CAPP Scotiabank Investment Symposium - April Right Size Right People Right Rigs Right Markets

Transcription

1 CAPP Scotiabank Investment Symposium - April 2016 Right Size Right People Right Rigs Right Markets

2 Disclaimer Advisory Regarding Forward-Looking Statements This presentation contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. These statements are not guarantees of future performance and are subject to certain risks and the user should not place undue reliance on these forward-looking statements as there can be no assurance that the plans, initiatives or expectations upon which they are based will occur. The factors that could cause results to differ materially include, but are not limited to, political and economic conditions, crude oil and natural gas prices, foreign currency and interest rate fluctuations, weather conditions, the Company s defense of lawsuits and the ability of oil and natural gas companies to pay accounts receivable balances and raise capital or other unforeseen conditions which could impact on the use of the services supplied by the Company. Users are cautioned that the foregoing list of important factors is not exhaustive. Unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on forward-looking statements. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be given as to future results, levels of activity and achievements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or the Company s estimates or opinions change.

3 Right Sized Business has been right sized to ensure profitability over the long haul at significantly depressed utilization levels Right People Ensign s Global Skill Standard (GSS) sets industry standard for competency based training Right Rigs $4bln invested to replenish worldwide fleet with hi-tech/hi-perf ADR rigs Right Markets Revenue diversification and balance in key markets around the world

4 Geographic Diversification Revenue Geographic Segmentation Canada United States International 34% 22% 44% Canada United States MENA Kurdistan Libya 90% 10% Drilling & Rig Services Completion & Production Services Oman Venezuela MAJOR ASSET SNAPSHOT Australia Argentina 213 Drilling Rigs 116 Servicing Rigs 78 Directional Drilling Kits 97 Frac Flow Back Units 27 Core & Seasonal Rigs

5 Drilling Rigs by Type $3.7B newbuild since % 70% 60% 50% % % 20% 10% ADR Type Seasonal Fleet ADR % 0%

6 ADR The Rig Type with More Walk with accuracy The ADR walks on both X + Y axis, for the best mobility and flexibility of any rig on the market Safety from the ground up The ADR is designed and built by Ensign, a worldwide leader in oilfield safety Move in less time The ADR transports faster than other full-sized rigs Drill Efficiently The ADR lets you build stands offline, while you drill Depth Flexibility 1000 HP 1500 HP 2000 HP

7 Revenue - EBITDA 2500 $ millions, 12 months ended December 31 EBITDA (adjusted) Revenue e¹ EPS (1.13) Estimate based on range of analysts forecasts

8 Debt Metrics $ millions, December 31 2,500 Net Debt (Short Term Debt + Long Term Debt - Cash) Equity 2.5 Net Debt / Equity Net Debt / Adjusted EBITDA NBV/Market CAP 2, , ,

9 Dividends per Common Share $ % Compound Annual Growth Rate $0.50 $0.40 $ $ per share $ per share $ per share $ per share $ per share $0.20 Current Yield 7.7% $0.10 $0.00

10 Go Forward Strategy conserve cash reduce debt leverage Ensign s ADR technology around the world expand integrated DD model with current client base set the balance sheet up for opportunistic growth

11 Summary Why Ensign? management aligned with shareholders (high level of ownership) consistent dividend history well positioned globally low fixed cost/high variable cost business model conservative balance sheet ADR fleet worldwide ensures high utilization

12 ensignenergy.com