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This presentation contains information that is "forward-looking" in that it describes events and conditions ENSERVCO
reasonably expects to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon a number
of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements
contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking
statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond
ENSERVCO's ability to predict, or control and which may cause actual results to differ materially from the projections or
estimates contained herein. Among these risks are those set forth in ENSERVCO’s Form 10-K filed on March 20, 2014, and in its
reports subsequently filed with the Securities and Exchange Commission, all of which are available at www.enservco.com, and
in addition to the other risks and caveats included in this presentation. It is important that each person reviewing this
presentation understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to
update any forward-looking statement made herein.
In addition, we would point out that our ability to respond to questions at this meeting is limited by SEC Regulation FD. In
short, Regulation FD prohibits us from making selective disclosure of material non-public information. Where we believe that
Regulation FD prevents us from responding, we will answer the question with “no comment” or a similar phrase. When we
believe it is appropriate to announce material non-public information, we will publish press releases or file reports with the
SEC.
*Note on non-GAAP Financial Measures This presentation also includes a discussion of Adjusted EBITDA, which is a non-GAAP financial measures provided as acomplement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term "EBITDA"refers to a financial measure that we define as earnings plus or minus net interest plus taxes, depreciation and amortization.Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management doesnot utilize in assessing ENSERVCO’s operating performance. None of these non-GAAP financial measures are recognized termsunder GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAPmeasure.
Cautionary Statement on Forward-looking Information
Symbol (NYSE: MKT)
52-week range
Recent price*
Avg. volume (3 mo.)
Shares - outstanding
Shares - fully diluted
Market cap*
Fiscal year end
ENSV
$1.30 - $4.02
$1.73
101,536
37.6 M
39.0 M
$64.3 M
December 31
Key Data
ENSV 1-year price performance
Financial Results (TTM at12/31/14)Revenue $56.6 MAdjusted EBITDA $10.9 M
Russell 3000 Index member
Analyst Coverage• William Blair • Maxim Group• Northland Capital Markets • Sidoti• Barrington • Zacks• Euro Pacific Capital • Casimir Capital
*Recent price and market cap data as of April 14, 2015, and subject to change.
ENSV Shareholder Overview
ENSERVCO’s institutional shareholder count grewfrom 1 at January 1, 2014, to 40 at December 31, 2014
Partial list of ENSERVCO’s institutional shareholders as of April 15, 2015.
Institution Shares Held
Cross River Capital Management 5,183,117Granahan Investment Management 2,241,291Wellington Management 1,051,762Hunter Associates 1,000,000North Star Investment Management 554,367BlackRock Fund Advisors 532,990Morgan Stanley 455,822Vanguard 388,790Blue Clay Capital Management 384,855William Blair Investment Management 332,067Edmunds White Partners 325,755USAA Investment Management 301,300Advisory Research 216,600Perritt Capital Management 139,400GSA Capital Partners 137,413Clifton Park Capital Management 95,600Deutsche Bank Securities 80,300
Company Overview
Leading provider of well stimulation and fluid management services to domestic onshore conventional and unconventional oil and gas customers
Primary Services: Frac Water Heating • Hot Oiling • Acidizing • Fluid Mgmt.
Only national provider of frac water heating, hot oiling and well acidizing
Operations in seven of nation’s most active oil and gas fields
45% of revenue derived from recurring, maintenance-related work
Master service agreements (MSAs) with many of America’s leading exploration and production companies
Mobile equipment fleet allows for rapid redeployment to address regional shifts in demand
Strong relationship with PNC Bank supports growth
Investment Considerations
Only national provider of hot oiling, acidizing and frac water heating services
Strong, underleveraged balance sheet positions Company to weather oil price volatility
Capacity and geographic expansion initiatives underway
Focused on reducing seasonality with more balanced, high-margin revenue model emphasizing recurring, year-round maintenance work
Rick Kasch – President and CEO; Co-Founder• Responsible for ENSERVCO operations since Company inception in 2006• Executed acquisitions of ENSERVCO’s predecessor businesses• Extensive operating, financial management, capital formation and public company experience with
companies ranging from startups to NYSE listed
Austin Peitz – Vice President, Field Operations• More than 18 years of operational experience with ENSERVCO• Responsible for all Heat Waves and Dillco field operations• Designed proprietary heating systems used in ENSERVCO’s frac water heaters and hot oiling trucks• Managed opening of all Company locations
Bob Devers – Chief Financial Officer• Joined Company in 2013 with more than 20 years of financial management experience• Broad industry background includes oil and gas and natural resource sectors • Spent 2007 - 2011 as CFO of mineral exploration Company traded on NYSE MKT• Formerly senior director of financial analysis and internal audit of The Broe Companies Inc., a multi-
billion dollar international holding company with investments in real estate, transportation, mining, and oil and gas exploration.
