2. FORWARD LOOKING INFORMATION
This 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 future
outcomes. In particular, this presentation contains forward-looking statements relating to: future growth; results of operations; operational and financial
performance; projected capital expenditures and commitments and the financing thereof; expansion; increases in revenue; equipment delivery and deployment
dates; effect of rebranding; geographic allocation of equipment; customer commitments; ability to establish a working relationship with third party suppliers;
expectations regarding the Corporation's ability to raise capital and to increase its equipment fleet; benefits associated with financial results; activity levels; business
strategy; successful integration of structural changes; restructuring plans; organic growth potential; acquisitions and availability of insurance coverage. Aveda
believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations
will 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 and
other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this presentation in connection with the
forward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and
assumptions 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. Such
forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda’s actual performance and financial results in
future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to, the risks identified by Aveda’s annual information form and management discussion and analysis for the year ended
December 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. 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
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4. MANAGEMENT AND BOARD OF DIRECTORS
Management Independent Board Members
David Werklund – Chairman, Interim President and CEO Martin Cheyne
Has been the Chairman of Aveda since 2006 and was appointed Has more than 25 years of diversified oil and gas experience
Interim President and CEO of Aveda in September 2011 Founder of DeeThree Exploration Ltd.
Began career in 1965 at Shell Canada as a Production Operator Former President and Director of Dual Exploration Inc. and Devlan
Founder and Chairman of the Board of Directors of CCS Exploration Inc.; both purchased by Cyries Exploration Inc.
Corporation (now Tervita Corporation)
Co-Founder of Concord Well Servicing
Doug McCartney
Founder & Executive Chairman of Werklund Capital
Managing Partner of Burstall Winger LLP
The 2005 Ernst & Young's Canadian Entrepreneur of the Year
Practices in the areas of securities and corporate finance and
Bharat Mahajan – CFO corporate and commercial law
Joined Aveda in October 2011 Director or officer of several public and private companies
Held several positions with Magna International overseeing
various international growth initiatives
Paul Shelley
Former CFO of several oilfield service companies, including
Wellpoint Systems Inc. and Norex Exploration Services Inc. President of Convinco Financial Ltd.
Former Senior Vice President, Corporate Development at Kos Corp.
Investments Ltd.
Wayne Thompson – Vice President, Operations
More than 40 years of oilfield experience
Previously President DC Energy Oilfield Rentals
Former owner and CEO Radar Well Servicing
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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 CAGR
24% Total Return
2490%
CCS 24% 2490%
Source: FactSet 5
6. CAPITALIZATION SNAPSHOT
Capitalization Balance Sheet Summary (1)
Share price (October 9, 2012) $2.70 Operating Line Available ($mm) $17.0
Shares Outstanding Basic (mm)(4) 10.0 Property and Equipment ($mm) $40.2
Shares Outstanding Fully Diluted (mm)(4) 12.6 Working Capital ($mm) $9.0
FD Market Capitalization ($mm) $34.0 Total Assets/Tangible Assets ($mm) $58.3/$57.5
Net Debt ($mm)(1)
Loans and Borrowings $17.5
Shareholder Summary (4)
Convertible Debenture (face)(2) $4.7
Cash(1)(3) ($4.1) Werklund Capital Corp 47.4%
Total Net Debt ($mm) $18.1 Other Insiders 2.6%
Enterprise Value ($mm) $52.1 Total Insiders 50.0%
(1) At June 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 $2.2 million
(4) At September 30, 2012
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7. OILFIELD HAULING MARKET
Currently More Than 2,150 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 2,154
oil/liquid rich weighted basins 2011 2,454
across North America 2010 1,922
Based on a recent market 360 2009 1,177
analysis, Aveda estimates each
Bakken
rig moves approximately 1.4
times per month or 17 times per 181
year (42,500 moves per year)
Aveda’s reputation, customer Marcellus
86
relationships and quality service
results in high utilization of its
Barnett
transportation equipment
40
Active in Play / Region 506
Recently Opened Office
Expansion Opportunity 238
Permian Eagle Ford
Oil Focused
NGL Focused
7
(1) Active rigs on or about Sept 15 in relevant year; as per Baker Hughes & CAODC
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
230 employees LEDUC
SYLVAN LAKE
Fixed Asset Allocation(1) CALGARY
ODESSA WILLIAMSPORT
41%
PLEASANTON
MINERAL WELLS
59%
U.S. Canada
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(1) Based on total equipment Net Book Value at June 30, 2012
9. OILFIELD HAULING OVERVIEW
Modern, well maintained fleet
469 pieces of equipment (142 power units)
238 employees (143 operators)
Fragmented industry makes for attractive
consolidation opportunities
Primary competitors include TransForce, Mullen, Flint
and regional specialty haulers
469 Pieces of Equipment in Hauling Fleet Blue Chip Customer Base
Trailer
Winch Tractor
Bed Truck 2011
2012 addition
Picker
All-Terrain
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0 100 200 300 400
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
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11. OILFIELD RENTALS OVERVIEW
Modern, well maintained equipment with 750 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
750 Pieces of Equipment in Rental Fleet Blue Chip Customer Base
Rig Mats
400 bbl Tanks
Miscellaneous Before Acquisition
After Acquisition
Light Towers
Generators
0 50 100 150 200 250 300 11
12. GROWTH STRATEGY
Capital 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 improvements
Organic 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 exploration
Growth 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 $35 million
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13. FINANCIAL PERFORMANCE: REVENUE
81% growth in 2011 revenue vs. 2010; 17% growth in first 6 months of 2012 revenue vs. first 6
months of 2011
Expansion into U.S. resource plays and increasing utilization
Revenue ($mm) 2012 First 6 Months Revenue by Geography
80.0
70.0
60.0
50.0 50%
40.0
30.0
20.0
50%
10.0
0.0
2007 2008 2009 2010 2011 First 6 First 6 H1 2012
Months Months Proforma U.S. Canada
2011 2012 (1)
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(1) Includes pro-forma revenue for 2012 Oilfield Rentals acquisition
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 6 First 6 First 6 First 6
Months Months Months Months
2011 2012 2012 less 2012
(1)
1-time Proforma (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. 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
Added Rig Moving to the Leduc (Nisku) branch along with service work
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
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16. KEY OILFIELD RENTALS ACQUISITION
$7.5 million purchase price
2.4 times price/EBITDA
Expected annual EBITDA of $3.1 million
Complementary equipment more than doubled size of fleet
400 bbl tanks, matting, light towers, frac manifolds
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17. 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
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18. 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
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