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PSAC Investment Symposium y pCalgaryJune 16, 2011
Your investment in Flint gives you a
t ti l l i FRONT ROW SEAT
at every unconventional energy play in North America
1
Company PresentationCompany Presentation
W. J. Bill LingardW. J. Bill LingardPresident and Chief Executive Officer
2Shell Albian Sands – Flint’s largest oil sands infrastructure project to date
Forward Looking Information StatementForward-Looking Information Statement
This presentation contains forward‐looking statements concerning the Company’s projected operating results and anticipated capital expenditure trends and drilling activity in the oil and gas industry. Actual events or results may differ materially from those reflected in the Company’s forward‐looking statements due to a
b f i k i i d h f ff i h C ’ b inumber of risks, uncertainties and other factors affecting the Company’s business and the oil and gas industry generally. These risk factors include, but are not limited to risks and uncertainties described d h h di “Ri k F ” d l h i h C ’ A lunder the heading “Risk Factors” and elsewhere in the Company’s Annual
Information Form for the year ended December 31, 2010, and other documents filed with Canadian provincial securities authorities, which are available to the public at wwwsedarcompublic at www.sedar.com. Unless otherwise indicated, all financial information in this presentation is in Canadian dollars and in accordance with Canadian generally accepted accounting principles
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principles.
Flint’s History of GrowthFlint s History of Growth
102 Years of History1908 – Tulsa Rig, Reel and Manufacturing Co. formed 1911 – CW Flint Sr. joined and acquired control in 19191924 ‐ Flint Rig Company was formed in Tulsa, OK 1949 – First Canadian operations, Redwater Field, AB1951 – Canadian office opened in Edmonton, AB1957 – Moved to Calgary renamed Flint Engineering & Construction1957 – Moved to Calgary, renamed Flint Engineering & Construction1993 – Renamed Flint Canada Inc.
12 Year Anniversary1998 ‐ SCF Partners acquired HMW Group, Reid’s Construction and Flint
Canada, renamed Flint Energy Services Ltd.2001 – Purchased IPEC, became a public company 2005 – Revenues exceeded $1 Billion2006 – Flint acquired Transco Energy Services2007 – Expanded oil sands maintenance services with FTS 2008 Celebrated 100 years2008 – Celebrated 100 years 2009 – Opened new operations to service the Marcellus2010 – Expanded Oilfield hauling operations in Texas, Louisiana, North
Dakota, and Pennsylvania
4
Mural in the Smithsonian Institute in Washington, DC Flint’s founder, C.W. Flint, in lower panel, left corner
Flint’s Strategy - “Build it then Maintain it”Trading and Financial Indicatorsit”Trading and Financial Indicators
$19 99 $11 00 FES Sh P i (Hi h/L )$19.99 - $11.00 FES Share Price (High/Low)(high 2/22/11, low 5/21/10)
45.8 Million Basic Shares Outstanding
$773.1 Million Market Capitalization (as of March 31, 2011)
$1,781.3 Million in Annual Revenue (2010)ES $ ,78 3 (2010)
$131.3 Million in Annual EBITDA(2010)
$TSX:
FE
$33.0 Million in Annual Net Earnings (2010)
$2.88 Annual EBITDA per Share (2010)
T
5
$ .88 (2010)
$105.3 Million cash holdings as of Mar. 31, 2011
Flint’s Strategy - “Build it then Maintain it”
Flint’s Strategyit”“Build it, then Maintain it”
• Our focus is on energy production in North America
• We are aligned with the best oil and gas producers in th i ti k ttheir respective markets
• Our goal is:to become the most respected energy service company in North America
We perform maintenance services at Suncor’s Sarnia, ON refinery through FT Services
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company in North America
Full Cycle ServicesFull-Cycle Services
OILFIELD PRODUCTION FACILITY MAINTENANCESERVICES SERVICES INFRASTRUCTURE SERVICES
Early cycle Late cycleEarly cycle Late cycle
Upstream Drilling Downstream RefiningMidstream Production
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Transportation, Construction, Manufacturing & Maintenance
2010 Revenue by Segment2010 Revenue and EBITDA by Segment2010 Revenue by Segment
Total Revenues $1,781.3 millionEBITDA $131 3 million
Amounts in C$ millions
2010 Revenue and EBITDA by Segment
EBITDA $131.3 millionProduction Services$783.9 million in Revenue
Maintenance Services$421.7 million in Revenue
