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MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc.

Seventy Seven Energy Inc. · Mar 2, 2015 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 1
    INVESTOR PRESENTATION MARCH 2015
  2. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 2
    MANAGEMENT TEAM Jerry Winchester, CEO Served for thirteen years as the President and CEO of Boots & Coots International Well Control, Inc. which was acquired by Halliburton in September 2010 Started his career with Halliburton in 1981…
  3. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 3
    COMPANY HIGHLIGHTS Large integrated footprint in some of the best returning basins and close proximity to customers Based in Oklahoma City operating in close proximity to some of the most active U.S. unconventional resource…
  4. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 4
    BUSINESS SEGMENTS AND OUTLOOK FY 2014 FY 2014 Adjusted 2015 - 2016 Business Description Adjusted Adjusted EBITDA Outlook Drivers Revenue EBITDA Margin Drilling 8 new contracted rigs by YE Provides land drilling and…
  5. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 5
    SSE IS WELL POSITIONED FOR CURRENT INDUSTRY TRENDS Current Industry Trend SSE Positioning Full scale development plans of large shale Large, integrated footprint in 8 active basins resources (existing and Shale development…
  6. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 6
    AREAS OF OPERATIONS Marcellus Shale Niobrara Shale Utica Shale Anadarko Basin Barnett Shale Haynesville Shale Permian Basin Oklahoma City Headquarters Selected Field Offices Eagle Ford Shale Significant footprint…
  7. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 7
    CUSTOMER DIVERSIFICATION STRATEGY Selected Customers Replicate Nomac success in winning other non CHK business with PTL and Great Plains 41% of Nomac revenue came from other operators at the end of 2014 Great Plains revenue from…
  8. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 8
    BACKLOG AND SERVICE CONTRACT SUMMARY As of December 31, 2014, our contractual backlog was approximately 2.0 B, Contracted Revenues by Business Segment 10% of which was related to contracts with operators other than Chesapeake Backlog…
  9. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 9
    HISTORICAL U.S. RIG CYCLES COMPARISON 120% Historical Recent U.S. Rig Cycles - Peak to Trough Analysis 1997-99 2001-02 2008-09 2014-15 100% 80% Peak 1,293 Trough 738 Rigs (555) Peak 1,032 Peak 1,930 Rigs % -43% Trough…
  10. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 10
    NOMAC DRILLING CURRENT FLEET Currently the 4th largest drilling rig contractor in the U.S. Utica Shale 14 Rigs Nomac has 66 active rigs which operate across unconventional plays Marcellus Shale Powder River and DJ 1 Rigs…
  11. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 11
    NOMAC RIG FLEET COMPARED TO PEERS Working to convert fleet to meet long- US Land Rig Fleet Mix December 2014 term drilling needs of all customers 90% 58% 54% 45% 37% 37% 29% 18% 14% 3% Currently 92% of our Tier 1 rigs and 48% 68%…
  12. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 12
    EVOLUTION OF OUR FLEET Improving tier mix contributes to higher operating margin, continuing to increase with rig newbuilds, conversions, and removal of Tier 3 rigs Based on contracted newbuilds, we expect to own 91 rigs by YE 2015…
  13. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 13
    PERFORMANCE TECHNOLOGIES Utica Shale 3 spreads Anadarko Basin 3 spreads Eagle Ford Shale 4 spreads PTL Operating Areas (Bubble Size by Spread Count) PTL total fleets as of 3/1/2015 14
  14. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 14
    PTL OPERATIONS OVERVIEW Provides high-pressure hydraulic fracturing North American Horsepower by Capacity services '000s HHP As of Dec 31, 2014, owned ten hydraulic HAL + BHI 5,300 fracturing fleets with an aggregate of 400,000…
  15. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 15
    HYDRAULIC FRACTURING SUPPLY CHAIN INTEGRATION Own and operate two strategically positioned sand storage and trans Storage and Distribution Facilities load facilities, one in Oklahoma with storage capacity of 140 million pounds and one…
  16. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 16
    GREAT PLAINS ASSET BASE AND SERVICES Great Plains provides premium rental tools and Air Package specialized services for land-based oil and natural gas drilling, completion, and workover activities Tool Rental Downhole tubular…
  17. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 17
    GREAT PLAINS CURRENT AND POTENTIAL SERVICE LINES SSE has established and is executing a plan to build out the Great Plains organization to increase utilization Great Plains equipment utilization remained flat from Q3 2014 to Q4 2014,…
  18. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 18
    SEVENTY SEVEN TRUCKING ASSETS Water Hauling Truck Great Plains provides water transport and disposal service solutions As of Dec. 31, 2014, we owned a fleet of 141 water transport trucks that haul water to and from wells in the…
  19. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 19
    MATURITY AND DEBT SERVICE SCHEDULES Maturity Schedule 275 650 500 374 2 4 4 4 4 4 4 2014 2015 2016 2017 2018 2019 2020 2021 2022 3.769% 3.750% 6.500% 4 6.625% Term Loan Sr. Notes ABL Credit Facilty Interest…
  20. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 20
    CORPORATE INFORMATION SSE HEADQUARTERS CORPORATE CONTACTS 77nrg.com Bob Jarvis Senior Director Investor 777 NW 63rd St. Relations and Marketing Oklahoma City, OK 73116 bob.jarvis77nrg.com 405-608-7777 405-935-2572 21
  21. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 21
    APPENDIX
  22. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 22
    APPENDIX: RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED EBITDA Years Ended December 31, 2014 2013 2012 (In thousands) Net (loss) income (7,979) (19,735) 69,576 Add: Interest expense 79,734 56,786 53,548 Income tax (benefit)…
  23. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 23
    APPENDIX: RECONCILIATION OF OPERATING CASH TO ADJUSTED EBITDA Years Ended December 31, 2014 2013 2012 (In thousands) Cash provided by operating activities 265,296 337,071 211,151 Add: Changes in assets and liabilities 88,588 (36,731)…
  24. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 24
    APPENDIX: RECONCILIATION OF DRILLING NET INCOME TO ADJUSTED EBITDA Years Ended December 31, 2014 2013 2012 (In thousands) Net income (loss) 49,528 (17,378) 26,428 Add: Income tax expense (benefit) 30,471 (8,982) 17,739 Depreciation…
  25. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 25
    APPENDIX: RECONCILIATION OF HYDRAULIC FRACTURING NET INCOME TO ADJUSTED EBITDA Years Ended December 31, 2014 2013 2012 (In thousands) Net income 38,985 40,472 51,123 Add: Income tax expense 24,563 26,752 31,500 Depreciation and…
  26. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 26
    APPENDIX: RECONCILIATION OF OILFIELD RENTALS NET INCOME TO ADJUSTED EBITDA Years Ended December 31, 2014 2013 2012 (In thousands) Net (loss) income (1,705) (1,001) 16,596 Add: Income tax (benefit) expense (754) (1,543) 10,538…
  27. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 27
    APPENDIX: RECONCILIATION OF OILFIELD TRUCKING NET INCOME TO ADJUSTED EBITDA Years Ended December 31, 2014 2013 2012 (In thousands) Net income 3,502 2,706 14,269 Add: Income tax expense 2,857 2,849 9,744 Depreciation and amortization…
  28. MARCH 2015 INVESTOR PRESENTATION – Seventy Seven Energy Inc. – slide 28
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