Bank of America Merrill Lynch 2014 Global Energy Conference November 13, 2014 OUR LIFES WORK IS THE LIFE OF THE WELLTM NYSE: BAS
Proven Growth Strategy TM Our Lifes Work is the Life of the Well Basic Energy Services supports its customers well site activities from cradle to grave Diversified service offering poised for future growth opportunities The…
Our Lifes Work is the Life of the WellTM Every Well is a Potential Life-Long Customer Production Basics Strategy for Success 1. Rate of Returns Driven 2. Proven Management with Ability to Weather Cycles 3. Diversified Service…
Diversified Oil Service Company Completion and Remedial Services Fluid Services 44% of revenue 26% of revenue Contract Drilling 4% of revenue Well Servicing 26% of revenue Revenue percentages are for LTM ended September…
Extensive Footprint in Prolific Basins Significant Exposure to Major Oil and Gas Markets 70% Revenue Exposure to Oil and Liquids Activity Appalachia BAKKEN 190,000+ Gross Wells (10% oil) APPALACHIA Rocky Mountains 130,000+…
Significant Presence in the Permian Basin Represents about 45% of BAS current revenue stream BAS presence in the Permian Basin dates to its founding in 1992 Levelland Provides a significant market for the full range Loco Hills of…
Diverse Customer Mix Revenue by Our Customer Group Active Rigs by Well Type Lower 48 14% 6% Customer Revenue 19% Grouping to Basic 27% Large 31% 55% 6 mm 73% 75% Medium 65 k < 6 mm Small < 65 k Directional Horizontal Oil…
Diversified Customer Base Top Ten Customers Represent 34% of Revenues Top Ten Customers for LTM (1) ending September 30, 2014 North American E&P Company Spending 180 160 140 120 100 80 60 40 20 0 2006 2007 2008 2009…
Capital Expenditure Budget 2014 Plan Financial Flexibility to Adjust Capital Investments Based on Market Conditions Total 2014 Budget: 315 million millions Expansion Budget Components 8 11 4 122 35 185 135 Completion &…
How We Manage Through Cycles Invest in new equipment Expand into new markets Maximize utilization to increase market share Develop new service offerings Upcycle Match CapEx to cash flow Downcycle Maximize utilization to…
Equipment Matched to Market Needs By Maintaining a Modern and Active Asset Base, We Are Better Able to Earn Our Customers Business While Reducing the Risk of Potential Downtime Our Modern Fleet Operate a modern fleet matched to the…
Disciplined Approach to Acquisitions Recent Strategic Acquisitions and Expansions 2011 (216.4 million) Plugging Water recycling Salt water disposal wells Enhances Existing Suite Coil tubing of Services Stimulation Trucks…
Specialized Completion & Remedial Services Focused on Markets Traditionally Underserved by Larger Competitors Revenue Support drilling, workover and production 250 processes 200 Pumping services for cementing, acidizing,…
Quarterly Pumping Services Jobs & Revenue 140 2,500 120 2,000 100 Number of Jobs 1,500 80 Millions 60 1,000 40 500 20 0 0 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 4Q 1Q14 2Q 3Q 4Q 2Q…
Pumping Services HHP Allocation 297,000 Total HHP 435,600 Total HHP Dec 31, 2013 HHP by District Dec 31, 2014 HHP by District* 40,200 6,700 Ark-La-Tex 53,100 6,800 Mid-Con Ark-La-Tex 67,200 Permian Basin 133,700 Mid-Con 182,900…
Fluid Services Basic Continues to Grow Integrated Fluid Service Business Anchored by SWD Expansion Revenue Transportation and disposal of salt water 120 produced as a by-product of oil and gas 100 production Sale, transportation,…
Fluid Service Truck Hours/Average of Trucks 255,000 1,100 235,000 1,050 Average Number of Trucks 1,000 215,000 950 Truck Hours 195,000 900 175,000 850 155,000 800 135,000 750 115,000 700 Jan09 Jan10 Jan11…
Fluid Service Truck Hours/ of SWD Wells 255,000 90 Number of Salt Water Disposal Wells 235,000 85 215,000 80 Truck Hours 195,000 75 175,000 70 155,000 65 135,000 60 115,000 55 Jan09 Jan10 Jan11 Jan12 Jan13…
Well Servicing Rigs Facilitate Down Hole Activity Revenue Service Work - routine maintenance of down- 120 hole equipment to return well to production 100 Workover - periodic major maintenance and 80 renovation to sustain or improve…
Well Servicing Rig Utilization Rates Steady Activity Levels in Oil and Liquid-Directed Markets Continue to Drive Demand 85,000 90% 80% 75,000 70% 65,000 60% Utilization Rate Rig Hours 50% 55,000 40% 45,000 30%…
Contract Drilling 12 Rig Fleet Customized to the Permian Basin Market Area Revenue Fleet of 12 drilling rigs in the Permian Basin 18 One 16 pre-set casing rig 14 12 Two Millions 10 1,200HP SCR 8 rigs 6 4 Six 2 Three…
Cycle-Tested Balance Sheet That Funds Growth Disciplined Approach to Capital Deployment Debt Maturity Distribution 500 Debt Ratios at September 30, 2014 450 Adjusted EBITDA / Interest Expense 4.70 x 400 Total Debt / Adjusted…
BAS Financial Policy Disciplined Growth Strategy with Capital Structure in Mind Capital expenditures paid through existing cash balances and cash flow Acquisitions under 25 million paid through existing cash balance Acquisitions over…
Back to Basics Diversified service offerings for Providing a safe work environment is a top both vertical and horizontal activity priority Returns driven through the cycles Modern fleet matched to market needs Operating in basins…
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