2. The information contained in this corporate presentation (the "Presentation") is based on public information and Aveda Transportation and Energy Services Inc.'s ("Aveda" or the
"Company") information. This Presentation does not constitute, or form a part of, and should not be construed as any offer or invitation to sell, allot or issue, or any solicitation of any offer
to purchase or subscribe for, any securities, nor shall it (or any part of it or anything contained or referred to in it) or the fact of its distribution form the basis of, or be relied upon in
connection with, or act as any inducement in relation to a decision to purchase or subscribe for or to enter into, any contract or commitment whatsoever for securities in any jurisdiction.
The securities of Aveda have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state.
Additionally, this Presentation is not for release, publication or distribution in, into or from the United States of America.
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 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; benefits derived from capital expenditures;
expansion opportunities; increases in revenue; equipment delivery and deployment dates; effect of and ability to complete rebranding; geographic allocation of equipment; customer
commitments; ability to establish and maintain a working relationship with third party suppliers; expectations regarding the ability of Aveda 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; acquisition
opportunities and benefits and availability of insurance coverage.
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 in Canada and the United States; 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 retain customers post-acquisitions; 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, 2013 (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
DISCLAIMER
3. Future-Oriented Financial Information
This Presentation also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about prospective results of operations, future net revenue,
share capital, cash flows, and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs including
the risks set out in the Company's MD&A and annual information form for the year ended December 31, 2013. FOFI contained in this Presentation was made as of the date of this
Presentation and was provided for the purpose of providing information about management's current expectations and plans relating to the future. The Company disclaims any intention or
obligation to update or revise any forward looking statements or FOFI contained in this Presentation, whether as a result of new information, future events or otherwise, unless required
pursuant to applicable securities law. Readers are cautioned that the forward looking statements and FOFI contained in this Presentation should not be used for purposes other than for
which it is disclosed herein. The forward looking statements and FOFI contained in this Presentation are expressly qualified by this cautionary statement.
The forward-looking statements contained in this Presentation are made as of the date on the front page and the Company assumes no obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Certain information
contained herein is based on, or derived from, information provided by independent third-party sources. The Company believes that such information is accurate and that the sources from
which it has been obtained are reliable. The Company cannot guarantee the accuracy of such information, however, and has not independently verified the assumptions on which such
information is based. The Company does not assume any responsibility for the accuracy or completeness of such information.
Non-International Financial Reporting Standards Measures
This Presentation may contain the terms EBITDA (earnings before interest, taxes, depreciation and amortization) and working capital which are defined in the MD&A. These measures are
commonly utilized in the oilfield services industry and are considered informative for management and stakeholders. Neither working capital nor EBITDA have a standardized meaning
prescribed by international financial reporting standards ("IFRS") and therefore Aveda's calculations may not be comparable with the calculation of similar measures for other entities.
Management uses EBITDA to analyze the operating performance of businesses. EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other
measures of financial performance calculated in accordance with IFRS.
This Presentation does not constitute a recommendation regarding the securities of Aveda. No reliance may be placed for any purpose whatsoever on the completeness, accuracy or fairness
of the information or opinions contained in this Presentation nor is any responsibility or liability accepted for any errors or misstatements in, or omissions from, this Presentation or any
direct or consequential loss (howsoever arising) from any use of, or reliance on, this Presentation or otherwise in connection with it. No undertaking, representation, warranty or other
assurance, express or implied, is made or given by or on behalf of Aveda, or any of its respective directors, officers, partners, employees, agents, affiliates or advisers or any other person as
to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any of them for any such information
or opinions.
3
DISCLAIMER (CONT’D)
4. Oilfield Hauling Oilfield Rentals
Matting
Tanks
Light towers
Shacks
Rig moving
Heavy hauling
Hot shot services
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
COMPANY OVERVIEW
4
5. Management
David Werklund – Executive Chairman
Has been the Chairman of Aveda since 2006 and served as Interim
President and CEO of Aveda from September 2011 to November
2012. Appointed as Executive Chairman in November 2012
Began career in 1965 at Shell Canada as a Production Operator
Founder and Chairman of the Board of Directors of CCS
Corporation (now Tervita Corporation)
Co-Founder of Concord Well Servicing
Founder and Executive Chairman of Werklund Capital Corporation
The 2005 Ernst & Young's Canadian Entrepreneur of the Year
The 2013 Calgary Business Hall of Fame Laureate
Kevin Roycraft - President and CEO
Joined Aveda in November 2012
More than 20 years of Transportation Industry Experience
Former Vice-President of Operations for Liquid Transport Corp.
