High Arctic Energy Services Inc · TSX:HWO
High Arctic Energy Services — Investor Presentation (November 2023)
18 slides from High Arctic Energy Services's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
haes.ca the trusted provider of energy services November 2023 Investor Presentation TSX : HWO NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW
Slide 2: Presentation Outline
PRESENTATION OUTLINE haes.ca High Arctic Overview Our Quality Difference Geographic Markets | Service Capability Papua New Guinea (“PNG”) Drivers of future work Differentiation Canada Current offerings Team Snubbing Partnership 2023 Strategic Objectives Quarterly Financial Results Summary Return of
Slide 3: High Arctic Overview
HIGH ARCTIC OVERVIEW haes.ca High Arctic Energy Services has two distinct geographic businesses PA P U A N E W G U I N E A ( P N G ) LNG Sector Drilling Services Dominant market position, long term contracts Provide services to super majors and large regional energy companies 17 Years of experience
Slide 4: Vision, Mission, Values
with a relentless focus on quality, be recognized haes.ca VISION as a trusted provider of energy services providing services that unlock sustainable, reliable MISSION and affordable energy in demanding locations People we care for our people VALUES Community we respect the people, cultures and place
Slide 5: Relentless Focus on Quality
RELENTLESS FOCUS ON QUALITY haes.ca ➢ Winner of IADC–AC Safety Statistics Award 2015, 2017, 2018, 2019 PNG ➢ 7 Years Recordable Incident Free operations ➢ 3.7 Million Recordable Incident Free Work Hours ➢ HAES Rental Services - LTI Free since 2016 CANADA 5
Slide 6: Our Business in PNG LNG
OUR BUSINESS IN PNG LNG haes.ca One of the world’s great emerging markets ▪ Part of the British Commonwealth with a parliamentary democracy ▪ Natural Resources is primary GDP contributor ▪ Low-cost reliable source of LNG to Asian markets ▪ Positioned on the Ring-of-fire - untapped geothermal energy
Slide 7: LNG - PNG's Leading Export
LNG - P N G ’ S L EA D I N G E X P O RT haes.ca PNG LNG ▪ De-risked PNG for major capital projects ▪ ExxonMobil is the operator, Santos is largest stakeholder ▪ Completed 2014 ▪ 9.0 tcf of natural gas ▪ 1.0 bcf/d Capacity – 2 trains ▪ P’nyang gas development agreement signed 2022 ─ additional LNG tr
Slide 8: LNG - PNG's Leading Export: Papua LNG Project
LNG - P N G ’ S L EA D I N G E X P O RT haes.ca Papua LNG Project ▪ Ownership: TotalEnergies (operator), ExxonMobil and Santos ▪ Elk-Antelope fields ▪ 4 train LNG plant under FEED ▪ FID expected late 2023, targeting first gas export in 2027 ▪ Significant surrounding unexplored acreage Western Corrid
Slide 9: High Arctic's World Class Operation
HIGH ARCTIC’S WORLD CLASS OPERATION haes.ca H i g h A rc t i c R i g s • Rig 115 and Rig 116 • Tier – 1, 1500 HP, 750,000 lbs hookload • Highly versatile – road, light helicopter, heavy helicopter • Ideal exploration and appraisal workhorses • Rig 102 - 340,000 lbs midsize hydraulic workover unit C
Slide 10: PNG More Than Drilling
PNG MORE THAN DRILLING haes.ca Rentals Manpower Solutions Camps ▪ Cranes, trucks, Forklifts and other ▪ Own and manage two 103 bed Heli- material handling equipment ▪ Labor hire, skilled and unskilled portable camps ▪ River pumps, generators, lighting towers personnel ▪ Operate and manage two 93 bed
Slide 11: Our Business in Canada
OUR BUSINESS IN CANADA haes.ca HAES Rental Services ▪ Quality provider of pressure control equipment Edmonton ▪ Customers include contractors and energy companies Montney ▪ Platform for Canadian growth Grande Prairie Equipment Total Whitecourt Blow Out Preventors 66 Cardium Accumulators 2 Duverney L
Slide 12: Canada Partnerships: Team Snubbing Services Inc.
CANADA PA R T N E R S H I P S haes.ca Team Snubbing Services Inc. ▪ Largest fleet of snubbing equipment in Canada ▪ High Arctic owns 42%, and holds 2 seats on 5-person board ▪ Management invested in ownership ▪ Opportunities to expand internationally ▪ 50% Team Snubbing International Partnership ▪ E
Slide 13: 2023 Strategic Objectives
2023 STRATEGIC OBJECTIVES haes.ca Safety excellence and quality service delivery Return idled assets to service in PNG Scaling our Canadian business Opportunities for growth and corporate transactions that enhance shareholder value Examination of the Corporation’s optimal capital structure and divid
Slide 14: Financial Summary
FINANCIAL SUMMARY haes.ca 2023 2022 2021 $ millions 9 Months 12 Months 12 Months (except per share amounts) to Sep 30 to Dec 31 to Dec 31 Consolidated Revenue (1) 45.1 80.0 76.4 Canada 3.6 41.1 61.6 PNG 41.5 38.9 14.8 Adjusted EBITDA (1)(2) 8.3 5.7 4.9 Adjusted EBITDA (2) as % revenue 18.4% 7% 6% Ne
Slide 15: Return of Capital & Reorganization
RETURN OF CAPITAL & REORGANIZATION haes.ca Current structure is inefficient: two small businesses opposite side of the world management needs to be where they can have the most impact Opportunity for a one-time tax-efficient return of capital up to $38.2m Key objectives of Reorganization: Separate a
Slide 16: Corporate Profile
CORPORATE PROFILE haes.ca TSX : HWO Shares Outstanding (Nov 14, 2023): 48.7 million Shareholder Composition Share Price (Nov 14, 2023): $1. 08 Market Cap (Nov 14, 2023): $52.6 million Monthly Dividend: Suspended 1 Working Capital (Sep 30, 2023): $63.5 million 1 12 months trailing adjusted EBITDA (Se
Slide 17: Disclaimer & Notice of Forward Looking Statements
DISCLAIMER & N O T I C E O F F O R WA R D L O O K I N G S TAT E M E N T S haes.ca While every effort is made to provide accurate and complete information, High Arctic Energy Services Inc. does not warrant that the information in this presentation is free from errors or omissions or is suitable for i
Slide 18: Contact Us
CONTACT US TSX : HWO haes.ca P R I M A R Y C O N TA C T BOARD OF DIRECTORS Mike Maguire Chief Executive Officer Ph: +1 587 318 3826 Michael Binnion – Board Chair Simon Batcup [email protected] Doug Strong Joseph Oliver HEAD OFFICE Suite 2350 - 330 5th Ave, SW Calgary, AB T2P 0L4 SENIOR MANAGEMENT AUDITOR
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