$18.7 million in EBITDA$58.4 million in EBITDA
Oilfield Services
$18.7 million in EBITDACanada$491.7 million Revenues$37.9 million EBITDA
$220.8 million in Revenue
$15.3 million in EBITDA USA
EBITDA
$292.2 million Revenues$20.5 million 17 4% of revenues are
Facility Infrastructure$354 8 million in Revenue
$20.5 million EBITDA
17.4% of revenues arefrom US operations
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$354.8 million in Revenue
$38.9 million in EBITDA
Fabrication & Construction ActivitiesFabrication & Construction Activities
Top L: Shell’s Albian Sands Project, NE ABTop R: BP Node 3 in NE BCTop R: BP Node 3, in NE BCBottom L: Module Fabrication, Sherwood Park, AB
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Manufacturing ActivitiesManufacturing Activities
Add global poly
Top L: Flint Global Poly, Edmonton, ABTop R: JW Williams, Casper, WYBottom L: Flint Process Systems, Halkirk, AB
Add paint earth
10
Transportation ActivitiesTransportation Activities
Top L: Rig Move MarcellusTop L: Rig Move, Marcellus Basin, PATop R: P&V, Cold Lake, ABBottom L: New Rig Moving Office Texas
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Office, Texas
Maintenance ActivitiesMaintenance Activities
Top L: Nexen’s Long Lake Facilities p gTop R: Suncor Energy’s Firebag 1 & 2Bottom L: Tubular Management, Nisku, ABAdd tubular management
12
2010 Financial Highlights2010 Financial Highlights
(in C$ Millions, except share amounts)12 months
Dec. 31, 201012 months
Dec. 31, 2009
Revenue $1,781.3 $1,876.5EBITDA 131.3 149.2Funds Provided by Operations (1) 97.9 102.5Net Earnings 33 0 45 8Net Earnings 33.0 45.8Earnings per Share
Basic Earnings $0.72 $1.00Diluted Net Earnings $0.72 $1.00
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(1) Before changes in non-cash working capital
2010 Balance Sheet Summary
(in C$ Millions) Dec 31 2010 Dec 31 2009
2010 Balance Sheet Summary
(in C$ Millions) Dec. 31, 2010 Dec. 31, 2009
Total Current Assets (1) $568.1 $546.9Current Portion of Long Term Debt 136.9 16.7gTotal Current Liabilities (2) 325.6 192.4
Non-Cash Working Capital 78.9 189.7
Long Term Debt (3) 92.4 222.4
Other Assets 415.5 414.6
Shareholder’s Equity 543.4 511.8
Total Assets $983.6 $961.5
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(1) Cash holdings were $163.5 million at Dec. 31, 2010, compared to $164 million as at Dec. 31, 2009. (2) Includes $136.9 million current portion of LTD. As of Dec. 31, 2010 Flint’s operating lines were undrawn. (3) Excluding current portion of long term debt.
Annual Revenues by Segment
Production Infrastructure Oilfield Maintenance
Annual Revenues by Segment
$2 000
$2,250
$2,500
Production Infrastructure Oilfield Maintenance
$1 250
$1,500
$1,750
$2,000
$500
$750
$1,000
$1,250
$-
$250
$500
2004 2005 2006 2007 2008 2009 2010 2011*
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*2011 forecast based upon covering analyst’s published estimates
Annual Unconventional Revenues by Segment
$1,500
Production Infrastructure Oilfield Maintenance
$1,000
$1,250
$500
$750
$-
$250
2004 2005 2006 2007 2008 2009 2010 2011 (f)
16
2004 2005 2006 2007 2008 2009 2010 2011 (f)
Unconventional i iUnconventional OpportunitiesOpportunities
Regional Growth Opportunities Arctic Gas65 + operating centres
Unconventional Opportunities
Rig MovingBakken
Marcellus
N.E. B.C.
65 operating centres
8,800 + employees
Texas & Louisiana
Pressure & Vacuum, Fluid HaulingBakken
Montney & Horn River Shale Gas
East CoastOffshoreBakken
Marcellus
Major Facilities ProjectsContinental United States Bakken Shale Oil Marcellus Shale Gas
Heavy Oil & Bitumen
Maintenance ContractsOilsands
Eastern Refineries
Other industrial
Woodford, Fayetteville & HaynesvilleShale GasBarnett, Eagle Ford
Shale Gas
17** Flint Headquarters – Calgary & Tulsa
2011 Forecast Drivers
• US & Canadian drilling activity is expected to
2011 Forecast Drivers
increase 15%‐20% in 2011.
• Mid‐stream capital spending has picked up in both Canada and the US.
• Oil sands capital spending is projected to increase to $22 billion by 2014 with a number of new project approvals and stable oil pricing24” pipeline installation near Fort McMurray AB of new project approvals and stable oil pricing.
• WTI crude oil is forecast in the $100 ‐$110/bbl range in 2011, and increase to $115/bbl b 2015
24 pipeline installation near Fort McMurray, AB
$115/bbl by 2015.
• Natural gas is expected to trade below $5/mcffrom 2011 through 2015.
