Western Energy Services Corp. · TSX:WRG
Western Energy Services — Investor Presentation (July 2016)
20 slides from Western Energy Services's investor presentation, July 2016
Slide 1: Investor Presentation July 2016
Investor Presentation July 2016
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING INFORMATION This presentation may contain certain statements or disclosures relating to Western Energy Services Corp. (“Western”) that are based on the expectations of its management as well as assumptions made by and information currently available to Western which may co
Slide 3: Company Snapshot
Company Snapshot Contract Drilling Western Energy Services (WRG) Fleet of 56 drilling rigs Share Price1 $3.29 • 51 based in Canada 52-week high/low $5.99 / $2.04 • 5 based in the United Shares outstanding2 74 million States Market capitalization $242 million Well Servicing Enterprise value $459 mill
Slide 4: Business Highlights
Business Highlights Modern, Seven pad highly drilling rigs capable in fleet drilling rig fleet High quality Eight fleet with slant average age service of seven rigs years 122 total rigs Rental assets managed and Innovative serviced by 3 rental locations pressure product solutions control specialists
Slide 5: Canadian Drilling Rig Market Trends
Canadian Drilling Rig Market Trends Unconventional drilling and completion techniques, including pad drilling, continue to Canadian Industry Drilling drive utilization Rigs by Class – Industry 672 Customers continue to focus on drilling Duvernay efficiencies, capacity and rig features Class 167 25%
Slide 6: Montney and Duvernay Class Focused Fleet Tailored to Customer Needs
Montney and Duvernay Class Focused Fleet Tailored to Customer Needs Western’s Rig Fleet by Class Industry Rig Fleet by Classification Duvernay Class 100% 13 Cardium 23% 90% 17% 19% Class 23% 23% 24 32% 80% 43% 44% 70% 12% Montney 36% Class 60% 34% 12% 19 34% 50% 15% Western's % of Industry 40% 81% 6
Slide 7: Highly Capable and Efficient Drilling Rig Fleet
Highly Capable and Efficient Drilling Rig Fleet In Q1 2016, Western drilled, on Q1 2016 Average Well Length average, the second deepest wells of 4,000 3,494 its peers, while achieving strong 3,500 3,308 3,234 Average Well Length 3,000 drilling rates 2,500 (Metres) 2,036 – Western is a leading deep d
Slide 8: Premium Drilling and Well Servicing Utilization
Premium Drilling and Well Servicing Utilization Western’s drilling and well servicing rig fleets have traditionally realized above average utilization, while balancing utilization and pricing considerations Canadian Drilling Rig Utilization Rates Canadian Service Rig Utilization Rates 100% 70% 90% 6
Slide 9: Operating Highlights
Operating Highlights First Quarter Year Ended Dec 31 Operating Highlights 2016 2015 %∆ 2015 2014 %∆ Contract Drilling Canadian Operations Rig fleet (end of period) 52 49 6% 52 49 6% Operating Revenue per Revenue Day (CDN$) 19,437 25,947 (25%) 23,458 26,178 (10%) Drilling rig utilization - Revenue Da
Slide 10: Rightsized Credit Facility
Rightsized Credit Facility $100 million of liquidity – Including $50 million of cash Total Liquidity of $100 million No near-term refinancing risk Undrawn Operating Loan – $265 million of Senior Notes due $10 mm January 30, 2019 Cash $50 mm – No other debt maturities Credit Facility amended in April
Slide 11: Balance Sheet Overview
Balance Sheet Overview Consolidated Balance Sheet ('000s) March 31, 2016 December 31, 2015 Cash and other current assets $ 82,844 $ 102,060 Property and equipment 759,205 773,647 Other assets 443 901 Total assets $ 842,492 $ 876,608 Current liabilities $ 14,699 $ 31,381 Long term debt and other 265,
Slide 12: Financial Highlights
Financial Highlights First Quarter Year Ended December 31 Financial Highlights (000s CDN$) 2016 2015 %∆ 2015 2014 2013 2012 2011 Operating Revenue 32,200 100,958 (68%) 216,485 474,120 353,124 282,856 237,428 Utilization (1) 18% 49% (63%) 26% 58% 55% 54% 70% (2) Employees na na na 632 1,420 1,436 934
Slide 13: 2016 Budgeted Capital Expenditures
2016 Budgeted Capital Expenditures $7 Million Budgeted Capital Spending Capital Spending By Segment $6 $5.0 $5 $4 $ Millions Contract $3 Drilling 40% $2.0 $2 Production Services 60% $1 $0.5 $0.4 $0 Maintenance Capital Expansion Capital Q1 Actual Remaining 2016 Budget Western will continue to manage
Slide 14: Performance Driven Culture
Performance Driven Culture Well Managed Service Company Strategic thinking embedded in every decision Best-in-class People and Equipment From start to finish, every project, every person, is selected to support our performance driven focus Capacity for Opportunistic Growth Strong balance sheet and t
Slide 15: Appendix
Appendix Western ENERGY SERVICES CORP.
Slide 16: Canadian Drilling Industry Statistics
Canadian Drilling Industry Statistics Operating Days Horizontal Wells Drilled 158,427 180,000 YTD Full-Year 8,384 145,272 9,000 7,724 160,000 134,835 131,021 7,214 8,000 124,613 7,048 121,023 120,221 119,300 140,000 7,000 120,000 6,000 4,955 4,453 100,000 78,005 5,000 64,787 80,000 4,000 3,096 2,896
Slide 17: Provincial Well Licenses Issued
Provincial Well Licenses Issued 2005 to 2015 YTD AB SK BC MB WCSB YTD 2014 YTD 2015 YTD 2016 30,000 2,500 25,000 2,000 20,000 Licenses Issued Licenses Issued 1,500 15,000 1,000 (60%) 10,000 (26%) (61%) 15% 500 5,000 (21%) (71%) (46%) (39%) 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 A
Slide 18: Historical Canadian Well Data
Historical Canadian Well Data Average Well Length by Province Metres Drilled by Province AB SK BC MB WCSB Western Trinidad Savanna Precision Ensign Nabors 4,500 4,000 AB Average Well Length (Metres per Well) 3,500 SK 3,000 2,500 BC 2,000 1,500 MB 1,000 500 Tot. 0 2010 2011 2012 2013 2014 2015 2016 Y
Slide 19: Notes
~ xs Notes N Western
Slide 20: Contact
Alex R. N. MacAusland Jeffrey K. Bowers President & CEO Senior Vice President, Finance & CFO Western Energy Services Corp. 1700, 215 – 9 Avenue SW Calgary, AB T2P 1K3 Telephone: (403) 984-5916 www.wesc.ca
Western Energy Services — Investor Presentation (July 2016) on 6ix