Powerpoint Presentation


     

    
      

    

    Exhibit
      10.47

     

    

     

    

      Corporate
        Presentation September 2005Allis-Chalmers Energy

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

     

    

      2
        Allis-Chalmers Energy Inc.Forward-Looking Statements This Presentation 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 Presentation 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 Presentation does not constitute an offer to sell
        or a
        solicitation of an offer to buy any securities of the Company. This Presentation
        contains forward-looking statements, including, in particular, statements
        about
        ALY’sbusiness, financial condition, plans, strategies and prospects.Words such
        as expects, anticipates, intends, plans, believes, seeks, estimates and similar
        expressions are intended to identify forward-looking statements but are not
        the
        exclusive means of identifying forward-looking statements. These statements
        are
        based on the Company’s current assumptions, expectations and projections about
        future events based on facts known to the Company and 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 Presentation 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
        Presentation is only current as of its date, and the Company undertakes no
        obligation to update this Presentation.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    Corporate
      Overview -Positioned for GrowthMulti-faceted oilfield services business formed
      in 2001Operating in five primary sectors•Directional drilling •Casing &
tubing installation•Compressed air drilling •Production services•Rental
      toolsTargeting markets growing faster than oil service averageBuilding track
      recordSix Month Revenues for the Periods Ended June 30,($ in millions) 05 10
      15
      20 25 30 35 40 45 2003 2004 2005 $7.5 $14.3 $42.9

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Strong
        Industry Dynamics...have driven 10-year highs in Rig Count•85% of ALY’s business
        is derived from gas drilling Positive trends in Oil & Natural Gas
        Prices...10-Year Oil & Gas Prices10-Year U.S. Rig Count $0.00 $1.00 $2.00
        $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00
        Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 $/Mcf $0 $10 $20 $30 $40 $50 $60 $/Bbl
        U.S.
        Avg Wellhead Natural Gas Price WTI Crude Oil 0 2004 00 600 800 1, 000 1,200
        1,400 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04
        Jul-05 Rigs Working

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      5
        Strong Industry Dynamics and within the U.S. directional and horizontal markets
        Solid demand in niche markets within Mexico......Mexico Rig Count, 1995-2005Total
        Rig Count and Composition 1995-2005 02004
        006008001,0001,2001,4001,600Jul-95Apr-96Jan-97Oct-97Jul-98May-99Feb-00Nov-00Aug-01May-02Mar-03Dec-03Sep-04Jun-05Rotary
        Rigs Working0%10%20%30%40%50%Relative Composition Total Rig Count Directional
        & Horizontal Relative Composition020406080100120140 Jun-95 Jun-96 Jun-97
        Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Active Rigs Source:
        Baker Hughes

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Focused
        and Proven Strategy

      Providing
        services to the drilling and production sectors using the highest quality
        equipment and skilled operators. Making acquisitions at attractive multiples.
        Building a strong foundation through dedicated employees Striving to be
        customer’s “First Call.” Focusing on markets that are growing faster than the
        drilling rig count. Expanding product and services offerings in existing
        locations.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Recent
        Developments April 2005 -Acquired Delta Rental Service, Inc. May 2005 -Acquired
        Capcoil Tubing Services, Inc. July 2005 -Acquired the remaining 45% equity
        interest in AirComp owned by M.I. LLC July 2005 -Restructured debt ▫New $55.0
        million credit facility Aug. 2005 -Strengthened balance sheet ▫Raised $16
        million in recent equity offering Sept. 2005 -Acquired $15 million in casing
        and
        tubing installation equipment New operating locations in Grand Junction (Co.),
        Oklahoma City, Corpus Christi, Midland, Buffalo and Alice, Texas

      


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Casing
        & Tubing39%Other Services5%Air Drilling22%Directional Drilling34%Casing
& Tubing20%Other Services8%Air Drilling23%Directional Drilling49%Diversified
        Business Mix:LTM EBITDA:LTM Revenue:(1) Other Services segment includes results
        for Rental Tools segment and Production Services segment(1)
        (1)

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Directional
        DrillingEnhanced sales and operations teamExpanded directional drillers from
        10
        to over 60Investing in motor technologyExpanding straight hole motor
        businessQ2’05 revenue increased 70.3% to $10.9MM from $6.4MM in ’04Revenue($ in
        millions)EBITDA ($ in millions)

      


      $16.0
        $24.8 $33.9 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 2003 2004
        LTM

      $1.4
        $3.5 $5.7 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2003 2004
        LTM

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Casing
        & Tubing Installation Increased crew count froam 7 to 14 and opened
        facilities in Alice, TX and Buffalo, TXExpanding market share & allocating
        increased resources to MexicoMeeting the domestic challenge with new management
        teamExtensive inventory of specialized equipmentAsset acquisition -offshore
        /
        south LouisianaQ2’05 revenue increased 60.7% to $3.9MM from $2.4MM in
’04Revenue($ in millions)EBITDA($ in millions)$10.0 $10.4 $13.5 $0.0 $2.0
        $4.0
        $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 2003 2004 LTM$5.0 $4.8 $6.5 $1.0 $2.0 $3.0
        $4.0 $5.0 $6.0 $7.0 $8.0 2003 2004 LTM

