CARBO Capital One Securities 11th Annual Energy Conference December 7th, 2016 Performance Driven Technology
We provide industry leading technology for .. Oil & Gas Companies Industrial Companies Production Enhancement Performance Enhancement GRINDING MEDIA CASTING MEDIA MINERAL PROCESSING Performance Driven Technology
Company Focus and Actions The near term financial focus is to get to a positive EBITDA exit rate by YE 2017 With oil and gas commodity price support, we expect double digit revenue growth in 2017 On Sept 30th, we had 108 million…
Oilfield Technologies Business Overview
Overview Base ceramic supplydemand fundamentals Industry focus and trends Technology growth impact Fracpro, StrataGen, Falcon Technologies, Sand Performance Driven Technology
Foreign Imports DeclinedOil Price RecoveryBetter Future Oil Price /bbl x10, Million Lbs Million Lbs 1,200 600 Foreign Imports Into USA Oil Price /bbl x10 CARBO Total Ceramic Sales Volume 1,000 500 800 400 600 300 400 200…
Negative Impacts of Low Quality Chinese Ceramic Proppant E&P Operators should be more aware of the benefits to their business by supporting high quality, low cost American made ceramic proppant manufacturers, not the low quality…
Improve Production & EUR More Contact Area & Conductivity More..Reservoir Contact Area Increase number of stages and perf clusters Increase pounds proppant per foot Major influence on short term production, 12 18 months…
The 2 Cs Contact Area and Conductivity Increased Contact Area (more stages, more proppant/ft) has improved the 1218 months production in the last few years The Next Step.. Increased Conductivity (durable, higher conductivity…
Industry Proppant Factors We still believe you need both Conductivity and Contact Area to maximize production and EUR in low perm wells Over 50% of the wells drilled in the USA will see closure stress well above the 6,000 psi level…
The Basics Sand crushes above 6,000 psi stress 11
Proppant Technology Platforms Ceramics Infused Chemical Delivery System Higher EUR Production Production Flow Fracture Assurance Enhancement Evaluation R.O.I. Detection Technology In Proppant Grains Lower L.O.E. Coated…
Industry Challenges Solved With CARBO Technology KRYPTOSPHERE HD..The 20,000 psi well challenge The Lower Tertiary wells are the most expensive and challenging wells to frac in the world Carbo developed the strongest proppant in the…
Well Production Hierarchy of Proppant Performance Highest Production, EUR, ROI Highest Conductivity Highest Quality & Precision Engineered Monosized Ultrahigh strength High density Spherical Ultraconductivity Smooth surface More…
GUARD Technology Engineered Ceramic Grains Uniform and interconnected porosity Maximizes strength Advanced Chemical Delivery Chemical infusion throughout pellet Allows for larger volume of chemicals Controlled Release…
SCALEGUARD versus Competitors Products Uinta SCALEGUARD can provide years of scale prevention, dramatically lowering LOE
Quantified Propped Reservoir Volume Imaging Determination of the Propped Reservoir Volume (PRV) within the reservoir Methodology utilizes proprietary algorithms to interpret EM signal and location of electrically conductive…
QUANTUM Visualization Using FRACPRO WTX 345 155 Perf clusters Wellbore not to scale 19
Applications Field development Planning to Frac Optimization Frac Stage flushing optimization Understanding propped Perf clusters/frac stages reservoir volume & contact in the X, Y & Z planes ___________________ Understanding…
New Technology Growth..Creating Value % of Total Estimated Oilfield Ceramic Products Revenue 60% Other Technologies Fracture Evaluation Technology 50% Flow Assurance Technology (GUARD Products) KRYPTOSPHERE Technology 40% 30%…
FRACPRO STRATAGEN Falcon Technologies FRACPRO Profitable and produces cash, but downcycle has hurt new license growth STRATAGEN Activity for field consulting should follow rig count gains Key technical completion experts Cash…
Sand Business White Sand Objective is to grow the business and produce positive cash flow Started up our Marshfield plant October 1st, focus on selling its output where we have beneficial rail and distribution center economics…
Industrial Technologies Business Overview
Industrial Technologies Performance Enhancement Providing highperformance GRINDING MEDIA CASTING MEDIA industrial ceramic media products engineered to: Increase process efficiency Improve endproduct quality Reduce operating…
Industrial Technologies Overview CARBO has been selling products into the industrial markets for many years, and it has been a profitable business Our intention is to grow the business at double digit rates into the foreseeable…
Industrial Technologies Grinding and Casting 27
Mineral Processing Put Idle Assets To Work Targeting CARBO branded Products that we can make with our idle plants, and sell Mineral Processing either wholesale or retail, and produce positive cash Example: Seeking oilfield and…
Q416 Business Update As discussed on Q316 earnings call, we expect ceramic sales volumes to increase sequentially Oilfield Proppant Technologies continue to make progress and gain clients in this depressed market We expect…
Summary Company Focus and Actions The near term financial focus is to get to a positive EBITDA exit rate by YE 2017 With oil and gas commodity price support, we expect double digit revenue growth in 2017 On Sept 30th, we had 108…
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