Investor Presentation
August 2012
Martin Ferron
David Blackley
President and CEO
Chief Financial Officer
Forward-Looking Statements
The information provided in this presentation contains forward-looking statements
and information which reflect the current view of North American Energy Partners
with respect to future events and financial performance. Actual results could differ
materially from those contemplated by such forward-looking statements as a result
of any number of factors and uncertainties, many of which are beyond our control.
Important factors that could cause actual results to differ materially from those in
forward-looking statements include success of business development efforts,
changes in oil and gas prices, availability of a skilled labour force, internal controls,
general economic conditions, terms of our debt instruments, exchange rate
fluctuations, weather conditions, performance of our customers, access to
equipment, changes in laws and ability to execute transactions. Undue reliance
should not be placed upon forward-looking statements and we undertake no
obligation, other than those required by applicable law, to update or revise those
statements.
For more complete information about us you should read our disclosure documents
filed with the SEC and the CSA. You may obtain these documents by visiting
EDGAR on the SEC website at www.sec.gov or on the CSA website at
www.sedar.com.
2
Overview
 Founded in 1953
Heavy Construction and Mining
 TSX and NYSE listings: “NOA”
 Current share price: $3.05
 52 week high/low: $8.03/$2.23
 Market capitalization: $111 million
 Shares outstanding: 36 million
 52 week average daily share
volume: 134,857
Commercial and Industrial Construction
* Data from NYSE in USD as at August 9, 2012
3
Presentation Agenda
 Oil sands realities
 Opportunities
 About the company
 Financial results
 Segment performance and opportunities
4
Reality #1:
Low Sensitivity to Oil Prices
 Oil sands mines keep operating despite changes in oil prices
 Competitive unit costs achieved at full capacity
 High risk of employee loss/ plant damage during shutdowns
5
Reality #2:
SAGD Will Not Replace Mining
SAGD and mining are geologically distinct processes
 Mining




Typical size: 100-300k bpd
Base load production to feed upgrader
Draws on full range of NAEP services
Construction and recurring services
opportunities
 SAGD




Typical size: 10-50k bpd
Supplements mining production
Construction opportunities
Draws on NAEP’s recently acquired
screw piling technology
6
Reality #3:
Producers Outsource
Seasonal work
Part-time labour requirement
Short-term equipment requirement
Outsource
Specialized knowledge & equipment
Non core to oil production
7
Reality #4: Demand is Growing
8
The Opportunity
 Largest heavy construction and mining contractor in high
growth oil sands market
 Poised to benefit from recently announced oil sands
development
 Position further entrenched by recent competitor difficulties
 Significant barriers to new entrants
 Proven base of stable recurring services business with recent
long-term contract wins
9
Key Customer Contracts
 One-year contract for site preparation
 Significant earthworks still to be awarded by the client
 3-year master services agreement
 3-year muskeg removal contract
 4-year master services agreement covering mining
services & construction
 5-year master services agreement covering mining
services & construction
 Year 7 of 10-year overburden removal contract
10
About the Company
Largest Construction & Mining Contractor in the Oil Sands
 Expertise
 30+ years in Northern Alberta’s harsh
operating environment
 Knowledge to come up with best
solutions for customers
Revenue by End Market
15%
12%
 Broad Service Offering
 Unique suite of services across project
lifecycle
61%
12%
 Operational Flexibility
 Unrivalled equipment fleet
 Active on every site
