Company Fact Sheet

	EXHIBIT 10.48
September 2005 Company Fact Sheet   ALLIS-CHALMERS ENERGY INC. AMEX:   ALY   We're All about Service
	WWW.ALCHENERGY.COM

 

Investor Considerations:
		Price (Sept. 16, 2005)		$10.20
•  Positioned in High-Growth Niche Markets. Allis- Chalmers strategically pursues markets that are growing faster than the oilfield services industry.   •  Positive Industry Backdrop. Approximately 80%-85% of ALY’s revenue is derived from natural gas drilling activities. With national average gas prices in 2005 more than twice that of 2002, natural gas drilling activity has moved to record highs. With industrywide predictions of further increases in overall E&P spending in 2005 and 2006, the Company believes industry demand for its drilling services will continue to remain strong.   •  Established Growth Track Record. Since its effective inception in 2001, ALY has grown its total revenues at an average annual rate of 115%, principally driven through strategic acquisition. Likewise, EBITDA5) has grown from a slight loss in 2001 to $7.8 million in 2004 and to $8.0 million for the first six months of 2005.   •  Growth Continuing into 2005. Excluding any benefit from future acquisitions, and using the midpoint of its 2005 guidance, Allis-Chalmers expects to achieve annual growth in 2005 of over 80% in revenues, a doubling of EBITDA, and potentially fivetimes the diluted EPS results of 2004. (2005 guidance was given on May 5, 2005 and has not been updated or reiterated herewith.)   •  Proven Acquisition Expertise. ALY successfully acquired and integrated ten organizations over the last four years, including three in 2005. Given the highly fragmented nature of the oilfield service industry, strategic acquisitions are expected to remain a key driver fueling long term earnings growth.   •   Improving Balance Sheet. ALY strengthened its balance sheet in 2004 bringing its net debt to capital below 40% at year-end 2004 from 87% at year-end 2003. Recently, ALY completed a secondary offering (8/05) of 5.8 million shares, with 1.8 million newly issued and expanded its bank credit facility (7/05).   •  Experienced Management Team. Averaging nearly 20 years of experience, the members of the management team have strong reputations and have developed long lasting relationships with major independent and small exploration and production companies.		Stock Data Symbol / Exchange:                                                                                             ALY / AMEX 52-Week Range:                                                                                                     $1.75-$14.70 Diluted Shares Outstanding 1):                                                                                    16.9 mm Market Capitalization:                                                                                                  $170 mm Total Enterprise Value (TEV) 2):                                                                                  $205 mm Avg. Daily Stock Volume (2005):                                                                                 154,000 Insider Ownership 3):                                                                                                         28.3% Public Float:                                                                                                                        71.1% Institutional Ownership 4):                                                                                                   N/A   Financial Data & Guidance (FY Dec; 12/31/04 audited) Select Income Statement:                                                                 2004                    2005E5) Revenue:                                                                                        $47.7 mm               $87.6 mm EBITDA 6):                                                                                       $7.8 mm                $15.9 mm Diluted EPS:                                                                                        $0.09                        $0.37 TEV / EBITDA:                                                                                     26.3x                        12.9x P / E:                                                                                                     113.3x                        27.6x   Select Balance Sheet:                                                                       2004                      2Q05 Total Cash:                                                                                      $7.3 mm                   $2.7 mm Total Debt:                                                                                     $30.5 mm                $37.9 mm Total Stockholders’ Equity:                                                        $35.1 mm                $40.2 mm Net Debt / Net Capital:                                                                       39.7%                      46.7%   Business Composition EBITDA Mix                                                                                        2004                   2005E5) Casing Services:                                                                                       44%                       32% Directional Drilling:                                                                                  33%                       32% Compressed Air Drilling:                                                                         23%                       19% Production Services:                                                                                  0%                         9% Rental Tools:                                                                                               0%                         8%   Stock Price (Sep 20047) - Present)       1) Diluted shares reflect average outstanding as of second quarter 2005 (15.1 MM shares) adjusted for the primary shares sold in the secondary offering (1.8 MM shares). 2) Total Enterprise Value (TEV) is defined as current Market Capitalization, plus Total Debt, less Total Cash as of the latest financial filing with the SEC. 3) Represents executive officers and directors as disclosed in SEC Form 424B4 filing August 31, 2005. 4) As tracked by Thomson Financial. 5) Based on midpoint of 2005E company guidance range which is detailed in last page of Fact Sheet. 6) EBITDA is a non-GAAP financial measure; see last page of Fact Sheet for Reg. G Reconciliation. 7) Stock price history since listing on the American Stock Exchange, September 13, 2004.

