“BUILT ON SERVICE…
DRIVEN BY PEOPLE”
DECEMBER 2012
INVESTOR HIGHLIGHTS
ENSECO ENERGY SERVICES
Enseco is a premier supplier of directional drilling and production testing (frac
flowback) services operating throughout a number of North American
resource plays.
• Experienced Management Team
• Increasing Utilizations and Margins
• USA Growth Platform
• In-house Technology
• Proven Growth Delivery
• Diversified Client Mix
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CORPORATE INFORMATION
SENIOR MANGEMENT/BOARD OF DIRECTORS
SENIOR MANAGEMENT
Kent Devlin, P.Eng., MBA, President – Mr. Devlin was appointed President of Enseco
in July 2012. Previously he served as its Vice President of Operations since May 2006.
He is a professional engineer with a Bachelor of Science in Mechanical Engineering from
the University of Manitoba and an MBA from the University of Calgary and is also a
member of the Society of Petroleum Engineers (SPE). Amongst many roles in both
Canada and the U.S., Mr. Devlin was a key part of the management team that built the
directional drilling business of Computalog/Precision Drilling into the market leader which
was eventually sold to Weatherford.
BOARD OF DIRECTORS
M. Scott Ratushny, Chairman and CEO
John A. Brussa, Director
Stan Grad, Director
Gregory T. Tisdale, Director
Blair Layton, CA, VP Finance & CFO - After receiving a Chartered Accountant
designation, Mr. Layton entered the oil and gas service industry as Controller of
Whipstock Systems Inc. The sale of this company led Mr. Layton to explore the fast
paced Venture Capital world of Merchant banking during which he was involved in five
start–up companies, three subsidiaries, and two reverse takeovers. Mr. Layton joined the
Enseco Energy Services team in 2009 after contributing significantly to the successes of
Focus Directional Services and Radius Directional Services as founder and CFO of both.
Kim Jespersen, Vice President – Operations - Mr. Jespersen holds the overall
responsibility of the Operational, Environmental, Health and Safety and Human Resource
processes. He has been with the Company since inception and has more than 30 years
of extensive experience in exploration, production, operational, and municipal emergency
medical service management. Mr. Jespersen holds a professional designation with the
Board of Canadian Registered Safety Professionals, and had a 25-year career with
Petro-Canada starting in 1980.
Dean Yuill, Vice President – Sales, Marketing & Business Development - Mr. Yuill
joined Enseco in his current role in December 2009 and is responsible for Enseco’s
sales, marketing, and business development company wide. Previously Mr. Yuill was the
President and one of the founding partners of Focus Directional Services which was
acquired by Enseco in December 2009. Mr. Yuill has over 15 years experience in the
directional services industry and over 30 years experience in the oil and gas industry.
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CORPORATE SNAPSHOT
ENSECO ENERGY SERVICES
Shares Outstanding
22.4 million
Share Price (Dec 17, 2012)
$0.62
Market Cap (Dec 17, 2012)
$13.9 million
Long Term Debt (net of Working Capital)
$20.6 million
Insider Ownership/Fully Diluted
25% / 28%
Revenue Split Canada/USA (LTM)
57% / 43%
Revenue Split DD/PT (LTM)
50% / 50%
Headcount (Employees & Consultants)
350
Tax Pools
$69.5 million
Corporate Snapshot as of September 30, 2012
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GEOGRAPHY
ENSECO ENERGY SERVICES
Commodity Split
Revenue Split
Canada/USA
Revenue Split
DD/PT
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OPERATIONAL STRATEGY
MAXIMIZING MARGINS
THREE PHASE APPROACH
• Improve Service Quality
• Reduce Costs
• Increase Sales
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DIRECTIONAL DRILLING
ENSECO ENERGY SERVICES
OVERVIEW
• 45 MWD kit capacity
• Innovative proprietary technology
upgrades
• In-House MWD Repair &
Manufacturing Facility
• In-House Drilling Motor Service
Facility
• Lower costs, higher utilizations
and better service quality
• Preventative maintenance schedule
PRODUCTION TESTING
ENSECO ENERGY SERVICES
OVERVIEW
• 42 Active Well Testing/Frac
Flowback packages - (23 Higher
Pressure – 500 psi or greater)
• Full Compliment of Auxiliary
Equipment - (60m3 storage tanks,
10k manifolds and flowlines,
lineheaters, sand separators, ball
catchers, flarestacks, office trailers)
• Training Facility
• Capital Investments to reduce
rentals
• QA/QC Program
FINANCIAL RESULTS
THREE AND SIX MONTHS
($ MILLIONS)
3 MONTHS
ENDING
3 MONTHS
ENDING
SEPT 30, 2012
SEPT 30, 2011
6 MONTHS ENDING
SEPT 30, 2012
6 MONTHS ENDING
SEPT 30, 2011
REVENUE
DIRECTIONAL DRILLING
$ 10.5
$ 11.8
$ 15.9
