57 UNITED STATES OPERATIONS
Slide 19: Drilling Inventory
Drilling Inventory Total: 57 Drilling Rigs 30 27 Rigs 23 Rigs 20 10 7 Rigs California 1 California 12 California 3 0 Triple Double Single UNITED STATES OPERATIONS
Slide 20: Drilling
Drilling • What’s new • Negotiated term contracts for refurbishment of 3 deep rigs for the Rocky Mountain region • Reactivated 2 drilling rigs in California • Entered shallow gas/CBM drilling market in the Rocky Mountain region UNITED STATES OPERATIONS
Slide 21: Future Growth Strategy
Future Growth Strategy • Continued consolidation • Review possible expansion into new markets • Continue to develop growth opportunities in existing markets UNITED STATES OPERATIONS
Slide 22: International Operations
International Operations
Slide 23: International Operations
International Operations 2005 Marketed Drilling Rigs Australia 6 Southeast Asia 2 Middle East 5 Africa 6 Argentina 5 New Zealand 3 Venezuela 11 38 Marketed Workover Rigs Argentina 2 New Zealand 1 Australia 3 Venezuela 1 Ecuador 2 9
Slide 24: Oilfield Services Inventory
Oilfield Services Inventory 25 20 18 Rigs 16 Rigs 15 10 9 Rigs 5 4 Rigs 0 Triple Double Single Workover INTERNATIONAL OPERATIONS
Slide 25: Oilfield Services
Oilfield Services • What’s new • Acquisition of 3 drilling rigs in Libya in April 2005 • Contracts for 2 drilling rigs in New Zealand beginning in April 2005 • Acquisition of 11 drilling rigs and 12 workover rigs (3 marketed) in Venezuela/Ecuador in January 2005 • Restructured international operatio
Slide 26: Future Growth Strategy
Future Growth Strategy • Continued consolidation • Aggressively pursue long-term international contracts • Potential for redeployment of existing rigs and equipment from other divisions • Use of North American expertise and technology INTERNATIONAL OPERATIONS
Slide 27: Financial Overview
Financial Overview
Slide 28: Trading Data
Trading Data • TSX: ESI • Common shares outstanding 75.6 million • Market capitalization $3.0 billion • Dividends • 2001 $0.1967 per share • 2002 $0.2050 per share • 2003 $0.2350 per share • 2004 $0.2900 per share • 2005 $0.3400 per share FINANCIAL OVERVIEW
Slide 29: Debt to Equity
Debt to Equity $ millions, years ended December 31 700 Debt 600 Equity 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 FINANCIAL OVERVIEW
Slide 30: Revenue
Revenue Geographic Segmentation 60% Canada United States 16% Inte rnational 24% FINANCIAL OVERVIEW
Slide 31: Revenue
Revenue $ millions, years ended December 31 1500 1200 900 600 300 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005e* * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW
Slide 32: Income
Income $ millions, years ended December 31 200 175 150 125 100 75 50 25 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005e* $ per share 0.42 1.10 0.72 0.42 1.19 1.37 0.70 1.32 1.58 2.10-2.30 * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW
Slide 33: Return on Equity
Return on Equity percent, years ended December 31 30 Ensig n Othe r Land Drille rs 20 10 0 1999 2000 2001 2002 2003 2004 Source: Merrill Lynch FINANCIAL OVERVIEW
Slide 34: Q3 2005 Summary
Q3 2005 Summary Nine Months Ended ($ millions, except per share data) September 30, September 30, % 2005 2004 Change Revenue 1,044.5 751.6 39 Adjusted Income 149.9 90.8 65 Per Share $1.98 $1.20 65 Income 109.7 81.7 34 Per share $1.45 $1.08 34 Cash flow 225.0 132.0 70 Per share $2.98 $1.75 70 Dividen
Slide 35: Why Ensign is a Solid Investment
Why Ensign is a Solid Investment • Diverse operations • Opportunistic growth strategy • Commitment to safety and customer service • Financial strength and discipline
Slide 36: www.ensignenergy.com
TSX:ESI www.ensignenergy.com
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