Our second disposal well at Eagle Ford Environmental Services

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Annual Meeting of
Shareholders
Thursday, June 26th, 2014
Welcome
Forward Looking Statements
Statements contained herein and the information incorporated by reference herein may be forward-looking statements.
Forward-looking statements can be identified by the use of forward-looking terminology such as, but not limited to, "may,"
"will," "expect," "anticipate," "estimate," "would be," "believe," or "continue" or the negative or other variations of comparable
terminology. Such statements (none of which are intended as a guarantee of performance) are subject to certain assumptions,
risks and uncertainties, which could cause our actual future results, achievements or transactions to differ materially from those
projected or anticipated. Such risks and uncertainties are set forth herein.
Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance
and underlying assumptions and other statements, which are other than statements of historical facts. These statements are
subject to uncertainties and risks including, but not limited to, product and service demands and acceptance, changes in
technology, economic conditions, the impact of competition and pricing, and government regulation and approvals. TexCom
cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from
actual results, and the differences can be material. Some of the key factors which could cause actual results to vary from those
TexCom expects include changes in oil prices, soybean prices, soybean oil prices, the timing of planned capital expenditures,
availability of acquisitions, uncertainties in estimating and forecasting production results, political conditions in Paraguay, the
condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental
regulations or litigation and other legal or regulatory developments affecting our business.
Our expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, including
without limitation, our examination of historical operating trends, data contained in our records and other data available from
third parties. There can be no assurance, however, that our expectations, beliefs or projections will result, be achieved, or be
accomplished. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of
the date hereof. We undertake no duty to update any forward-looking statements, except as required by law.
TexCom, headquartered in
Houston, Texas, is a
growth-oriented
environmental services
company with a primary
focus on the disposal of
nonhazardous wastes
generated by the oil & gas
industry.
A Look Back on the Last Few Years
Management and the Board have spent the past few years positioning the
Company for future growth:

Commenced disposal operations of Eagle Ford Environmental Services
(EFES) in the heart of the Eagle Ford Shale in January 2012. EFES has
become our largest revenue and cash flow producer;

Refinanced the company’s historical non-bank high cost debt (15% - 18%)
with low-cost bank debt at (4.5% - 6.5%);

Purchased Almac Environmental Services (now known as TexCom
Environmental Services) in July 2013 to expand our NORM service offering;
and,

Expanded EFES operation with drilling of second disposal well which
became operational in November of 2013.
Management and the Board have spent the past few years positioning the
Company for future growth:

Settled various accrued liabilities and extraordinary contractual obligations
that were burdening the company;

Sold M.B. Environmental thereby eliminating onerous royalties and noncompete agreements that prohibited the company’s operational and locational
growth;

Retired all bank debt; and,

Reached agreement to acquire disposal operations in Arkansas that will
double our EBITDA.
With a new loan from Green Bank in November 2012 (at 6.25%), we:

Paid off Matador Loan (15% interest rate);

Paid off Dutch-American Loan (18% interest rate);

Paid off various small notes (8.8% - 17% interest rates);

Settled Enhanced Payments to minority shareholders in M.B. Environmental;
and,

Settled compensation claims from former officers.
With additional financing from Green Bank in 2012 and 2013, we:

Acquired ALMAC (now TES);