 Long-Term Customer Relationships
Canadian Oil Sands
Commercial & Public Construction
Industrial
Pipeline
12 Months Ended March 31, 2012
 Reliability; on-time delivery
11
First On, Last Off
Project Development Phase (3-4 years)
 Initial mine site development, project site
development, airstrips, pipeline construction
Build Relationship
Explore and Design
Major Projects
Initial Development and
Secondary Upgrades / Expansions
Ongoing Operations Phase (30-40 years)
 Overburden removal, mine infrastructure development,
reclamation, tailing ponds remediation, equipment and
labour supply
Recurring Services
Operation / Ongoing Services
77% of NAEP’s Oil
Sands Revenue
12
Mine Services
Active Mine
Muskeg & Topsoil
Overburden
Ore
Service
NAEP
Client
Season
Haul Truck
(tonnes)
Ore Mining
Year-round
300 - 400
Overburden Removal
Year-round
240 - 400
Muskeg (Removal/Remediation)
Winter*
100 - 240
Site Construction
Summer
100 - 240
Tailings Management
Summer
100 - 240
* Occasionally we will complete this work outside the winter season for our customers
13
Swing Supplier
NAEP achieves higher equipment utilization rates by working
on every major site in the oil sands
Single Customer
Fixed
production
capacity
Excess
production
requirement
Multiple Customers
NAEP demand
14
Active with Every Oil Sands Client
Current Activity: 10-year overburden removal
and dyke construction, mine operations and
projects group support
Future Opportunities: site development, haul
roads, civil construction, MSE walls,
compensation lake, long-term overburden and
reclamation (undefined volumes), contract mining
UTS
Future Opportunities: plant site civil projects
SUNCOR
Future Opportunities: mine train relocations,
MSE walls & associated civil scopes
CANADIAN
NATURAL
HORIZON
FORT
HILLS
EXXON
KEARL
SYNCRUDE
Future Opportunities: Phase 2 Kearl Expansion
Project (earthworks), long-term overburden and
reclamation (undefined volumes)
AURORA
TOTAL
SHELL/ALBIAN
JOSLYN
JACKPINE AND
MUSKEG RIVER
Current Activity: site development (ditching,
water diversion, reclamation, haul roads,
camp grading, etc.)
Future Opportunities: MSE wall,
compensation lake, long-term overburden and
reclamation (undefined volumes), contract
mining (unknown if Total will contract this
scope of self perform)
SYNCRUDE
BASE PLANT
SUNCOR
SUNCOR
Future Opportunities: major tailings projects,
haul road construction, debottlenecking & civil
scopes
MILLENNIUM and
STEEPBANK
JPM Current Activity: reclamation, major tailings
projects (TTD construction)
Current Activity: 2012 winter reclamation prep,
MLMR shear key construction, MSE wall
construction, base mine tailings dam,
manmade water shed construction, mine
operations support
70 km
VOYAGEUR
Future Opportunities: overburden and
reclamation (undefined volumes), various
construction projects for mining, tailings and
projects group
Fort McMurray
Future Opportunities: civil underground
construction
MRM Current Activity: major tailings projects
(AFD Phase 2 & 3 construction, tailings
corridor), plant site civil support
Current or recent NOA job site
Future Opportunities: major tailings projects,
starter dyke construction, reclamation
Current Activity: ramp removal, Dyke 12 drains, NSE road,
equipment rental (8 x 793s), sump construction
Future Opportunities: overburden and reclamation
(undefined volumes), light and heavy civil for mining and
tailings operations and projects groups
Providing estimates
15
Mining Project Lifecycles
Project Development
Engineering
and Design
Recurring Services
Commissioning
and Start-up
Initial
Construction
Proceeding
Operational
Phase
Delayed
Syncrude - Base
Syncrude - Aurora
Syncrude – Aurora South
Exxon - Kearl
Suncor - Original Lease
Suncor - Steepbank
Suncor – Voyageur South
Suncor - Fort Hills
Shell - Muskeg River Mine
Shell - Jackpine 1
Canadian Natural - Horizon
Total - Joslyn
2-3
3-4
0.5
40+
years
years
years
