Questor Technology Inc. · TSXV:QST
Questor Technology — AltaCorp/ATB Institutional Investor Conference 2018
23 slides from Questor Technology's conference presentation, January 2018
Slide 1: AltaCorp/ATB Institutional Investor Conference January 2018
AltaCorp/ATB Institutional Investor Conference January 2018
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
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: 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 4
Slide 5: The Problem We Are Solving
The Problem We Are Solving Before Questor Community Acceptance; Operating and Capital Cost Reductions; Safety; Energy Efficiency; Emission Regulations:- VOC, HAP’s, methane, air quality, GHG emissions, low carbon operations, green/closed loop completions, no flaring, no venting, no odours, etc. 5
Slide 6: Market Drivers
Market Drivers • US EPA/State regulation focused on air quality and non- attainment zone emissions - methane, HAP and VOC’s • Gas flaring, fugitive emissions and venting are one of the biggest sources of methane emissions. • Methane is 84x more potent than CO2 – clean combustion reduces GHG emission
Slide 7: Questor Corporate Profile
Questor Corporate Profile • Canadian company founded in 1994 • Listed in 1998 on the TSX Venture Exchange - QST • 26.5MM shares outstanding • US and Canadian incineration patent - 2019 • Diversified product offering – Clean Combustion (99.99%), Water treatment, and Heat to Power • Global operations
Slide 8: 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 $2.82 52 Week Hi-low $0.66 - $2.92 Market Cap $74,610,000 Financial Information (as of Q3 2017) Founded 199
Slide 9: 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. U of C Engineering Industry advisor. Alberta Energy Futures Lab Fellow. Chair
Slide 10: 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 11: Global and US experience
Global and US experience California, Colorado, Kentucky, Mississippi, New York, North Dakota, Ohio, Pennsylvania, Texas, Utah, West Virginia, Wyoming Egypt, Russia, Caribbean, Indonesia, Thailand, China, Germany, France, Italy 11
Slide 12: Financial Performance
Financial Performance 14.0 12.0 10.0 8.0 $M (CDN) 6.0 4.0 2.0 0.0 -2.0 2012 2013 2014 2015 2016 Q3 2017 YTD Revenue Profit EBITDA 13
Slide 13: Business Segments
Business Segments Rentals Sales (Well tests, Pipeline/Plant blowdowns) (Permanent Facilities) Field Combustion Services 14
Slide 14: Business Segment Revenues
Business Segment Revenues 14.0 12.0 10.0 $M (CAD) 8.0 6.0 4.0 2.0 0.0 2013 2014 2015 2016 Q3 2017 YTD Sales Rental Services 15
Slide 15: Rental Fleet Expansion
Rental Fleet Expansion 16 70 14 60 12 50 10 40 Number of Units $ 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 16
Slide 16: Revenue by Region
Revenue by Region 14.0 12.0 10.0 8.0 $M (CAD) 6.0 4.0 2.0 0.0 2012 2013 2014 2015 2016 Q3 2017 YTD USA Canada International 17
Slide 17: Colorado's Journey
Colorado’s Journey Newer tighter oil and gas plays challenge the norm • Air quality issues – non-attainment zones • Stringent EPA and state regulations • Communities requesting moratoriums - emphasis on social license and community acceptance • Green or closed-loop completions - No flaring, no venti
Slide 18: Colorado Hybrid Rental / Sales Model
Colorado Hybrid Rental / Sales Model • Integrated total system solution – D&C and prod ops • Tall unit for flow-backs and high initial production rates Rental • Rented top of stack removed for permanent production • Unit handles all the gas Sale streams on site - closed loop • Regulatory compliance
Slide 19: Extraction Oil & Gas – Hybrid Units
Extraction Oil & Gas – Hybrid Units Rental unit Hybrid units Questor’s units resulted in Extraction Oil & Gas obtaining the following: 30% reduction in lease size 20% reduction in pad costs 20
Slide 20: 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 Questor’s short term focus is in the US • State of Colorado has taken a lead role in regulating quality, high- per
Slide 21: Growth Strategy - Expansion
Growth Strategy - Expansion • Positioned Questor as a scalable business in a rapidly expanding market • Continued to invest and grow in Colorado • Create similar “hub” in the Marcellus - similar regulation contemplated • Explore the potential in the Permian to create a “hub” • Poised to create addit
Slide 22: Growth Strategy – Diversification
Growth Strategy – Diversification Diversified technology solution offerings – power and water treatment – expansion into other industries • ClearPower - waste heat conversion to power with zero emissions significant global industrial market - 77kW to 1.5MW • Developing technology to utilize the on-s
Slide 23: Questor Technology Inc. Contact
COST REDUCTION PUBLIC CONFIDENCE FOR CLIENTS QUESTOR TECHNOLOGY INC QUESTOR SOLUTIONS AND TECHNOLOGY INC Audrey Mascarenhas President and CEO www.questortech.com www.clearpowersystems.com Questor Technology Inc. 2240, 140 – 4 Avenue SW Calgary, Alberta, Canada. T2P 3N3 1.403. 571.1530 ENVIRONMENTAL
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