INVESTOR PRESENTATION TSX : SDY OIL & GAS l PIPELINE l - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION TSX : SDY OIL & GAS l PIPELINE l - - PowerPoint PPT Presentation

May 2019 INVESTOR PRESENTATION TSX : SDY OIL & GAS l PIPELINE l POWER l MINING l CONSTRUCTION PAGE FORWARD LOOKING STATEMENTS This presentation contains statements and information that constitute forward-looking


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INVESTOR PRESENTATION

OIL & GAS l PIPELINE l POWER l MINING l CONSTRUCTION TSX : SDY

May 2019

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FORWARD LOOKING STATEMENTS

This presentation contains statements and information that constitute forward-looking statements. These statements relate to future events or to the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by such forward- looking statements. The use of the words “expect”, “plan”, “continue”, “estimate”, “anticipate”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “may”, or “will” and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this presentation. The forward-looking information and statements included in this presentation are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking
  • statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking information or statements. These factors include, but are not limited to, such things as the impact of general industry conditions, fluctuation of commodity process, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. The risks outlined above should not be construed as exhaustive. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information in this
  • presentation. All of the forward looking statements of the Company contained in this presentation are expressly qualified, in their entirety, by this cautionary
  • statement. Except as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking information or statements, whether
the results of new information, future events or otherwise. 2
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WHAT WE DO

EQUIPMENT RENTALS

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INDUSTRIAL MATTING

PAGE
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6,100

PIECES

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$67M

ASSET NBV

A critical vendor of scale

  • 1. EcoPonds (large fluid storage)
  • 2. Pipe Tubs
  • 3. Pipe Racks
  • 4. Well-Site Trailers
  • 5. Centrifuges + Solids Control
  • 6. Shale Bins
  • 7. Premix Tank
  • 8. 400 BBL Tanks
  • 9. Berm Containment System
  • 10. Light Towers
  • 11. Pumps (within Tanks)
  • 12. Stairs
  • 13. Generator
  • 14. Insulated Tanks
  • 15. Shed
*All figures as of March 31, 2019

EQUIPMENT RENTALS

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EQUIPMENT RENTALS

12

MONTHS

5 PAGE

150

PIECES

$5M

REVENUE

Colorado Drilling Project

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INDUSTRIAL MATTING

118,000

MATS

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Integral for larger infrastructure projects

$67M

ASSET NBV

*All figures as of March 31, 2019
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INDUSTRIAL MATTING

6

MONTHS

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18K

UNITS

$10M

REVENUE

North Montney Mainline Project

INVESTOR PRESENTATION
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SOLID FINANCIAL PERFORMANCE

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Margin profile supports strong cash-flow growth

*Average Analyst Estimates 2019 50 100 150 200 250 10 20 30 40 50 60 70 2014A 2015A 2016A 2017A 2018A 2019 Fcst* Revenue $MM EBITDA $MM

REVENUE & EBITDA

EBITDA Revenue
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SEGMENTED REVENUE & EBITDA

*Management Estimates † Average of 2017, 2018 and Q1 2019

EBITDA Margin 38%† EBITDA Margin 16%†

SOLID FINANCIAL PERFORMANCE

  • 2.0
4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
  • 1.0
2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Revenue $MM EBITDA $MM

Industrial Matting

EBITDA Revenue
  • 2.0
4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
  • 0.5
1.0 1.5 2.0 2.5 3.0 3.5 4.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Revenue $MM EBITDA $MM

Equipment Rentals

EBITDA Revenue
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DURABLE FINANCIAL PLATFORM

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Disciplined approach to balance sheet strength

CAPITAL ASSETS

$134M

Funded Debt to EBITDA 0.3

Funded Debt†

$8.2M

PAGE *All figures as of March 31, 2019 †Funded debt includes bank indebtedness plus long-term debt less cash
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EQUATION FOR GROWTH

11
  • NCIB
  • Acquisitions
  • Capex

=

LOW DEBT + STRONG CASH-FLOWS

{ }

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NORTH AMERICA

MARKET SIZE*

$2B

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ENVIRONMENTAL SAFETY GROUND PROTECTION ACCESS

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Large Scale Infrastructure Projects

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SLIDE 14 PAGE INVESTOR PRESENTATION 14

POWER TRANSMISSION OIL + GAS PIPELINE CONSTRUCTION

PAGE
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STRONG GROWTH DEMAND FOR INDUSTRIAL MATTING

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We’re still at the front-end of a broad industrial adoption

*All numbers are Company estimates

700,000

CANADIAN FLEET +

3,000,000

AMERICAN FLEET

{ } =

$2B

N.A. MARKET SIZE

Industry growth in last 10 years (17% CAGR)

5x

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LARGE SCALE PROJECTS

DEMAND > SUPPLY

Trans Mountain Line 3 Keystone XL Coastal GasLink LNG Canada

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FRAGMENTED LANDSCAPE

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WESTERN CANADIAN PARTICIPANTS

STRAD

Robust opportunity for consolidation

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ACQUIRER OF CHOICE:

  • capital resources
  • debt
  • cash
  • equity
  • reputation
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OUR MOMENTUM

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Potential to double

  • ur matting fleet

by 2021

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3,000 92,200* 180,000

2008 2018 2021

INDUSTRIAL MATTING FLEET

41% CAGR (2008 – 2018)

*As of June 30, 2018
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SAFETY LOGISTICS SCALE RELIABILITY

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INVESTING IN MATTING TO ACHIEVE HIGH RETURNS

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POTENTIAL TO DOUBLE FLEET BY 2021

$64M

SALES FIELD EQUIPMENT Scaling to capitalize on the matting opportunity

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RELENTLESS PURSUIT

MATTING l HIGH GROWTH l HIGH RETURN

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S T R A D E N E R G Y.C O M