Corporate Presentation - Ensign Energy Services Inc.

Corporate Presentation
June 2015
Disclaimer
Advisory Regarding Forward-Looking Statements
This presentation contains forward-looking statements based upon current expectations that involve
a number of business risks and uncertainties. These statements are not guarantees of future
performance and are subject to certain risks and the user should not place undue reliance on these
forward-looking statements as there can be no assurance that the plans, initiatives or expectations
upon which they are based will occur.
The factors that could cause results to differ materially include, but are not limited to, political and
economic conditions, crude oil and natural gas prices, foreign currency and interest rate fluctuations,
weather conditions, the Company’s defense of lawsuits and the ability of oil and natural gas
companies to pay accounts receivable balances and raise capital or other unforeseen conditions
which could impact on the use of the services supplied by the Company.
Users are cautioned that the foregoing list of important factors is not exhaustive. Unpredictable or
unknown factors not discussed in this presentation could also have material adverse effects on
forward-looking statements. Although the Company believes that the expectations conveyed by the
forward-looking statements are reasonable based on information available to it on the date such
forward-looking statements are made, no assurances can be given as to future results, levels of
activity and achievements. Except as required by law, the Company assumes no obligation to update
forward-looking statements should circumstances or the Company’s estimates or opinions change.
Geographic Diversification
2014 Revenue
Geographic Segmentation
27%
29%
Canada
United States
44%
Canada
United States
Kurdistan
International
90%
Drilling & Rig Services
Libya
Oman
Venezuela
Completion &
Production Services
Australia
MAJOR ASSET SNAPSHOT
Argentina
10%
•
•
•
•
•
243 Drilling Rigs
119 Servicing Rigs
78 Directional Drilling Kits
96 Frac Flowback Units
26 Core Rigs
New Zealand
Quick to React
• reduced worldwide G&A by 30%
• build program reduced
• all discretionary spending cut
• strong balance sheet
• geographically diverse
• fit for market fleet
Poised for the future
Historical Summary
Use of Funds
$964
$125
Capex
Acquisitions
$655
$950
$3,787
Dividends
Interest
Cash Tax
$ millions, as of December 31, 2014
Drilling & Rig Services – North America
187
97
90
Drilling Rigs
Horn River
Montney
78
Oil Sands
Cardium
Utica
Jonah
Piceance
Monterey
Niobrara
Granite
Wash
Barnett
Permian
As of March 31, 2015
47
Directional Drilling Kits
Bakken
San
Joaquin
Basin
31
Marcellus
Woodford
Haynesville
Tuscaloosa
Eagle Ford
26
26
Core Rigs
United States
Canada
Drilling & Rig Services - International
56
Substantial & Growing International Presence
Drilling Rigs
MENA
Drilling rigs – 15
VENEZUELA
Drilling rigs – 7
Workover rigs – 1
ARGENTINA
Drilling rigs – 7
Workover rigs – 2
As of March 31, 2015
AUSTRALIA
Drilling rigs – 22
Workover rigs – 1
NEW ZEALAND
Workover rigs – 1
Completion & Production Services
119
Servicing Rigs
72
47
Horn River
Montney
Oil Sands
Cardium
Bakken
Utica
San
Joaquin
Basin
Niobrara
Jonah
Piceance
Monterey
Granite
Wash
Barnett
Permian
As of March 31, 2015
Woodford
Marcellus
96
Frac Flow Units
50
46
Haynesville
Tuscaloosa
Eagle Ford
United States
Canada
Fleet Transition
350
300
Cumulative newbuilds (incl major retrofits)
1200
Rig Fleet from Acquisitions (less decommissions)
Horsepower
1000
250
800
200
600
150
400
100
50
0
After decommissions, average age of fleet is ± 10 years old.
200
0
Drilling Rigs by Tier
80%
200
180
70%
160
60%
140
50%
120
40%
100
80
30%
60
20%
40
10%
20
0
0%
2009
As of April 2015
2010
ADR® Type
2011
2012
Seasonal Fleet
2013
2014
2015
Tier 1 percentage
Solid Customer Base - Worldwide
30%
70%
Worldwide Majors / NOC
Mid Cap / Juniors
Standardized Crew Training Worldwide
As a service provider we must have a
competitive value proposition that
differentiates us in the marketplace and
internal programs in place to support it.
Service Quality Delivery
Superior
Level of
Service
Consistency
Worldwide
Ability to Innovate & Apply Technology
Speciality Rigs
Natural Gas
Driller’s Cabin
ASR – Slant
Well Service Rig
ADR® Controls Intelligence
Self Moving Pad Rigs
Off-line Stand Building
ADR® 1500S – The Rig with More
• Walk with accuracy
– The ADR 1500S walks on both X + Y
axes, for the best mobility and
flexibility of any rig on the market
• Safety from the ground up
– The ADR 1500S is designed and built
by Ensign, a worldwide leader in
oilfield safety
• Move in less time
– The ADR 1500S transports faster
than other full-sized rigs
• Drill Efficiently
– The ADR 1500S lets you build stands
offline, while you drill
Directional Drilling Services
•
•
•
•
•
Full Service Provider
In-house repair facilities
Patented design mud motors
Best in class MTBF
Growing organic opportunity
DD
Operations
Ensign Rigs Operating
Well Performance Optimization
• Well Optimization teams based
in US and Canada
• Real time coordination
with clients
• Reduced well costs
• Value added integrated service
Safety Awareness
M Manhours
10
9.09
LTI Freq
TRI Freq
25
9
20
8
7.13
7
5.57
6
15
Man Hours
Injury Frequency (200,000 man hours)
7.09
4.65
5
4.00
4
10
3.21
3
3.11
2.45
2.21
2
1.46
1.23
1.36
1.67
1.14
1
0.86
0.70
0.47
0.56
0.63
2009
2010
2011
1.96
1.55
0.49
0.36
0.47
2012
2013
2014
5
0.22
0
0
2003
2004
2005
2006
2007
2008
Q1 '15
Dividends per Common Share
16% Compound Annual Growth Rate
$0.50
$0.45
$0.40
• 2010
$0.3575 per share
$0.35
• 2011
$0.3900 per share
• 2012
$0.4250 per share
• 2013
$0.4475 per share
• 2014
$0.4725 per share
$0.30
$0.25
$0.20
$0.15
$0.10
$0.05
$0.00
Current Yield 4%
Debt Metrics
2,500
1.8
$ millions, December 31
1.6
2,000
1.4
1.2
1,500
1.0
0.8
1,000
0.6
0.4
500
0.2
0.0
0
2010
2011
2012
2013
2014
Net Debt (Short Term Debt + Long Term Debt - Cash)
Equity
Net Debt / Equity
Net Debt / Adjusted EBITDA
1Q '15
Revenue - EBITDA
2500
$ millions, 12 months ended December 31
2000
1500
1000
500
0
2011
2012
Revenue
EPS 1
1 Estimate
1.39
based on range of analysts forecasts
1.42
2013
2014
2015e¹
0.47
0.08 – 0.40
EBITDA (adjusted)
0.84
Future Growth Strategy –
Taking a Bigger Piece of the Pie
•
•
•
•
•
Expand ADR fleet worldwide
Expand integrated rig – directional drilling value proposition
Expand market presence in every current market
Dove-tail complementary services
Earn a bigger part of the daily revenue
opportunity while on location
Rig
Non-Rig Costs
Typical rig today represents
1/3 total daily well costs
Summary – Why Ensign?
•
•
•
•
Consistent dividend history
Well positioned globally
Conservative balance sheet
ADR fleet worldwide ensures high utilization
ensignenergy.com
TSX : ESI