Page 1

SECURE INVESTOR PRESENTATION

August 2010

www.secure-energy.ca

TSX: SES


HISTORY • Secure’s first facility opened October 2007 • Over $155 million equity raised since inception • Over 100 employees in the field and 25 in head office

• Secure’s network has grown to 11 facilities in Western Canada • IPO completed and listed on the TSX March 30, 2010 • Current Market Cap value approx. $230 million

2


EXECUTIVE TEAM Rene Amirault, President and Chief Executive Officer 29 years experience IOL, CCS, Consultant

Nick Wieler, V.P. CFO 20 years experience IOL, Newalta, CCS

Karen Myrheim, V.P. Sales & Marketing 24 years experience, CCS, Enerland, Triumph EPCM

Gary Perras, V.P. Operations 15 years experience, Sask Energy, CCS

Dan Steinke, V.P. Business Development 25 years experience, Koch, CCS, SCF Partners Allen Gransch, V.P. Finance 10 years experience Price Waterhouse Gord Getzinger, GM of Sales 20 years experience Nelson Bros., Trottier Trucking, CCS

3


BOARD OF DIRECTORS Rene Amirault President & CEO of Secure Energy Services Inc. Murray Cobbe (Lead Director) Executive Chairman of Trican Well Service Ltd. Dave Johnson Executive Chairman of Progress Energy Resources Corp. Brad Munro Former CCS lead director, Director of Galleon, 49 North Resource Fund, Winalta, Kevin Nugent C.A. Former CEO of NQL Energy Services Inc., Director of Savanna & Trican 4


CORE SERVICES Secure Energy Services is a Western Canadian Company that provides: • Crude Oil Emulsion Treatment • Clean Oil Terminaling • Crude Oil Marketing and Storage • Oilfield Waste Processing • Produced and Waste Water Disposal • Oilfield Solids Disposal • Tank and Truck Wash 5


FULL SERVICE TERMINAL

(FST)

6


STAND-ALONE WATER DISPOSAL FACILITY

(SWD)

[Dawson Creek] 7 9


CLASS II OILFIELD LANDFILL

8


Secure Pembina Area Class I & II Landfill

9


SECURE FACILITY LOCATIONS

* *

(Waste Q4) (Oil treatment) (Waste Q4) (Waste Q4)

* Pipeline connected

10


SECURE VALUE CHAIN

11


WESTERN CANADA PRODUCING OIL & GAS WELLS

12


AB & BC OIL & GAS WATER PRODUCTION

17 13


WELLS DRILLED VS DIRECTIONAL DRILLING

14


BUSINESS STRATEGY • Exploit the value chain from cradle to grave focusing on disposal and treating energy services • Organic growth in key under serviced and capacity constrained markets

• Add environmental recycling services at existing plants • Increase mid-stream offerings • Acquire small independents • Acquire surplus assets and facilities from producers 15


COMPETITIVE ADVANTAGES • Lower cost structure than competitors • Field relationships – Consultants, Truckers, Oil & Gas Producers • Customer driven invoicing and daily reports • Regulatory knowledge and ability to get timely approvals • Executive teams’ experience throughout the energy cycle 16


LATEST DEVELOPMENTS • Acquired PAL Drayton Class I & II Landfill • Opened Class IB Disposal Well facility at Dawson B.C. (Montney Area) and waste facility expansion started • Re-completed Drayton (Brazeau) Disposal Well and started construction on the facility • Started construction on Obed Waste facility expansion • South GP waste facility expansion close to receiving regulatory approval • Drayton FST in regulatory stage 17


Q2 2010 FINANCIAL RESULTS (MM$) Q2/2010

Q2/2009

Revenue Core services Oil Purchase/resale

$9.8 1.4

$3.5

Expenses Core services Oil Purchase/resale

$4.7 1.4

$1.9

Operating Margin Operating Margin (Core) Operating Margin (Total)

$5.1 52% 46%

$1.6 47% 47%

G&A

(1.7)

(0.9)

EBITDA Funds from Operations

$3.4 $3.5

$0.7 $0.8 18


2010 YTD FINANCIAL RESULTS (MM$) YTD/2010

YTD/2009

Revenue Core services Oil Purchase/resale

$22.0 1.4

$9.9

Expenses Core services Oil Purchase/resale

$9.2 1.4

$4.1

$12.8 58% 55%

$5.8 59% 59%

Operating Margin Operating Margin (Core) Operating Margin (Total)

G&A

(3.0)

(2.0)

EBITDA Funds from Operations

$9.8 $9.9

$3.8 $3.9 19


June 30, 2010 BALANCE SHEET (MM$) Current Assets Assets

Total Assets Liabilities

$ 52.6 Cash, A/R, Inventory, Prepaid $ 85.5 Plant & Equipment $ 21.4 Assets under construction $ 7.5 Other (Intangible, goodwill, FIT) $167.0

$ 10.9 $ 0.9 $ 5.6 $ 0.0 Shareholders' Equity $149.6 Total Liabilities/Equity $167.0

A/P Lease Obligations ARO Long Term Debt

20


BORROWING CAPACITY ATB Corporate Bank Loan Facility

Max. $35 million Prime plus 1.5% to 2.5%* *(rate is based on Funded Debt to EBITDA level, adjusted quarterly)

Multi-use Facility

Operating, letters of credit, Capex, Acquisitions

Renewal

May 2011

Major Covenants

Debt to T-12 EBITDA: < 3.5 to 1.0 21


CAPITAL PLANS (MM$) Projects / Acquisitions for 2010

Dawson SWD and other services Brazeau Water Disposal

15.0 5.0

Drayton FST

25.0

Facility Expansions

12.0

PAL acquisition

11.7

Total Capex

$ 68.7 22


SUMMARY • Market growing with increased wells and byproducts as the conventional basin matures • Environmental Recycling services to complement existing facility base

• Profitable growth will come from mostly organic and timely acquisitions • Track record with eleven facilities executed on schedule and on budget • Experienced team that knows how to deliver throughout the oil and gas cycle 23


FORWARD LOOKING STATEMENTS â&#x20AC;˘

Certain statements contained in this presentation regarding 2010 construction plans, capital expenditures, future facilities and expansions of services constitute "forward-looking statements". Such statements reflect the current views of Secure with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, general market conditions, commodity prices, interest rates and exchange rates, seasonality of operations, growth, acquisition strategy, integration of businesses into Secure's operations, potential liabilities from acquisitions, dependence on senior management, regulation, landfill operations, competition, risk of pending and future legal proceedings, employees, labour unions, fuel costs, access to industry and technology, insurance, future capital needs, debt service and sales of additional common shares.

â&#x20AC;˘

Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forwardlooking statements and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forwardlooking statements prove incorrect, actual results may vary materially from the projections described herein. The forward-looking statements in this presentation are expressly qualified by this cautionary statement. Secure does not undertake any obligation to update or revise any of the included forwardlooking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

â&#x20AC;˘

The forward-looking statements in this document are provided for the limited purpose of enabling potential investors to evaluate an investment in the shares of Secure. Readers are cautioned that such statements may not be appropriate, and should not be used, for other purposes.

24


Investor Presentation - August 11, 2010  

Secure Energy Investor Presentation - August 11, 2010

Advertisement
Read more
Read more
Similar to
Popular now
Just for you