CES Energy Solutions (CEU) Investor presentation summary

Business overview and strategy

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

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

• Focus on technology-driven solutions, including demulsifiers, lubricants, corrosion inhibitors, and scale inhibitors.

• Allocation of capital targets the most attractive basins and markets, leveraging a decentralized entrepreneurial model.

• Strong customer base, with 74% public and 26% private companies; 90% of top public customer revenue from firms with $10Bn+ market cap.

Financial performance and capital structure

• TTM Q1 2026 revenue reached C$2.54 billion, with 66% from the US and 34% from Canada.

• Adjusted gross margin improved to 27.4% and adjusted EBITDAC margin to 16.4% in TTM Q1 2026.

• Market capitalization at C$3.8 billion, enterprise value at C$4.2 billion, and annualized dividend yield of ~1.2%.

• Working capital surplus of C$718 million and net debt of -C$226 million as of Q1 2026.

• Prudent capital structure with BB Low (Stable) and B+ (Stable) credit ratings, and conservative maturity schedule.

Operational highlights and growth drivers

• Operates 13 lab facilities, 115 reactors/blend tanks, and employs ~2,800 staff, including 258 scientists and engineers.

• Over 100 patents and trademarks, with integrated manufacturing and R&D capabilities.

• Drilling fluid chemical requirements rising with well complexity; horizontal wells require 5–10% of total well cost in fluids.

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

• Top-tier competitive positioning with growing market share in drilling and production chemicals.