Slide 1: August 12, 2014
August 12, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some matters discussed in this presentation may be considered to be forward- looking statements. Such statements include declarations regarding management’s intent, belief or current expectations. Prospective investors are cautioned that any such forward-looking statements
Slide 3: Company Overview
Company Overview Pure play horizontal and directional drilling provider established in 1995 Addition of EDR business in 2013 Proprietary technology coupled with experienced personnel creates our service advantage Worldwide operations with strong presence in North America and gaining internat
Slide 4: Corporate History: A Growth Story
Corporate History: A Growth Story Phoenix Established Initial Public Converted to Income Introduced Converted to a Acquired RigManager Tier 1.5 Technology R&D Offering on TSV; Fund to Reward Remote Drilling Divided Paying System to Enter EDR Services Inc. Department TSX Listing Shareholders Services
Slide 5: Accumulating Success: 1996 – Q2 2014
Accumulating Success: 1996 – Q2 2014 Shares Issued Earnings Revenue Equity EBITDA Dividend Payout (since ‘04)
Slide 6: Industry Perspective
Industry Perspective Horizontal drilling is and will continue to be the norm Activity levels and rig counts in North America likely to remain stagnant North American production will focus on key basins Pipelines and accompanying LNG projects in North America will create substantial drilling
Slide 7: Q2 2014: Financial Highlights
Q2 2014: Financial Highlights (Stated in thousands of dollars except per unit amounts, percentages and operating days) Three-Month Period ended June 30, Six-Month Period ended June 30, 2014 2013 % Chg 2014 2013 % Chg Operating Results (unaudited) (unaudited) (unaudited) (unaudited) Revenue 100,484 6
Slide 8: Market Data: PHX Energy
Market Data: PHX Energy As of August 11, 2014 Exchange Toronto Stock Exchange Shares Outstanding 35.0 million Share Price (Close) $15.58 52 Week High / Low $17.20/ $10.13 Current Dividends per Share $0.07/month or $0.84/year Insiders Position 20% Yield 5% Payout Ratio 53% (Six month period ended Jun
Slide 9: Operating Days, Consolidated Revenue & EBITDA
Operating Days, Consolidated Revenue & EBITDA
Slide 10: Capital Expenditure Increase
Capital Expenditure Increase 2014 capital expenditure budget increased to $76.4 million from $34.7 million (in 2013) Growth in all operating regions ‒ Canada ‒ US ‒ Russia ‒ Albania Maintenance capital Addition of value added technologies New operations facility in Houston and equipment re
Slide 11: Phoenix Market Perspective
Phoenix Market Perspective Tier 1.5 - Quality - Relationships - Speed Tier 2 & 3 - NPT Tier 1 - Relationships - Price - Quality - Speed - Quality - HSE - NPT - HSE - Technology - Price - Technology
Slide 12: Investment Summary – Why PHX Energy?
Investment Summary – Why PHX Energy? One of the highest yields in the oil and natural gas service sector Proven track record of financial performance 10+ years rewarding shareholders with dividends (distributions) – Recent increase to monthly dividend Positioned for future growth – Major/sup