Ensign Energy Services Inc. · TSX:ESI

Ensign Energy Services — Investor Presentation (June 2007)

38 slides from Ensign Energy Services's investor presentation, June 2007

  1. Slide 1: Corporate Presentation

    Corporate Presentation JUNE 2007

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, national and economic conditions, foreign exchange ra

  3. Slide 3: Agenda

    Agenda CORPORATE PROFILE INDUSTRY STATISTICS CANADIAN OPERATIONS UNITED STATES OPERATIONS INTERNATIONAL OPERATIONS FINANCIAL OVERVIEW

  4. Slide 4: Corporate Profile

    Corporate Profile CORPORATE PROFILE

  5. Slide 5: Corporate Profile

    Corporate Profile ƒ Oilfield services ƒ Drilling ƒ Coalbed methane / oilsands coring ƒ Underbalanced drilling ƒ Oilfield rentals ƒ Camps and catering ƒ Well servicing ƒ Production testing ƒ Mechanical wireline ƒ Manufacturing ƒ Transportation ƒ Operates in Canada, the United States and International

  6. Slide 6: Current Operations

    Current Operations Canada United States Oman Thailand Venezuela Libya Gabon Indonesia Australia Argentina New Zealand CORPORATE PROFILE

  7. Slide 7: Commitment to Customer Service

    Commitment to Customer Service ƒ Committed to providing a safe working environment ƒ Focus on recruitment, training and personnel development ƒ In-house engineering expertise to develop, design and construct: ƒ New “fit-for-purpose” rigs and equipment ƒ Applying new and innovative technologies ƒ Ope

  8. Slide 8: Industry Statistics

    Industry Statistics INDUSTRY STATISTICS

  9. Slide 9: Canadian Drilling Rig Activity

    Canadian Drilling Rig Activity 700 600 500 Rigs Drilling 400 300 200 100 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Source: Baker Hughes INDUSTRY STATISTICS

  10. Slide 10: United States Rig Activity

    United States Rig Activity 350 Rockies 300 California 250 Rig Count 200 150 100 50 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Source: Anderson Report INDUSTRY STATISTICS

  11. Slide 11: International Rig Activity

    International Rig Activity 800 600 Rig Count 400 200 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Source: Baker Hughes INDUSTRY STATISTICS

  12. Slide 12: Canadian Operations

    Canadian Operations CANADIAN OPERATIONS

  13. Slide 13: Canadian Operations

    Canadian Operations 2007 Est. Mkt. Share Drilling Drilling Rigs 163 20% Coring & Specialty Drilling Rigs 31 30% Underbalanced Drilling Units 18 54% Well Service Service Rigs 102 10% Coiled Tubing Units 13 5% Production Services Wireline Units 36 18% Production Testing Units 51 13% Oilfield Equipment

  14. Slide 14: Drilling Inventory

    Drilling Inventory Total: 194 drilling rigs 100 67 Rigs 80 60 40 38 Rigs 31 Rigs 31 Rigs 27 Rigs 20 0 Triple Double Single ADR Coring CANADIAN OPERATIONS

  15. Slide 15: Underbalanced Drilling Services

    Underbalanced Drilling Services ƒ 18 Underbalanced Drilling Units ƒ Incorporating use of Interactive-Process- Control technology CANADIAN OPERATIONS

  16. Slide 16: Oilfield Equipment Rentals

    Oilfield Equipment Rentals ƒ Extensive inventory of specialty drill pipe, BOPs, loaders, tanks, pumps and rig matting ƒ Camps and Catering division established; expanded from 24 camps to 39 camps CANADIAN OPERATIONS

  17. Slide 17: Well Servicing Inventory

    Well Servicing Inventory Total: 102 service rigs and 13 coiled tubing and nitrogen units 80 67 Rigs 60 40 20 18 Rigs 13 Rigs 7 Rigs 10 Rigs 0 Medium/Heavy Mobile Double Single Slant Single Coiled Tubing Double & Nitrogen Units CANADIAN OPERATIONS

  18. Slide 18: Production and Manufacturing Services

    Production and Manufacturing Services ƒ 36 Wireline Units ƒ Added 3 units in 2006 ƒ 51 Production Testing Units ƒ Added 7 units in 2006 ƒ 50,000 square foot manufacturing facility CANADIAN OPERATIONS

  19. Slide 19: Oilfield Services

    Oilfield Services ƒ What’s new ƒ 2 New ADRTM “Slant” rigs commissioned and in service Q1 2007 ƒ Added 9 coring rigs in Q1 ƒ Constructing fit-for-purpose heavy oil pad drilling rig ƒ Constructing 2 slant well servicing rigs and 3 conventional well servicing rigs ƒ Added 15 new camps in Q1 CANADIAN OP

