Attached files
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| 8-K - FORM 8-K - Aly Energy Services, Inc. | aly_8k.htm |
EXHIBIT 99.1
ALY ENERGY
SERVICES, INC.
SERVICES, INC.
1
DISCLAIMERS
• During this presentation, and in response to your questions, certain items may be
discussed which are not based entirely on historical facts. Any such items should be
considered forward-looking statements. Any forward-looking statements speak only
as of the date on which they are made, and we undertake no obligation to update
such statements to reflect events or circumstances arising after such date. All such
forward-looking statements are subject to risks and uncertainties, which could cause
actual results to differ from those anticipated. We have described the most significant
of these risks and uncertainties in our reports filed with the Securities and Exchange
Commission.
discussed which are not based entirely on historical facts. Any such items should be
considered forward-looking statements. Any forward-looking statements speak only
as of the date on which they are made, and we undertake no obligation to update
such statements to reflect events or circumstances arising after such date. All such
forward-looking statements are subject to risks and uncertainties, which could cause
actual results to differ from those anticipated. We have described the most significant
of these risks and uncertainties in our reports filed with the Securities and Exchange
Commission.
• This presentation may include certain non-GAAP financial information, which is not
intended to be considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP. The non-
GAAP financial measures may be calculated differently from, and therefore may not
be comparable to, similarly titled measures used by other companies.
intended to be considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP. The non-
GAAP financial measures may be calculated differently from, and therefore may not
be comparable to, similarly titled measures used by other companies.
• This presentation is presented solely for information purposes. This presentation is
not an offer to sell, or a solicitation of an offer to buy, any securities.
not an offer to sell, or a solicitation of an offer to buy, any securities.
2
ALY ENERGY
SERVICES, INC.
SERVICES, INC.
• ALYE is a high growth oilfield services company with equipment rentals and
services driven by the fast growth of the horizontal drilling revolution
focused in North American Shale Plays.
services driven by the fast growth of the horizontal drilling revolution
focused in North American Shale Plays.
• ALYE offers a differentiated mix of innovative mud-on-demand tanks,
supportive and ancillary equipment rentals surrounding the delivery of oil
based mud to the drilling rig for a growing number of Oil & Gas Operators
thru Master Service Agreements (MSAs).
supportive and ancillary equipment rentals surrounding the delivery of oil
based mud to the drilling rig for a growing number of Oil & Gas Operators
thru Master Service Agreements (MSAs).
• ALYE is focused on an internal growth objective of at least 20% growth in
our equipment fleet, new equipment categories, new oil company
customers, and geographic expansion.
our equipment fleet, new equipment categories, new oil company
customers, and geographic expansion.
• ALYE is looking for complementary acquisitions in high growth oil services
niche markets.
niche markets.
3
• Founded by Micki Hidayatallah and incorporated in Delaware in July
2012
2012
• Completed its platform acquisition of Austin Chalk Petroleum
Services Corp. (“ACPS”) in October 2012
Services Corp. (“ACPS”) in October 2012
• Shareholders executed a share exchange with the shareholders of a
public company in May 2013
public company in May 2013
• Aly Energy Services, Inc. trades on the OTCBB under the symbol
ALYE
ALYE
ALY ENERGY
SERVICES, INC.
SERVICES, INC.
4
MANAGEMENT TEAM
• CEO and Chairman - Micki Hidayatallah
– Former Founder, CEO and Chairman of the Board of Allis-Chalmers
Energy Inc. from 2001-2011, a NYSE company, and sold to
Seawell/Archer for $1.1billion
Energy Inc. from 2001-2011, a NYSE company, and sold to
Seawell/Archer for $1.1billion
• COO and President - Mark C. Patterson
– Over 33 years experience in the Oilfield Service Industry, joining Allis-
Chalmers in 2007, serving as EVP and President of Rental Segment
Chalmers in 2007, serving as EVP and President of Rental Segment
• President of ACPS - Kurt Chew
– Founder and former owner of ACPS; has manufactured and rented a
variety of OFS equipment and provided products and services
throughout multiple oil & gas markets for over 28 years.
variety of OFS equipment and provided products and services
throughout multiple oil & gas markets for over 28 years.
• CFO - Alya Hidayatallah
– Joined Team in January 2013 after serving as assistant CFO for Archer
LTD., a publicly traded company traded on the Oslo Exchange
LTD., a publicly traded company traded on the Oslo Exchange
5
CURRENT SERVICE MARKET
|
TX RRC District
|
Total Rigs
|
Horizontal Rigs
|
|
1
|
159
|
152
|
|
2
|
87
|
79
|
|
3
|
52
|
21
|
|
4
|
32
|
15
|
|
5
|
11
|
6
|
|
6
|
28
|
25
|
|
7C
|
84
|
43
|
|
8
|
265
|
84
|
|
Totals
|
713
|
425
|
*Rig Data as of June 25, 2013
6
400bbl MUD CIRCULATING
TANKS
TANKS
Differentiated and manufactured with
specifically designed jet lines for
maximum circulating capability.
specifically designed jet lines for
maximum circulating capability.
