Focused on long-term total returns
A solid balance sheet and disciplined financial management guides Pulse’s approach in creating long-term total returns for shareholders. Pulse’s key performance metric is shareholder free cash flow, in total dollars and on a per share basis. Shareholder free cash flow represents the internally generated funds Pulse has to invest in capital programs (participation surveys and dataset purchases), to buy back shares and to pay dividends if declared. In addition, a $30 million revolving credit facility with an accordion feature which allows for increasing the facility to $70 million, with lender’s consent, is in place to augment the capital allocation plans as Pulse deems appropriate.
The Enduring Value of Seismic Data
Seismic data doesn’t expire. Seismic data retains its usefulness, can be licensed over and over, and therefore has enduring value.
Pulse’s 2D seismic data was shot decades ago and is considered high-quality because of the parameters used to shoot the data. Current state-of-the-art seismic processing and visualization software allows for this historical data to be re-processed and reinterpreted, thereby generating a continuous revenue stream.
The replacement value of Pulse’s library, both 2D and 3D, is estimated at over $2 billion. The size, area and quality of our extensive data library make Pulse an industry leader in the seismic data library business.
Pulse licenses its 2D and 3D seismic data in all stages of the oil and natural gas commodity cycle; including periods of low price levels. As prices bottom out, Pulse is leveraged to a recovery in commodity prices.
International demand for Canadian oil, liquid natural gas (LNG) and natural gas continues to increase; new technologies in horizontal drilling, fracking and completions, advances in seismic reprocessing/interpretation methods, along with joint ventures and mergers and acquisition provide opportunities for growth in revenue, shareholder free cash flow and total shareholder return.