77 kw-1.5 MW WATER VAPORIZATION R

Transcription

1 CLEAN COMBUSTION HEAT TO POWER 77 kw-1.5 MW WATER VAPORIZATION R

2 2 Forward-Looking Information Certain information presented today may constitute forward-looking statements. Such statements reflect the Company s current expectations, estimates, projections and assumptions. These forward-looking statements are not guarantees of future performance and are subject to certain risks which could cause actual performance and financial results in the future to vary materially from those contemplated in the forward-looking statements. For additional information on these risks see the Company s 2015 financial reporting under the heading Business Conditions and Risk Management.

3 3 What We Do We are a leading provider of safe, reliable, clean, efficient waste gas combustion incineration equipment addressing air quality and emission issues We specialize in unique cost minimizing solutions for facility and wellsite operations. Questor recovers the waste heat from clean combustion and other sources to generate power and treat waste water to reduce site costs and improve energy efficiency Questor s solutions cost effectively achieve regulatory compliance and reduce GHG emissions while gaining public confidence and support

4 Overview 4 Challenging past two years Adapted US Focus regulation and community Invested, grew and moved down part of the Cdn. fleet Created a Hub in Colorado Developed innovative hybrid unit technology Diversified ClearPower solutions Waste heat to Power Thermal treatment of produced water Poised for Growth Cash in the Bank, No Debt Scalable proven business solutions

5 The Problem we are Solving concentrated in the newer tight oil plays 5 Drivers Regulation; VOC, HAP s, methane, air quality, GHG emissions, low carbon operations, green or closed loop completions, no flaring Community acceptance; Potential to reduce costs

6 US Market Opportunity 6 Increased emission regulation and community concerns creating the push Canada regulations will lag behind hence our short term focus is in the US. Focus in the seven most prolific areas and their corresponding States, which account for 92% of US production growth and increased capital spending State of Colorado has taken a lead role in regulating quality, high-performance emission control equipment Our approach in the Niobrara is scalable and transferable to the other areas 6

7 Colorado Hybrid Rental / Sales Model 7 Reduced Costs by 15-20% and footprint by 30% Integrated complete total system solution Tall unit for flow-backs and high initial production rates Rented top of stack removed for permanent production Unit handles all the gas streams on site - closed loop Colorado Hub Renting Tops and Selling Bottoms 7

8 Growth Strategy Expansion 8 Invested and reallocated capital to Colorado Opening an office and hiring local technicians has been a positive step and contributing factor to our recent successes and future growth Industry has noticed our top level service and high-quality product. We are working with a number of companies and are optimistic that a major customer will fuel Questor s expansion into other States Well positioned to create additional operating hubs as the opportunities arise and is included in our capital plans Continue to market and grow the rental fleet as it is emerging as a more capital efficient option

9 Growth Strategy - Diversification 9 Technology and Industry diversification ClearPower has developed commercial technology that utilizes waste heat to generate power. Significant waste heat available in many Industry processes. Zero emissions. Focused on the 77kW to 1.5MW market Developing technology to utilize the on-site heat from flue gas to vapourize produced and flow-back water. 90% reduction in volume at a cost of less than $3/bbl.

10 Growth Strategy M&A 10 Strategic Relationships or Acquisitions Developing strategic relationships to expand into new markets. This includes M&A and distributorships We understand M&A strategy produces relatively low success rate as measured by rate of return. The opportunity would require the following key components: Operates in the States with tightest emissions standards that are active in the prolific basins Highly related or synergistic product line and synergistic resources and capabilities Similar business philosophy Little to no price premium

11 Revenue Streams 11 Sales Rentals Flow-backs Production testing Facility/pipeline blowdowns Well abandonments Dehydration facilities Acid gas & tail gas Tank vapors Water vaporization Low heat content gas Railcar loading facilities Associated/solution gas Services in-house combustion engineering Experienced Field Technicians Commissioning, Maintenance, Transportation 11

