Pulse Seismic Inc. · TSX:PSD
Pulse Seismic — Investor Presentation (October 2023)
34 slides from Pulse Seismic's investor presentation, October 2023
Slide 1: Corporate Presentation Q3 2023
Corporate Presentation Q3 2023
Slide 2: Advisories
ADVISORIES FORWARD-LOOKING NON-GAAP MEASURES INFORMATION This presentation contains non-GAAP measures. The Company’s continuous disclosure documents provide This presentation contains information that constitutes discussion and analysis of “EBITDA”, “EBITDA per share”, “forward-looking information”
Slide 3: We Are Canada's Largest Seismic Data Library Provider
WE ARE CANADA’S LARGEST SEISMIC DATA LIBRARY PROVIDER
Slide 4: Licensed Multiple Times
65,310 Sq. km of 3D seismic LICENSED MULTIPLE 829,207 Lin. km of 2D seismic TIMES DATA LIBRARY SALES • Oil and gas producers of all sizes and new energy companies license our digitally stored 2D and 3D data. • We are a pure-play seismic data library company. The library is our main asset. • Pulse op
Slide 5: Metrics That Matter
METRICS THAT MATTER CASH MARGIN EBITDA SHAREHOLDER FREE CASH FLOW We are a data-driven, cash- EBITDA is calculated as EBITDA plus non-cash and based business. Pulse’s cash earnings or loss from non-recurring expenses, less margin on data library sales operations before interest, interest on long-ter
Slide 6: Key Trading Facts
KEY TRADING FACTS Information as at September 30, 2023, unless otherwise specified PULSE SEISMIC INC. Trading Symbols TSX: PSD OTCQX: PLSDF TSX: PSD Corporate Headquarters Calgary, Alberta, Canada OTCQX: PLSDF Stock Price $1.88 Shares Outstanding 52,681,363 Avg. Daily Trading Volume (Q3 2023) 12,010
Slide 7: Q3 2023 YTD Financial Results
Q3 2023 YTD FINANCIAL RESULTS $22.3MM TOTAL REVENUE • $22.3M total revenue $5.4MM SCB and OTHER SG&A EXPENSES • Revenue includes $22.2M in data library sales plus $63,000 in other revenue $16.8MM EBITDA $13.9MM SHAREHOLDER FREE CASH FLOW $0 LONG-TERM DEBT
Slide 8: The Company We Have Built
THE COMPANY WE HAVE BUILT Positioned for volatile commodity-price environment COSTS AND SPENDING CREDIT FACILITIES Pulse’s operating costs were $5.4M in the first three quarters of Debt consists of a $25.0M revolving 2023, generating positive EBITDA (76% of data library sales) and credit facility, w
Slide 9: Value in Our Business
VALUE IN OUR BUSINESS
Slide 10: Understanding Our Business
UNDERSTANDING OUR BUSINESS Simplified geological column, greater Alberta What We Do: Deep Basin Pulse’s business model: To repeatedly relicense high-quality 2D and 3D data to traditional and new energy companies. Why 2D: 2D seismic allows exploration companies to plan broad land acquisition programs
Slide 11: 3D Seismic Enables Detailed Modelling of Geologically Complex Targets
3D SEISMIC ENABLES DETAILED MODELLING OF GEOLOGICALLY COMPLEX TARGETS › 3D seismic is more detailed and more expensive to shoot. › Critical for most horizontal drilling, unconventional plays like shale gas and tight light oil formations, as well as complex conventional drilling. › Pulse owns 65,310
Slide 12: Pulse: A Western Canada Market Leader