years
16
Tailings & Environmental Services
Engineered Earth
Structures
Pipeline & infrastructure
Fluids Transfer &
Hydraulic Transport
Tailings Management
Pond Closure &
Land Reforming
Final Reclamation
17
Fluid Fine Tailings
Inventory Projections
New regulations require dramatic reduction in tailings inventory
6,000
FFT Inventory (millions m3)
Bitumen Production (millions bbls/d)
Forecast Mined
Bitumen Production
3.0
5,000
2.5
4,000
2.0
3,000
1.5
Forecast Fluid Tailings Inventory
AFTER Directive 74
2,000
1.0
1,000
0.5
0
0
2010
2015
2020
Fluid Line Tailings Inventory
Millions of Cubic Metres (LHS)
2025
2030
2035
2040
2045
Fluid Line Tailings Inventory (After Tailings Directive)
Millions of Cubic Metres (LHS)
2050
2055
2060
Bitumen Production
Million of Barrels per day (RHS)
Source: Silver Birch Energy Presentation – Peter’s & Co. Winter Energy Conference January 28, 2011
18
Low Risk/High Growth Business Model
Construction & Mining
 Recurring services
provide stable base
 Oil sands project
development provides
strong growth potential
 Long-term customer
relationships create
high barrier to entry
Piling
 Leveraged to highgrowth construction
markets
 Offers geographic &
sector diversification
 Proprietary technology
and expertise creates
high barriers to entry
Pipeline
 Suited to cyclical
industry with low
capital commitment
& scalable operating
model
 Proven environmental
& safety record offers
significant competitive
advantages
19
Financial Performance
Rolling LTM Revenue
Rolling LTM EBITDA*
C ($) millions
C ($) millions
16%
14%
12%
10% 10% 9% 10%
$1,007
$862
$761
$798
$904
8%
6%
$899
$858 $868 $879
$122
$114
$105
$87
$84
$78
$83
$73
$57
Mar Jun
10 10
Sep Dec Mar
10
10
11
Jun
11
Sep Dec Mar
11
11 12
Mar
10
Jun
10
Sep Dec Mar
10
10
11
Jun
11
Sep Dec Mar
11
11
12
*Consolidated EBITDA as defined within the credit agreement
Consolidated EBITDA as percentage of revenue
20
Operating Leases
 Significant growth in operating lease portfolio from 2008-2010
 Operating lease expense directly impacts Consolidated EBITDA
Operating Lease Portfolio
Lease Additions
Impact of Operating Leases
Lease Expense
Consolidated EBITDA
($) millions
200
150
Lease Expense
($) millions
125
150
100
100
75
50
50
25
0
2008 2009 2010 2011 2012 2013 2014 2015
2016
2017
0
2008
Fiscal Year
2009
2010
2011
2012
Fiscal Year
* Future lease expense reflects operating lease commitments as at March 31, 2011
21
Operating Leases
Pros:
Cons:
 Low cost financing
 Readily accessible
 Accelerated amortization
 Consolidated EBITDA impact
Large Truck Example
Operating Lease
Purchase
Lease Term / Asset Life
Purchase Price
Residual / Salvage Value
5 years
$5.0M
$1.0M
12 years
$5.0M
$0.3M
Cumulative Impact (5 years):
Lease Expense
Depreciation
Interest
$5.2M
-
$2.0M
$1.2M
Consolidated EBITDA
($5.2M)
-
NBV - End of Period
$1.0M
$3.0M
22
Operating Leases
 $66 million of potential equity value in operating lease portfolio
 Potential equity value can be realized through future earnings
Current Lease Portfolio Value
($) millions
200
$173
$56 million of
potential equity
150
$117
100
50
0
Calculated Net Book Value
Actual Lease Buyout Value
* Values are as at March 31, 2012 and exclude leases related to the Canadian Natural overburden removal contract
23
Heavy Construction & Mining
Revenue and Gross Margin %
 Impact of temporary shutdown at Canadian Natural and late
winter freeze-up partially offset by new contracts and increased
tailings and environmental work
($) millions
800
700
600
500
400
300
200
100
0
$666
$667
$671
17%
8%
13%
FY 2010
FY 2011*
FY 2012
*Excluding the writedown, FY2011 segment revenue would have been $710 million and segment margin would have been 13%
24
Heavy Construction & Mining Outlook
 Expected impacts on mine support services should be offset by:
 Continued demand for reclamation and tailings services
 Mine expansion projects
