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Investor Presentation | December 2012
FORWARD LOOKING INFORMATIONThis presentation contains certain forward-looking statements and forward-looking information (...
COMPANY OVERVIEW   Aveda Transportation and Energy Services (“Aveda” or the “Company”) is a growing provider of specializ...
MANAGEMENT AND BOARD OF DIRECTORS                       Management                                               Independe...
MANAGEMENT TRACK RECORD    David Werklund founded CCS Corporation (now Tervita Corporation) in 1984 and built it largely ...
CAPITALIZATION SNAPSHOT                            Capitalization                                                         ...
OILFIELD HAULING MARKET                                           Currently More Than 2,200 Active Rigs in North America(1...
NORTH AMERICAN OPERATIONS     Ten offices located in the heart                                                           ...
OILFIELD HAULING OVERVIEW     Modern, well maintained fleet        481 pieces of equipment (150 power units)     251 em...
OILFIELD HAULING CASE STUDY Aveda has outperformed its competitors as a result of:      Newer, more specialized equipmen...
OILFIELD RENTALS OVERVIEW          Modern, well maintained equipment with 780 pieces           in the rental fleet      ...
GROWTH STRATEGYCapital Expenditure Program $23 million capital budget for 2012      $21 million for organic oilfield hau...
FINANCIAL PERFORMANCE: REVENUE                 81% growth in 2011 revenue vs. 2010; 15% growth in first 9 months of 2012 ...
FINANCIAL PERFORMANCE: EBITDA         Higher utilization across North America         Premium pricing in key resource pl...
RECENT ACHIEVEMENTS   Secured $66 million in financing and credit facilities        Line of Credit - $50.0 million     ...
INVESTMENT HIGHLIGHTS   Proven management team with a history of value creation   Solid industry fundamentals supported ...
CONTACT                      Bharat Mahajan                   Chief Financial Officer          Aveda Transportation and En...
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Investor Presentation December 2012

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  1. 1. Investor Presentation | December 2012
  2. 2. FORWARD LOOKING INFORMATIONThis presentation contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements")within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements.Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective","continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting futureoutcomes. In particular, this presentation contains forward-looking statements relating to: future growth; results of operations; operational and financialperformance; projected capital expenditures and commitments and the financing thereof; expansion; increases in revenue; equipment delivery and deploymentdates; effect of rebranding; geographic allocation of equipment; customer commitments; ability to establish a working relationship with third party suppliers;expectations regarding the Corporations ability to raise capital and to increase its equipment fleet; benefits associated with financial results; activity levels; businessstrategy; successful integration of structural changes; restructuring plans; organic growth potential; acquisitions and availability of insurance coverage. Avedabelieves the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectationswill prove to be correct and such forward-looking statements should not be unduly relied upon.Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements.Those material factors and assumptions are based on information currently available to Aveda, including information obtained from third party industry analysts andother third party sources. In some instances, material assumptions and material factors are presented elsewhere in this presentation in connection with theforward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors andassumptions include, but are not limited to:• the performance of Aveda’s businesses, including current business and economic trends;• oil and natural gas commodity prices and production levels;• capital expenditure programs and other expenditures by Aveda and its customers:• the ability of Aveda to retain and hire qualified personnel;• the ability of Aveda to obtain parts, consumables, equipment, technology, and supplies in a timely manner to carry out its activities;• the ability of Aveda to maintain good working relationships with key suppliers;• the ability of Aveda to market its services successfully to existing and new customers;• the ability of Aveda to obtain timely financing on acceptable terms;• currency exchange and interest rates;• risks associated with foreign operations;• changes under governmental regulatory regimes and tax, environmental and other laws in Canada and the United States; and• a stable competitive environment.Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Suchforward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda’s actual performance and financial results infuture periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks anduncertainties include, but are not limited to, the risks identified by Aveda’s annual information form and management discussion and analysis for the year endedDecember 31, 2011 (the "MD&A") and contained herein under the heading "Risk Factors". Any forward-looking statements are made as of the date hereof and,except as required by law, Aveda assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. 2
