J.P. Morgan 2017 Energy Equity Conference June 28, 2017
Company Overview
Company Overview Leave nothing behind. History of Proven record of successfully introducing new technologies that drive completion and Innovation life-of-well optimization Patented Technology, Differentiated technology platform…
Technology Driving Profitable Growth Leave nothing behind. Proprietary and differentiated completion technology highly valued by our customers Growing revenue through further market penetration, increasing completions activity and…
Multistage Unlimited Technology
Why Pinpoint Stimulation Matters Leave nothing behind. Pinpoint stimulation enables more predictable, repeatable, and verifiable completions that maximize reservoir connectivity, as compared to other completion methods Other…
The Multistage Unlimited System Leave nothing behind. Casing-Installed Frac Sleeve (open) Frac ports Outer barrel Sliding inner barrel Downhole Frac-Isolation Assembly on Coiled Tubing Multi-set Sleeve Gauges bridge plug…
Optimizing Completions with Downhole Data Leave nothing behind. Multistage Unlimited offers two sources of data Detailed Stage-Level Analysis for optimizing completions that are unavailable with traditional completion methods Coiled…
MultiCycle Sleeve Technology Leave nothing behind. MultiCycle sleeves provide flexibility during the initial completion and enable wellbore management options during production Sleeves can be opened and closed multiple times during…
Multistage Unlimited Value Proposition Leave nothing behind. Multistage Plug and Open-Hole Unlimited Perf Ball-Drop Precise frac locations X X X Real-time bottom-hole pressure X X X Recorded downhole measurements X X X Unlimited…
Completion Cost Comparison Leave nothing behind. Pinpoint completions can be cost-neutral to or less expensive than plug-and-perf Cost Impacts vs Plug-and-Perf NCS Sleeves and Service ++ Coiled Tubing + Coil used during fracturing…
Trusted Advisor for Pinpoint Completions Leave nothing behind. NCS serves as a trusted advisor and a proven leader in pinpoint stimulation, working with customers around the world to help optimize completions Trusted Advisor…
Market Drivers and Growth
Increasing Completion Activity Leave nothing behind. Horizontal drilling and completions activity is moving higher in 2017 Rig count recovery is a leading indicator for well count growth in 2017 Average year-to-date U.S. horizontal…
Impact of Completion Intensity Leave nothing behind. NCS benefits from increased completions intensity, as changes in sleeve sales have outpaced changes in completed well count NCS Wells Completed NCS Sliding Sleeves Sold 1,807…
Executing Our Growth Plan Leave nothing behind. The Vision: Serve as a trusted advisor to our customers, providing technology and services that enable them to optimize well completions and field development strategies Overall Strategy…
Canadian Success Leave nothing behind. NCS has made significant market share gains in each of the last several years NCS Implied Canadian Market Share* 30% 26% 25% 23% 19% 20% 15% 15% 10% 5% 0% 2013 2014 2015 2016…
Capturing the Significant U.S. Opportunity Leave nothing behind. NCS believes that each 1% share of the U.S. completions market presents an annual revenue opportunity of over 50mm* Leveraging successful best practices from Canada…
Additional Growth Channels Leave nothing behind. International Joint Venture Active in international markets with Joint venture with owner of a machine significant unconventional resource shop signed in February 2017 development…
Financial Performance
Revenue Profile Leave nothing behind. Revenue Contribution 2016 Geography Product vs. Service 26% 6% 71% 23% 74% U.S. Canada International Product Service 7% Product / Service Type 93% Multistage Unlimited…
High Margins with Free Cash Flow Leave nothing behind. Financial and operating model minimizes capital investment, maximizes free cash flow Revenue (MM) Gross Margin (MM) and % Margin 220.0 64% 62% 52% 45% 132.7 114.0 85.2…
Attractive Financial Profile vs. Public Peers Leave nothing behind. Average Adjusted EBITDA Margin (20132016)* 32% Peer Average = 17% 29% 20% 18% 14% 12% 9% NCSM CLB SBO OIS CEU FET HTG Average Net CapEx as % of…
Technology Driving Profitable Growth Leave nothing behind. Proprietary and differentiated completion technology highly valued by our customers Growing revenue through further market penetration, increasing completions activity and…
Appendix
Everything starts with The Promise Leave nothing behind. We will invest in our employees, our most important resource, by providing coaching and training that enables them to learn and grow to their full potential. Together, we will…
Adjusted EBITDA Reconciliation Leave nothing behind. Year Ended December 31, Quarter Ended March 31, ( in millions) 2013 2014 2015 2016 2016 2017 Net (Loss) Income 8.0 7.6 28.0 (17.9) (8.1) 6.3 Income Tax Expense (Benefit) 11.5…
Free Cash Flow* Reconciliation Leave nothing behind. Year Ended December 31, ( in millions) 2013 2014 2015 2016 Net Cash Provided by Operating Activities 16.3 51.5 4.4 10.7 Net Cash (Used In) Investing Activities (5.9) (12.9) (1.2)…
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