 Resumed overburden removal operations at Canadian Natural
 New project development, including initial earthworks at Joslyn,
industrial construction activity at Mt. Milligan Copper/Gold
project and site development at Dover SAGD
25
Oil Sands Opportunities
 Production capacity
increasing
 All active oil sands mines
expected to be operating
later this year
 Kearl mine scheduled to
begin production in 2012
 $124 billion in new
investment forecasted
over next 5 years
Oil Sands Investment
($) billions
35
29
30
27
27
25
20
15
18
19
18
14
20
13
11
10
5
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: CAPP
Actuals
Forecast
26
Commercial and Industrial Construction
Revenue and Gross Margin %
 FY 2013 revenue up 130% and segment profit up $10.5 million,
reflecting growing demand, favorable weather, positive impact
of Cyntech acquisition and strong project execution
($) millions
200
180
160
140
120
100
80
60
40
20
0
$349
$192
$69
17%
8%
9%
FY 2010
FY 2011
FY 2012
27
Commercial and Industrial Construction
Outlook
 Continued demand across all regions and sectors
 Large backlog of projects expected to contribute to strong Q2
activity levels
 Continued work on high-margin, low-risk maintenance contract
28
Investment Highlights
 Largest construction and mining contractor in the oil sands
 Solid core business of recurring services with high barriers to
entry and near-term growth potential
 Investment in Canada’s oil sands without direct exposure to the
price of oil
 Financially secure with the ability to generate strong cash flow
 Attractive near-term growth potential
29
Thank you
Appendix
CNRL Contract Resolution
 $38 million settlement for past cost escalations and change orders
 Removal of $10 million letter of credit for 2012
 Profitable contract structure with reduced risk
 NAEP continues to operate all equipment with guaranteed base margin and
upside potential based on performance
 ~$40 million of additional net proceeds to NACG
 Early buyout of ~30% of contract-related assets
 Includes the buyout of contract-related operating leases, owned assets,
inventory and maintenance facility
 Strengthened working relationship
 Opportunities to extend contract beyond 2015
 Opportunities to provide broader range of services
CNRL recognized that NACG is the best option
for overburden removal & mining services
32
Credit Agreement Amendments
Recent amendments to credit facility include:
 Temporary relief from Consolidated EBITDA-related covenants
 Extension of credit agreement maturity date to
October 31, 2013
 Temporary facility capacity of $20.8 million to be eliminated
by June 30, 2012, in line with receipt of proceeds from asset
sale to CNRL
 Capacity of the revolving facility after June 30, 2012 will be
$85 million less any outstanding letters of credit
33
Pipeline Construction Opportunities
TMX Project
Anchor Loop
TMX-2
TMX-3
Edmonton
Vancouver
2011
 TCPL (NW AB, NE BC – 7 projects)
 TCPL (Tanghe Creek - Sloat)
 Enbridge (Husky (Sunrise)) Norealis Pipeline
 Enbridge (Wood Buffalo/L18)
 Enbridge – Cdn. Mainline Integrity Program
 Spectra Energy (T-North Looping)
Beyond 2011
 TCPL (NW AB, NE BC – 4 projects)
 Access Pipeline (50/50 JV Devon/MEG Energy)
 Spectra Energy (NE BC) Looping
 Enbridge (Woodland) Extension
 Enbridge (Athabasca) Twinning Project
 Enbridge (Bakken Oil Pipeline)
 Kinder Morgan (TMX Expansion)
 Pacific Trails Pipeline (PTP)
 Enbridge (Northern Gateway)
 TCPL Keystone XL
 CO2 Pipeline (Enhance Energy)
 Alliance Pipeline (Fort St. John)
 Alaska Pipeline
 Mackenzie Valley Pipeline
 Nova (Vantage Pipeline)
217+ km (20”-48”)
38 km (48”)
112 km (24”)
95 km (30”)
1,875 digs scheduled
100+ km (36”-48”)
500+ km (24”-48”)
300 km (42”)
300-400 km (24”-36”)
385 km (36”)
345 km (36”)
123 km (24”-30”)
800-1,000 km (36”)
462 km (36”)
1,170 km (36/20”)
2,673 km (36”)
240 km (12”)
60 km (24”)
est. 2020-2025
est. 2020-2025
575 km (10/12”)
34