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8-K - FORM 8-K - Nuverra Environmental Solutions, Inc. | d8k.htm |
HECKMANN CORPORATION
Exhibit 99.1
Credit Suisse 12th Annual Global Services Conference February 23, 2010 NYSE: HEK
LEGAL DISCLAIMER
This presentation may contain statements about future events, outlook, plans, and expectations of Heckmann Corporation (Heckmann) all of which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements related to the status of the business, benefits of various current and prospective transactions and business alliances, expansion plans and opportunities, and attempts to enter new and existing markets for the products and services of Heckmann.
These forward-looking statements are based on information available to Heckmann as of the date of this filing and current expectations, forecasts and assumptions and involve a number of risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing Heckmanns views as of any subsequent date and Heckmann does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made. Any statement in this presentation that is not a historical fact may be deemed to be a forward-looking statement. These forward-looking statements rely on a number of assumptions concerning future events that are believed to be reasonable, but are subject to a number of risks, uncertainties and other factors, many of which are outside Heckmanns control, and which could cause the actual results, performance or achievements of Heckmann to be materially different. While we believe that the assumptions concerning future events are reasonable, we caution that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of our businesses.
Information concerning risks, uncertainties, and additional factors that could cause results to differ materially from those projected in the forward-looking statements is contained in our Annual, Quarterly, and Periodic Current Reports filed with the Securities and Exchange Commission.
Stockholders will also be able to obtain a copy of the presentation, without charge, by directing a request to: Heckmann Corporation, 75080 Frank Sinatra Drive, Palm Desert, California 92211. The presentation can also be obtained, without charge, at the U.S. Securities and Exchange Commissions internet site (http://www.sec.gov).
HECKMANN CORPORATION
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What is HEK?
(Heckmann Corporation)
We are in the water business
We own 100% of China Water
One of the largest suppliers of water to Coca Cola in China
405 million bottles produced and sold in 2009
We own 7% of Underground Solutions Inc.
A manufacturer of PVC pipe with patented technologies
We own 100% of Heckmann Water Resources
A water pipeline and disposal company based in Tyler, Texas
We own 50% of Energy Transfer Water Solutions JV, LLC.
A joint venture between Heckmann Corporation and Energy Transfer Partners, L.P.
HECKMANN CORPORATION
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China Water
We exited the SPAC category with the purchase of China Water in November 2008
Initially a troubled deal with insiders involved in serious accounting irregularities, so as part of the acquisition we held back the stock of the China Water insiders
Recovered 17 million shares and are in litigation to recover another 8.5 million shares
In 2009, China Water was written down to $21 million dollars
It is now profitable and a cash generator
HECKMANN CORPORATION
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China Water
Harbin
Changchun
Shangdong Xian Changsha
JV (China Bottles)
Nanning Guangzhou & Grand Canyon
Facilities highlights
First-rate 5-stage filtration and purification process
Plants are independently audited for
Quality control
Compliance in procedures
Standards
Hygiene
Total realistic capacity taking into consideration seasonal and other factors
1.1 Billion Bottles Annually
405 Million sold in 2009
Fully integrated and automated production process
All facilities meet government hygiene standards
Meets Coca-Colas high standards
HECKMANN CORPORATION
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China Water Products & Customers
Two main production lines
Bottled water (350 mL 1,500 mL)
Carboy size water (18.9L) Revenue by product line
Revenue by brand
21% 79% Bottled Water
Carboy size
23% 14% 63% Coke OEM Own Brands
Expansion opportunities include:
Super oxygenated water
Vitamin-enriched water
Mineral water
OEM
Coca-Cola® in China (2008 Olympics Supplier)
Uni-President® (Taiwan)
JianLiBao® (China)
Great Nature (China)
Private Label
Provides total solution, including bottle design, production, packaging and delivery
Supplies to Sands Macau Casino
HECKMANN CORPORATION
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Heckmann Water Resources
We constructed and are operating a 50-mile pipeline in the Haynesville Shale in Northeast Texas and Louisiana
Pipeline can take up to 100,000 barrels per day of water (4,200,000 gallons)
We take the water to our disposal wells (8 now with more permitted)
36% of pipeline now under contract
$57 million dollars of firm multi-year contracts
At current rates, and at capacity, the EBITDA run rate can exceed $20 million dollars annually
Pipeline cost was approximately $28,000,000 or $560,000/mile
Plus approximately $20,000,000 for disposal field & wells
HECKMANN CORPORATION
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HECKMANN CONFIDENTIAL
Heckmann SWD Pipeline
HECKMANN CORPORATION
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Heckmann Water Resources Customers & Partners
EXCO Resources, Inc
El Paso Corporation
EnCana
BP America
XTO Energy
JW Operating
BEUSA Energy Inc.