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Compressed
        Air Drilling Services Providing air package systemsExpanding scope of services
        through acquisitionsWell-positioned for under balanced drilling growthAcquired
        the 45% equity interest in AirCompfrom M-I LLCQ2’05 revenue increased 90.6% to
        $4.9MM from $2.6MM in ‘04Revenue($ in millions)EBITDA ($ in millions)
        $6.7$11.6$15.6$0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0$18.020032004LTM
        $1.2$2.5$3.7$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.520032004LTM

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Production
        Services Engaged in downholewell servicing by providing coil tubing and
        capillary tubing services to enhance production from existing
        wellsAcquisitions•DownholeInjection Systems LLC -Acquired December
        2004•CapcoilTubing Services -Acquired May 2005

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

     

    

      Rental
        Tools Providing specialty rental items to the oilfield such as:•Spiral
        heavy-weight drill pipe•Test plugs, retrieving tools and wearbushingsto test
        blow-out preventors•Spacer spools and assorted handling
        toolsAcquisitions•SafcoOilfield Products, Inc -Acquired September 2004•Delta
        Rental Services, Inc. -Acquired April 2005

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

     

    

      Controlled
        Growth Strategy Complete attractive acquisitionsIntegrate acquisitionsIncrease
        market share with existing customersDiversify customers and geographyExpand
        service offering at existing locationsExpand equipment fleet

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

     

    

      Achieved
        Revenue 3-Year CAGR of 63%

      $18.0
        $32.7 $47.7 $69.6 $0 $10 $20 $30 $40 $50 $60 $70 $80 200 220 032 004 LTM
        Revenue
        ($ in millions)

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Produced
        Solid Growth in Operating Income Operating Income($ in millions)

      $2.6$4.2$7.2$(1.1)-$2$0$2$4$6$8200220022003200320042004LTMLTM

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

     

    

      Strong
        Six Month Results Revenue($ in millions)$21.1$42.9$0$10$20$30$40$50Six Months
        2004Six Months 2005$2.2$5.2$0$1$2$3$4$5$6$7Six Months 2004Six Months
        2005Operating Income($ in millions)

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    

      Strong
        Second Quarter Performance(in thousands, except EPS)Three Months Ended June
        30,Six Months Ended June 30,20042005Increase20042005IncreaseRevenue
        $11,422$23,588106.5%$21,083$42,922103.6%Gross profit3,003 6,805 126.6%5,136
        12,440 142.2%EBITDA1,919 4,432 131.0%3,787 7,987 110.9%Operating income1,150
        2,914 153.4%2,180 5,161 136.7%Net income377 1,769 369.2%761 3,336 338.4%EPS
        Basic0.06$ 0.13$ 116.7%0.15$ 0.24$ 60.0% Fully Diluted0.05$ 0.12$ 140.0%0.13$
        0.22$ 69.2%

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    

     

     

    

      Capitalization
        Table(in thousands) At June 30, 2005 Actual Pro Forma (1) Cash and cash
        equivalents $ 2,693 $ 18,597 Long-term debt, including current maturities
        $
        37,890 $ 50,182 Stockholder’s Equity Common stock $ 140 $ 158 Additional
        paid-in-capital 42,077 57,963 Accumulated deficit (2,022) (2,588) Total
        stockholders’ equity $ 40,195 $ 55,533 Total capitalization $ 78,085 $ 105,715
        (1) Pro forma for acquisitions completed in July and net proceeds from August
        2005 equity offering 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

    

      Investment
        HighlightsStrong market position in segments servedSustained organic
        growth•Diversified base of over 300 customers•Increased service offerings at
        existing locations•Geographic diversificationOperations in TX, LA, NM, CO &
MexicoGrowth through acquisitionProven ability to integrate
        acquisitions•Achieved Revenue 3-Year CAGR of 63%Experienced management teamSolid
        balance sheet to support future growth

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

     

     

    

      Historical
        Results Six Months Ended June 30, Year Ended December 31, 2001 2002 2003
        2004
        2004) 2005) (unaudited) (unaudited) Consolidated EBITDA (loss) ($0.3) $1.4
        $5.6
        $7.8 $3.8 $8.0 Depreciation and amortization 1.1 2.6 2.9 3.6 1.6 2.8 GAAP
        Income
        / (loss) from operations ($1.4) ($1.2) $2.6 $4.2 $2.2 $ 5.2 Interest expense,
        net 0.9 2.3 2.5 2.8 1.1 1.2 Income taxes 0.0 0.3 0.4 0.5 0.2 0.3 Gains on
        asset
        sales & litigation 0.0 0.0 3.4 0.0 0.0 0.0 Minority Interest, other expense
& dividends 0.0 0.7 1.0 0.2 0.5 0.6 Net income (loss) from continuing
        operations (2.3) (4.3) 2.3 0.8 $0.9 $3.3 (Loss) from discontinued operations
        & (Loss) from sale of discontinued operations (2.3) 0.0 0.0 0.0 0.0 0.0 Net
        income (loss) to common ($4.6) ($4.3) $2.3 $0.8 $0.8 $3.3 Weighted Average
        Diluted Shares O/S (mm) 0.8 3.8 5.8 12.0 6.9 14.9 Diluted EPS ($5.75)
        ($1.14)$0.39$0.07 $0.13 $0.22 EBITDA Reconciliation to Net
        Income