Experienced Leadership Team
Notable Events in Company History
Becomes a public company
Commences operations in Marcellus Shale region
Acquisition of 35-year-old Dillco Fluid Services, the leading provider of water hauling, fluid disposal, frac tank rental, and well-site construction services in the Hugoton Basin
Opens major operation centers in Bakken Shale and northern Niobrara Shale fields
Service territory expanded into Utica Shale and Mississippi Lime regions
Acquisition of Heat Waves Hot Oil Service, a 10-year-old provider of hot oiling, frac water heating, acidizing, pressure testing & water hauling
Full-year revenue up 48% YOY to record $46.5 million
Full-year adjusted EBITDA up 121% to record $10.9 million
Service territory expanded into Wyoming’s Jonah Field, Powder River & Green River Basins
Company achieves record revenue ($56.6M) and adjusted EBITDA ($11.5M)
$16 million Capex program facilitating major expansion of service fleet
$3.7 million asset acquisition expands fleet & footprint into northern Bakken Shale
Commercializes LNG, CNG and well-gas fueling options for frac water heating units
PNC Bank approves $40 million credit facility
Up-listed to NYSE MKT; named Rocky Mountain Region’s Service Company of the Year for 2013
Operating Subsidiaries
88% of 2013 consolidated revenue
Primary services:
• Frac water heating
• Hot oiling
• Acidizing
• Pressure testing
Service area: Colorado, Pennsylvania,
North Dakota, Montana, Wyoming,
Nebraska, West Virginia, Ohio, Kansas,
New Mexico, Oklahoma, Texas & Nevada
12% of 2013 consolidated revenue
Primary services:
• Fluid hauling
• Fluid disposal
• Frac tank rental
• Well-site construction
Service area: Colorado, Kansas,
Oklahoma & Texas
Heat Waves Hot Oil Service Dillco Fluid Service
Service Overview – Frac Water Heating
Frac water heating is the process of heating the water used to hydraulically fracture oil and natural gas wells. This process ensures fluid temperatures meet the requirements of the customer’s frac design.
A majority of ENSERVCO’s burner boxes are bi-fuel, meaning they can be fueled with propane, liquefied natural gas, compressed natural gas or dry well-gas with the flip of a switch. Bi-fuel capability is a competitive advantage, offering customers a “green” alternative and lower operating costs.
Trucks come configured as single burners (bobtail), double-burners and “mega” heaters (pictured).
Service Overview – Hot Oiling
Hot oiling involves heating and circulating oil or similar fluids down a well bore, where the fluid dissolves and dislodges paraffin and other hydrocarbon deposits.
Hot oiling is also used to heat the contents of oil storage tanks, a process that melts ice and/or eliminates water and other soluble waste that can reduce the operator’s revenue at the refinery.
Hot oiling is a recurring, maintenance-related service, and is performed throughout the life of a well.
ENSERVCO’s hot oilers are capable of generating up to 12 million BTUs, and are also used in pressure testing applications.
Service Overview – Acidizing
Acidizing involves pumping specially formulated acids and/or chemicals into a well to dissolve materials blocking the flow of the oil or natural gas.
Acidizing is used for increasing permeability throughout the formation, cleaning formation damage near the wellbore and removing the buildup of materials restricting the flow in the formation.
Acidizing is a recurring, maintenance-related service, and can be performed throughout the life of a producing well.
Fluid Management Services
ENSERVCO’s Fluid Management business transports water to fill frac tanks or reservoirs at well locations, transports contaminated production water to disposal wells, moves drilling and completion fluids to and from well locations, and transports flow-back fluids from the well site to disposal wells.
The Fluid Management services are utilized during both the drilling and long-term maintenance of a well.
