Nuverra Environmental Solutions (For the Quarter Ended 6/30/15)
Agenda About Nuverra Macro Environment Q2 Update Long-Term Strategy 3
About Nuverra (NYSE: NES)
We put our energy behind sustainability. Company Data: NYSE: NES Share price (8/6/15): 2.31 Shares outstanding: 28M Market capitalization: 64.7M Average daily volume (3 mos.): 394,000 Website: www.nuverra.com 5
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
Q2 Industry Themes Projected Quarterly Average Rig Count U.S. land rig count continued decline Change in rig counts since 2014 peak by basin in which NES operates: o Bakken -62% o Haynesville -29% o Eagle Ford -57% o Utica -42%…
Q2 Update
Q2 2015 Results Three Months Ended Six Months Ended (millions) June 30, June 30, 2015 2014 2015 2014 Revenue 92.4M 126.9M 211.5M 254.9M Net Loss from Continuing Operations (20.6)M (24.7)M (32.6)M (36.6)M EBITDA from Continuing…
2015 Cost-Management Initiatives Progress & Guidance Second quarter achieved YoY 38.8 million reduction in total costs and expenses, including: 11.5 million in compensation savings; 15% sequential reduction in personnel 6.2 million…
Cash & Liquidity Net cash provided from continuing operations of 42.3M, compared with (3.8M) at 6/30/14, with increase primarily due to lower capex, improved collections, improved collection cycle times, focus on cost controls DSO of…
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…
Key Growth Strategies Water Midstream Terrafficient Significant progress made to secure Selected as state pilot project facility under rights of way on Bakken water ND1390; awarded research grant by Oil & midstream project Gas…
Q&A
We put our energy behind sustainability. Appendix
Summary Pro Forma Combined Financial Data (6/30/15 continuing operations) Revenue M Adjusted EBITDA M 600 100 101 500 536 95 526 80 493 84 400 60 300 200 40 100 20 0 0 2013 2014 2015 LTM 2013 2014 2015 LTM Net Cash Capital…
Adjusted EBITDA from Continuing Operations Reconciliation (Unaudited) (6/30/15) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Loss from continuing operations (20,647) (24,722) (32,642) (36,636)…
Division Performance (6/30/15) Three Months Ended June 30, 2015 Rocky Mountain Northeast Southern Corporate Total Revenue 47,601 27,411 17,415 - 92,427 Operating income (loss) 1,371 295 (2,468) (6,767) (7,569) Operating Margin % 2.9%…
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