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ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc.

Carbo Ceramics Inc. · Aug 12, 2012 · 39 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. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 1
    CARBO is the worlds largest supplier of ceramic proppant for fracturing oil and gas wells, and a supplier of resin coated sand proppant; the provider of the industrys most widely used fracture simulation software; and a provider of…
  2. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 2
    Company Business Profile CARBO has the leading products that make oil & gas wells produce better and increase recovery (EUR) We are an oilfield services technology company selling products globally We manage the business with a…
  3. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 3
    CARBO People and Places Products/services sold in 50 countries Ceramic proppant manufacturing plants: USA (Eufaula, AL; Toomsboro, GA; McIntyre, GA) Russia (Kopeysk), China (Louyang) Resin Coating plants: New Iberia, LA;…
  4. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 4
    Our Main Mission We make oil & gas wells produce better and increase recovery (EUR) (EUR) 5
  5. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 5
    CARBO improves the effectiveness of fracs 1 Frac Design Software Highest Conductivity High Conductivity Proppant Proppant Improve Frac Completions E&P Value: Expert Fracpro Frac Increased Consultants For DANA* Calibrated…
  6. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 6
    CARBO is the world leader in Proppant We provide the highest quality, highest conductivity Ceramic Proppant in the world, since 1979 We provide the broadest product range of Ceramic Proppant to maximize any reservoirs production and…
  7. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 7
    Ceramic Proppant Sales vs Capacity Lbs (Millions) 2,000 CRR Ceramic Manufacturing Capacity (YE) 1,750 CRR Ceramic Sales Volume 1,500 1,250 1,000 750 500 250 0
  8. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 8
    Our Ceramic Proppant Value Proposition What should an E&P Operator expect using CARBOs Ceramic Proppant versus a sand based Proppant 20%+ Increase in Production Rates 20%+ Increase in Estimated Ultimate Recovery (EUR) High ROI and…
  9. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 9
    Economic Conductivity To Match Any Reservoir Wells with multi-phase flow, receive the most benefit from our high conductivity Ceramic Proppant General Application Lightest weight ceramic proppant on the market. CARBOHYDROPROP Best…
  10. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 10
    End-of-Year Proppant Capacity Lbs M 2,400 CRR Resin Coated Proppant Capacity 2,200 CRR Ceramic Proppant Capacity 2,000 400 1,800 100 1,600 1,400 1,200 1,000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007…
  11. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 11
    Our Ceramic Business Moats Proppant Advantages Conductivity Is Technology The Critical Factor Leader In Well Production Highest High Efficiency Conductivity Plants Ceramic Proven Low Cost Production Gains Reserves -…
  12. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 12
    Economic Conductivity Proppant Types & Conductivity Highest Production, EUR, ROI Highest Conductivity Engineered, Manufactured Product High strength (minimizes crush) Tier 1 - High Conductivity Uniform size and shape Ceramic…
  13. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 13
    Conductivity Matters Examples of the Impact of Conductivity on Production, EUR, and ROI 14
  14. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 14
    Bakken Shale - ECONOMIC CONDUCTIVITY 180 Ceramic - 23 wells 160 Sand - 91 wells 140 Oil Rate (BOPD per lateral) 120 Ceramics average 40% higher initial production rate and 100 continues to grow over time, approaching 90% in…
  15. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 15
    Bakken Shale - ECONOMIC CONDUCTIVITY ---- CARBO Lightweight Ceramic (10) wells ---- Sand (12) wells 34% After 22 months: 34% increase in Production A 300K investment in Conductivity, has yielded a 1.5 Million increase in value…
  16. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 16
    Bakken Shale - ECONOMIC CONDUCTIVITY 100% increase in Production 250,000 125,000 Bbl increase per well (7) Wells CARBO LW 8.7 Million revenue increase Ceramic Proppant per well 70/Bbl Oil 200,000 100% Cumulative Oil, Bbls…
  17. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 17
    Bakken Shale - ECONOMIC CONDUCTIVITY All Areas Mountrail County Study 90000 Operator A (11) (11) Wells CARBO LW Ceramic Proppant 80000 Operator B (10) 70000 Operator C (7) 40% - 50% 60000 Cumulative BOE 50000 40000 (17)…
  18. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 18
    Eagle Ford Shale - ECONOMIC CONDUCTIVITY 200,000 CARBO's Proppant 175,000 Other's Proppant 44% 150,000 Cum Production (BOE), per well avg. 125,000 100,000 75,000 After 12 months: 44% increase in Production 50,000…
  19. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 19