Maximus Operating, Ltd.
KCS Resources, Inc
Classic Operating Co. Llc
Coronado Energy
HECKMANN CORPORATION
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HECKMANN CORPORATION
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The Haynesville Shale Water Disposal Opportunities
In Haynesville and Barnett Shales there are over 50,000 depleted wells
Many can be converted to disposal wells
Laws allow produced water to be injected into the ground through the deep wells
Thousands of 130 barrel capacity trucks transfer the water from the producing wells to the disposal wells each day
All in costs run on average from $1.25/barrel to $1.75/barrel depending on distance trucked and diesel costs
HEK pipeline disposal prices average $.85/barrel to $1.25/barrel depending on distance
HEK pipeline will replace over 750 water trucks per day
HECKMANN CORPORATION
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The Marcellus Shale Water Disposal Opportunities
Water laws very stringent
We believe there are less than 50 deep injection disposal wells available
It will be difficult to develop additional injection wells for disposal according to the D.O.E.
Mountainous roadways throughout the region make transporting billions of gallons of water over long distances difficult at best and in many cases just not viable
Spans 15 million acres, 5x the Haynesville / 10x the Barnett
Located largely in rural areas but close to US population centers
4 to 10 times the amount of shale gas when compared to the Haynesville
HECKMANN CORPORATION
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Shale Gas Plays, Lower 48 States
Source: Energy Information Administration based on data from various published studies
Updated: May 28, 2009
HECKMANN CORPORATION
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The JV Solution
(ETP & HEK)
ENERGY TRANSFER
HECKMANN CORPORATION
Encompasses all water generated from oil and gas activities, and coal and mining waters (Marcellus, Barnett, Haynesville, Eagle Ford etc.)
Provides access to multiple supply and disposal options
The demand will be at least 285 million barrels per year for frac
Demand for disposal will be 120 million barrels a year and growing with expansion
Provide water pipeline like the HEK Haynesville Pipeline reducing hundreds of thousands of truck trips
Provide reuse/recycled water for fracturing through a state-of-the-art treatment facility
HECKMANN CORPORATION
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The JV Solution
(ETP & HEK)
ENERGY TRANSFER
HECKMANN CORPORATION
ETP/HEK joint venture is proposing to fund and build water infrastructure to gather, process and distribute waters to and from oil and gas well operations and coal and mining operations
The infrastructure is made up of the following components:
Central Purification (CPP)
Pipeline Infrastructure, one for gathering, one for distribution
Water Transfer Terminals (in-field drop off and storage for produced, flow back, fresh, and recycled water)
Waters that JV will accept from the customer
Frac Waters
Produced Waters
Drilling and Mining Waters
Waters that JV will provide to the customer
Fresh/CBM Water Filtered
Recycled Water Non Damaging, Filtered
Fresh and Recycled Water for Fracturing
HECKMANN CORPORATION
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Heckmann Corporation and Subsidiaries Consolidated Balance Sheet (In Thousands)
September 30, 2009
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $ 155,029
Certificates of deposit 10,050
Marketable securities 13,070
Accounts receivable, net 5,916
Inventories, net 5,792
Other receivables 4,366
Other current assets 1,731
Total current assets 195,954
Property, plant and equipment, net 26,114
Marketable securities 89,347
Investment in unconsolidated equity investee 4,267
Investment in UGSI 6,801 Intangible assets, net 23,738
Goodwill 13,600 Other 472
TOTAL ASSETS $ 360,293
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 13,895
Deferred revenue 4,226
Accrued expenses 17,213
Income taxes payable 1,351
Other current liabilities 1,417
Total current liabilities 38,102
Acquisition consideration payable 1,910
Other long term liabilities 3,704
STOCKHOLDERS EQUITY
Shareholders equity of the Company:
Common stock 124
Additional paid-in capital 745,856
Purchased warrants (4,810)
Treasury stock (14,000)
Accumulated deficit (413,802)
Accumulated other comprehensive income 688
Total shareholders equity of the Company 314,056
Non-controlling interest 2,521
TOTAL STOCKHOLDERS EQUITY 316,577
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 360,293
HECKMANN CORPORATION
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We know that water issues are key to the development of energy
We know that shale gas development depends on the issues around water being solved
We know who the big oil and gas companies are
And
We know who the big pipeline companies are
Whos the Big Water Company?
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HECKMANN CORPORATION
Company Contacts:
Dick Heckmann / Don Ezzell Tel: +1 760 341-3606
Investor Relations Contact:
Kristen McNally
The Piacente Group, Inc. Tel. +1 212 481 2050 heckmann@tpg-ir.com NYSE: HEK
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