  20. Slide 20: United States Operations

    United States Operations UNITED STATES OPERATIONS

  21. Slide 21: United States Operations

    United States Operations 2007 Est. Mkt. Share Marketed Drilling Rigs Rocky Mountain Region 51 22% California 18 30% 69 Marketed Well Servicing Rigs Rocky Mountain Region 12 Production Testing Units Rocky Mountain Region 12 UNITED STATES OPERATIONS

  22. Slide 22: Oilfield Services Inventory

    Oilfield Services Inventory Total: 81 drilling rigs / service rigs 40 37 Rigs 30 23 Rigs 20 12 Rigs 12 Units 10 6 Rigs 3 Rigs California 1 California 13 California 1 California 3 0 Triple Double Single ADR Singles Well Production Servicing Testing UNITED STATES OPERATIONS

  23. Slide 23: Drilling

    Drilling ƒ What’s new ƒ Completed construction of 3 new ADRs in Q1; 10 new ADRs to be completed through the remainder of the year ƒ Relocating 1 well servicing rig from Canada to the Rocky Mountain region ƒ Constructing 2 new production testing units for the Rocky Mountain region UNITED STATES OPERA

  24. Slide 24: International Operations

    International Operations INTERNATIONAL OPERATIONS

  25. Slide 25: International Operations

    International Operations 2007 2007 Marketed Drilling Rigs Marketed Workover Rigs Australia 6 Argentina 4 Southeast Asia 3 New Zealand 1 Middle East 4 Australia 3 Africa 8 Venezuela 1 Argentina 6 New Zealand 1 Venezuela 10 38 9 INTERNATIONAL OPERATIONS

  26. Slide 26: Oilfield Services Inventory

    Oilfield Services Inventory 20 18 Rigs 16 Rigs 15 10 9 Rigs 5 4 Rigs 0 Triple Double Single Workover INTERNATIONAL OPERATIONS

  27. Slide 27: Oilfield Services

    Oilfield Services ƒ What’s new ƒ Relocating 2 ADRTM drilling rigs from Canada to Australia ƒ Refurbishing 3 previously idle drilling rigs for long-term contracts ƒ Oman ƒ Qatar ƒ Libya INTERNATIONAL OPERATIONS

  28. Slide 28: Financial Overview

    Financial Overview INTERNATIONAL OPERATIONS

  29. Slide 29: Trading Data

    Trading Data ƒ TSX: ESI ƒ Common shares outstanding 152.5 million ƒ Market capitalization $3.4 billion ƒ Dividends ƒ 2003 $0.1175 per share ƒ 2004 $0.1450 per share ƒ 2005 $0.1700 per share ƒ 2006 $0.2800 per share ƒ 2007e $0.3200 per share FINANCIAL OVERVIEW

  30. Slide 30: Debt to Equity

    Debt to Equity $ millions, years ended December 31 1200 Debt 1000 Equity 800 600 400 200 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 FINANCIAL OVERVIEW

  31. Slide 31: Revenue – Geographic Segmentation

    Revenue – Geographic Segmentation Year ended December 31, 2006 60% Canada United States 12% International 28% FINANCIAL OVERVIEW

  32. Slide 32: Revenue

    Revenue $ millions, years ended December 31 2100 1800 1500 1200 900 600 300 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007e* * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW

  33. Slide 33: Income

    Income $ millions, years ended December 31 350 300 250 200 150 100 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007e* $ per share 0.36 0.21 0.60 0.69 0.35 0.66 0.79 1.12 2.25 1.26 - 1.81 * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW

  34. Slide 34: Return on Equity

    Return on Equity percent, years ended December 31 60 50 40 30 20 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007e* * Estimate based on range of analysts forecasts FINANCIAL OVERVIEW

  35. Slide 35: Q1 2007 Summary

    Q1 2007 Summary $ millions, except per share data Three months ended March 31, March 31, % 2007 2006 Change Revenue 509.5 568.0 <10> Adjusted income 106.1 129.4 <18> Per share $0.70 $0.86 <19> Income 102.3 127.9 <20> Per share $0.67 $0.85 <21> Cash flow 117.6 155.1 <24> Per share $0.77 $1.03 <25> Di

  36. Slide 36: Future Growth Strategy

    Future Growth Strategy ƒ Continued consolidation ƒ Expansion into other markets ƒ Aggressively pursue long-term international contracts ƒ Potential for redeployment of existing rigs and equipment between divisions ƒ Development and use of newest expertise and technology

  37. Slide 37: Why Ensign is a Solid Investment

    Why Ensign is a Solid Investment ƒ Diverse operations ƒ Opportunistic growth strategy ƒ Commitment to safety and customer service ƒ Financial strength and discipline

  38. Slide 38: www.ensignenergy.com

    SE ifei] ENERGY SERVICES INC. _ ~Wumrensignenergy.com)

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