NINE ENERGY SERVICE INVESTOR PRESENTATION JUNE 2018 1
COMPANY OVERVIEW
NINE COMPANY OVERVIEW OUR COMPANY Focused on ROIC 2018 target of 8% 100% onshore North America with leverage to increasing completion intensity Super lateral, deep reach capable service offering and focus Agnostic to completion…
TECHNOLOGY-DRIVEN COMPLETIONS OFFERING Nine is capable of addressing 100% of the onshore wells drilled in North America, regardless of completion type PRE & POST STIMULATION HORIZONTAL LATERAL TOE OF THE WELL Large Diameter Coil +…
MULTI-WELL PADS CONCENTRATE RISK Barriers to entry continue to increase SINGLE-WELL PAD COMPLETIONS MULTI-WELL PAD COMPLETIONS LONGER LATERALS TIGHTER SPACING PAD DRILLING l l Concentration of dollars / pad + exponential impact of…
SUSTAINABLE VALUE PROPOSITION OF SERVICE & TECHNOLOGY Service and technology drives efficiencies and lowers total cost of ownership for operators SERVICE/TECHNOLOGY PERFORMANCE DAYS SAVED REVENUE GENERATION FOR OPERATORS1 Scorpion…
3-PRONGED STRATEGY TO TECHNOLOGY ACQUISITION INTERNAL R&D IP ACQUISITION STRATEGIC ALLIANCES Keep It Simple Deliberate & Careful Distribution Hub Focus on creating tools that Used to secure technology that Requires broad NAM footprint…
BROAD FOOTPRINT ENABLES TECHNOLOGY LEADERSHIP FOOTPRINT IN EVERY MAJOR NAM BASIN Canada 4% significant benefit to potential strategic partners through distribution volume EXCELLENT NAM REACH Bakken 5% CAPABILITY proximity to the…
BARRIERS TO ENTRY THROUGH TECHNOLOGY AND SERVICE HOW DOES NINE BUILD MOATS AROUND THE BUSINESS Service + technology / equipment + people to service the longest laterals today and tomorrow COMPLETION SOLUTIONS PERFORMANCE BARRIERS…
PROOF OF PERFORMANCE Majority Of Nines Completion Work Is Long Laterals Has Led To Increased Efficiencies And Higher Barriers To Entry 8% 60% 48 78% 10.2 85% 5% 27 5.5 2014 2017 2014 2017 2014 2017 2 Nine US Wireline &…
CUSTOMERS WHO TRUST US Diverse customer base with minimal concentration no individual customer more than 10% of 2017 revenues COMPLETION PRODUCTION 12
BUSINESS MANAGED FOR STRONG RETURN ON CAPITAL Better OFS returns through cycle dictate a careful blend of capital intensity COMPLETION TOOLS WIRELINE WELL SERVICE CEMENTING COILED TUBING EQUIPMENT, PEOPLE & CAPEX LESS INTENSIVE…
RETURNS-FOCUSED GROWTH PHILOSOPHY Balance of Organic Growth and Strategic M&A: Augment technology portfolio + Enhance NAM footprint ORGANIC GROWTH DISCIPLINED M&A Strategic expansion of existing service lines within NAM Continue to…
FINANCIAL OVERVIEW 15
2017 FINANCIAL PERFORMANCE REVENUE 2017 OPERATIONAL PERFORMANCE ( in millions) Completion Solutions revenue increased by 544 approximately 110% year over year Q4 17 Cementing jobs for 2017 increased approximately 75% over 2016. The…
Q1 2018 FINANCIAL SNAPSHOT Q1 2018 FINANCIAL & OPERATIONAL PERFORMANCE 13% Revenue growth q/q Revenue growth driven by Completion Solutions, which grew 15% quarter over quarter without any new equipment added Activity levels have…
BALANCE SHEET & LIQUIDITY POSITION PRO FORMA CAPITALIZATION COMMENTARY As of March 31, 2018 Nine has a total liquidity position of (MM) 122.3mm as of 3/31/18 Cash 72.9 Nine will be disciplined with capital deployment, with a…
UNIQUE VALUE PROPOSITION FOR INVESTORS 19
CLOSE TO PERFECTION. FAR FROM ORDINARY. DRIVEN TO SUCCEED.
APPENDIX
EBITDA AND ADJ. EBITDA RECONCILIATION Three Months Six months Six months Ended Three months ended Year ended December 31 ended ended June 30, December ( mm unless otherwise noted) 31-Mar-18 31-Dec-17 30-Sep-17 30-Jun-17 31-Mar-17 2017…
ROIC RECONCILIATION Three Months Ended Year Ended December 31 ( MM UNLESS OTHERWISE NOTED) 31-Mar-18 2014 After-tax net operating profit reconciliation: Income (loss from continuing operations net of tax) 1.7 76.2 Add back: Interest…
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