(one of North America’s largest bulk chemical and oil
transportation company)
Bharat Mahajan – Vice-President, Finance and CFO
Joined Aveda in October 2011
Held several positions with Magna International overseeing
various international growth initiatives
Former CFO of several oilfield service companies, including
Wellpoint Systems Inc. and Norex Exploration Services Inc.
Board Members
Stefan Erasmus
President of Werklund Capital Corporation
Director of several private companies and charitable organizations
Former Managing Director of Resources Global Professionals
Doug McCartney
Partner of Burstall Winger Zammit LLP
Practices in the areas of securities and corporate finance and
corporate and commercial law
Director or officer of several private companies
Paul Shelley
President of Convinco Financial Ltd.
Former Senior Vice President, Corporate Development at Kos Corp.
Investments Ltd.
5
MANAGEMENT AND BOARD OF DIRECTORS
6. Historical Shareholder Returns CCS Selected Historical Acquisitions
6
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)
MANAGEMENT TRACK RECORD
Source: FactSet
CAGR Total Return
CCS 24% 2490%CAGR Total Return
CCS 24% 2490%
7. Capitalization (1) Balance Sheet Summary(1)
Share price (May 22, 2014) $4.22 Operating Line Available ($mm) $36.7
Shares Outstanding Basic (mm) 19.9 Property and Equipment ($mm) $76.3
Outstanding Stock Options (mm) 1.1 Working Capital ($mm) $16.5
Shares Outstanding Fully Diluted (mm) 21.0 Total Assets/Tangible Assets ($mm) $142.3/$114.1
FD Market Capitalization ($mm) $88.6
Net Debt ($mm)
Loans and Borrowings $38.1 Shareholder Summary(1)
Cash(1)(2) ($4.3) Werklund Capital Corp 33.3%
Total Net Debt ($mm) $33.8 Other Insiders 1.2%
Enterprise Value ($mm) $122.4 Total Insiders 34.5%
CAPITALIZATION SNAPSHOT
(1) At March 31, 2014
(2) Includes potential cash from exercise of all options of $3.4 million
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8. 161
187
Permian 219
24
Barnett
87
Williston/
Bakken
WCSB
(1) ) Active rigs on or about April 25 in relevant year; as per Baker Hughes
Marcellus
Aveda has a growth plan that is
focused on targeting oil/liquid rich
weighted basins across North America
Based on a recent market analysis,
Aveda estimates each rig moves
approximately 1.4 times per month or
17 times per year (approx. 33,286
moves per year based on late April
2014 rig count)
Aveda’s reputation, customer
relationships and quality service results
in high utilization of its transportation
equipment
Approximately 1,958 Active Rigs in North America(1)
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OILFIELD HAULING MARKET
Eagle Ford
North American Active
Land Rig Count(1)
2013 1,800
2012 2,011
542
Northern Texas/
Oklahoma259
36
Utica
Active Region Prior to 2012
2012 Organic Expansion
2013 Organic Expansion
M&K Acquisition
Expansion Opportunity
Oil Focused
NGL Focused
64
9. NORTH AMERICAN OPERATIONS
9
Recently acquired oilfield hauling and
equipment rentals operations in
Williston, ND (“M&K Acquisition”)
Recently acquired oilfield rentals operation in
Edson, AB (“Belair Acquisition”)
Fourteen offices located in the heart
of the key North American resource plays
Significant expansion opportunities,
especially in U.S. markets
Flexible workforce can be transferred cross
border to high activity areas
Experienced team of approximately 390
employees
LEDUC
CALGARY (1)
MIDLAND
PLEASANTON
SLAVE LAKE
MINERAL WELLS
WILLIAMSPORT
Geographic Locations
Fixed Asset Allocation (1)
(1) Based on total equipment Net Book Value at
March 31, 2014
SYLVAN LAKE
BUCKHANNON
EDSON
WILLISTON
Current
Aveda
Recent
Acquisitions
69%
31%
US Canada
HOUSTON(2)
(1) 3 offices in Calgary area – Heavy Haul, Service, and corporate headquarter
(2) US corporate headquarter
10. OILFIELD HAULING OVERVIEW
Modern, well maintained current fleet of 846 pieces of
equipment (276 power units)
Current employees of 387 employees (181 operators)
Fragmented industry makes for attractive consolidation
opportunities
Primary competitors include Mullen, Monster Heavy
Haulers, Flint and regional specialty haulers
