Akita Drilling Ltd. Class A · TSX:AKT
Akita Drilling Ltd. Class A — Shareholder Meeting (May 2023)
24 slides from Akita Drilling Ltd. Class A's shareholder meeting presentation, May 9, 2023
Slide 1: Annual General Meeting
Annual General Meeting Welcome Shareowners M a y 9 th, 2 0 2 3
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer Statements made by representatives of AKITA and information provided in AKITA’s AGM presentation may be considered forward- looking statements. By their nature, such statements are subject to numerous known and unknown risks and uncertainties and therefore actua
Slide 3: Chairman's Introduction
Chairman’s Introduction By Linda Southern-Heathcott
Slide 4: Financial Statements
Financial Statements AKITA’s consolidated financial statements for the year ended December 31, 2022, together with the auditor’s report have been filed with the Canadian securities regulatory authorities and have been sent to the registered shareholders and to those beneficial shareholders who reque
Slide 5: Election of Directors
Election of Directors Eight directors, as set out in the March 20, 2023, Management Information Circular, have been nominated for a one-year term. Upon election, each director will hold office until the next annual meeting of shareholders or until a successor is elected or appointed. The Board recom
Slide 6: Director Profiles: Loraine M. Charlton
Director Profiles Loraine M. Charlton, ICD.D Calgary, Alberta, Canada Director Since 2006, Age 66, Independent Prior to her retirement in November 2022, Ms. Charlton was Vice President and Chief Financial Officer of Lintus Resources Limited, a private oil and gas company with interests across Wester
Slide 7: Director Profiles: Douglas A. Dafoe
Director Profiles Douglas A. Dafoe, C.A., C.DIR Calgary, Alberta, Canada Director Since 2018, Age 68, Independent Mr. Dafoe has more than thirty years of industry experience in financial and operating positions of increasing responsibility. Mr. Dafoe is currently the President and Chief Executive Of
Slide 8: Director Profiles: Linda A. Southern-Heathcott
Director Profiles Linda A. Southern-Heathcott, ICD.D, Honorary Lieutenant-Colonel, King’s Own Calgary Regiment Calgary, Alberta, Canada Director Since 1993, Age 60, Not Independent Ms. Southern-Heathcott is a founding director of the Company and became CEO of the Company in May of 2021 until April o
Slide 9: Director Profiles: Harish K. Mohan
Director Profiles Harish K. Mohan, CPA, CA Calgary, Alberta, Canada Director Since 2011, Age 70, Independent Mr. Mohan joined the Board in 2011. Mr. Mohan has 15 years of experience in the oil and gas drilling industry in Canada, the United States and overseas. Mr. Mohan was employed by the ATCO Gro
Slide 10: Director Profiles: Robert J. Peabody
Director Profiles Robert J. Peabody Calgary, Alberta, Canada Director nominee, Age 66, Independent Mr. Peabody was President and Chief Executive Officer and a member of the Board of Directors of Husky Energy. Mr. Peabody joined Husky as Chief Operating Officer in 2006 and was appointed CEO in 2016 w
Slide 11: Director Profiles: Nancy C. Southern
Director Profiles Nancy C. Southern Calgary, Alberta, Canada Director Since 1993, Age 66, Not Independent Ms. Southern is a founding director and Deputy Chair of the Company, as well as the Chair and Chief Executive Officer of ATCO Ltd. and of Canadian Utilities Limited. Ms. Southern was formerly th
Slide 12: Director Profiles: Henry G. Wilmot
Director Profiles Henry G. Wilmot Calgary, Alberta, Canada Director Since 2014, Age 69, Independent Mr. Wilmot has broad based business experience including 40 years with the ATCO Group of Companies. During that time he held progressively senior positions and was most recently Chief Operating Office
Slide 13: Director Profiles: Charles W. Wilson
Director Profiles Charles W. Wilson Evergreen, Colorado, USA Director Since 2002, Age 83, Independent Mr. Wilson is a director of ATCO Australia Pty Ltd and formerly a director of ATCO Ltd. and Canadian Utilities Limited. He was the President and Chief Executive Officer of Shell Canada from 1993 to
Slide 14: Appointment of Auditor
Appointment of Auditor The Board, on the recommendation of the Audit Committee, proposes that PricewaterhouseCoopers LLP (“PwC”) be appointed as auditor to hold office until the next annual meeting of shareholders. PwC and its predecessor firm, Price Waterhouse LLP, has been AKITA’s auditor since th
Slide 15: President and CEO Message by Colin Dease
President and CEO Message by Colin Dease
Slide 16: 2022 Metrics
2022 Metrics Activity 2022 2021 US Operations 4,088 2,871 Canadian Operations 2,518 1,584 Revenue Per Day 2022 2021 US Operations $32,000 $25,000 Canadian Operations $30,750 $25,500 Operating Costs Per Day 2022 2021 US Operations $23,400 $22,283 Canadian Operations $25,000 $21,932
Slide 17: 2023 Corporate Objectives
2023 Corporate Objectives • meaningfully reduce our long-term debt; • capitalize on the torque in our Canadian Division – to increase both our activity level and our day rates; and • to maintain our high US fleet utilization.
Slide 18: Q1 2023 Metrics
Q1 2023 Metrics Activity Q1 2023 Q1 2022 US Operations 1,044 1,017 Canadian Operations 720 722 Revenue Per Day Q1 2023 Q1 2022 US Operations $39,000 $26,000 Canadian Operations $36,600 $29,000 Operating Costs Per Day Q1 2023 Q1 2022 US Operations $25,600 $21,000 Canadian Operations $26,000 $22,000
Slide 19: Value Proposition
Value Proposition • Pure play drilling company; • High spec fleet; and • First Nation and Metis joint ventures.
Slide 20: Vice President Finance & CFO Financial Overview
Vice President Finance & CFO Financial Overview by Darcy Reynolds
Slide 21: 2022 Results
2022 Results For the year ended December 31 2022 2021 Net Income (Loss) $4,288,000 $(20,990,000) Funds Flow From Operations $34,813,000 $7,454,000 Capital Spending $17,982,000 $16,416,000 Debt $93,514,000 $86,156,000 Operating Days 6,606 4,465
Slide 22: Q1 2023 Results
Q1 2023 Results For the three months ended March 31, 2023 2022 Net Income (Loss) $9,523,000 $(2,933,000) Funds Flow From Operations $15,159,000 $4,996,000 Capital Spending $2,504,000 $6,412,000 Total Debt $91,212,000 $94,521,000 Operating Days 1,764 1,739 Credit Facility Covenants: • Debt to EBITDA:
Slide 23: Revenue, Funds Flow, Earnings and Debt Trends
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 1,400 12,000 Operating Days 1,400 Operating Days 10,000 Funds Flow 1,200 1,200 Revenue 40,000 1,000 8,000 1,000 30,000 6,000 800 800 4,000 20,000 600 600 2,000 400 - 400 10,000 200 (2,000) 200 - - (4,000
Slide 24: Slide 24