1870 acre module fabrication yard, Sherwood Park, AB
Sources: Spears & Associates, Mar 2011CAPP June 2010 & Peters & Co., Jan 2011
North American Drilling Update800 2,400
North American Drilling Update
600
700
1 600
2,000Canadian Active Rigs US Active Rigs
2009 Actual223 average rigs 8 544 wells
400
500
1,200
1,600
2009 Actual1,087 average rigs
8,544 wells
2010 Actual 348 average rigs 12,165 wells
2011 Forecast
200
300
400
800
34,600 wells
2010 Actual 1,536 active rigs 51,883 wells
2011 Forecast 412 average rigs13,975 wells
-
100
2004 2005 2006 2007 2008 2009 2010 2011f-
400 2011 Forecast 1,847 rigs64,400 wells
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Sources: Historical rig counts - Baker HughesCanadian & US forecast – Spears & Associates, Drilling & Production Outlook, Jun 2011
Flint’s Oil Sands Construction ActivitiesFlint s Oil Sands Construction Activities
Current Contracts: Project History:Suncor’s Firebag 3 ‐ site‐wide field construction
Suncor’s Firebag 4 ‐ module fabrication
Suncor’s Firebag 1 & 2 & Co‐GenSuncor’s Millennium Coker & Vacuum UnitsNexen’s Long Lake GasifierHusky’s Tucker LakeSuncor s Firebag 4 ‐ module fabrication
$108 million in contract backlog
Husky s Tucker LakeConocoPhillips’ Surmont 1EnCana’s Foster CreekPetro‐Canada’s Mackay RiverShell’s Albian Sands Froth Treatment Statoil’s Leismer SAGD Project
Statoil Leismer SAGD Project
20Shell’s Albian Sands Mine – froth treatment facility
Oil Sands Construction Capital Expenditure & Forecast
i i i d
20
25In‐situ Mining Upgraders
15
$ Billion
s
5
10C$
0
21
Construction spending is forecast to rise to $22 Billion by 2014.$180 Billion in proposed projects from 2011 to 2021.
Source: Peters & Co., Jan 2011
Flint’s Oil Sands Construction Opportunities
Revenues Risked at 50%
300
350
400 Revenues Risked at 50%Current and medium-term targets to build our oil sands construction backlog:
150
200
250Suncor - Firebag 4, 5 & 6, SAGD, Voyageur Upgrader and Fort Hills Mine
ConocoPhillips/Total - Surmont, SAGD
0
50
100MEG Energy - Christina Lake, SAGD
Northwest Upgrader - Upgrader
Q1 2007 Q3 Q2 Q1 2010 Q3 Q2 Q1 2013 Q3 Q2
Quarterly Revenues, Millions of dollars
Ri k d 50% i l b kl ddi i ld
Osum Oil Sands Corp - Taiga, SAGD & CSS
Statoil – Leismer Phase 2, SAGD
D J kfi h 3 SAGD
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Risked at 50%, potential backlog additions could exceed $2.5 Billion over the next five years
Source: management estimates
Devon - Jackfish 3, SAGD
Imperial Oil – Nabiye Lake, SAGD
Flint’s Maintenance StrategyFlint’s Oilsands Maintenance gy‘Build it, then Maintain it’
Flint s Oilsands Maintenance
•Bitumen production is expected to increase to over 2.2 million bbl/day by 2015
2 5 $6 0 s
Daily Production Annual Maintenance
Forecast Oil Sands Production and Maintenance Spending
•Annual maintenance spending projected to increase 30% to $5.8 billion in 2015•Flint’s 50% owned FT Services has 1.0
1.5
2.0
2.5
ons
Boe
/Day
$3.0
$4.0
$5.0
$6.0
pend
ing
$ B
illio
ns
t s 50% o ed Se v ces asthree multi‐year contracts with major oil sands producers•Over $2.1 billion in contracted maintenance backlog 50% to Flint
0.0
0.5
1.0
2007 2008 2009 2010 2011e 2012f 2013f 2014f 2015f
Mill
io
$-
$1.0
$2.0
Ann
ual S
p
maintenance backlog 50% to Flint•Maintenance typically covers : day‐to‐day maintenance, sustaining capital, turnarounds, and managing
Sources: CAPP ‐ oil sands production forecast, Jun 2010Maintenance spending ‐ Peters & Co. , Jan 2011
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third party services
Summary2011 Initiatives Fli t ill
Summary
Flint will:• Capture new opportunities/build backlog in our Facility Infrastructure
segment/regional expansion of existing services• Redeploy capital equipment from less active areas to more active North
American basins• Reduce costs of delivery to improve operating margins• Commercialize new technologies• Pursue strategic growth initiatives both organic and acquisitions
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