    Eagle Ford Shale - ECONOMIC CONDUCTIVITY Rosetta Resources Gates Ranch 12 Month Cumulative Gas Production, MMcfe Well Completion Between Sand and Ceramic Proppant Normalized to Number of Stages After 12 months: 15 mmcfe increase…
  20. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 20
    Haynesville Shale - ECONOMIC CONDUCTIVITY 2,500,000 CARBO's Hydroprop (20 Wells) Cumulative Production (MMCF), per well avg. Other's Proppant (35 wells) 19% 2,000,000 1,500,000 1,000,000 After 32 months: 19% increase in…
  21. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 21
    Not all ceramic is created equal 22
  22. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 22
    Quality Matters As an E&P Operator investing 4M 12M on a well that will last 20+ years, how much conductivity are you sacrificing (which leads to lower Production & EUR) by using low quality Chinese Intermediate Density Ceramic (IDC)…
  23. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 23
    Quality Matters As an E&P Operator investing 4M 12M on a well that will last 20+ years, how much conductivity are you sacrificing (which leads to lower Production & EUR) by using low quality Chinese Intermediate Density Ceramic (IDC)…
  24. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 24
    Quality Matters At 10,000 psi closure stress, Chinese IDC Sample 1C had 31% less conductivity than lightweight CARBOEconoprop & 55% less conductivity than CARBOLite. 31% to 55% Higher than Chinese IDC 25
  25. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 25
    Lightweight Volume Factor 26
  26. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 26
    CARBO Lightweights Provide 20% More Frac Volume 2,000,000 Lbs divided by 97 Lbs/ Ft3 = 20,600 Ft3 2,000,000 Lbs divided by 117 Lbs/ Ft3 = 17,100 Ft3 Larger Frac Volume 20% Smaller Frac Volume CARBO LW CARBO LW Chinese IDC Chinese IDC…
  27. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 27
    Conversely..To Get The Same Size Frac Volume 20,600 Ft3 times 97 Lbs/ Ft3 2,000,000 Lbs = 20,600 Ft3 times 117 Lbs/ Ft3 2,400,000 Lbs CARBO LW CARBO LW Chinese IDC Chinese IDC CARBO LW CARBO LW Chinese IDC Chinese IDC CARBO LW…
  28. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 28
    Product Development Increased focus and investment in product development Dual focus of inventing new products and adding technology to existing products Recent product introductions New Proppant CARBOHYDROPROP Resin coated…
  29. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 29
    And when we are done All of the equipment is gone and all that is left is the well. .and the propped frac Conductivityfrac = kfrac * wfrac wf Reservoir Frac Wellbore kf Reservoir How wide is the road and how good is the…
  30. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 30
    Falcon Technologies Engineered to Protect TM
  31. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 31
    Falcon Technologies Falcon provides Spill Prevention & Containment Containments, tank lining, tank bases Proprietary polyurea technology Business supports the growing environmental awareness and stewardship of the O&G industry…
  32. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 32
    Falcon Technologies Value Proposition Risk Mitigation Environmental Stewardship Operating Cost Reduction Public Image Enhancement Environmental Best Practice Eliminates product loss EPA Publication: Average spill 1,300…
  33. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 33
    Financial Results 34
  34. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 34
    CARBO Financials 750 3,000 200 Revenue M 700 2,800 179 665 Net Income M NAM Total Rigcount 180 171 650 626 2,600 Cash from Operations * 600 2,400 160 550 2,200 473 140 132 500 2,000 130 450 1,800 120 110 388 400 1,600 342 100…
  35. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 35
    CARBO Financials 700 8.00 8.50 665 Revenue M Earnings Per Share Cashflow Per Share 7.77 650 7.50 8.00 626 7.43 7.00 7.50 600 6.50 7.00 550 6.00 6.50 5.62 5.72 500 473 6.00 5.50 450 5.00 5.50 4.80 400 388 5.00 4.50 342 4.50…
  36. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 36
    Dividends Increased Last 12 Years Per Share Shares - Millions 1.20 30.0 Dividends Paid Per Share 1.10 27.0 1.00 Shares Outstanding 24.0 0.90 21.0 0.80 0.70 18.0 0.60 15.0 0.50 1.02 12.0 0.88 0.40 0.76 0.70 9.0 0.30…
  37. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 37
    Summary CARBO has the leading products that make oil & gas wells produce better and increase recovery (EUR) Conductivity Matters Most. The only reason we frac wells is to create a high conductivity channel for oil and gas to flow…
  38. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 38
    CARBO is the worlds largest supplier of ceramic proppant for fracturing oil and gas wells, and a supplier of resin coated sand proppant; the provider of the industrys most widely used fracture simulation software; and a provider of…
  39. ENERCOMS THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 39
    Cash Flow from Operations Reconciliation Results from Continuing Operations in 000s For The Years Ended Dec 31 2006 2007 2008 2009 2010 2011 TTM Net Income 52,245 49,641 60,405 52,810 78,716 130,136 132,236 Plus: depreciation and…

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