2008 Annual General Meeting

Transcription

1 2008 Annual General Meeting Presented by Stephen Popadynetz and Roderick Chisholm May 6, 2008 Integrated Solutions for the Oil & Gas Industry

2 Disclaimer This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Divestco Inc. ( Divestco or the Company ). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, fluctuations in commodity prices, access to capital markets, competition, changes in technology and government policies. In light of the significant uncertainties inherent in the forwardlooking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. The Company believes that the expectations reflected in these forward-looking statements are reasonable; however, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be relied upon. In addition, these forward-looking statements relate to the date on which they are made. Unless otherwise required by applicable securities legislation, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Integrated Solutions for the Oil & Gas Industry 5/7/2008 2

3 Company Snapshot Stock Symbol : DVT (TSX) Shares Outstanding: 41,800,000 Insider Ownership: ~28% Employees: Week High/Low: $4.15/1.61 Current Share Price: $2.50 Current Market Cap: $104,500,000 Enterprise Value (1) : $159,790,000 (1) Market Capitalization + Funded Debt - Cash Integrated Solutions for the Oil & Gas Industry 5/7/2008 3

4 Board of Directors John Brussa - Chairman (2) Wade Brillon - Director Brent Gough - Director (1,2,3) M. Scott Ratushny - Director (1,3) Edward L. Molnar - Director (1,2) Stephen Popadynetz - Director & CEO (1) Member of Audit Committee (2) Member of Compensation Committee (3) Member of Corporate Governance Committee Integrated Solutions for the Oil & Gas Industry 5/7/2008 4

5 Officers Stephen Popadynetz - Chief Executive Officer Roderick Chisholm - Chief Financial Officer Steve Sinclair-Smith - Chief Operating Officer Terry Barnhart - President Lonn Hornsby - SVP Operations, Divestco LP Danny Chiarastella - VP Finance Mathew Hepton - VP Software Development Oliver Kuhn - VP Processing Peter Zyla - VP Strategy, Logs, Archive & Consulting Integrated Solutions for the Oil & Gas Industry 5/7/2008 5

6 Integrated Business Model Software Over 20 geological, geophysical and land applications Used by customers worldwide and installed on over 35,000 desktops Core software products are WinPICS, EnvisionVSX, GeoCarta Tools, GeoVista, MapQ, LandRite and Earth Tools Services Data quality assurance and management services for geophysical and geological related information Provides Seismic Survey Audit, Archiving, Brokerage and Processing Services as well as Custom Mapping and Database Management Data Over 120 datasets including proprietary seismic and drilling data and a full suite support data layers (log, well, drilling, and mapping data) Provides log digitizing, rasterizing and document scanning services Consulting End-to-end solutions, including business consulting services, ERP/CRM systems implementations, custom software development, hardware devices, network infrastructure and land management services Integrated Solutions for the Oil & Gas Industry 5/7/2008 6

7 2007 Revenue Breakdown 69% 61% Millions ($) % 21% % 7% 8% 11% 0 Softw are Consulting Services Data Integrated Solutions for the Oil & Gas Industry 5/7/2008 7

8 Long-Term Vision Services Data Software Consulting 10% 25% 25% 40% Target Revenue Mix 2011 Integrated Solutions for the Oil & Gas Industry 5/7/2008 8

9 2007 Operational Highlights Closed a $60MM Bank Facility with Wells Fargo Financial Corporation Canada Secured appropriate long-term office space to centralize operations, allow for growth and realize internal synergies (Centennial Place - 15 year lease commencing in 2010 for 9 floors) Excluding BlueGrouse, we acquired an additional 2,700 sq. km of 3D, 300 km of 2D and acquired remaining 100% ownership in 900 sq km of 3D seismic data for a total consideration of $77.5MM Aggregate data library sales increased 99% from $23.9MM in 2006 to $47.6MM in 2007 Integrated Solutions for the Oil & Gas Industry 5/7/2008 9

