Akita Drilling Ltd. Class A · TSX:AKT
Akita Drilling Ltd. Class A — Investor Presentation (September 2023)
15 slides from Akita Drilling Ltd. Class A's investor presentation, September 2023
Slide 1: Fall 2023 Investor Presentation
Fall 2023 Investor Presentation
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer From time to time AKITA makes forward-looking statements. These statements include but are not limited to comments with respect to AKITA’s objectives and strategies, financial condition, results of operations, the outlook for industry and risk management discuss
Slide 3: AKITA Drilling – Extreme Value
AKITA Drilling – Extreme Value 3 • Low leverage ratio with debt to EBITDA of 1.17 Market Statistics – TSX(1) AKT.A (non-voting) 1.86 • Total debt of $80 million after paying $14 million in the first half of the year AKT.B (voting) 1.35 • Plans to further deleverage with a debt target of $40 million
Slide 4: About Akita
About Akita 4 • Pure Play North American land drilling contractor commanding a fleet of 35 Results for the six months ended June 30, 2023 drilling rigs including 26 triple rigs • Public company for 30 years, listed on Net Income EBITDA $31.6 the Toronto Stock Exchange (TSX) $15.7 mm mm • Industry pi
Slide 5: Per Day Improvement
Per Day Improvement 5 Day rates have improved significantly since the fourth quarter of 2021, driving improved results and free cash flow in both of AKITA’s divisions. Revenue per Day Operating Margin per Day $16,000 $45,000 $14,000 $40,000 $12,000 $35,000 $10,000 $8,000 $30,000 $6,000 $25,000 $4,00
Slide 6: Rig Locations
RIG LOCATIONS 6 NE BC / NW AB Rig #31, 61 Northern AB Rig # 21, 25, 26, 27, 28 Northern Foothills Rig #41, 45, 520, 56 Eastern AB / Western SK Rig # 6, 8, 12, 14, 40 Central AB Rig # 34, 35, 47 Saskatchewan Rig # 29 Focused concentration on the Permian Permian Basin Rig #20, 22, 57, 90, 516, 518, 51
Slide 7: United States Fleet
United States Fleet 7 15 rigs fully concentrated in the Permian Basin - the basin which supported approximately half of US industry rig activity over the first half of 2023 High Spec 1500 HP or greater AC triple rigs with 7500 psi • Fleet supported by circulating systems operational base located in
Slide 8: Canadian Fleet
Canadian Fleet 8 20 rig fleet comprised of 12 deep triples, the Rig Type • Primarily drilling heavy oil and oil sands, highest percentage of triple rig composition of with intent to expand deep gas presence any Canadian public driller and continue to lead industry in drilling 20% transitional wells
Slide 9: Financial Highlights
Financial Highlights 9 Revenue Funds Flow 70,000 2,000 18,000 2,000 1,800 16,000 1,800 60,000 1,600 14,000 1,600 50,000 12,000 Operating Days 1,400 1,400 Operating Days 10,000 Funds Flow 1,200 Revenue 40,000 1,200 1,000 8,000 1,000 30,000 800 6,000 800 600 4,000 20,000 600 400 2,000 10,000 - 400 200
Slide 10: Share Metrics
Share Metrics 10 Enterprise Value to Trailing 12 Month EBITDA AKITA is currently trading at a significant discount 180,000 18.00 given the current market conditions and outlook 160,000 16.00 for the industry. There is significant value to 140,000 14.00 unlock. 120,000 12.00 100,000 10.00 80,000 8.00
Slide 11: ESG Commitment
ESG Commitment 11 Primary Strategy to Reduce Carbon Emissions Pad Rig Technology – 26 of AKITA’s 35 (74%) rigs are equipped with pad moving systems which greatly increases the efficiency of drilling wells while reducing the environmental footprint of the rig and also results in a reduction of supply
Slide 12: ESG Commitment – First Nations
ESG Commitment 12 First Nations Respect for First Nation, Metis and Inuvialuit peoples is instilled into the fabric of AKITA by our founder and former Chairman of the Board, Mr. R.D. Southern, who was recognized as Honourary Chief of Tsuu T’inna Nation and given the honourary name of Chief Sorrel Ho
Slide 13: ESG Commitment – Joint Ventures
ESG Commitment 13 Akita Equtak Drilling Ltd. Our oldest joint venture, established in 1983 between AKITA and the Inuvialuit Development Corporation representing the Inuvialuit peoples of the Northwest Territories. AKITA Rig 61 is partially owned by the Inuvialuit Development Corporation. Akita Wood
Slide 14: ESG Commitment – 2023 HSE Goals
ESG Commitment 14 2023 Corporate Health, Safety & Environment Goals Zero Lost Time Incidents (LTI) Improve employee retention from 2022 levels No Major DROPS events No regulatory reportable spills 2023 ESG Objective – AKITA published its inaugural Sustainability Report in 2022. Defined ESG objective
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