INVESTOR PRESENTATION September 2014 di-ver-gent adjective 1. - - PowerPoint PPT Presentation
INVESTOR PRESENTATION September 2014 di-ver-gent adjective 1. Tending to be different or develop in different directions 2. Departing from convention Corporate Overview Divergent Energy Services Corp. is a publicly traded company listed on
di-ver-gent adjective
Divergent Energy Services Corp. is a publicly traded company listed on the TSX Venture Exchange under the symbol “DVG” Innovation Focused Service Oriented Value Driven
Ken Berg, P.Eng. President and CEO with DVG since 2012
Canada
Mitch McClannahan VP Product Development, Karlington Artificial Lift with DVG since 2012 Scott Hamilton, C.A. CFO and Corporate Secretary with DVG since 2013 Phil D’Angelo President, COTS Mexico with DVG since 2009 Justin Fultz Area Manager, Extreme Pump Solutions with DVG since 2010
Ltd.
investment banking, M&A, corporate restructuring, valuation, and asset management
Karlington Electric
Headquartered in Calgary, Alberta, DIVERGENT is positioned to capitalize on key conventional and unconventional plays across North America Villahermosa Uplift Viking Bakken Powder River Basin Burgos Basin
Flexible steel pipe combines the corrosion resistance and installation advantages of flexible pipe with a core of steel – the industry standard for durability. Performance Value Durability
Distribution and Sales Installation Services
Driving value through high ROCE oilfield construction finance opportunities
Project Management Project Finance
date
Focused on providing innovative and cost effective technologies Energy Mining Water
Sales and Service Distribution
Wyoming
dewatering projects in Canada and the USA
Distribution
agriculture, municipal water, and industrial water applications
Linear Electric Submersible Motor
The Linear Electric Submersible Motor duplicates rod pump movement without rod strings or surface lifting
wear, making the Linear Motor ideal for placement into horizontal wellbores. The linear motor and reciprocating pump are landed on the end of production tubing, with the power cable banded to the tubing. How it works The submersible reciprocating pump is driven by a linear synchronous permanent magnet motor, which generates thrust from a magnetic field and permanent magnet mover. Current is supplied to the motor only when the mover is travelling, and shut off between strokes. The absence of current between strokes allows for monitoring data to be transmitted up the power cable to surface to the controller. Features Reduced footprint on surface Lower operating cost Adjustable stroke length and rate Low noise No oil leakage from stuffing box Remote monitoring and adjustments Applications Vertical, Slant, and Horizontal Wells Up to 100 bbls/day Landed depths to 1500 m
Linear Electric Submersible Pump
China for over ten years
exclusivity in 2013
Development
been secured for a 5 well pilot test
implementation will take place pending test results
Testing
and introduction to other regions and reservoirs will be determined by the performance of the motor in phase 2.
Commercialization
Target Well Parameters for Linear Pump
Bakken Well Profile 1500 m TVD Bakken formation 1300 m TVD landed pump 100 bbl/day 40 API gravity sweet crude 7 pH
11
Artificial Lift
Flexible Pipe
announced in late Q3.
Construction
funding
Corporate
Six Months Ended June 30 Comparison* 2014 2013 % Change Revenue $3,075 $2,728 13% Gross Profit $1,082 $972 11% Net Earnings (Loss) ($2,131) ($801) (166%) Earnings (Loss) per share
($0.01) ($0.01)
*All amounts in thousands, except per share amounts.
Three Months Ended June 30 Comparison* 2014 2013 % Change Revenue $1,556 $1,433 9% Gross Profit $461 $506 (9%) Net Earnings (Loss) ($1,484) ($819) (81%) Earnings (Loss) per share
($0.01) ($0.01)
As at Six Months Ended June 30, 2014 Cash and Cash Equivalents $1,583 Working Capital $3,480 Long Term Finance Contract $1,136 Property, Equipment and Trademark $902 Long Term Debt to Capitalization 26% Debentures (in CAD, due December 31, 2014) $5,750
*All amounts in USD thousands, except as noted.
As at August 27, 2014 Shares 91,402,090 Warrants 13,158,200 Options 5,300,000 Fully Diluted 109,860,290 Average Daily Volume (previous 30 days) 82,547 Market Cap. (CAD) $28.3 million
This Corporate Presentation contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking information is often, but not always, identified by the use
“strategy”, “potential”, “projects”, “grow”, “take advantage”, “estimate”, “well positioned” or similar words suggesting future
strategies and competitive advantages. The forward-looking statements regarding the Company are based on certain key expectations and assumptions of the Company concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, all of which are subject to change based on market conditions and potential timing delays. Although management of the Company consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward-looking statements will not be achieved. Undue reliance should not be placed on forward-looking statements, as a number
anticipations, estimates and intentions expressed in the forward-looking statements, including among other things: inability to meet current and future obligations; inability to implement the Company’s business strategy effectively in Canada, Mexico and the United States; inability of the Company to continue meet the listing requirements of the TSX Venture Exchange; general economic and market factors, including business competition, changes in government regulations; access to capital markets; interest and currency exchange rates; technological developments; general political and social uncertainties; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation; timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. Readers are cautioned that the foregoing list is not exhaustive. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this Corporate Presentation are made as of the date of this Corporate Presentation and the Company does not undertake and is not obligated to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
Divergent Energy Services Corp. Corporate Office 1170, 800 – 6th Ave SW Calgary Alberta T2P 3G3 T: 403.543.0060 F: 403.543.0069 www.divergentenergyservices.com TSX-V: DVG
Mission Focused We provide cost effective, innovative technologies and solutions for subsurface pumping and the transmission of hydrocarbons Value Driven Empowerment and Accountability Being Innovative and Open-Minded Embracing and Driving Change Celebrating Achievements Building Relationships Growth and Learning Work / Life Balance Financial Performance