12 $ $ Opportunity in Alberta 12 Dehy Assumptions: 4,900 Glycol Dehydration Facilities 140 mscfd less fuel with QTI than Flare Flare is 80% efficient CO 2 E is $20/tonne: 10-year life ALBERTA GHG REDUCTION $/tonne Mt/yr Reduced Venting Assumptions: Data from AER ST 60B % of venting in CHOP regions CO2E is $20/tonne: 10-year life Flare Assumptions: Data from AER ST 60B-2015 Flare is 65% efficient CO2E is $20/tonne: 10-year life Pneumatics Cost per tonne is based on a site incinerator available to tie in vents. Pneumatics Cost per tonne is based on traditional low bleed valve installations to tie in vents. QTI SOLN'S PNEUMATICS WITHOUT INCINERATION 17

13 $M (Cdn.) Financial Performance 13 13,000 10,500 8,000 Revenue Profit EBITDA 5,500 3, , Estimated 13

14 $M (CAD) Revenue by Region 14 7,000 6,000 5,000 Canada USA International 4,000 3,000 2,000 1, Estimated 14

15 MM$ (CAD) Business Segments Revenues Sales Rental Services Estimated 15

16 16 Investor Information Share Information (as of Q3 2016) 12 Month Share Price Performance Shares Outstanding 26,444,870 Warrants nil Options (issued/outstanding) 580,500 Shares fully diluted 26,164,924 Current share price $ Week Hi-low $ $1.23 Market Cap ($M) 18.5 Financial Information (as of Q3 2016) Cash + Cash Equivalents ($) $8,046,839 Net Debt ($) nil Listed since 1998 QST TSX-V Patented Technology Analyst Coverage Cormark Securities Haywood Securities Mackie Research Capital AltaCorp Major Shareholders Audrey Mascarenhas 16.1% James Inkster 7.3% 21

17 Competitive Landscape 17 A B Questor has few competitors that supply equipment that will meet/exceed strict emission standards and regulations. These competitors tend to be large and operate in the highperformance value added product & services environment. Questor separates itself in this segment with patented proven technology that works, dedicated in-house engineering and experienced field technicians. A B Competitors that supply equipment that will not meet new strict emission standards and regulations. These competitors vary in size but tend to be small to mid size and operate in a commodity environment. This old low performing technology tends to compete on price and availability. The Hybrid model was created to compete close to that price level with superior performance. 17

18 Our Clients 18

19 The Team 19 Audrey Mascarenhas President and CEO Chemical Engineer with Master s degree in Petroleum. Over 30 years of oil and gas experience. 17 years with Gulf Canada Resources prior to joining Questor in SPE Distinguished lecturer. E&Y Entrepreneur of the Year (Prairie region) in Cleantech and Environmental Services division and E&Y special citation for values-based innovation. U of C Schulich School of Engineering advisor. Alberta Government SME Export Council member. Alberta Energy Futures Lab Fellow. Governor General s innovation selection committee. James Inkster - Director Entrepreneur and businessman. Jim has provided twenty years of insight in assisting management in building the firm base on which the Corporation s growth plans will materialize. Jean-Michel Gires - Director Jean-Michel Gires was President & CEO Total E&P Canada up to December He joined Chrysalix in 2013, an Energy Venture Capital Firm where he was a Venture Partner. He is now based in Calgary and dedicates himself to innovation in the energy space. John Sutherland COO Mechanical engineer with over 27 years of experience with the energy regulator, various oil and gas companies in EHS, facilities and engineering. Joined Questor in Robert Miller President of ClearPower Systems Mechanical engineer with over 45 years of extensive experience in manufacturing, co-generation and power generation with Amerada Hess (Microgen), Turbogenix, Calnetix and General Electric. Dan Zivkusic CFO CPA, CMA with over 20 years in the oil and gas industry in the E&P and service sectors. Senior executive finance experience in E&P, pressure pumping (fracturing, cementing, coiled tubing, nitrogen), artificial lift systems, managed pressure drilling and testing. 19

20 COST REDUCTION FOR CLIENTS PUBLIC CONFIDENCE QUESTOR TECHNOLOGY INC Audrey Mascarenhas President and CEO ENVIRONMENTAL PROTECTION Questor Technology Inc. #1121, 940-6th Avenue S.W. Calgary, Alberta, Canada. T2P 3T ClearPower Systems Inc. Questor Solutions and Technology Flight Path Drive Brooksville, FL United States