  3. 3. COMPANY OVERVIEW Aveda Transportation and Energy Services (“Aveda” or the “Company”) is a growing provider of specialized oilfield hauling and rentals to the US and Western Canadian oil and gas industry Aveda was founded in 1994, went public in 2006 and was recapitalized in 2011 The Company is well positioned to take advantage of attractive organic and acquisition growth opportunities throughout North America Multiple cross-over business opportunities achieved through oilfield hauling and rental business units Oilfield Hauling Oilfield Rentals Rig moving  Matting Heavy hauling  Tanks Hot shot services  Light towers 3
  4. 4. MANAGEMENT AND BOARD OF DIRECTORS Management Independent Board MembersDavid Werklund – Executive Chairman Martin Cheyne Has been the Chairman of Aveda since 2006 and served as Interim  Has more than 25 years of diversified oil and gas experience President and CEO of Aveda from September 2011 to November  Founder of DeeThree Exploration Ltd. 2012. Appointed as Executive Chairman in November 2012  Former President and Director of Dual Exploration Inc. and Devlan Began career in 1965 at Shell Canada as a Production Operator Exploration Inc.; both purchased by Cyries Exploration Inc. Founder and Chairman of the Board of Directors of CCS Corporation (now Tervita Corporation) Stefan Erasmus Co-Founder of Concord Well Servicing  President of Werklund Capital Corporation Founder & Executive Chairman of Werklund Capital  Director of several private companies and charitable organizations The 2005 Ernst & Youngs Canadian Entrepreneur of the Year  Former Managing Director of Resources Global ProfessionalsKevin Roycraft - President and CEO Doug McCartney Joined Aveda in November 2012  Managing Partner of Burstall Winger LLP More than 20 year of Transportation Industry Experience  Practices in the areas of securities and corporate finance and Former Vice-President of Operations for Liquid Transport Corp corporate and commercial law (one of North America’s largest bulk chemical and oil  Director or officer of several public and private companies transportation company) Paul ShelleyBharat Mahajan – CFO  President of Convinco Financial Ltd. Joined Aveda in October 2011  Former Senior Vice President, Corporate Development at Kos Corp. Held several positions with Magna International overseeing Investments Ltd. various international growth initiatives Former CFO of several oilfield service companies, including Wellpoint Systems Inc. and Norex Exploration Services Inc. 4
  5. 5. MANAGEMENT TRACK RECORD David Werklund founded CCS Corporation (now Tervita Corporation) in 1984 and built it largely through the consolidation of several oilfield services companies and organic growth CCS privatized in 2007 for approximately C$3.5 billion (the largest Trust privatization in Canadian history) Historical Shareholder Returns CCS Selected Historical Acquisitions CAGR Total Return CCS 24% CAGR 2490% Total Return CCS 24% 2490% Source: FactSet 5
  6. 6. CAPITALIZATION SNAPSHOT Capitalization Balance Sheet Summary (1) Share price (December 12, 2012) $2.00 Operating Line Available ($mm) $16.81 Shares Outstanding Basic (mm)(4) 10.0 Property and Equipment ($mm) $49.65 Shares Outstanding Fully Diluted (mm)(4) 12.9 Working Capital ($mm) $11.76 FD Market Capitalization ($mm) $25.8 Total Assets/Tangible Assets ($mm) $70.71/$67.49 Net Debt ($mm)(1) Loans and Borrowings $32.4 Shareholder Summary (4) Convertible Debenture (face)(2) $4.7 Cash(1)(3) ($5.1) Werklund Capital Corp 47.4% Total Net Debt ($mm) $32.0 Other Insiders 2.9% Enterprise Value ($mm) $57.8 Total Insiders 50.3%(1) At September 30, 2012(2) Convertible into 1,850,980 common shares at $2.55(3) Includes potential cash from exercise of all options and warrants of $3.1 million(4) At December 4, 2012 6
  7. 7. OILFIELD HAULING MARKET Currently More Than 2,200 Active Rigs in North America(1) North American Active Aveda has a targeted growth Land Rig Count(1) plan that is focused on targeting WCSB 2012 2,218 oil/liquid rich weighted basins 2011 2,389 across North America 2010 2,083 Based on a recent market 418 2009 1,446 analysis, Aveda estimates each Bakken rig moves approximately 1.4 times per month or 17 times per 173 year (42,500 moves per year) Aveda’s reputation, customer Marcellus 92 relationships and quality service results in high utilization of its Barnett transportation equipment 41 Active in Play / Region 472 Recently Opened Office Expansion Opportunity 238 Eagle Ford Oil Focused Permian NGL Focused 7 (1) Active rigs on or about December 12 in relevant year; as per Baker Hughes & CAODC
