Investor Presentation - August 11, 2010
-
Upload
secure-energy -
Category
Documents
-
view
217 -
download
1
description
Transcript of Investor Presentation - August 11, 2010
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 experienceIOL, CCS, Consultant
Nick Wieler, V.P. CFO 20 years experience IOL, Newalta, CCS
Karen Myrheim, V.P. Sales & Marketing24 years experience, CCS, Enerland, Triumph EPCM
Gary Perras, V.P. Operations15 years experience, Sask Energy, CCS
Dan Steinke, V.P. Business Development25 years experience, Koch, CCS, SCF Partners
Allen Gransch, V.P. Finance10 years experiencePrice Waterhouse
Gord Getzinger, GM of Sales 20 years experienceNelson 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 JohnsonExecutive Chairman of Progress Energy Resources Corp.
Brad MunroFormer 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)
9
[Dawson Creek]
7
CLASS II OILFIELD LANDFILL
8
Secure Pembina Area Class I & II Landfill
9
SECURE FACILITY LOCATIONS
**
* Pipeline connected
(Waste Q4)
(Waste Q4)
(Waste Q4)
(Oil treatment)
10
SECURE VALUE CHAIN
11
WESTERN CANADA PRODUCING OIL & GAS WELLS
12
AB & BC OIL & GAS WATER PRODUCTION
1713
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$)
18
Q2/2010 Q2/2009Revenue
Core services $9.8 $3.5Oil Purchase/resale 1.4
ExpensesCore services $4.7 $1.9Oil Purchase/resale 1.4
Operating Margin $5.1 $1.6Operating Margin (Core) 52% 47%Operating Margin (Total) 46% 47%
G & A (1.7) (0.9)
EBITDA $3.4 $0.7
Funds from Operations $3.5 $0.8
2010 YTD FINANCIAL RESULTS (MM$)
YTD/2010 YTD/2009Revenue
Core services $22.0 $9.9Oil Purchase/resale 1.4
ExpensesCore services $9.2 $4.1Oil Purchase/resale 1.4
Operating Margin $12.8 $5.8Operating Margin (Core) 58% 59%Operating Margin (Total) 55% 59%
G & A (3.0) (2.0)
EBITDA $9.8 $3.8
Funds from Operations $9.9 $3.9
19
June 30, 2010 BALANCE SHEET (MM$)
Current Assets $ 52.6 Cash, A/R, Inventory, Prepaid
Assets $ 85.5 Plant & Equipment
$ 21.4 Assets under construction
$ 7.5 Other (Intangible, goodwill, FIT)
Total Assets $167.0
Liabilities $ 10.9 A/P
$ 0.9 Lease Obligations
$ 5.6 ARO
$ 0.0 Long Term Debt
Shareholders' Equity $149.6
Total Liabilities/Equity $167.020
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 15.0
Brazeau Water Disposal 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
• 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.
• 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 forward-looking 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 forward-looking 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 forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
• 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