Ensign Energy Services Inc. · TSX:ESI
Ensign Energy Services — Investor Presentation (February 2006)
52 slides from Ensign Energy Services's investor presentation, February 2006
Slide 1: Corporate Presentation – February 2006
Corporate Presentation – February 2006 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 CORPORATE PROFILE INDUSTRY STATISTICS CANADIAN OPERATIONS UNITED STATES OPERATIONS INTERNATIONAL OPERATIONS FINANCIAL OVERVIEW
Slide 4: Corporate Profile
Corporate Profile
Slide 5: 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 • Transportation • Operates in Canada, the United States and international
Slide 6: Current Operations
Current Operations Canada United States Oman Venezuela Libya Ecuador Gabon Indonesia Australia Argentina New Zealand CORPORATE PROFILE
Slide 7: 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 CORPORATE PROFILE
Slide 8: Industry Statistics
Industry Statistics
Slide 9: Canadian Drilling Rig Activity
Canadian Drilling Rig Activity 700 600 500 Rigs Drilling 400 300 200 100 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Baker Hughes INDUSTRY STATISTICS
Slide 10: 2006 Western Canadian Forecast
2006 Western Canadian Forecast Total Number of Wells: 26,070 Active Rigs* Fleet Utilization* Operating Days** 2006 – Q1 672 790 85% 51,334 2006 – Q2 324 810 40% 25,206 2006 – Q3 540 830 65% 43,780 2006 – Q4 595 850 70% 46,529 Average 2006 533 820 65% 166,849 *Includes moving, rig up and rig down **
Slide 11: Wells Drilled in Canada – 1995 to 2005
Wells Drilled in Canada – 1995 to 2005 Oil Gas Dry & Other 18000 16000 14000 12000 Well Count 10000 8000 6000 4000 2000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: CAODC
Slide 12: United States - Rockies Rig Activity
United States - Rockies Rig Activity 350 300 250 Rig Count 200 150 100 50 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Anderson Report INDUSTRY STATISTICS
Slide 13: United States - California Rig Activity
United States - California Rig Activity 75 60 45 Rig Count 30 15 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Munger Report INDUSTRY STATISTICS
Slide 14: International Rig Activity
International Rig Activity 800 600 Rig Count 400 200 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Baker Hughes INDUSTRY STATISTICS
Slide 15: Canadian Operations
Canadian Operations ENSIGN Driving to Zero_— PMP injuries - Incidents« *
Slide 16: Canadian Operations
Canadian Operations 2005 Est. Mkt. Share Drilling Drilling Rigs 162 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 17: SJensianii
SJensianii a] ot No — RR ed | me
Slide 18: Drilling Inventory
Drilling Inventory Total: 178 Drilling Rigs 100 78 Rigs 80 60 40 37 Rigs 27 Rigs 20 Rigs 20 16 Rigs 0 Triple Double Single ADR Coring CANADIAN OPERATIONS
Slide 19: Ensign Rig #111
Ensign Rig #111 isp! Driving to Zero @ Wlajuries - Incidents MM “tt : nN ‘oA
Slide 20: Encore Rig #415
Encore Rig #415
Slide 21: Underbalanced Drilling Services
Underbalanced Drilling Services • 18 Underbalanced Drilling Units • Incorporating use of Interactive- Process-Control technology CANADIAN OPERATIONS
Slide 22: Oilfield Equipment Rentals
Oilfield Equipment Rentals • Extensive inventory of specialty drill pipe, BOPs, loaders, tanks, pumps and rig matting • Camps and Catering division established; expanding from 24 camps to 49 camps (25 new camps on order) CANADIAN OPERATIONS
Slide 23: 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 24: Well Servicing Rig
Well Servicing Rig
Slide 25: Coiled Tubing Unit
Coiled Tubing Unit
Slide 26: Manufacturing & Production Services
Manufacturing & Production Services Opsco Energy Industries • 32 Wireline Units • adding 3 units through 2006 • 36 Production Testing Units • adding 9 units Q1 20006 • 6 Production Testing Units (U.S.A.) • adding 6 units through 2006 • New 40,000 square foot Manufacturing facility CANADIAN OPERATION
Slide 27: Oilfield Services
Oilfield Services • What’s new • Constructed 10 ADRTM-1000 with CT • New Manufacturing facility became operational in April 2005 • Acquired assets of Midnight Sun Drilling in October 2005 • 3 triple AC drilling rigs under construction for delivery in Q1 2006 • 3 ADRTM rigs under construction for 200
Slide 28: 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 29: United States Operations
¥e Driving to Zero injuries - Incidents; ENSIGN
Slide 30: United States Operations
United States Operations 2005 Est. Mkt. Share Marketed Drilling Rigs Rocky Mountain Region 44 22% California 17 30% 61 Marketed Well Servicing Rigs Rocky Mountain Region 8 UNITED STATES OPERATIONS
Slide 31: Oilfield Services Inventory
Oilfield Services Inventory Total: 61 Drilling Rigs 30 30 Rigs 24 Rigs 20 10 7 Rigs 8 Rigs California 1 California 13 California 3 0 Triple Double Single Well Servicing UNITED STATES OPERATIONS
Slide 32: Self Moving Pad Rig
Self Moving Pad Rig
Slide 33: Thums Island Project
Thums Island Project riving injuries - Incidents, 5 i See eS Si
Slide 34: Drilling
Drilling • What’s new • November 2005 acquisition of Action Oilfield Services Inc. and its fleet of 8 well servicing rigs and 10 vacuum/fluid hauling trucks in Colorado • Constructing 8 drilling rigs under long-term contracts for the United States market UNITED STATES OPERATIONS
Slide 35: 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 36: International Operations
International Operations
Slide 37: 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 38: 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 39: Ensign International Rig
Ensign International Rig 18 “SE )
Slide 40: Ensign International Rig Crew
Ensign International Rig Crew
Slide 41: 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 3 marketed workover in Venezuela/Ecuador in January 2005 • Restructured international operations in Sept
Slide 42: 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 43: Financial Overview
Financial Overview eZ , Driving to Zero injuries - Incidents, ww,
Slide 44: Trading Data
Trading Data • TSX: ESI • Common shares outstanding 75.7 million • Market capitalization $3.5 billion • Dividends • 2002 $0.2050 per share • 2003 $0.2350 per share • 2004 $0.2900 per share • 2005 $0.3400 per share • 2006E $0.4000 per share FINANCIAL OVERVIEW
Slide 45: 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 46: Revenue
Revenue Geographic Segmentation 60% Canada 16% United States International 24% FINANCIAL OVERVIEW
Slide 47: 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 48: 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 49: Return on Equity
Return on Equity percent, years ended December 31 30 Ensign Other Land Drillers 20 10 0 1999 2000 2001 2002 2003 2004 Source: Merrill Lynch FINANCIAL OVERVIEW
Slide 50: 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 51: 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 52: www.ensignenergy.com
TSX:ESI www.ensignenergy.com
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