Service Assets and Capex Initiatives
August 2014 appraisal of rolling stock + 2014 Capex + North Dakota asset acquisition total $50 million in fair market value (excluding real estate)
2014 Capex Program essentially doubled the size of the Company’s fleet
2015 Capex plan will be formulated in Q2 after discussion with key customers
Fleet Expansion OverviewEnd of
2013/2014 Season
End of 2014/2015
Season*
Frac Water Heating Unit Equivalents** 42 81
Hot Oiling units 27 59
Acid Transport 3 7
* Includes equipment commissioned under the 2014 capital expenditure plan and effects of November 2014 asset acquisition
** Mega Frac Water Heaters have twice the heating and revenue capacity of a standard heating unit, and therefore are counted as two units.
8
Service Territory – Demand-driven Expansion
Colorado1. DenverHeadquarters2. PlattevilleD-J Basin & Niobrara ShaleKansas3. Garden CityMississippi LimeNorth Texas4. HugotonNorth Dakota5. Killdeer6. TiogaBakken Shale
Pennsylvania7. CarmichaelsMarcellus Shale & Utica ShaleWyoming8. Rock SpringsJonah Field &Powder River Basin9. Casper Powder River BasinTexas10. San AntonioEagle Ford ShaleNevada11. Elko County
ENSERVCO Locations
Colorado
Pennsylvania
North Dakota
Kansas
Wyoming
1 2
34
5
7
9
Existing territories
Expansion opportunity
10
11
6
All locations are serviced by Heat Waves with the
exception of Hugoton, which is serviced by Dillco.
Competitive Landscape
Industry consists primarily of small “mom and pop” and regionally focused service providers
Many providers operate aging equipment with limited capacity
ENSERVCO’s Competitive Advantages:
Only national provider of hot oiling, well acidizing, frac water heating
Modern equipment fleet outperforms most competing providers
MSAs with leading exploration and production companies
Low employee turnover
Under-leveraged with strong balance sheet and cash flows and excellent banking relationship
$ in thousands 2012 2013 2014*
Revenue $31,498 $46,473 $56,564
% growth 32% 48% 22%
Gross profit $7,953 $14,603 $15,306
% margin 25% 31% 27%
Operating income $1,701 $8,249 $6,948
Income after tax $401 $4,301 $4,006
Adjusted EBITDA $4,940 $11,000 $11,476
% margin 16% 24% 20%
Financial Highlights
* 2014 revenue and profit growth reduced by impact of propane price fluctuations, customer
stand-downs and unseasonably warm weather. Please see the Company’s press releases for
additional information.
Financial Highlights (continued)
$ in thousands December 31, 2014
December 31, 2013
Cash & Accts. Rec. $15,634 $13,554
Current assets $19,476 $15,129
Total assets $58,283 $33,422
Working capital $13,663 $8,174
LT debt, net of current portion* $29,436 $11,200
Total liabilities $40,241 $20,577
Total liabilities/equity 2.2:1 1.6:1
LT debt/equity 1.6:1 0.9:1
Growth Strategy
Two pronged approach – Organic and Acquisitions
Parameters1. Balance revenue streams between recurring maintenance and drill bit2. Reduce seasonality3. Diversify service offerings4. Maintain high gross profit margins
Organic• CAPEX – e.g. 2014 Plan• Geographic expansion – e.g. Wyoming, Texas• Both satisfy parameters 1, 2, 4
Acquisitions• Opportunistic but prudent approach in current oil price environment• Recent $3.7M asset acquisition satisfied parameters 1, 2, 4• Strong balance sheet, bank relationship, cash flow
Execution of Growth Strategy
Capitalize on continued increase in strong demand for well enhancement services in Rocky Mountain and Northeastern service territories
Leverage early-mover status with LNG, CNG and well-gas fueling options for frac water heaters
Pursue expansion into new regions, including Texas and Nevada, where opportunities exist with current customers
Leverage MSAs to capture new business as E&Ps narrow their vendor lists
Jay PfeifferPfeiffer High Investor Relations
Contacts:
Rick KaschPresident & CEO
ENSERVCO Corporation303-333-3678
Bob DeversChief Financial Officer
ENSERVCO Corporation720-974-3408