  8. 8. NORTH AMERICAN OPERATIONS Ten offices located in the heart Geographic Locations of the key North American resource plays Significant expansion opportunities especially in U.S. markets Flexible workforce can be SLAVE LAKE transferred cross border to high activity areas Experienced team of more than 250 employees LEDUC SYLVAN LAKE Fixed Asset Allocation(1) CALGARY MIDLAND WILLIAMSPORT 43% PLEASANTON 57% MINERAL WELLS US Canada 8 (1) Based on total equipment Net Book Value at September 30, 2012
  9. 9. OILFIELD HAULING OVERVIEW Modern, well maintained fleet  481 pieces of equipment (150 power units) 251 employees (158 operators) Fragmented industry makes for attractive consolidation opportunities Primary competitors include TransForce, Mullen, Flint and regional specialty haulers 481 Pieces of Equipment in Hauling Fleet Blue Chip Customer Base Trailer Winch Tractor Bed Truck 2011 2012 addition Picker All-Terrain 0 100 200 300 400 9
  10. 10. OILFIELD HAULING CASE STUDY Aveda has outperformed its competitors as a result of:  Newer, more specialized equipment  Experienced personnel  Planning and communications  Ability to meet industry demands for heavier equipment and larger loads 40 mile rig move – Marcellus Shale (1) Competitor Aveda 11 days 4 days The Result:  11% price premium for Aveda  64% reduction in rig downtime for customer (1) 1,250 hp, jackknife triple rig, ~ 70 loads 10
  11. 11. OILFIELD RENTALS OVERVIEW  Modern, well maintained equipment with 780 pieces in the rental fleet  Contributed approximately 5% of revenue in 2011; pro-forma, including new acquisition, contribution estimated at 10%  Plan to build critical mass through the acquisition of competitors with similar or complementary equipment  Typical acquisition multiples identified at 1.5x to 3.2x TTM EBITDA 780 Pieces of Equipment in Rental Fleet Blue Chip Customer Base Rig Mats400 bbl TanksMiscellaneous Before Acquisition After Acquisition Light Towers Generators 0 50 100 150 200 250 300 11
  12. 12. GROWTH STRATEGYCapital Expenditure Program $23 million capital budget for 2012  $21 million for organic oilfield hauling fleet expansion  Investing $1 million in transportation management systems  Allocating $1 million for facility and leasehold improvementsOrganic Growth Initiatives Existing Customers  Rig moving and ancillary equipment (e.g. tanks, trailers, etc.)  Implement transportation management systems (e.g. GPS, satellite communications) Expansion into New Areas  Target high activity resource plays focused on oil and NGL explorationGrowth Through Acquisitions Spent $7.5 million on Oilfield Rentals acquisition in 2012 Acquire complementary fleets in both new and existing geographies Typical acquisition multiples of 1.5x to 3.5x TTM EBITDA Evaluating potential acquisitions ranging in value from $10 to $35 million 12
  13. 13. FINANCIAL PERFORMANCE: REVENUE  81% growth in 2011 revenue vs. 2010; 15% growth in first 9 months of 2012 revenue vs. first 9 months of 2011  Expansion into U.S. resource plays and increasing utilization Revenue ($mm) 2012 First 9 Months Revenue by Geography80.070.0 46%60.050.040.030.020.0 54%10.0 0.0 2007 2008 2009 2010 2011 First 9 mo. First 9 mo. 1st 9 mo. 2011 2012 2012 - Canada United States Pro-forma (1) 13 (1) Includes pro-forma revenue for 2012 Oilfield Rentals acquisition
  14. 14. FINANCIAL PERFORMANCE: EBITDA  Higher utilization across North America  Premium pricing in key resource plays  Operational efficiencies resulting in increased margins EBITDA ($mm) 12 10 8 6 4 2 0 2009 2010 2011 First 9 mo. First 9 mo. First 9 mo. First 9 mo. 2011 2012 2012 less 1- 2012 Pro- time (1) forma(2)(1) Removes one-time items associated with winter retention bonus, and SG&A from opened/restructured branches 14(2) Includes pro-forma EBITDA for 2012 Oilfield Rentals acquisition
  15. 15. RECENT ACHIEVEMENTS Secured $66 million in financing and credit facilities  Line of Credit - $50.0 million  December 2011 Werklund Capital - debt and equity - $7.7 million  June 2012 Bought Deal Prospectus Financing - $8.0 million Hired Kevin Roycraft as President and CEO Opened new Rig Moving branches in the Eagle Ford Shale and Permian Basin Acquired additional assets, significantly increasing the size of Oilfield Rentals fleet Closed underperforming offices in Grand Prairie and Melita 15
  16. 16. INVESTMENT HIGHLIGHTS Proven management team with a history of value creation Solid industry fundamentals supported by continued strong oil prices Significant growth opportunities across emerging oil-weighted resource plays  Organic growth  Acquisitions 16
  17. 17. CONTACT Bharat Mahajan Chief Financial Officer Aveda Transportation and Energy Services Suite 725, 435 – 4th Avenue SW Calgary, AB T2P 3A8 (403) 264-5769 bharat.mahajan@avedaenergy.com 17
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