Secured $1,809,000 for second well at EFES; and,

Established a $2 million line of credit (at 5.25%).
TexCom’s newfound ability to access traditional bank lending is yielding substantial
savings to the company.
$1,400,000
Based on our 2011 loan
balances, our new rate
would have saved
$730,000 per year.
$1,200,000
$1,000,000
$800,000
$600,000
15.46%
$400,000
$200,000
$0
6.25%
Financial Highlights
TexCom has generated several consecutive years of revenue and net income
growth.
$16.0
$14.0
$12.0
In Millions $$
$10.0
$8.0
$6.0
$4.0
$2.0
$2011
2012
Revenue
2013
Net income
2014 Q1
EBITDA has grown significantly but is likely reaching maximum capacity at each property.
$6.0
$5.0
In Millions $$
$4.0
$3.0
$2.0
$1.0
$2011
2012
2013
2014 Q1
In first quarter 2014, Eagle Ford Environmental Services became our largest contributor.
Revenue Contribution by Entity
$16,000,000
Eagle Ford Environmental
Services
$14,000,000
M.B. Environmental Services
$12,000,000
TexCom Environmental Services
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
2012
2013
2014 Q1
Pre-Tax Net Income available to shareholders has increased substantially in recent
years.
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2011
2012
2013
2014 Q1
Eagle Ford Environmental
Services, LLC
Our second disposal well at Eagle Ford Environmental Services came on line in
November 2013.
Incremental revenue from the second EFES well totaled $300,000 per month through
March 2014.
April 2014 Sale of Assets at M.B.
Environmental Services
Overly burdensome royalties placed on M.B. Environmental severely taxed income
from operations. With the sale of M.B. Environmental, we:

Received a reasonable price;

Resolved a dispute with Chambers-Black (a royalty holder);

Replaced a 5-state non-compete agreement with standard non-compete
area;

Retired all bank debt; and,

Netted $4.2 million after taxes and retiring debt.
The royalties at M.B. Environmental consumed 41% of net income since 2011.
Royalties as a Percentage of Income Contributed to TexCom
Royalties
41%
Contribution
59%
A Look Ahead:
Future Goals and Objectives
Management and Board have positioned TexCom for growth, liquidity and
enhanced shareholder value.

Consummate announced acquisition of Arkansas properties that provide
substantive asset base and stable, predicable cash flows;

Use Arkansas properties’ cash flows to finance future acquisitions in high
growth areas of E&P waste disposal;

Aggressively expand operations into growing resource plays in North
America through development and acquisition;

Reach critical mass in EBITDA from current operations and acquisitions to
meet criteria necessary for an initial public offering on a national stock
exchange; and,

Achieve listing on a national stock exchange and fully-reporting ‘33 Act and
‘34 Act public company status.
Peak and Bennett SWDs
On a pro forma basis (including adjusting for the sale of M.B. Environmental), the
Arkansas properties substantially increase our balance sheet, book value and
leverage capacity.

Properties purchased at a reasonable price - a combined $20.3 million with
approximately 50% cash and 50% stock basis;

Board received fairness opinion from Hill Schwartz Spilker Keller LLC, a leading
fairness opinion firm in the E&P waste disposal operations space;

Properties generate a stable annual cash flow (EBITDA) of approximately
$3.7 million with operating margins exceeding 50%;

Our assets should increase from $17.7 million to $36.8 million; and,

Our balance sheet equity should increase from $15.8 million to $26.4
million.
Third-party Market Value Appraisal prepared for Green Bank by Frisco Valuation
Group, LLC.
Third-Party Appraisal for Lender vs. Agreed Upon Purchase Prices
$18,900,000
$17,696,410
Appraised Value
Purchase Price
$2,800,000
Peak
$2,586,864
Bennet
Operating Profit Before Depreciation and Amortization
$2,500,000
Bennett (acquisition pending)
Peak (acquisition pending)
TexCom Environmental Services
$2,000,000
Eagle Ford Environmental Services
$1,500,000
$1,000,000
$500,000
$0
Without Peak & Bennett
Pro Forma
Listing on a National Exchange:

Will allow TexCom the chance to receive a trading multiple in line with
similar companies – TexCom currently trades at a multiple that is approximately
80% less than comparable, exchange-listed companies;

Requires TexCom to get to a critical mass in revenues and EBITDA in
order to attract the attention of underwriters who will be willing to effect
an IPO for the company;

Will provide TexCom shareholders with market breadth and depth of
support, research/institutional coverage, liquidity and a stable base of
institutional ownership that typically reduces stock price volatility; and,

Will enable TexCom to utilize high-value stock as currency for future
acquisitions.
Listing on a National Exchange – What does it take to get there?
Assuming the proposed reverse stock split is approved, below represents indicative
NASDAQ Capital Markets listing criteria.
Questions?
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