2009 Petroleum Services
Investment Symposium
June 2009
Enerchem International Inc.
www.enerchem.com
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.
2
Presentation Outline
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3
Annualized Highlights
Business Model Overview
Operating performance review
Financial performance review
Business Strategy
Annualized Highlights
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4
Executive Office
Consolidation
Finance group change
Reformulation of
Executive Team
Outsourcing of
Engineering Function
Realignment of Business
Model
The Enerchem Business Model
Refining
Slave Lake & Sundre
Crude
Storage
60%
FINISHED GOOD
Upstream Sales
DrillSoltm
FracSotm
WaxSoltm
Downstream Sales
Enerfuel 1500tm
Transport
40%
By-Product Sales
ByProducts
5
Crude Oil
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
St. John
Satellite Storage
7
Calgary
Corporate Office
Operations Review
Key Operational Drivers
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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
Q1-07
9
(500)
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Capital Expenditures
($ 000’s)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
10
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
Cash flow from operations and CAPEX
($ 000’s)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
11
Q1-07
(500)
Q2-07
Q3-07
Q4-07
Q1-08
Cash flow from operations
Q2-08
Q3-08
Q4-08
Capital Expenditures
Q1-09
Working capital
($ 000’s)
25,000
20,000
15,000
10,000
5,000
-
12
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
Sales Volume (m3)
35000
30000
25000
2007
20000
2008
15000
2009
10000
5000
0
Q1
13
Q2
Q3
Q4
Inventory, at cost
($ 000’s)
12,000
10,000
8,000
6,000
4,000
2,000
14
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09
Inventory volumes, cubic metres (m3)
25,000
20,000
15,000
10,000
5,000
-
15
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Crude Feedstock
Q2-08
Q3-08
Finished Goods
Q4-08
Q1-09
Financial Highlights – Q1 2009 vs 2008
Three months ended March 31,
($000’s except per share amounts and ratios)
Revenues
16
2009
2008 % Change
22,921
33,747
(32)%
Net loss for the period
(323)
(70)
361%
Loss per share – diluted
(0.02)
0.00
-
EBITDA
271
553
(51)%
EBITDA per share
0.02
0.04
(51)%
Profile - ECH
May 31, 2009
Shares outstanding
15,027,473
Market capitalization($.70/sh)
TSX trading history (52 week)
17
$10.5 million
High
$2.29
Low
$0.40
Current
$0.68
2009 Business Focus
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Optimize key business drivers
Manage the Balance Sheet
Be prepared for Opportunity
2009 Petroleum Services
Investment Symposium
June 2009
Enerchem International Inc.
www.enerchem.com