Enercom 2018 The Oil & Gas Conference August 22, 2018 J. Marshall Dodson Senior Vice President and Chief Financial Officer 1
Key Service Offering Overview + Key offers a full suite of services across the life of a well providing for multiple touch points and an enhanced value proposition to customers Drilling Completion Production Intervention…
Service Line and Geographic Exposure + Production-driven services First Six Months 2018 Revenue revenue comprises 70% of first half 2018 revenue + Growth in Coiled Tubing driving expansion of completion-driven revenue +…
Rig Services Overview + Largest well service rig fleet in the U.S. First Six Months 2018 Top Customers + Completion of newly-drilled horizontal and vertical wellbores + Recompletion of existing wellbores + Maintenance of producing…
Conventional and Unconventional Capabilities Total WellService Total Well ServiceRigRig Fleet Fleet - 879Class by AESC Rigs 41% 521 358 Rigs Rigs 59% Class I/II/III Class IV/V/VI Specification 1-3 4+ Derrick Height…
Commodity Price Uplift and Demand Normalization Impact + Demand driver via 3,000 160% demand normalization, 2012-2014 Average Working Rigs (% of Rig Demand) - 94% Current Working Rigs 140% i.e. a return to historical 2,500 (% of…
Aging Horizontal Oil Well Backlog Provides New, Secular Tailwind + Proliferation of HZ oil 120,000 800 wells has created a new 692 700 100,000 class of well service 61k HZ wells to enter well 600 candidates maintenance phase over…
Fishing & Rental Service Overview First Six Months 2018 Top Customers + Extensive array of rental equipment and services including: Tubular handling systems Drill pipe Work string and tubulars Pumps Sand-X system Blowout…
Fluid Management Services Overview First Six Months 2018 Top Customers + Transportation of fluids used in the drilling and completion process + Transportation of frac flowback and produced water from completed or producing…
Water Demand Overview Frac Water Demand(1) + Significant growth in water 8.0 volume per completed well 7.0 Frac water demand up 60%... Billion Bbls of Water driving total fresh water and 6.0 flowback water demand 5.0 4.0…
Coiled Tubing Services Overview First Six Months 2018 Top Customers + Completion of newly drilled horizontal wellbores pre and post hydraulic fracturing + Maintenance of producing wellbores + Plugging and abandonment of depleted…
Coiled Tubing Market Overview DUC Inventory by Market(1) + DUC inventory yields visibility for coiled tubing frac plug mill- 8,000 32% growth in DUC 7,000 well count in 2017 out opportunities 6,000 DUC Inventory 5,000 +…
Balance Sheet & Liquidity Balance Sheet & Liquidity + Significant liquidity As Reported ( in milions) 6/30/2018 position with no near- term debt maturities Cash & cash equivalents 52.26 provides financial flexibility Total Debt,…
Final Thoughts + Well positioned for future growth through exposure to secular growth and cyclical recovery Completions driving demand for Coiled Tubing, Fluid Management and Rig Services Growing population of aging horizontal…
Appendix 17
Market and Service Demand Overview 18
Conventional Vertical Well Services Opportunity An increase from 40 oil to 55 oil results in a 35% increase in the U.S. population of Economic oil wells 48% Increase 10,358 15,366 32% Increase 40 Oil 55 Oil 55% Increase…
Commodity Recovery to Drive Conventional Demand Expansion + Oil price directly drives 300,000 2,500 Increase of 35% 55 oil demand for well and 66% 75 oil 2,204 250,000 Implied Well Service Rig Demand services 2,000 1,791…
Compelling Returns via Maintenance of Existing Oil Wells 500 + Existing installed base of Economic oil wells 450 provide a highly- 400 attractive return 350 Payback Period (days) opportunity in nearly all 300 production and…
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