November 2009
Enerchem International Inc.
www.enerchem.com
Forward Looking Statements
2
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.
Presentation Outline





3
Annualized Highlights
Business Model Overview
Operating performance review
Financial performance review
Business Strategy
Annualized Highlights





Executive Office Consolidation
Finance group change
Reformulation of Executive Team
Outsourcing of Engineering Function
Realignment of Operating Model



4
Inventory Control
Cap Ex Containment
Atlantis Lateral Operational (January 2009)
The Enerchem Business Model
Refining
Slave Lake & Sundre FINISHED GOODS
Upstream Sales
DrillSoltm
FracSotm
WaxSoltm
Crude
Storage
60%
Transport
40%
Downstream Sales
Enerfuel 1500tm
By-Product Sales
Crude Sales
ByProducts
5
Crude Oil
Purchasing
Terminal
Transport
Sundre Flow-back Treatment Facility
1. Purchase
Flow-back
4. Re-fractionate & Sell
as Fracsol
6
2. Remove
Contaminants
3. Sell or return Clean
Flow-back
Facilities Locations
Slave Lake
Fractionation plant and Atlantis
Lateral to Rainbow pipeline
Sundre
Fractionation Plant, Flowback
cleaning facility and Millard
Trucking.
Grande Prairie
Edson
Satellite Storage
7
Calgary
Operations Review
Key Operational Drivers





8
Production Cost Control
Plant Utilization
Margin Management
Inventory Management
Logistics Management
Cash flow from operations
($ 000’s)
3,000
2,500
2,000
1,500
1,000
500
-
9
(500)
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Capital Expenditures
($ 000’s)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
10
(500)
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Cash flow from operations and CAPEX
($ 000’s)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09
(500)
11
Cash flow from operations
Capital Expenditures
Working capital
($ 000’s)
25,000
20,000
15,000
10,000
5,000
-
12
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Sales Volume (m3)
30000
25000
20000
2007
15000
2008
10000
2009
5000
0
Q1
13
Q2
Q3
Q4
Sales Volume vs. Rig Utilization
30
70
25
60
50
20
M3 (000)
40
%
30
15
10
20
10
5
Sales Volume
Average Rig Utilization
09
Q3
-
09
Q2
-
09
Q1
-
08
Q4
-
08
Q3
-
08
Q2
-
08
Q1
-
07
Q4
-
07
Q3
-
Q2
/
Q1
-
14
07
0
07
-
Closing Inventory, at Cost
($ 000’s)
12,000
10,000
8,000
6,000
4,000
2,000
-
15
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Closing Inventory volumes (m3)
25,000
20,000
15,000
10,000
5,000
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09
16
Finished goods
Crude Feedstock
Financial Highlights – Q3 2009 vs 2008
9 Months Ended Sept. 30/09
$000 Except /share and ratios
17
2009
2008
%
Change
Revenues
65,737
87,608
(25)%
Net loss for the period
(1,431)
(1,982)
27%
Loss per share – diluted
(0.09)
(0.16)
43%
EBITDA
(887)
0.00
%
EBITDA per share
(0.06)
0.00
%
Market Profile - ECH (TSX)
Sept. 30, 2009
Shares outstanding
15,027
$15.5 million
Market capitalization($1.03/sh)
Nov. 12, 2009
TSX trading history (52 week)
18
High
$1.50
Low
$0.40
Current
$1.28
2009 Business Focus



19
Optimize key business drivers
Manage the Balance Sheet
Seek Opportunity
November 2009
Enerchem International Inc.
www.enerchem.com