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Q3 2015 Investor Presentation – Seventy Seven Energy Inc.

Seventy Seven Energy Inc. · Oct 30, 2015 · 26 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. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 1
    INVESTOR PRESENTATION OCTOBER 2015
  2. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 2
    MANAGEMENT TEAM Jerry Winchester, CEO Jay Minmier, President CEO since September 2011 and President and Nomac Drilling a director since June 2014 President since June 2011 Served as President and CEO of Boots & Coots Previously…
  3. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 3
    COMPANY HIGHLIGHTS Large integrated footprint in some of the best returning basins and Experienced and skilled management team close proximity to customers Experience working for highly regarded oilfield services Based in Oklahoma…
  4. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 4
    WELL POSITIONED FOR CURRENT INDUSTRY TRENDS Current Industry Trend SSE Positioning Full scale development plans of large shale Large, integrated footprint in 7 active basins resources (existing and Shale development expertise…
  5. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 5
    AREAS OF OPERATIONS Oklahoma City Headquarters Significant footprint in many of the most economical plays, including Eagle Ford and Niobrara Shales As of 9/30/2015 6
  6. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 6
    CUSTOMER DIVERSIFICATION STRATEGY Continue strengthening current customer relationships and focus on Selected Customers winning other non-CHK business Nomac revenue from other operators averaged 42% in Q3 2015 Performance…
  7. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 7
    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 Rigs % -43% Trough 488 Rigs…
  8. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 8
    US RIG COUNT: NOMAC VS. PEERS WITH 20 ACTIVE RIGS AND HIGHER IN D U STR Y ACTIVE R IG S VS N OMAC R IG S 10% % CH AN G E : B ASE LIN E 11/ 28/ 14 0% -10% -20% -30% Noma c Contracted Rigs -40% -50% -60% -70% Noma c Acti…
  9. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 9
    BACKLOG AND SERVICE CONTRACT SUMMARY As of September 30, 2015, our contractual backlog was approximately Contracted Revenues by Business Segment 893mm, 11% of which was related to contracts with operators other than CHK Backlog…
  10. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 10
    BUSINESS SEGMENTS SNAPSHOT Q3 2015 REVENUE ADJ EBITDA ADJ EBITDA 2015 - 2016 BUSINESS DESCRIPTION mm mm Margin % OUTLOOK DRIVERS Drilling Provides land drilling and drilling-related 80.3 33.9 42% 5 new contracted rigs to be…
  11. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 11
    NOMAC DRILLING CURRENT FLEET 53 CONTRACTED RIGS (27 OPERATING) UTICA SHALE OPERATING ACROSS 13 UNCONVENTIONAL PLAYS POWDER RIVER AND DJ BASINS 4 MARCELLUS SHALE 2 ANADARKO BASIN HAYNESVILLE SHALE 15 9 PERMIAN BASIN…
  12. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 12
    2014 AVG DRILLING DAYS & WELL COUNT FOR HORIZONTAL WELLS Utica: Avg Operated Rigs By Contractor 15 10 5 0 1Q14 2Q14 3Q14 4Q14 Eagle Ford: Avg Operated Rigs By Contractor 40 20 30 15 10 5 0 1Q14 2Q14 3Q14…
  13. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 13
    NOMAC RIG FLEET COMPARED TO PEERS Working to convert fleet to meet long- US Land Rig Fleet Mix September 2015 term drilling needs of all customers 91% 63% 59% 50% 48% 35% 33% 19% 9% Currently 94% of our Tier 1 rigs and 68% of our…
  14. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 14
    EVOLUTION OF OUR FLEET Improving tier mix contributes to higher operating margin Based on contracted newbuilds, we expect to own 93 rigs by YE 2015 with 35% Tier 1 rigs Five additional PeakeRig newbuilds scheduled to be delivered over…
  15. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 15
    PERFORMANCE TECHNOLOGIES OPERATIONS OVERVIEW Provides high-pressure hydraulic fracturing North American Horsepower by Capacity '000s HHP services HAL + BHI 4,625 Schlumberger 1,900 As of September 30, 2015, owned ten FTS International…
  16. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 16
    PERFORMANCE TECHNOLOGIES OPERATING AREAS UTICA SHALE 3 SPREADS ANADARKO BASIN 3 SPREADS EAGLE FORD SHALE 4 SPREADS Access to three strategically positioned sand storage and transload facilities in Oklahoma, Texas, and Ohio…
  17. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 17
    HYDRAULIC FRACTURING SUPPLY CHAIN INTEGRATION Access to three strategically positioned transload facilities located in: Oklahoma, South Texas, and Ohio. Dedicated sand storage of 80 million lbs and 34 million lbs at the South Texas…
  18. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 18
    GREAT PLAINS OILFIELD RENTAL OVERVIEW Great Plains provides premium rental tools and specialized services for land-based oil and natural gas drilling, completion and workover activities Tool Rental Downhole tubular products…
  19. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 19
    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 The percentage of revenue generated from non-CHK sources increased from…
  20. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 20
    MATURITY AND DEBT SERVICE SCHEDULES Maturity Schedule 275 94 650 450 374 1 1 1 1 1 1 2 4 4 4 4 4 4 2014 2015 2016 2017 2018 2019 2020 2021 2022 3.750% 3.750% 6.500% 6.625% 10.000% Term Loan Tranche A Incremental Term…
  21. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 21
    APPENDIX Q3 2015 ADJUSTED EBITDA RECONCILIATION
  22. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 22
    APPENDIX: RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, June 30, September 30, 2015 2014 2015 2015 2014 (In thousands) Net (loss) income (48,530) (1,770) (74,670)…
  23. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 23
    APPENDIX: RECONCILIATION OF DRILLING NET INCOME TO ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, June 30, September 30, 2015 2014 2015 2015 2014 (In thousands) Net (loss) income (6,392) 15,146 (9,689) (15,710)…
  24. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 24
    APPENDIX: RECONCILIATION OF HYDRAULIC FRACTURING NET INCOME TO ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, June 30, September 30, 2015 2014 2015 2015 2014 (In thousands) Net (loss) income (7,973) 21,173 (457)…
  25. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 25
    APPENDIX: RECONCILIATION OF OILFIELD RENTALS NET INCOME TO ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, June 30, September 30, 2015 2014 2015 2015 2014 (In thousands) Net loss (7,365) (686) (9,682) (20,511)…
  26. Q3 2015 Investor Presentation – Seventy Seven Energy Inc. – slide 26

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