PULSE: A WESTERN CANADA MARKET LEADER ESTIMATED CANADIAN 2D MARKET ESTIMATED CANADIAN 3D MARKET 24,232 Others Schlumberger 10,827 829,207 PULSE 65,310 TGS Arcis 18,639 2D 3D (km2) PULSE (km) 39,552 SEI Seismic Exchange 2,767 Divestco (Charts exclude seismic data held proprietarily by E and P Compani
Slide 13: Western Canada Data Library Play Coverage
WESTERN CANADA Data Library KEY PULSE DATA LIBRARY AREAS Play Coverage Montney 2D Coverage 191,726 km 3D Coverage 40,274 km2 Deep Basin 2D Coverage 127,505 km 3D Coverage 24,109 km2 Duvernay 2D Coverage 265,008 km 3D Coverage 24,313 km2 Cardium 2D Coverage 102,901 km 3D Coverage 9,642 km2
Slide 14: Our Customers: Diverse and Long-Term
OUR CUSTOMERS: DIVERSE AND LONG-TERM PULSE’S CUSTOMERS: › New energy customers include those › Concentrated in Alberta’s oil and exploring for hydrogen, lithium and natural gas and new energy geothermal, as well as related industries. resources such as helium, and those › 63% of purchases during the
Slide 15: Drivers of Traditional Data Library Sales
DRIVERS OF TRADITIONAL DATA LIBRARY SALES
Slide 16: Seismic Data for Subsurface Exploration
SEISMIC DATA for SUBSURFACE EXPLORATION Existing and technology enhanced seismic data improves subsurface characterization for oil and gas and energy transition exploration. Pulse’s existing and technology optimized data improve subsurface characterization for structural mapping and validating and u
Slide 17: Growing the Data Library: Two Methods
GROWING THE DATA LIBRARY: TWO METHODS More Data Increases Future Revenue-Generating Capacity ACQUIRE EXISTING DATA PARTICIPATION SURVEYS › Pulse purchases high-quality proprietary datasets from competitors › Have not conducted a survey since 2015 or E&P companies. › Surveys were designed and managed
Slide 18: Growing the Seismic Library
GROWING THE SIZE OF THE SEISMIC DATA LIBRARY SEISMIC 900,000 70,000 800,000 LIBRARY 60,000 700,000 50,000 600,000 3D (sq. km) 500,000 40,000 › January 15, 2019, Pulse acquired 100 percent of 2D (km) the shares of Seitel Canada Ltd. for $62.8MM. Includes approximately 36,354 net square 400,000 30,000
Slide 19: Strategic Investments at Opportune Moments
STRATEGIC INVESTMENTS AT OPPORTUNE MOMENTS › Acquired seismic assets from Divestco in 2010. › Acquired 100% of shares of Seitel Canada Ltd. › Purchase price of $75.5MM included $55.5MM in cash plus 14.3MM Pulse › Purchase price of $58.6MM including common shares. $53.6MM cash on closing, $5MM deferr
Slide 20: Current Seismic Coverage
CURRENT SEISMIC COVERAGE Western Canada’s Premium Licensable Seismic Dataset 65,310 Sq. km of 3D seismic 829,207 Lin. km of 2D seismic
Slide 21: Value in Our Results
VALUE IN OUR RESULTS
Slide 22: Seismic Data Library Sales Strongly Correlate to Shareholder Free Cash Flow
SEISMIC DATA LIBRARY SEISMIC DATA LIBRARY SALES VS. SFCF PER SHARE SALES STRONGLY 70.0 0.90 CORRELATE TO 60.0 0.80 SHAREHOLDER FREE 0.70 ($/Diluted Weighted Share Outstanding) 50.0 CASH FLOW 40.0 0.60 0.50 ($MM) 30.0 0.40 0.30 20.0 0.20 10.0 0.10 0.0 0.00 Seismic Data Library Sales ($MM) SFCF per Sh
Slide 23: How We Calculate Shareholder Free Cash Flow (SFCF)
