CES Energy Solutions (CEU) Investor presentation summary

Strategic positioning and business model

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

• Decentralized operations target key attractive markets, leveraging a customer-centric approach and advanced manufacturing capabilities.

• Maintains a resilient, countercyclical balance sheet and low capital intensity, supporting strong free cash flow generation.

• Focuses on technology-driven problem solving, offering tailored chemical treatments and on-site service to optimize client production and drilling.

Financial performance and capital allocation

• Achieved TTM Q2 2026 revenue of C$2.7 billion, with 27.5% adjusted gross margin and 16.7% adjusted EBITDAC margin.

• Market capitalization stands at C$3.4 billion, with a working capital surplus of C$761 million and net debt of -C$248 million.

• Maintains a quarterly dividend of $0.055/share (1.3% yield) and a dividend payout ratio of 16%.

• Since 2006, paid C$475 million in dividends and repurchased C$418 million in shares, representing 33% of shares outstanding since NCIB inception.

• 2026 capex estimated at ~C$100 million, balanced between maintenance and expansion, with growth capital focused on high-return plays.

Market trends and competitive positioning

• Benefits from increasing well complexity and longer lateral lengths, driving higher chemical demand and revenue per well.

• Holds a strong competitive position in drilling and production chemicals, with growing market share and top-tier customer base.

• Services over 40,000 unique wells monthly, supported by 258 technical staff and 100+ patents and trademarks.

• Top 50 customers account for a significant portion of revenue, with 71% public and 90% of public customer revenue from firms with $10B+ market cap.