NINE ENERGY SERVICE INVESTOR PRESENTATION AUGUST 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 9% 80% 48 14.7 78% 167% 5% 27 5.5 2014 Q2 2018 2014 2017 2014 Q2 2018 2 Nine US…
CUSTOMERS WHO TRUST US Diverse, blue-chip customer base with minimal concentration 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
2018 FINANCIAL PERFORMANCE COMMENTARY 2018 QUARTERLY RESULTS (MM) Nines first half growth driven by Revenue Adjusted EBITDA significant increase in activity (stages/ of jobs) in Completion Solutions segment Cementing jobs completed…
BALANCE SHEET & LIQUIDITY POSITION PRO FORMA CAPITALIZATION COMMENTARY As of June 30, 2018 Nine has a total liquidity position of (MM) 120.2mm as of 6/30/18 Cash 70.9 Nine will be disciplined with capital deployment, with a…
UNIQUE VALUE PROPOSITION FOR INVESTORS 18
CLOSE TO PERFECTION. FAR FROM ORDINARY. DRIVEN TO SUCCEED.
APPENDIX
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…
EBITDA AND ADJ. EBITDA RECONCILIATION Six months Six months Three Months Ended Three months ended Year ended December 31 ended ended June 30, December ( mm unless otherwise noted) 30-Jun-18 31-Mar-18 31-Dec-17 30-Sep-17 30-Jun-17…
ROIC RECONCILIATION Three Months Ended Three Months Ended Year Ended December 31 ( MM UNLESS OTHERWISE NOTED) 30-Jun-18 31-Mar-18 2014 After-tax net operating profit reconciliation: Income (loss from continuing operations net of tax)…
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