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October 2009 Enerchem International Inc. www.enerchem.com.

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Presentation on theme: "October 2009 Enerchem International Inc. www.enerchem.com."— Presentation transcript:

1 October 2009 Enerchem International Inc. www.enerchem.com

2 2 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.

3 3 Presentation Outline  Annualized Highlights  Business Model Overview  Operating performance review  Financial performance review  Business Strategy

4 4 Annualized Highlights  Executive Office Consolidation  Finance group change  Reformulation of Executive Team  Outsourcing of Engineering Function  Realignment of Operating Model  Inventory Control  Cap Ex Containment  Atlantis Lateral Operational (January)

5 5 The Enerchem Business Model Refining Slave Lake & Sundre CrudeStorage Terminal FINISHED GOODS Upstream Sales DrillSol tm FracSo tm WaxSol tm Downstream Sales Enerfuel 1500 tm Transport By-Product Sales Crude Sales Transport Crude Oil Purchasing By-Products 40% 60%

6 6 Sundre Flow-back Treatment Facility 2. Remove Contaminants 1. Purchase Flow-back 3. Sell or return Clean Flow-back 4. Re-fractionate & Sell as Fracsol

7 7 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 Calgary Corporate Office

8 8 Operations Review Key Operational Drivers  Production Cost Control  Plant Utilization  Margin Management  Inventory Management  Logistics Management

9 9 Cash flow from operations ($ 000’s)

10 10 Capital Expenditures ($ 000’s)

11 11 Cash flow from operations and CAPEX ($ 000’s)

12 12 Working capital ($ 000’s)

13 13 Sales Volume (m3)

14 14 Inventory, at cost ($ 000’s)

15 15 Inventory volumes, cubic metres (m3)

16 16 Financial Highlights – Q1 2009 vs 2008 Six months ended June 30, ($000’s except per share amounts and ratios) 20092008% Change Revenues34,70955,137(37)% Net loss for the period(1,776)(1,138)(56)% Loss per share – diluted(0.12)(0.07)(71)% EBITDA(1,718)706(343)% EBITDA per share (0.11)0.05(320)%

17 17 Profile - ECH June 30, 2009 Shares outstanding15,027 Market capitalization($.84/sh)$12.6 million TSX trading history (52 week)High October 23, 2009 $1.20 Low$0.40 Current$1.48

18 18 2009 Business Focus Optimize key business drivers Manage the Balance Sheet Seek Opportunity

19 October 2009 Enerchem International Inc. www.enerchem.com


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