Transcription
Investor PresentationQ3 2019November 2019Changing the way the worldhandles waste vativeDesign1
Investor PresentationQ3 2019November 20192Forward Looking StatementsCertain information presented today may constitute forward-lookingstatements. Such statements reflect the Company’s current expectations,estimates, projections and assumptions.These forward-looking statements are not guarantees of future performanceand are subject to certain risks which could cause actual performance andfinancial results in the future to vary materially from those contemplated inthe forward-looking statements.For additional information on these risks please refer to the Company’s 2018annual reporting under the heading “Business Conditions and RiskManagement.”
Investor PresentationQ3 2019November 20193We are Questor Founded in 1994 and listed in 1998 Headquarters Calgary, AB with field hubsacross North America Clean Balance Sheet with no debt Technology considered best in class Proven technology that is key to meetingthe tough global regulations and targets onemissions U.S. and Canadian patent Original expires November 20195 new patents filedAbout UsThe Company’s commonshares are traded on theTSX Venture Exchangeunder the symbol “QST”
Investor PresentationQ3 2019What We Do High efficiency waste gas combustionsystems and power generation systems /water treatment solutions from waste heat Worldwide effective management of CH4,H2S, VOC, HAP and BTEX gases ensuringsustainable development Solutions for landfill biogas, syngas,waste engine exhaust, geothermal andsolar, Focus on solid engineering design Questor products enable its clientsoperate cost effectively in anenvironmentally responsible andsustainable mannerNovember 20194
Investor PresentationQ3 2019November 20195Investor InformationShare InformationCommon Shares3 Year Share Price Performance27.2 millionNilWarrantsCurrent share price 4.26(11/18/2019)52 Week Hi-Low 2.73- 5.36Q3’2019 EPSMarket CapEBITDA Q3’2019 0.23 116.9 Million 9.3 MillionMajor ShareholdersAudrey Mascarenhas16%Financial Information (Q3 2019)Revenue 23.4 millionCash 10.2 millionNet DebtNil
Investor PresentationQ3 2019November 20196Consistent Revenue GrowthAdj. EBITDAGross Revenue232319201510815 Millions (Cdn.) Million 9Rental Revenue251513111033 Million (Cdn.)16Million (CAD)20172018 Q3'2019USA 018Q3'201920172018Q3'2019
Investor PresentationQ3 2019November 20197The Problem we are SolvingEmissionComplianceVOCs, HAPs,Methane, GHGemissionsCommunityAcceptanceSafety,Operating &Capital CostReductionsEnergyEfficiencyPower generationfrom waste heat, fuelgas use reduction,Process heat
Investor PresentationQ3 2019November 2019Creating Value from WasteClean Emissions Solutions99.99% Combustion EfficiencyClean Emissions - CO2 and WaterPad and Well Site OperationsWater Vaporization(Under Development)Waste GasesDrilling and CompletionsOperationsHeat EnergyClean Combustion DeviceGas and Oil Processing Upstream,Midstream and DownstreamORC Heat to Power77kW to 5MW8
Investor PresentationQ3 2019November 20199Leadership TeamAudreyMascarenhasPresident and CEOAudrey Mascarenhas has worked in energy for over 35 years with Gulf CanadaResources Ltd. and Questor Technology Inc. She holds a Bachelor’s degree inChemical Engineering from the University of Toronto and a Master’s Degree inPetroleum Engineering from the University of Calgary. She is a fellow of the CanadianAcademy of Engineers. She is a member of the Schulich Industry Engineering AdvisoryCouncil and currently chairs the Canadian federal government clean technology strategytable.JohnSutherlandDanZivkusicCOOCFOMr. Sutherland is a mechanical engineerwith over 30 years of experience gained atmulti-national corporations, AER and as aconsulting engineer in oil and natural gasexploration and production. John earnedhisBachelor of Applied Science inMechanicalEngineeringfromtheUniversity of Calgary in 1989.Mr.Zivkusicisamulti-disciplinedprofessional with over 20 years of oil andgas industry experience. Most recently heserved as CFO for Reform Energy ServicesCorp.DanobtainedhisCertifiedManagement Accountant designation in1991 and is an active member of theChartered Professional Accounts of Alberta.JustinMahendraVP, Sales & MarketingMr. Mahendra has over 18 years ofTechnical Sales and Sales Managementexperience. This includes 7 years in thePharmaceutical Waste industry within theUK and Europe and more recently for thepast 9 years in the North American resourcesector. Justin holds a BSc in Sociology andPsychology from the University of Wales
Investor PresentationQ3 2019November 201910Board of DirectorsAudreyMascarenhasStewartHanlonPresident and CEOChairmanMr. Hanlon had a long anddistinguished career withGibson Energy Inc. (aCanadian based midstreamenergy company). Heserved as President andCEO of Gibson from 2009through 2017JimInksterEntrepreneur andbusinessman. Jim hasprovided twenty years ofinsight in assistingmanagement in building thefirm base on which theCompany’s growth plans arematerializing.Jean-MichelGiresMr. Gires was previously thePresident & CEO Total E&PCanada. He joinedChrysalix in 2013, anenergy venture capital firm.He is based in Calgary anddedicates himself toinnovation
Investor PresentationQ3 2019November 201911Financial Performance2523RevenueProfit202319 Millions 2018Q3'2019
Investor PresentationQ3 2019November 201912Revenue by Region25CanadaUSAInternational Million (CAD)201510502015201620172018Q3'2019
