Bank of America Merrill Lynch 2014 Global Energy Conference November 11, 2014 C&J Energy Services, Inc. 2014
C&J Energy Services Diversified provider of premium, technologically-advanced completion services Fracturing fleets provide customized stimulation services Hydraulic Engineering teams offer extensive front-end technical evaluation…
Operational Model Drives Best-In-Class Performance Operating efficiencies capitalize on targeted opportunities Target high volume, high efficiency customers who recognize that the value that C&J provides through efficiency gains…
Operational Model Driving Significant Growth and Margin Expansion Gaining market share with targeted customer base C&J is well-positioned to capitalize on growth in high service intensity jobs and high efficiency work Highly active…
Overview of Nabors Transaction C&J Energy Services, Inc. 2014
The Combined Company Vertically Integrated & Other Services Equipment Manufacturing Completion Services Specialty Chemicals Production Services Hydraulic Fracturing Downhole Tools & Fluids Management Coiled Tubing Directional…
A Powerful Combination of Complementary Businesses Pro Forma Completion & Production Services The combination of C&J Energy and Nabors Completion & Production Services Business creates the 5th largest completion and production…
Compelling Financial Benefits for Shareholders of Both Companies Transaction expected to be accretive to C&J Energy's cash earnings for the first full year of combined operations Annual run-rate synergies of more than 100 million…
Strategic Rationale Creates a leading diversified completion and production service provider Creates Leading Fifth largest completion services provider with over 1.1 million HHP, over 30 coiled tubing units and over 100 wireline…
Acceleration of Long-Term Growth Strategy Ability to implement C&Js targeted approach across larger asset base by deploying completion equipment to highly active customers to maximize utilization and profitability Diversifies…
A Combination of Two Premium Oilfield Service Providers Completion & Production Services Premium, best-in-class completion Diversified provider of completion services provider and production services Superior track record and…
Combination Broadens Reach to Most of the Major US Basins and Canada Nabors Completion & Production Facilities Nabors Completion & Production SWDs C&J Facilities C&J Energy Services, Inc. 2014 15
Transaction Overview C&J Energy to combine with Nabors Completion & Production Services business in US and Canada in stock-for-stock transaction (creating New C&J) C&J Energy stockholders to receive one share of New C&J common stock…
Transaction Structure C&J Nabors Shareholders 53% Ownership 938 Million Cash 47% Ownership C&J + Nabors Completion Lenders 3rd Party Debt & Production 1.3 Billion Merger C&J Energy Services, Inc. 2014 17
Financial Profile Comparison LTM as of 9/30/14 Completion & (mm) Production Services Revenue 1,390 2,209 Adjusted EBITDA 208(1) 326(2) % Adjusted EBITDA Margin 14.9% 14.8% Total Assets 1,520 2,319(3) Source: Public filings…
Pro Forma C&J Energy Outlook 2015E Revenue 4.1 - 4.5 billion 2015E Adjusted EBITDA(1) margin of 19% Long term Adjusted EBITDA(1) margin of 20%+ with full run rate synergies Anticipating reduction in capex during initial phases of…
Capital Structure and Liquidity Estimated Total Debt at Closing 1.3 billion Estimated Debt/TTM Adjusted EBITDA(1) at Closing 2.3x Generation of free cash flow will allow C&J Energy to de-lever its balance sheet following closing of…
Experienced and Proven Leadership Josh Comstock, Larry Heidt, Chairman and President, Chief Executive Officer, Production Services C&J Energy Services Randy McMullen, Ronnie Witherspoon, President and Chief Financial Executive…
Appendix C&J Energy Services, Inc. 2014
C&J Financials 5 Year Income Statement Year Ended December 31, ( i n thous a nds , except per s ha re a mounts ) 2010 2011 2012 2013 YTD 9/30/14 Statement of Operations Data (Una udi ted) Revenue 244,157 758,454 1,111,501 1,070,322…
C&J Financials 5 Year Cash Flow Statement Year Ended December 31, ( in thousands) 2010 2011 2012 2013 YTD 9/30/14 Cash Flow Data (Unaudited) Capital expenditures 44,473 140,723 182,179 157,987 222,379 Cash flow provided by (used…
C&J Financials 5 Year Balance Sheet Year Ended December 31, ( in thousands) 2010 2011 2012 2013 9/30/2014 (Una udi ted) Cash and Cash Equivalents 2,817 46,780 14,442 14,414 20,295 Accounts Receivable, Net 44,354 122,169 166,517…
C&J Financials EBITDA and Adjusted EBITDA(1) Reconciliation Year Ended December 31, ( in thousands) 2010 2011 2012 2013 YTD 9/30/14 LTM 9/30/14 (Una udi ted) (Una udi ted) Net income (loss) 32,272 161,979 182,350 66,405 46,512 53,800…
C&J Financials EBITDA and Adjusted EBITDA(1) Reconciliation - Quarterly Year Ended December 31, ( in thousands) Q1 2014 Q2 2014 Q3 2014 Net income (loss) 11,588 11,108 23,816 Interest expense, net 1,749 2,195 2,778 Provision…
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