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HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc.

Carbo Ceramics Inc. · Mar 25, 2012 · 29 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. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 1
    CARBO is the worlds largest supplier of ceramic proppant for fracturing oil and gas wells, and a major supplier of resin coated sand proppant the provider of the industrys most proppant; the provider of the industrys most widely used…
  2. HOWARD WEIL 40TH ANNUAL ENERGY 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 p products globally g y We manage the business…
  3. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 3
    CARBO People and Places Products/services sold in 50 countries Ceramic proppant manufacturing plants: Ceramic proppant manufacturing plants: USA (Eufaula, AL; Toomsboro, GA; McIntyre, GA) Russia (Kopeysk), China (Louyang) Resin…
  4. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 4
    Our Main Mission We make oil & gas wells produce We make oil & gas wells produce better and increase recovery (EUR) (EUR) 5
  5. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 5
    CARBO improves the effectiveness of fracs 1 Frac Design Software Highest Conductivity Proppant High Conductivity Proppant Improve Frac Completions E&P Value: Expert Fracpro Frac Frac Increased Consultants For For…
  6. HOWARD WEIL 40TH ANNUAL ENERGY 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 W We provide the broadest product range of Ceramic Proppant to id th b d t d t fC i P tt…
  7. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 7
    Ceramic Proppant Sales vs Capacity Lbs (Millions) Lbs (Millions) 2,250 CRR Ceramic Manufacturing Capacity (YE) 2,000 CRR Ceramic Sales Volume 1,750 1,500 1,250 1,000 750 500 250 0 Toomsboro line 4 was…
  8. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 8
    Our Ceramic Proppant Value Proposition What should an E&P Operator expect using CARBOs Ceramic h h ld & i i Proppant versus a sand based Proppant 9 20%+ Increase in Production Rates 20%+ Increase in Production Rates 9 20%+ Increase in…
  9. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 9
    Economic Conductivity To Match Any Reservoir General Application General Application Lightest weight ceramic proppant on the market. CARBOHYDROPROP Best slickwater fracturing proppant. Economic lightweight ceramic proppant for…
  10. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 10
    Economic Conductivity Proppant Types & Conductivity Highest Production, EUR, IRR Highest Conductivity Engineered, Manufactured Product High strength (minimizes crush) Tier 1 High Conductivity Uniform size and shape Ceramic…
  11. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 11
    EndofYear 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 1,400 1,200 1,000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006…
  12. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 12
    Cracking the Code of Shales In the last few years, two main breakthroughs: Dramatically increased the Reservoir Contact Area with Horizontal Drilling Horizontal Drilling Greatly Greatly increased the Conductivity of Fracs,…
  13. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 13
    Positive Impact on Proppant Demand Impact of greatly increasing the Reservoir Contact Area: Vertical Well Horizontal Well 13 frac stage 13 frac 1030+ frac stages 1030+ frac stages Total Proppant Used Per Well Total Proppant Used Per…
  14. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 14
    ECONOMIC CONDUCTIVITY Bakken Shale Wells utilizing ceramic proppant producing Wells utilizing ceramic proppant producing 2x the production of Sand wells. 250,000 125,000 additional bbls 70/bbl Ceramic Proppant = 8.7 million in…
  15. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 15
    ECONOMIC CONDUCTIVITY Eagle Ford Shale 200,000 Addtl production in the first 12 well avg 180,000 months is 43,000 BOE (per well), an 160,000 30% increase Cum Prroduction ((BOE), per w 140,000 CARBO wells generate an…
  16. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 16
    CARBO Lightweight Volume Ad t Advantage The Oil & Gas Industry buys proppant by the pound CARBO produces primarily Lightweight Ceramic p p y g g The Chinese produce primarily Intermediate Density Ceramic (IDC) It takes 19% more…
  17. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 17
    Required Proppant to Fill a Fixed Frac Volume If a fracture is designed to be filled with 100,000 lbs of If a fracture is designed to be filled with 100,000 lbs of CARBO Lightweight Ceramic (ECONOPROP, CARBOLITE) To fill the…
  18. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 18
    Product Development Increased focus and investment in product development Dual Dual focus of inventing new products and focus of inventing new products and adding technology to existing products Recent product introductions…
  19. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 19
    20
  20. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 20
    Falcon Technologies Falcon Technologies acquired in Oct 2009 Falcon provides Spill Prevention & Containment Containments, tank lining, tank bases Proprietary polyurea technology Business supports the growing environmental…
  21. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 21
    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…
  22. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 22
    Industry Factors The industrys logistical challenges caused by large movements of drilling activity into liquids rich plays and out of natural gas plays are still present but are expected to improve in H1 2012 plays are still…
  23. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 23
    Financial Results 24
  24. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 24
    CARBO Financials 750 3,000 180 Net Income M 171 Revenue M 700 2,800 170 NAM Total Rigcount Cash from Operations * 626 2,600 160 650 150 600 2,400 140 130 550 2,200 130 500 473 2,000 120 110 450 1,800 110 388 100 400 1,600 342…
  25. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 25
    CARBO Financials 650 8.00 8.00 626 Revenue M Earnings Per Share Cashflow Per Share 7.43 7.50 7.50 600 7.00 7.00 550 6.50 6.50 500 473 6.00 5.62 6.00 450 5.50 5.50 400 388 5.00 5 00 5.00 4.80 342 4.50 4.50 350 300 4.00 4.00…
  26. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 26
    Dividends Increased Last 11 Years Per Share Per Share Shares Shares Millions 1.00 30.0 Dividends Paid Per Share 0.90 27.0 Shares Outstanding 0.80 24.0 0.70 21.0 0.60 18.0 0.50 15.0 0.88 0.40 0.76 12.0 0.70 0.30…
  27. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 27
    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…
  28. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 28
    CARBO is the worlds largest supplier of ceramic proppant for fracturing oil and gas wells, and a major supplier of resin coated sand proppant the provider of the industrys most proppant; the provider of the industrys most widely used…
  29. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 29
    Cash Flow from Operations Reconciliation Results from Continuing Operations i 000 in 000s For the years ended Dec 31 2005 2006 2007 2008 2009 2010 2011 Net Income 45,463 52,245 49,641 60,405 52,810 78,716 130,136 Plus:…

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