Ensign Energy Services Inc. · TSX:ESI
Ensign Energy Services — Investor Presentation (June 2007)
38 slides from Ensign Energy Services's investor presentation, June 2007
Slide 1: Corporate Presentation
Corporate Presentation JUNE 2007
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
Slide 3: Agenda
Agenda CORPORATE PROFILE INDUSTRY STATISTICS CANADIAN OPERATIONS UNITED STATES OPERATIONS INTERNATIONAL OPERATIONS FINANCIAL OVERVIEW
Slide 4: Corporate Profile
Corporate Profile CORPORATE PROFILE
Slide 5: Corporate Profile
Corporate Profile Oilfield services Drilling Coalbed methane / oilsands coring Underbalanced drilling Oilfield rentals Camps and catering Well servicing Production testing Mechanical wireline Manufacturing Transportation Operates in Canada, the United States and International
Slide 6: Current Operations
Current Operations Canada United States Oman Thailand Venezuela Libya Gabon Indonesia Australia Argentina New Zealand CORPORATE PROFILE
Slide 7: Commitment to Customer Service
Commitment to Customer Service Committed to providing a safe working environment Focus on recruitment, training and personnel development In-house engineering expertise to develop, design and construct: New “fit-for-purpose” rigs and equipment Applying new and innovative technologies Ope
Slide 8: Industry Statistics
Industry Statistics INDUSTRY STATISTICS
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
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
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
Slide 12: Canadian Operations
Canadian Operations CANADIAN OPERATIONS
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
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
Slide 15: Underbalanced Drilling Services
Underbalanced Drilling Services 18 Underbalanced Drilling Units Incorporating use of Interactive-Process- Control technology CANADIAN OPERATIONS
Slide 16: Oilfield Equipment Rentals
Oilfield Equipment Rentals Extensive inventory of specialty drill pipe, BOPs, loaders, tanks, pumps and rig matting Camps and Catering division established; expanded from 24 camps to 39 camps CANADIAN OPERATIONS
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
Slide 18: Production and Manufacturing Services
Production and Manufacturing Services 36 Wireline Units Added 3 units in 2006 51 Production Testing Units Added 7 units in 2006 50,000 square foot manufacturing facility CANADIAN OPERATIONS
Slide 19: Oilfield Services
Oilfield Services What’s new 2 New ADRTM “Slant” rigs commissioned and in service Q1 2007 Added 9 coring rigs in Q1 Constructing fit-for-purpose heavy oil pad drilling rig Constructing 2 slant well servicing rigs and 3 conventional well servicing rigs Added 15 new camps in Q1 CANADIAN OP
Slide 20: United States Operations
United States Operations UNITED STATES OPERATIONS
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
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
Slide 23: Drilling
Drilling What’s new Completed construction of 3 new ADRs in Q1; 10 new ADRs to be completed through the remainder of the year Relocating 1 well servicing rig from Canada to the Rocky Mountain region Constructing 2 new production testing units for the Rocky Mountain region UNITED STATES OPERA
Slide 24: International Operations
International Operations INTERNATIONAL OPERATIONS
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
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
Slide 27: Oilfield Services
Oilfield Services What’s new Relocating 2 ADRTM drilling rigs from Canada to Australia Refurbishing 3 previously idle drilling rigs for long-term contracts Oman Qatar Libya INTERNATIONAL OPERATIONS
Slide 28: Financial Overview
Financial Overview INTERNATIONAL OPERATIONS
Slide 29: Trading Data
Trading Data TSX: ESI Common shares outstanding 152.5 million Market capitalization $3.4 billion Dividends 2003 $0.1175 per share 2004 $0.1450 per share 2005 $0.1700 per share 2006 $0.2800 per share 2007e $0.3200 per share FINANCIAL OVERVIEW
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
Slide 31: Revenue – Geographic Segmentation
Revenue – Geographic Segmentation Year ended December 31, 2006 60% Canada United States 12% International 28% FINANCIAL OVERVIEW
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
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
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
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
Slide 36: Future Growth Strategy
Future Growth Strategy Continued consolidation Expansion into other markets Aggressively pursue long-term international contracts Potential for redeployment of existing rigs and equipment between divisions Development and use of newest expertise and technology
Slide 37: Why Ensign is a Solid Investment
Why Ensign is a Solid Investment Diverse operations Opportunistic growth strategy Commitment to safety and customer service Financial strength and discipline
Slide 38: www.ensignenergy.com
SE ifei] ENERGY SERVICES INC. _ ~Wumrensignenergy.com)
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