Three months ended September 30, Nine months ended September 30, ($MM except per share) 2023 2022 2023 2022 2022 Full Year Data library sales 5,083 2,163 22,203 6,934 9,345 HOW WE Other revenue Less: 20 15 63 197 225 CALCULATE Salaries, internal commissions and benefits Other SG&A 1,296 518 874 563
Slide 24: Third Quarter Highlights
Three months ended September 30, Nine months ended September 30, (thousands of Canadian dollars except Years ended per share data and numbers of share) December 31, 2023 Revenue 2023 2022 2023 2022 2022 THIRD Data library sales 5,083 2,163 22,203 6,934 9,345 Other revenue 20 15 63 197 225 QUARTER To
Slide 25: Value for Shareholders
VALUE FOR SHAREHOLDERS
Slide 26: Shareholder Value Through Dividends and Share Purchases
SHAREHOLDER VALUE THROUGH DIVIDENDS DIVIDENDS AND SHARE PURCHASES ($MM) AND SHARE PURCHASES Dividends ($MM) Share Purchases ($MM) 10.9 10.8 10.5 TOTAL SPENDING ON DIVIDENDS AND SHARE PURCHASES ($MM) 8.4 8.4 7.1 6.3 5.3 5 4.8 $46.5 4.7 4.5 4.1 3.5 3.4 $114.9MM 2.8 2.7 2.3 2.2 1.7 2003-2022 2 1.0 0.67
Slide 27: Ten-Year Allocation of Funds
TEN-YEAR ALLOCATION OF FUNDS 2013-2022 FUNDS AVAILABLE ($MM) FUNDS ALLOCATED ($MM) Long Term Debt Unallocated $36 working $17 capital Common Share Cash and $26 Purchases Working Capital Debt $13 $62 Repayments $3 Equity Financing Dividend Net Capital Payments $79 $29 Expenditures $161 Shareholder Fr
Slide 28: Our People
OUR PEOPLE EXECUTIVE MANAGEMENT TEAM Neal Coleman Pamela Wicks Trevor Meier President & CEO Vice President Finance Vice President & Chief Financial Sales and Marketing Officer DIRECTORS Robert Robotti, Chair of Pulse Seismic Melanie Westergaard Dallas Droppo President and CIO, Robotti & Company Advi
Slide 29: Financial Appendix
FINANCIAL APPENDIX
Slide 30: Consolidated Statements of Financial Position
(thousands of Canadian dollars) (unaudited) Se p te m b e r 3 0 , 2 0 2 3 December 31, 2022 A sse ts CONSOLIDATED Cash and cash equivalents 9 ,8 2 1 5,822 Trade and other receivables 3 ,7 3 5 1,088 Current tax assets - 398 STATEMENTS Prepaid expenses 217 430 To ta l curre nt a sse ts 1 3 ,7 7 3 7,73
Slide 31: Consolidated Statements of Comprehensive Earnings (Loss)
Three months ended September 30, Nine months ended September 30, CONSOLIDATED (thousands of Canadian dollars) (unaudited) Revenue Data library sales 2023 5,083 2022 2,163 2023 22,203 2022 6,934 STATEMENTS OF Other revenue Total revenue 20 5,103 15 2,178 63 22,266 197 7,131 COMPREHENSIVE Operating ex
Slide 32: Consolidated Statement of Cash Flows
Nine months ended September 30, (thousands of Canadian dollars) (unaudited) 2023 2022 Cash flows provided by (used in): Operating: CONSOLIDATED Net earnings (loss) and comprehensive income (loss) Adjustment for: 6,700 (5,959) STATEMENT OF Amortization of seismic data library 6,833 7,402 Depreciation
Slide 33: Capital Structure
CAPITAL STRUCTURE SHARES OUTSTANDING AT YEAR-END ($MM) 67.2 66.0 › Authorized unlimited number of 61.1 59.3 common and preferred shares 57.2 55.9 55.6 54.0 54.0 54.0 54.0 54.0 54.0 › 53,626,869 common shares (MILLIONS OF SHARES OUTSTANDING) outstanding (December 31, 2022) 2010 2011 2012 2013 2014 20
Slide 34: Pulse Seismic Inc.
Pulse Seismic Inc. 2700, 421 7th Avenue SW. Calgary, Alberta T2P 4K9 Toll-free: 1.877.460.5559 Telephone: 1.403.237.5559 Email: [email protected]