Credit Suisse Energy Summit February 25, 2016 Robert Drummond President and Chief Operating Officer
+overview Production enhancement leader that is able to provide the equipment and service necessary to optimize production on existing wells and efficiently complete new wells
+profile Key is a leader in production enhancement with service offerings comprised of rig-based well services, fluid management services, fishing & rental services and coiled tubing services across all major oil & gas producing…
+rig services Business Overview Fleet Overview (1) 400 + Rig Services deploys well service rigs that have been built to increase safety and reliability while 350 reducing the chance of unplanned downtime + Services include: 300 +…
+rig services Key holds a market-leading position with assets most capable to respond to the demand for return-accretive activities in the horizontal wellbore Class 4 Rigs by Market Production Hours 60,000 50,990 50,000 Class 4…
+fishing & rental Business Overview Fleet Overview + Rental equipment used in the drilling and + Extensive array of rental equipment and completion of wellbores including drill pipe, services, including pipe, rods and blowout blowout…
+fluid management Business Overview Fleet Overview + Transportation of fluids, including sourcing + Approximately 30 service locations of brine and fresh water, used in the drilling + 900 fluid trucks and 3,500 frac tanks and…
+coiled tubing Business Overview Fleet Overview 51 Units + Keys Coiled Tubing Services delivers value and time savings by minimizing downtime and reducing time to completion + Services include: 2 Units + Completion of newly drilled…
+reorganization + Q3 2015 - Geographic management structure for multiple business lines + Regional and Business Line VPs share management responsibility + Pricing decisions pushed closer to the field + Enhanced revenue pull-through no…
+results + Q3 2015 - Delayered and combined LOBs yield 13 million of annualized savings - Functional Support reductions yield 10 million of annualized G&A savings - Organization changes helped limit U.S. sequential gross margin…
+strategy Keys core production enhancement business is primarily focused on extending the life and ultimate recovery of a well through-out the majority of a wells life Life-Cycle of an Oil Well Drilling & Completion Service…
+economics Compelling economics at moderate oil prices is the catalyst to achieve capital-efficient cash flow generation 350 Well Service Payback Period at Various Oil Prices 300 250 Payback Period (days) 200 150 100…
+conventional U.S. base production has been rapidly declining as shown by the decline in oil production from wells producing less than 15 barrels per day 2.0 90,000 Up 35% since 2011 Average Daily Production (bbls/day in…
+horizontal Wave of older horizontal oil wells will yield a sharp increase in demand for well services as valuable assets begin to require regular maintenance 100,000 HZ well count up 4x since 2010 90,000 80,000 70,000 68,000 HZ…
Balance Sheet & Liquidity +balance sheet As of ( in millions) December 31, 2015 Cash & cash equivalents 204.4 Total Debt, including current portion 675.0 million 6.750% Senior Notes due 2021 675.0 315.0 million L + 9.250% Term…
+final thoughts + Managing the downturn through execution of strategic reorganization of the business + Cost reductions are scalable when the market returns - Positioned to generate strong incremental margins + Largest fleet of…
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