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Hunting PLC

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  1. Hunting PLC Corporate Strategy • Maximise Global Footprint • Continuance of Market Share Strength • Proprietary Technologies • Asset Utilisation 2

  2. 2006 Half Year Results Summary 3

  3. Revenue and Profit from Operations 4

  4. Financial 5

  5. Capital Expenditure 6

  6. Cash Flow 7

  7. Gibson Energy 8

  8. Gibson EnergyProfit from Operations 9

  9. Gibson Energy 10

  10. Gibson EnergyMarketing Activities • Buy, sell trade 250k bbls/day • Crude Oil – Light, Heavy, Bitumen • Diluent (Natural Gas Condensate) • LPG, Natural Gas, Propane • Wellsite Fluids • Ten strategically placed custom terminals used for quality management • Specialized skills in trading, risk management, logistics systems, control • Marketing assets throughout Western Canada, together with trucks and strategically placed pipelines. A creation of time and quality based arbitrage can occur in virtually any market condition • Over 20 grades of Canadian crude are aggregated on multiple feeder pipeline systems giving multiple sources of arbitrage 11

  11. Gibson EnergyMarketing Opportunities • Expansion of assets • Physical and financial • Athabasca heavy oil volume growth • Increased gas market share • Expansion of Wellsite Fluids business • Emerging Carbon Dioxide markets • Volatility £m 040506 (6mos) Profit from Operations 7.0 10.7 7.8 12

  12. Gibson EnergyTruck Transportation Activities • 600 tractor units, 1,000 trailer units – largest crude oil fleet in Western Canada • 250,000 bpd hauling capacity • HSE excellence • Synergies between business units 13

  13. Gibson EnergyTruck Transportation Opportunities • Tar sand growth • Enhanced margins in growing business environment • Diversify by growing chemical, asphalt and Wellsite Fluid hauling • Lead industry in “next generation” trailers • Invest replacement capital in multi-functional trailers • State of the art onboard computer system • electronic data capture • real time invoicing and custom billing • web access • compliance and driver monitoring £m 040506 (6 mos) Profit from Operations 2.6 4.9 4.1 14

  14. Gibson EnergyTerminals and Pipelines Oil Terminals and Pipelines % of Gross Margin by Facility 15

  15. Gibson EnergyHardisty Terminal • Largest of the Gibson Terminal facilities • 1.6 million barrels of storage • 250k bpd throughput • Strategic location • Large land position surrounding existing site available for expansion 16

  16. Gibson EnergyEdmonton South Terminal • Handle 100% of diesel produced by Suncor facility in Fort McMurray (10 year T.O.P. contract) • Receive product by pipeline and load to rail and trucks • Receive crude oil and condensate by pipeline, truck and rail in support of Gibson Marketing blending operations • Commissioning new rail facility to handle 100% of Petro-Canada’s low sulphur diesel (10 year T.O.P. contract) 17

  17. Gibson EnergyEdmonton North Terminal • New facility – 310K barrel capacity • Pipeline connected to feeder pipeline systems to facilitate receipt of crude oil and condensate in support of Gibson Marketing blending operations • Connected to Enbridge mainline and Transmountain export pipelines 18

  18. Gibson EnergyCanwest Operations • Second largest propane company in Canada • Operations in British Columbia, Alberta, Saskatchewan, Washington State • 12 branches and 27 storage facilities • 145 fully equipped, delivery and service vehicles • 128 branches, operational and sales personnel 19

  19. Gibson EnergyMoose Jaw Asphalt • Processing and Distribution • Road asphalt • Roofing Flux • Tops and distillate • Wellsite Fluids • Off-road diesel fuel 20

  20. Gibson EnergyMoose Jaw Asphalt Opportunities • Plant utilisation • Roofing Flux market growth • Expanded frac/distillate/diesel/tops • Regional storage • Taking advantage of multiple crude stream access 21

  21. Hunting Energy 22

  22. Hunting EnergyProfit From Operations 23

  23. Hunting EnergyBusiness Platforms • Well Construction: • Providing the market manufactured products, engineering expertise and services in the construction of oil and gas wells along with trenchless boring applications. • Well Completion: • Providing the market manufactured products, proprietary technologies, engineering expertise and services in both below and above the well head for oil and gas wells. • Exploration and Production: • Invest at an average 10% of well cost as non operating partner with select independent oil and gas companies. Providing products and services to the operator as preferred supplier. 24

  24. Hunting Energy 18% 25

  25. Hunting EnergyWell Construction • Mud Motors: • Straight hole motors • Directional motors • Shock tools • SWB “near bit” motors • Trenchless Technologies: • “Firestick” drill stem • 2 step tubing threading • Manufactured products for underground construction technology 26

  26. Hunting EnergyWell Construction • Premium Connections: • Patented premium connection technology for deep well applications • Annular pressure release system for deep water applications • Customer specific engineered products • Canadian Operations: • Largest coupling manufacturer • 140,000 sq/ft enclosed facility • Leveraged to heavy oil 27

  27. Hunting EnergyWell Completion • U.S. Manufacturing: • Accessories and completion equipment for oil and gas wells • Specialty threading • Print work manufacturing • OEM manufacturing • Asia Pacific Operations: • Manufacturing of completion equipment • Specialty threading • OCTG sales • Hauxin joint venture 28

  28. Hunting EnergyWell Completion • Canadian Manufacturing: • Accessory and completion equipment • Print work • Aberdeen: • Chrome tubular contracts in the North Sea • Specialty threading • Accessory and completion equipment • Holland: • Specialty threading • Accessory and completion equipment 29

  29. Hunting EnergyWell Completion • U.S. Pipe: • Leading market position in the US for 2 step tubing • Exclusive arrangement for U.S. steel premium tubing • Thread protectors • Well Intervention: • Pressure control equipment • Lubricators and well head equipment • Coiled tubing and Slickline tools • Clam Blow Out Preventors 30

  30. Hunting EnergyExploration & Production • Number of wells drilled through June 30: 12 • Number of Successes: 9 • Offshore: 8 • Onshore: 1 • Reserve replacement at June 30: 100% • Production through June 30: 192,803 net equivalent barrels 31

  31. Hunting EnergyOpportunities • Geographical expansion • Environmentally sound thread compound • Titanium • Annular Pressure Release System • Expansion of Chinese relationship • Continued investment in human capital • Expansion of product offering • Growth of “above the wellhead” technology 32

  32. Others Profit From Operations 33

  33. Rig Count Source: Baker Hughes, Spears and Associates 34

  34. Average Oil and Gas Pricing Source: EIA 35

  35. Hunting PLCConclusions • Continued Strong Commodity Fundamentals • Continued E&P Spend and Project Development • Geopolitical Uncertainty • Challenged Production Capability • Reserve Replacements / Depletion Rates • Demand will Continue to Rise 36

  36. Hunting PLCOutlook • Hunting Will Continue: • Maximise asset utilisation • Increase capacity with customer assurances • Push new technologies, products and services further • Examine acquisition opportunities that meet financial criteria • Deliver results 37