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Equipment Composition in Hauling Fleet
Blue Chip Customer Base
0 50 100 150 200 250 300 350 400 450
Cranes
Bed Truck
Picker/Loader
Tractor
Miscellaneous
Trailer
Pre-acquisition Aveda M&K Acquisition
11. 11
Competitor Aveda
40 mile rig move – Marcellus Shale (1)
The Result:
11% price premium for Aveda
64% reduction in rig downtime for customer
(1) 1,250 hp, jackknife triple rig, ~ 70 loads
4 days11 days
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
OILFIELD HAULING CASE STUDY
12. OILFIELD RENTALS OVERVIEW
12
Modern, well maintained equipment with over 1,450
pieces in the rental fleet after the Belair and M&K
Acquisitions
Plan to build critical mass through the acquisition of
competitors with similar or complementary equipment
Typical acquisition multiples identified at 3.0x to 3.5x
EBITDA
Equipment Composition in Rental Fleet
Blue Chip Customer Base
0 50 100 150 200 250 300 350 400 450
Well-site Shacks/Trailers
Shale Bins
Light Towers
Miscellaneous
Racks
Rig Mats
Tanks
Pre-acquisition Aveda Belair Acquisition M&K Acquisition
13. GROWTH STRATEGY
Capital Expenditure Program
Completed capital expenditure of $6.3 million in 2013. $12.0 - $15.0 million capital
expenditures expected for 2014
Organic Growth Initiatives
Existing Customers
Rig moving and ancillary equipment (e.g. tanks, trailers, cranes, etc.)
Implement transportation management systems (e.g. GPS, satellite communications)
Expansion into New Areas
1 new branch in 2013 (Buckhannon, WV); 2 new branches in 2012 (Midland and
Pleasanton, TX)
Target high activity resource plays focused on oil and NGL exploration
Considering potential exclusivity agreements with established operators to mitigate risk
of organic expansion
Growth Through Acquisitions
Acquire complementary fleets in both new and existing geographies
Typical acquisition multiples of 3.0x to 3.5x EBITDA
Evaluating potential acquisitions of various sizes in high activity regions
13
14. FINANCIAL PERFORMANCE: REVENUE
• Consistent annual revenue growth:
– 51% overall revenue growth in the first quarter of 2014 vs. 2013
– Compound annual growth rate of 27.2% between 2009 and 2013
Annual Revenue ($MM) Revenue by Geography
First Three Months Revenue ($MM) – 51% growth
Q1 2014
Q1 2013
Growing
exposure to
the resilient
U.S. market
23.5
35.4
15.0
20.0
25.0
30.0
35.0
40.0
Q1 2013 Q1 2014
39.8
72.2
83.3 88.7
0.0
20.0
40.0
60.0
80.0
100.0
2010 2011 2012 2013 29%
71%
42%
58%
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15. FINANCIAL PERFORMANCE: EBITDA
• First three months of 2014 EBITDA of $6.6
million, an increase of $2.3 million (53%)
compared to 2013, reflecting:
– Higher utilization across North America
– Premium pricing in key resource plays
– Operational efficiencies resulting in
increased margins
• Compound annual growth rate of 63.6%
between 2009 and 2013
Annual EBITDA ($MM)
First Three Months EBITDA ($MM) – 53% growth
4.3
6.6
2.0
3.0
4.0
5.0
6.0
7.0
Q1 2013 Q1 2014
15
9.8
15.0
6.0
8.0
10.0
12.0
14.0
16.0
2012 2013
16. RECENT ACHIEVEMENTS SUMMARY
Moved US Corporate Office from Mineral Wells, TX to Houston, TX
Closed Belair (November 8, 2013) and M&K acquisitions (January 31, 2014)
Related to the M&K acquisition, completed $23.0 million Common Shares bought
deal private placement financing
Increased senior credit facility from $50.0 million to $75.0 million; reduced interest
rate by 50 bps
Converted $4.7 million convertible debenture into equity
Opened new satellite branch in Buckhannon, WV to serve the Utica Basin
16
17. INVESTMENT HIGHLIGHTS
Proven management team with a history of value creation
Solid industry fundamentals supported by continued strong oil prices
Strong balance sheet and cash flow generation
Significant growth opportunities across emerging oil-weighted resource plays
Organic growth
Acquisitions
17
18. CONTACT
Bharat Mahajan
Chief Financial Officer
Aveda Transportation and Energy Services
Suite 300, 435 – 4th Avenue SW
Calgary, AB
T2P 3A8
(403) 264-5769
bharat.mahajan@avedaenergy.com
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