CES Energy Solutions (CEU) Investor Presentation summary

Business overview and strategy

• North American provider of molecular-level chemical solutions with a vertically integrated consumables business model.

• Decentralized operations in key US and Canadian basins, supporting customer-centric problem solving.

• Focus on technology-driven solutions for drilling and production optimization, leveraging 13 labs, 108 reactors, and over 100 patents.

• Resilient, countercyclical balance sheet and low capital intensity underpin strong free cash flow generation.

• Allocation of capital targets the most attractive basins and high-growth markets.

Financial performance and capital structure

• LTM Q2 2025 revenue reached $2.4 billion, with 66% from the US and 34% from Canada.

• Adjusted EBITDAC margin improved to 16.3% in LTM Q2 2025, with distributable earnings of $241.9 million.

• Net debt stands at $(181) million, with a working capital surplus of $672 million as of June 30, 2025.

• Senior secured credit facility net draw is $168 million; $200 million in 5-year notes due May 2029.

• Dividend yield is 1.8%, with a payout ratio of 16% and $297.4 million in share buybacks since 2018.

Market positioning and customer base

• Top-tier chemical solutions provider with growing market share in drilling and production chemicals.

• Over 2,700 employees, including 265 scientists, engineers, and technicians.

• 78% of top 50 customers are public companies, with 69% of revenue from those with $10B+ market cap.

• Significant exposure to rising North American oil and water production stabilizes cash flow.

• Asset-light model and recurring production chemical revenue stream enhance financial stability.