Agenda About Nuverra Macro Environment Q1 Update Long-Term Strategy 3
About Nuverra (NYSE: NES)
We put our energy behind sustainability. Company Data: NYSE: NES Share price (5/28/15): 5.40 Shares outstanding: 28 million Market capitalization: 151 million Average daily volume (3 mos.): 408,000 Website: www.nuverra.com…
Company Overview About Nuverra National Footprint Nuverra Environmental Solutions is among the largest U.S. companies dedicated to providing comprehensive, full-cycle environmental solutions to customers focused on the development and…
Serving Top E&P Industry Customers 7
Proven Strategies for E&P Environmental Logistics One-Stop Environmental Solutions Expert Management of Complex Well Logistics Strong Growth Catalysts Diversified Offerings Solids Recycling/Reuse Across E&P Lifecycle & Water…
Our Customer Value Proposition Integrated Full-cycle solutions for drilling, completion and production phases of well Environmental End-to-end management of fluids and solids Solutions Efficiency of bundled packages vs. single…
Macro Environment
Macro Environment 1 Source: Simmons & Company International, Baker Hughes, for projected rig counts. As of May 15, 2015. 2 Capital IQ as of May 19, 2015. 11
Macro Environment Drilling Activity Overview Commodity price impact on active rig count 2014 high to current Large oil plays are now being impacted Gas regions have already experienced this cycle. Source: Jefferies (Baker Hughes…
Average V-Shaped Bottoms Have Taken 2 Months to Form Average V-shaped bottoms 2014-2015 (1986, 1998, 2008-09) Source: Evercore ISI 13
Q1 Update
Q1 2015 Financial Results (3/31/15) Revenue M Free Cash Flow Revenue 160.0 Q1 revenue 119.1M vs. 128.0 119.1 128.0M in Q1 2014 120.0 Revenue pressure due to 30.6 downturn in oil prices & 80.0 30 moderate pricing concessions…
Balance Sheet At-A-Glance Liquidity/Debt Distribution (as of 4/17/15) 450 Balance Sheet 4/17/15 Cash and Cash Equivalents 22 400 Debt 350 2018 Notes (Caa1/B-) 400 ABL Revolver & Capital Leases 118 300 Total Debt 518 250…
2015 Streamlining Initiatives & Guidance Full-year cost savings up 10M to 30-35M (from 20-25M in Q4) First quarter achieved 14.2M savings (10.7% reduction) 3.0M payroll and related expenses 8% headcount reduction 5.6M fuel expenses…
Disciplined Approach to Capital Deployment Liquidity At 3/31/15, net cash provided by operating activities from continuing operations of 34.8M, compared with (373,000) YoY Improved collections; lowered capex spend DSO down 6 days to…
Long-Term Strategy
Value Through the Well Lifecycle DRILLING COMPLETION PRODUCTION Collection/ Recycle & Delivery Treatment Disposal Gathering Reuse Fleet Rentals Landfill Terrafficient AWS Midstream SWDs Fluids & Solids Management…
Fluid Logistics Overview Estimated Revenue Mix 2015 50% 50% 450 million barrels of water managed annually across leading U.S. oil and natural gas basins Fleet of 1,000 specialized trucks/trailers; 5,500 tanks Network of 56 salt…
Solids Management Overview TerrafficientSM Advanced Solids Management Eliminates cuttings pits; reduces volumes by 30%-50% Transportation of wet cuttings reduces onsite costs; reduces operator risk Scientifically proven process to…
Water Midstream Overview Integrated water infrastructure for drilling, completion and production activities Advanced completion technologies and well density driving higher water usage Reduces operating costs; enhances water recycling…
Water Midstream Growth Strategy Strategic focus on integrated water midstream solutions as U.S. basins mature and evolve from exploration to manufacturing operations; increasing water volumes from advanced completion technologies…
Summary & Conclusion Q2 2015 continues to be challenging U.S. drilling activity undergoing unprecedented declines Priority is to meet customers needs, operate efficiently and within cash flow Estimating mid- to high-teens sequential…
Adj. EBITDA from Continuing Ops Reconciliation (3/31/15) Three Months Ended March 31, 2015 2014 Loss from continuing operations (11,995) (11,914) Depreciation of property, plant and equipment 16,771 16,607 Amortization of intangible…
Division Performance (3/31/15) Rocky Mountain Northeast Southern Corporate Total Three Months Ended March 31, 2015 Revenue 69,410 27,313 22,389 - 119,112 Direct operating expenses 48,425 21,496 18,078 - 87,999 General and administrative…
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