Investor PresentationQ3 2019November 201913Business Segment Revenue18Sales16Rental14Million (CAD)Services1210864202015201620172018Q3'2019
Investor PresentationQ3 2019November 201914Rental Fleet Expansion25140Rental Fleet at Cost120Gross Margin Capacity20Rental Revenue CapacityUnits at End of 18Q3FY18Q4FY18Q1FY19Q2FY19Q3FY19Number of Units Millions CAD100
Investor PresentationQ3 2019November 2019Colorado Air quality issues: non-attainmentzones Lack of gas pipeline take awaycapacity Senate Bill 181 has created aframework for industry andcommunity to work together Questor has established a strongmarket presence and significantlyreduced customer concentration 30% reduction in lease size, 20%reduction in pad cost, incremental400 bbls/d production15
Investor PresentationQ3 2019November 2019North Dakota Over 40% of the rental fleet iscommitted to contracts ranging in termfrom 6 months to 24 months inColorado, Texas and North Dakota Questor was independently field testedin North Dakota and Colorado and,once again, confirmed its performancein excess of 99.99% Questor units deliver value to ourclients by increasing oil productionlimits by significantly reducing VOC’sand NOx 400 bbls/d per site in CO 2200 bbls/d per site in ND Eliminated other equipmentsaving 1MM/site/yr.16
Investor PresentationQ3 2019November 2019North Dakota Testing17
Investor PresentationQ3 2019November 201918New Mexico / TexasPermian – TX/NM 600 MMscf/d currently flared withpipeline capacity at 98%Opportunity for a 180 unit rental fleetBakken - ND 4021 wells drilled but not completeddue to lack of P/L capacityYard space in Midland, TexasInitial work with WPX in NMSales and rental units in theEagleford, TX 520 MMscf/d flared representing 20% oftotal gas productionRegulator recognition of Questor’s99.99% combustion efficiency creatingan opportunity to increase oilproductionExpanding client base. Deployed 42% ofthe current rental fleet to the area.“HUB” – technicians, yard and officeOpportunity for a 120 unit rental fleet
Investor PresentationQ3 2019Mexico Methane emission reduction targetof 75% by 2025 from oil and gasindustry Fines and oil productioncurtailment for non compliance Currently executing two largeprojects - 8.5MM 13 sites cleanly combusting ventedMethane. 3 sites generating 200kWpower from the waste heat. Mexico’s environmental regulationsrewarding companies that harnessbenefits from associated gas 3 sites – waste heat to powerNovember 201919
Investor PresentationQ3 2019November 201920Growth Opportunityin Canada Tall Stacks – Lower capitalcosts and compliantperformance. Still column vapours fromDehydration units Regulation complianceMethane, H2S, SOx, and BTEX Provincial and Federalregulation – Clean airregulations
Investor PresentationQ3 2019Waste Heat:Recovery and Use Clean heat is extractedThermal energy used to generatepower – 77kW to 1.5MWSame system used for watertreatment (currently underdevelopment)Flue gas stream also used directlyas heat or to exchange with glycolor heat mediumNovember 201921
Investor PresentationQ3 2019Emissions Excellence Center - Calgary, Alberta, CanadaGEMMAThe new frontier of emissionsreduction excellenceNovember 201922Continuous24/7/365monitoring of unitlocation andperformanceEfficientdeployment oftechnicianresources whenrequiredProactivepreventativemaintenance toensure smoothoperation andavoid costlyrepairsA.I. calculation ofcarbon emissionreduction data forreporting andcarbon creditvaluationImmediateresponse topreset alarmconditionsProviding supportdata for regulatoryreportingrequirements
Investor PresentationQ3 2019November 201923Questor’s Market Drivers US EPA/State, Mexico and Canadian regulation focused on air quality andnon-attainment zone emissions: Methane, HAP and VOC’s Recognition of Questor’s 99.99% combustion efficiency – advantage inmeeting air quality emission regulations (VOC’s) – resulting in incrementaloil production Global Climate change focus; Methane is 84 x more potent than CO2 – mostcost effective way to reduce GHG’s E&P company targets and C-suite compensation tied to emission reduction Investment targeting low carbon emission industries – 100 Investorsmanaging over 35 trillion Natural gas as the transition fuel in jeopardy if fugitive methane not dealtwith. Verification of compliance – Data system – Emission excellence center Public concerns and protests – Greta Thunberg
Investor PresentationQ3 2019Best Practices5.6.1 Dominion isspecifying a Questorbrand flare/incineratorfor all glycoldehydration plants, andmust be included as thebase proposal.November 201924
Investor PresentationQ3 2019ESG – Social license“A typical flare stack burns at about 800 degrees Fahrenheit,but the oxidizers heat up to 1,200 to 1,800 degrees, said JoDellMizoue, WPX environmental manager. She said that higherheat allows for 99.9 percent combustion efficiency, burning offall the methane and only releasing carbon dioxide and watervapor.”November 201925“They’re called thermal oxidizers,and could provide a safer, moreefficient way to flare natural gas.”“It’s a safer and more efficientdesign, she said, ideal for aresidential area.”
Investor PresentationQ3 2019November 201926Thank YouAudrey Mascarenhas 1 403 608 m
Hanlon Jean-Michel Gires Mr. Gires was previously the President & CEO Total E&P Canada. He joined Chrysalix in 2013, an energy venture capital firm. He is based in Calgary and dedicates himself to innovation Entrepreneur and businessman. Jim has provided twenty years of insight in assisting management in building the firm base on which the