98 innovative space saving upright
tanks designed for use on smaller
drilling pads; unique in the markets
we serve.
tanks designed for use on smaller
drilling pads; unique in the markets
we serve.
7
500bbl MUD CIRCULATING
TANKS
TANKS
117 new state of the art tanks on
wheels specifically designed for
maximum circulating capability
wheels specifically designed for
maximum circulating capability
8
SKIMMING SYSTEMS
CUSTOM DESIGN FOR
ENHANCED OIL
RECOVERY
ENHANCED OIL
RECOVERY
9
MUD GAS SEPARATORS
21 gas busters in inventory
used in both drilling and
flow-back applications to
safely separate and flair
surface gas and H2S from
return drilling and
completion fluid
used in both drilling and
flow-back applications to
safely separate and flair
surface gas and H2S from
return drilling and
completion fluid
10
CONTAINMENTS & BERMS
New Service Offering
11
CLEAN-OUT SERVICES
New Service Offering
12
STRENGTHS OF PRODUCTS
AND SERVICE
AND SERVICE
•Manufacturing capability
•In House and onsite retrofitting and repair
•Highly mobile product offerings
•Full service offerings with roustabouts and equipment
•Experienced personnel
13
PRODUCT AND SERVICES
CONTRIBUTION
CONTRIBUTION
14
SAFETY AND
ENVIRONMENTAL
ENVIRONMENTAL
• Protect the health, safety and security of our people at all times thru
dedicated and specified training and supervision
dedicated and specified training and supervision
• Meet specified customer requirements and ensure continuous customer
satisfaction
satisfaction
• Minimize our impact on the environment through pollution prevention and
the reduction and recycling of waste
the reduction and recycling of waste
• Apply our technical skills to all HSE aspects in the design and engineering
of our products and services
of our products and services
15
STRATEGIC FOCUS,
OUTLOOK AND
OBJECTIVES
OUTLOOK AND
OBJECTIVES
• To provide our customers with the highest quality and most
advanced equipment with Best in Class service in a safe
environment at competitive prices
advanced equipment with Best in Class service in a safe
environment at competitive prices
• To grow both organically and through acquisitions with:
– Customer diversification
– Geographic expansion
– Asset inventory growth
– Adding new products and services
16
WHAT HAS CHANGED IN
YEAR 1?
YEAR 1?
|
2012
|
2013
|
|
126 Mud circulating Tanks w/ large sub-rental
associated costs |
Added 110 Mud Circulating Tanks for a total of
236, and associated ancillary equipment, with a large reduction of sub-rental costs |
|
Single service location serving the Eagle Ford
Shale and Woodbine formations from Giddings, Texas |
Added an additional service location in San
Angelo, Texas serving the Cline Shale, Wolfberry and Wolfcamp formations |
|
Over 25 different, but related, product and service
offerings |
Added 6 new product and service offerings
|
|
Small trucking service line
|
More than doubled our trucking capacity while
greatly reducing our costs related to trucking services |
|
31 Master Services Agreements
|
Added 9 MSAs with 12 more in process
|
17
2013 PROJECTED CAPITAL
EXPENDITURES
EXPENDITURES
(1) Includes 400 BBL MCTs, Skimming Systems, Driveovers, and Stairs
*Total 2013 Projected CapEx of approximately $8.8 million
18
19
2013 FINANCIAL HIGHLIGHTS
(Thru June 30, 2013)
•YTD Capital Expenditures of approximately $7mm
•Total assets of $39mm
•Leverage Ratio of approximately 1.76x
• (Debt/LTM EBITDA)
•Debt (Debt + Equity) Ratio of approximately 39%
20
INVESTMENT HIGHLIGHTS
• Proven, Experienced Management Team
– Aly Energy Services is led by two oilfield service veterans, each with
over 20 years in the industry, that were critical in the expansion of
Allis-Chalmers from a $5mm revenue company in 2001 to over
$650mm in 2010
over 20 years in the industry, that were critical in the expansion of
Allis-Chalmers from a $5mm revenue company in 2001 to over
$650mm in 2010
• Differentiated Product Offering with High Quality Services
– a unique set of assets that have been specifically engineered to provide
customers with superior performance and is a recognized leader in
quality and services in its operating regions
customers with superior performance and is a recognized leader in
quality and services in its operating regions
21
INVESTMENT HIGHLIGHTS
• Geographically Located in High Growth Areas
– A continuous eye on opportunities to expand service markets
• Favorable Industry Dynamics
– We expect robust exploration and production spending for the
foreseeable future, as global exploration and production capital
expenditure is expected to increase from $261 billion to $420 billion
from 2011 to 2017
foreseeable future, as global exploration and production capital
expenditure is expected to increase from $261 billion to $420 billion
from 2011 to 2017
• High Quality Customer Base and Demand
– Additional equipment not currently in the fleet is continually requested
by key customers
by key customers
22