october 2009 enerchem international inc

19
October 2009 Enerchem International Inc. www.enerchem.com

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Page 1: October 2009 Enerchem International Inc

October 2009

Enerchem International Inc.

www.enerchem.com

Page 2: October 2009 Enerchem International Inc

2

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.

Page 3: October 2009 Enerchem International Inc

3

Presentation Outline

Annualized Highlights Business Model Overview Operating performance review Financial performance review Business Strategy

Page 4: October 2009 Enerchem International Inc

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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)

Page 5: October 2009 Enerchem International Inc

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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%

Page 6: October 2009 Enerchem International Inc

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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

Page 7: October 2009 Enerchem International Inc

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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

Page 8: October 2009 Enerchem International Inc

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Operations Review

Key Operational Drivers

Production Cost Control Plant Utilization Margin Management Inventory Management Logistics Management

Page 9: October 2009 Enerchem International Inc

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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

Page 10: October 2009 Enerchem International Inc

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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

Page 11: October 2009 Enerchem International Inc

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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

Page 12: October 2009 Enerchem International Inc

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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

Page 13: October 2009 Enerchem International Inc

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Sales Volume (m3)

0

5000

10000

15000

20000

25000

30000

Q1 Q2 Q3 Q4

2007

2008

2009

Page 14: October 2009 Enerchem International Inc

14

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

Page 15: October 2009 Enerchem International Inc

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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

Page 16: October 2009 Enerchem International Inc

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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)%

Page 17: October 2009 Enerchem International Inc

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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

Page 18: October 2009 Enerchem International Inc

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2009 Business Focus

Optimize key business drivers Manage the Balance Sheet Seek Opportunity

Page 19: October 2009 Enerchem International Inc

October 2009

Enerchem International Inc.www.enerchem.com