Investor Presentation U.S. Well Services, LLC Matlin & Partners Acquisition Corp. July 16th, 2018
Executive Summary USWS Holdings LLC, the parent of U.S. Well Services (USWS), and Matlin & Partners Acquisition Corp. (MPAC) have signed a definitive merger and contribution agreement that will create a public next-generation pressure…
USWS: Long-term Growth and Short-Term Execution Short-Term Execution Will be Initial Focus: Utilize new capital to execute multi-fleet orders and expand supply chain Roll-out new Clean Fleet design, which allows for faster mobilization…
Matlin & Partners Investment Thesis Rising completion intensity and shift to multi-well pads are increasing frac demand Compelling Market Opportunity Strong demand for innovative solutions to address cost, safety, environmental and…
Transaction Overview: 135MM PIPE Addresses Rising Demand for Clean Fleet Business combination between MPAC and USWS at an enterprise valuation of 588MM Transaction 2.6x 2019P Adjusted EBITDA of 225MM and 735 per HHP Highlights…
Attractive Valuation Relative To Peers EV / 2019P EBITDA 2019P Free Cash Flow Conversion, 7.0x 90.0% 5.9x 6.0x 80.1% Median 80.0% Median 5.0x 74.7% 4.2x 3.8x 72.6% 3.9x 3.8x 3.8x 4.0x 69.6% 68.9% 68.3% 69.2% 3.3x 70.0% 3.0x 2.6x…
Significant Upside Potential Differentiated Low Volatility Contracting Growth Capital High Growth Strategy Investment EV / 2019P EBITDA Peers include CJ, FRAC, FTSI, LBRT, PUMP and RES. Source: Capital IQ. As of July 12,…
Significant Growth Since Company Founding 2013 Joel Broussard and Jared Oehring develop 2018 2011 Clean Fleet Clean Flee moves to Idea catalysts were the Permian Basin with Company founded with Obama-era emissions contract a…
Pure-Play Frac Service Provider Pure-play provider of hydraulic fracturing services with Facility & Fleet Locations approximately 481,000 HHP (10 active fleets, 1 fleet expected to be delivered Q3 2018) Company plan contemplates…
Clean Fleet Is A Game-Changing Technology With Strong Patent Protection First-mover in electric frac technology with approximately 6,000 stages completed All-electric frac fleet, Clean Fleet, is significantly advantaged to conventional…
Clean Fleet Provides Substantial Fuel Savings Natural gas generators create a significant economic advantage over diesel-powered pumps Annual fuel savings estimated to be 13 million at current prices Use of lower value field gas…
Clean Fleet Is Safer, Cheaper And Better Reduced vibration and elimination of oil and Considerable HSE advantages filter changes dramatically increases uptime High Heat Low Heat High Noise Low Noise Conventional Fueling on…
Scaling Clean Fleet Deliveries on Robust Demand USWS is in discussions with a multitude of active well-capitalized Oil & Gas producers USWS is working with various equipment manufacturers to streamline the delivery schedule of Clean…
Robust Preventative Maintenance Has Led To Stable Operations High-quality equipment procured from leading manufacturers Maintenance program never lapsed; high utilization through downturn helped USWS avoid equipment cannibalization…
Contracts Reduce Cash Flow Volatility True contracts unlike MSAs or dedicated fleets typically seen in the industry Fixed-price contracts are typically comprised of: fixed monthly service and equipment (S&E) charges repair and…
Sources & Uses And Pro Forma Ownership Estimated Sources & Uses of Cash Pro Forma Ownership And Valuation (Dollar amounts in millions) (Dollar amounts and share counts in millions) Sources: 4 Pro Forma Ownership : Rollover Equity…
Team Has Successfully Executed on Organic Growth (Dollar amounts in millions, except per fleet amounts) Historical & Projected Results 2015 2016 2017 2018P 2019P Revenue 415 295 499 705 900 Cost of Sales 325 262 422 541 643…
Attractive Returns On Newbuild Fleets (Dollar amounts in millions) USWS contracts provide for full payback in less than four years IRRs on newbuilds exceed USWS targeted return on capital Payback Analysis Clean Fleet…
Exciting Opportunity at Attractive Valuation Rising completion intensity and shift to multi-well pads are increasing frac demand Compelling Market Opportunity Strong demand for innovative solutions to address cost, safety,…
Appendix
U.S. Well Services Management Team Director of USWS since 2012 and as CEO since 2017 Joel Broussard Seasoned oilfield services executive and serial entrepreneur CEO Previously founded, and subsequently sold, Gulf Offshore Logistics,…
Clean Fleet Has Unparalleled Benefits Benefit To Customer USWS Community Longer useful life Reduced equipment vibration and improved integrity Cost Reduced fuel costs (13 million per year) Insulation from commodity price…
Grown Organically To Become A Leading Pure-Play Frac Company Founded in 2012 Pursued a prudent growth strategy, adding fleets with strong customer support in the form of long- term contracts with material cancellation provisions All…
Contracts Provide Visibility Into Cash Flows Nine fleets operating under long-term contracts, with one additional fleet under contract to begin work in early Q4 2018 Currently, one Clean Fleet is working in the spot market as part of…
Completion Intensity Continues To Increase Completion intensity, including longer lateral lengths, increasing proppant loadings, and increasing numbers of frac stages per well, is the key driver of well productivity Leading edge well…
Illustrative Fully Diluted Share Count and Ownership Illustrative Share Price Share count in millions 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 MPAC Public Shares 32.50 32.50 32.50 32.50 32.50 32.50 32.50 32.50 32.50 1…
Investor Presentation U.S. Well Services, LLC Matlin & Partners Acquisition Corp. July 16th, 2018
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