$ 16.5
PRODUCTION TESTING
$ 8.7
$10.5
$ 17.2
$ 16.4
$ 19.2
$ 22.3
$ 33.1
$ 32.9
TOTAL
ADJUSTED GROSS MARGINS
DIRECTIONAL DRILLING
$4.7
44.8%
$4.4
37.3 %
$
6.2
39.0%
$ 5.2
31.5%
PRODUCTION TESTING
$2.9
33.3%
$ 5.2
49.5 %
$
5.4
31.4%
$
6.4
39.0%
TOTAL
$ 7.6
39.6%
$ 9.6
43.0 %
$ 11.6
35.0%
$ 11.6
35.3%
EBITDAS1
$2.3
12.0%
$ 5.1
22.8 %
$
$
14.3%
2.5
7.6%
4.7
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CORPORATE GROWTH
REVENUE / EBITDA
REVENUE (000s)
EBITDA (000s)
10
(000s)
REVENUE, DEBT & JOB
CAPACITY
ENSECO ENERGY SERVICES
HPPT – High Pressure Production Testing Vessels 500 psi or greater
LPPT – Low Pressure Production Testing Vessels 285 psi or less
Q1 (April – June)
CORPORATE STRATEGY
OVERVIEW / OBJECTIVES
 Turn-Around Success
 Continual Growth & balance between PT/DD and CAN/USA as well as debt repayment
 Undervalued Opportunity to invest
 Focus capital investments on highest return areas (many 2 year or less paybacks)
 Goal to Enseco(ize) all equipment and internalize service repair and maintenance
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FORWARD LOOKING ADVISORY
ENSECO ENERGY SERVICES
Certain information presented in these remarks and in this presentation that is not historical factual information may constitute
forward-looking information or forward-looking statements (collectively "forward-looking statements") within the meaning of
applicable securities legislation. Actual results could differ materially from such forward-looking statements, and therefore a
reader should not place undue reliance on forward-looking statements. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or conditions, or include words such as "will", “expects”, “anticipates”,
“intends”, “plans”, “believes”, or negative versions thereof and similar expressions. In addition, any statement that maybe made
concerning future financial performance, ongoing business strategies or prospects, and possible future action on our part, is also
a forward-looking statement. Forward-looking statements may relate to our future outlook and anticipated events or results and
may include statements about Enseco Energy Services Corp. or its subsidiaries (“Enseco”). The forward-looking statements
contained herein include, without limitation, statements regarding: Enseco's future strategy and business operations;
expectations about future financial and operational results and performance; plans to continue to reduce debt, Enseco’s tax
pools; and horizontal and directional drilling activity levels.
The forward-looking statements contained herein are based upon certain material expectations and assumptions, including
without limitation, assumptions regarding: capital expenditure levels; horizontal and directional drilling activity levels; demand for
production testing services; the ability to obtain and retain qualified personnel; commodity pricing and royalty regimes; the impact
of increasing competition; the general economic condition in North America and globally; and the ability to obtain equity and debt
financing on satisfactory terms. Forward-looking statements are subject to a variety of risks and uncertainties and other factors
that could cause actual events or outcomes to vary materially from those anticipated or implied in such forward-looking
information. These factors include, without limitation: a failure to obtain any required regulatory approvals; changes in applicable
legislation or how applicable legislation is interpreted; fluctuations in the prevailing commodity prices and interest rates; inherent
risks associated with the conduct of business in the energy services industry; Enseco's ability to access equipment and new
technologies; changes in the availability of debt and equity financing; an increase in competition; and changes in industry
demand for directional drilling and production testing services. Additional information about the risks and material factors that
could cause actual results to differ materially from the forward-looking information, details regarding the material factors or
assumptions that the forward-looking information is based upon, and more exhaustive information on the risks and uncertainties
can be found in Enseco’s most recent financial statements and management discussion and analysis, which is available on
www.sedar.com. All forward-looking statements contained herein is made as of the date this presentation is given and Enseco
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assumes no obligation to update or revise these statements, other than as required by applicable law.
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WWW.ENSECO.COM
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