10 2007 Acquisition Highlights Acquired BlueGrouse Seismic Solutions Ltd. with a seismic database of 32,000 km of 2D and 3,500 sq. km of 3D (value $38.5MM) Acquired the Geomatics Business unit of Veritas Energy Services Partnership (value $3.2MM) Acquired Spectrum Seismic Processing Partnership (value $1.9MM) Acquired i Land Data Ltd. (value $0.8MM) Acquired Canadian Landmasters Resources Services Ltd. (value 1.1MM) Integrated Solutions for the Oil & Gas Industry 5/7/

11 2008 Initiatives & Outlook Strengthen balance sheet and pursue less expansive seismic field acquisition strategy Only complete accretive data and/or software acquisitions Focus on right-sizing overall staffing levels within business units affected by the Alberta Royalty Review and overall industry slow down Continued focus on austerity measures across all business lines Target organic growth of ~15% Continue with targeted IR strategy and focus on attracting new shareholders Integrated Solutions for the Oil & Gas Industry 5/7/

12 Divestco Seismic Data Set >104,000 km of 2D Data >16,500 Square km of 3D Data Integrated Solutions for the Oil & Gas Industry 5/7/

13 Data Areas of Interest Montney Basin Horn River Basin >12,000 km of 2D Data >7,800 Square km of 3D Data >3,800 km of 2D Data >1,000 Square km of 3D Data Integrated Solutions for the Oil & Gas Industry 5/7/

14 Divestco Data Growth CUTBANK RIDGE CONTINUES TO BE THE GROWTH ENGINE FOR DVT S 3D SEISMIC DIVESTCO CONTROLS THE LARGEST BC 3D DATA SET IN THE INDUSTRY Integrated Solutions for the Oil & Gas Industry 5/7/

15 Seismic Data Growth Upon completion of our 2008 seismic acquisition programs Divestco expects to (1) : Own/control ~ 120,000 km of 2D Data Own/control ~ 20,000 square km of 3D Data Be involved in over $500MM of shot and purchased seismic since 2003 Be the acquirer of choice for seismic data in the WCSB during 2008/2009 season (1) Based on 2008/2009 potential seismic program outlay Integrated Solutions for the Oil & Gas Industry 5/7/

16 Financial Review 2006 Results 2007 Results % Change Revenue $106.5M $116.1M 9% EBITDA $63.7M $61.7M -3% Net Income $19.6M $17.5M -11% Funds from Operations (1) $1.94/share $0.91/share -53% EPS (1) $0.60/share $0.45/share -25% (1) Basic weighted average shares outstanding Integrated Solutions for the Oil & Gas Industry 5/7/

17 Financial Highlights by Year 120 $ Millions Revenue EBITDA Net Income Integrated Solutions for the Oil & Gas Industry 5/7/

18 Financial Highlights by Quarter $ Millions Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue EBITDA Net Income 18 Consecutive Quarters of Profitability and Growth Integrated Solutions for the Oil & Gas Industry 5/7/

19 Share Price Performance $5.00 2,000,000 $4.50 1,800,000 $4.00 1,600,000 $3.50 1,400,000 Share Price $3.00 $2.50 $2.00 1,200,000 1,000, ,000 Trading Volume $ ,000 $ ,000 $ ,000 $- 2-Jan Mar Jun-07 2-Sep Nov Feb-08 2-May-08 Provided by National Bank Financial Integrated Solutions for the Oil & Gas Industry 5/7/

20 Relative Performance Total Returns Jan. 2, May 5, % 40% Return 20% 0% -20% 25% 10% -11% -40% -60% 2-Jan Mar Jun-07 2-Sep Nov Feb-08 2-May-08 Provided by National Bank Financial DVT S&P/TSX Composite Index S&P/TSX Energy Index Integrated Solutions for the Oil & Gas Industry 5/7/

21 Historical Performance Integrated Solutions for the Oil & Gas Industry 5/7/

22 Questions? Thank you for your interest For further information, please contact: Stephen Popadynetz, CEO , Roderick Chisholm, CFO , Integrated Solutions for the Oil & Gas Industry 5/7/

23 Integrated Solutions for the Oil & Gas Industry 5/7/