october 2009 enerchem international inc
TRANSCRIPT
October 2009
Enerchem International Inc.
www.enerchem.com
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Forward Looking Statements
Any statements in this presentation that are not historical facts are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Enerchem to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include fluctuations in oil and gas activity levels, changes in petroleum and natural gas prices, unfavourable weather conditions in the principal regions serviced by the Company, political and economic conditions, the demand for services provided by Enerchem, Enerchem’s ability to attract and retain key personnel and other factors. Enerchem disclaims any intention or obligation to update or revise any forward looking information as a result of new information or future events.
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Presentation Outline
Annualized Highlights Business Model Overview Operating performance review Financial performance review Business Strategy
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Annualized Highlights
Executive Office Consolidation Finance group change Reformulation of Executive Team Outsourcing of Engineering Function Realignment of Operating Model
Inventory Control Cap Ex Containment
Atlantis Lateral Operational (January)
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The Enerchem Business Model
RefiningSlave Lake & Sundre
Crude Crude StorageStorage
TerminalTerminal
FINISHED GOODSFINISHED GOODS
Upstream SalesUpstream SalesDrillSoltm FracSotm WaxSoltm
Downstream SalesEnerfuel 1500tm
Transport
By-Product SalesCrude Sales
TransportCrude OilPurchasing
By-ProductsProducts
40%
60%
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Sundre Flow-back Treatment Facility
2. RemoveContaminants
1. Purchase
Flow-back
3. Sell or return Clean Flow-back
4. Re-fractionate & Sell as Fracsol
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Facilities Locations
Slave Lake Fractionation plant and Atlantis
Lateral to Rainbow pipeline
Sundre Fractionation Plant, Flowback
cleaning facility and Millard Trucking. Grande PrairieEdson
Satellite Storage
CalgaryCorporate Office
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Operations Review
Key Operational Drivers
Production Cost Control Plant Utilization Margin Management Inventory Management Logistics Management
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Cash flow from operations
($ 000’s)
(500)
-
500
1,000
1,500
2,000
2,500
3,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
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Capital Expenditures
($ 000’s)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
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Cash flow from operations and CAPEX
($ 000’s)
(500)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
Cash flow from operations Capital Expenditures
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Working capital
($ 000’s)
-
5,000
10,000
15,000
20,000
25,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
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Sales Volume (m3)
0
5000
10000
15000
20000
25000
30000
Q1 Q2 Q3 Q4
2007
2008
2009
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Inventory, at cost
($ 000’s)
-
2,000
4,000
6,000
8,000
10,000
12,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
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Inventory volumes, cubic metres (m3)
-
5,000
10,000
15,000
20,000
25,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09
Finished goods Crude Feedstock
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Financial Highlights – Q1 2009 vs 2008
Six months ended June 30, ($000’s except per share amounts and ratios) 2009 2008 % Change
Revenues 34,709 55,137 (37)%
Net loss for the period (1,776) (1,138) (56)%
Loss per share – diluted (0.12) (0.07) (71)%
EBITDA (1,718) 706 (343)%
EBITDA per share (0.11) 0.05 (320)%
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Profile - ECH
June 30, 2009
Shares outstanding 15,027
Market capitalization($.84/sh) $12.6 million
TSX trading history (52 week) High
October 23, 2009
$1.20
Low $0.40
Current $1.48
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2009 Business Focus
Optimize key business drivers Manage the Balance Sheet Seek Opportunity
October 2009
Enerchem International Inc.www.enerchem.com