TAKING ADVANTAGE OF RECORD DRILLING ACTIVITY & BUSINESS EXECUTION…

10-Year U.S. Rig Count & Composition (1)		10-Year Oil & Gas Prices

Growth in Total Revenue		Growth in Total EBITDA(2)

ALY Growing at a Faster Pace than Competitorts		Diversified Business Mix (2005E EBITDA) (2)

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1) Source: Baker Hughes

2) EBITDA is a non-GAAP financial measure; see last page for Regulation G GAAP reconciliation and published 2005 Company guidance.

3) Relative performance history since listing on the American Stock Exchange, September 13, 2004.

4) 2005E EPS and EBITDA represent mean of Wall Street expectations as compiled by Thomson/First Call. 2005E EPS and EBITDA for ALY is based on the midpoint of 2005 Company guidance; there is no guarantee, however, that the Company will achieve the result of such estimates.

5) Total Enterprise Value is defined as market capitalization (using diluted shares outstanding) plus total debt less total cash as of latest SEC filing available.

6) Fiscal Year September

 

 

5075 Westheimer, Suite 890

Houston, Texas, 77056

713 ###-###-####

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This Fact Sheet is presented as a brief company overview for the information of investors, analysts and other parties with an interest in Allis-Chalmers Energy Inc. (herein referred to as “the Company”, “Allis-Chalmers” and by its stock exchange ticker, “ALY”). The management of Allis-Chalmers hopes that this Fact Sheet will encourage analysts and investors to investigate more about the Company through its Securities and Exchange Commission (SEC) filings, press releases and other public materials. This Fact Sheet does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company. This Fact Sheet contains forward-looking statements, including, in particular, statements about ALY’s plans, strategies and prospects. These statements are based on the Company’s current assumptions, expectations and projections about future events, which are subject to a wide range of business risks. The Company encourages investors to review the information regarding the risks inherent to Allis-Chalmers and the energy industry in which it operates, as described in its Form 10-K for the year ended December 31, 2004, a copy of which is available free of charge over the Internet at the SEC’s website (http://www.sec.gov). This Fact Sheet does not purport to be all-inclusive or to contain all of the information that a reader may desire as to the structure or the affairs of the Company. Although the Company believes that the assumptions reflected in these forward-looking statements are reasonable, the Company can give no assurance that these assumptions will prove to be correct or that financial or market forecasts, savings or other benefits anticipated in the forward-looking statements will be achieved. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those projected. The information contained in this Fact Sheet is only current as of its date, and the Company undertakes no obligation to update this Fact Sheet.

 

 

This Fact Sheet contains references to the non-GAAP financial measure of Earnings (net income) before Interest, Taxes, Depreciation, and Amortization, or EBITDA. Reconciliations of this financial measure to the most directly comparable GAAP financial measure are provided in the table below. Management believes EBITDA is useful to an investor in evaluating ALY’s operating performance because it is widely used by investors in the energy industry to measure a company’s operating performance, it helps investors more meaningfully evaluate and compare the results of the Company’s operations from period to period by removing the impact of the Company’s capital structure and asset base from ALY’s operating results and it is used by management as a measure of operating performance, in presentations to its board of directors, as a basis for strategic planning and forecasting and as a component for setting incentive compensation.

 

1) Based on published 2005 Company guidance range.