OUR LIFES WORK IS THE LIFE OF THE WELL Investor Presentation October 2018
Company Overview
Basic Energy Services, Inc. At a Glance Balanced & Diversified Product Portfolio Well servicing and water logistics levered to production Completions & remedial levered to new drilling and well recompletions Strong presence in most…
Proven Operating Strategy Our Lifes Work is the Life of the Well TM Basic supports customer Diversified service offering with Strong market position wellsite activities from initial emphasis on stable producing in the most…
Extensive Footprint in Prolific Basins Significant Exposure to Major Oil Basins with 80% Revenue Exposure to Oil and Liquids Activity Core Regions 5 1 Permian 2 Eagle Ford 4 3 Mid-Continent 6 3 4 Niobrara 1 5 Williston…
Primary Service Lines Completion & Remedial Well Servicing Water Logistics Services Increasingly preferred completion One of the most extensive networks Pumping services for cementing, method for longer laterals of SWDs acidizing,…
Company Overview % of Total Direct Overview by Segment Margin by Activity* (1H 2018) Well Services Diversified Business Across the Well Lifecycle 310 workover rigs Leading high-spec workover fleet of 272 rigs Well Water Servicing…
Market Fundamentals Support Production Services Growth, Where Basic is Expected to Build on its Industry Leading Position New Horizontal vs. Vertical Well Wells per Pad Trend Trend (% of total) We are well-positioned to capture…
Core, Production-Levered Businesses Have Differentiated Scale Estimated High-Spec Well Service Rigs(1) Salt Water Disposal Wells Scale in high-spec rigs with utilization near or at labor Basics large SWD footprint in the Permian and…
Production Service Businesses are Continuing to Recover Well Service Rig Hours SWD Volumes Rig Hours (000s) Total SWD Volumes (MBbls) Utilization(1) Pipeline Volume (MBbls) Invest in new 10,000 190 equipment 182 100% 9,270…
Core Business Trends and Outlook Well Servicing appears to have passed an inflection point, with improved utilization and rates driving margins higher Several opportunities to increase rates remain, with several rate increases…
Operational Update 2Q18 1Q18 4Q17 Well servicing rig hours 181,600 168,500 159,500 Well servicing utilization rate 82% 76% 53% Number of well servicing rigs end of period 310 310 421 Pipeline Water Volumes (in thousands) 2,064…
Well Servicing Well Servicing Rigs Facilitate Down Hole Activity Revenue Segment Direct Margin* 310 Rigs by Market Area** Inactive Appalachia 100 30 30% 6% 2% 90 California 25 25% 80 5% 70 20 20% Ark-La-Tex Millions…
Well Servicing Fleet Overview Fleet Metrics Fleet Distribution by Class 247 250 200 272 Class IV or 150 Larger Rigs 100 50 32 21 4 2 4 0 Class 1 Class II Class III Class IV Class V Class VI *As of 12/31/2017 Active Rig…
Well Service Company of Choice BAS operates the largest domestic fleet of active high-spec well service rigs Quarterly Rig Hours Indexed to 1Q16 vs Public US Peers 180% 160% 140% 120% 100% 80% 1Q16 2Q 3Q 4Q 1Q17…
Well Servicing is Rapidly Becoming a 24-Hour Operation 24 Hour Rig Packages Bundling of Basics rental and fishing tools with a 24-hour well service job has been well received by customers Packages vary and include additional Basic…
Water Logistics Basics Integrated Fluid Service Business Anchored by Access to an Expansive SWD Network Revenue 100 One of the largest networks of SWDs in the industry 90 80 Water sourcing and storage 70 Millions 60 SWD…
Paradigm Shift from Trucks to Pipe for Midstream Transport of Produced Water to Our SWD Network Basics SWD Trend - Trucked Volumes vs. Piped Volumes Note: Piped vs. Trucked not Drawn to Scale Longer laterals and pad drilling are…
Specialized Completion & Production Services Support drilling, workover and production C&RS Revenue by Service Line processes Fishing tools and rental equipment for drilling 120,000 and workover processes, including 24-hour 90,000…
Overview of Strategic Realignment Initiatives Reposition assets to enhance Utilization + Margins core operating regions Enhance 24-hour rental packages with controlled ramp Margins with 2-year pay back period of asset base…
Financial Overview
2Q18 Update Capital expenditures (including capital leases) for 2Q18 totaled 24.4 million Maintenance/sustaining expenditures were 21.5 million Expansion projects and other totaled 2.9 million At June 30, 2018 total liquidity stood…
3Q18 Outlook Despite revenue trending higher in the early part of the third quarter, the strategic realignment initiative could result in choppiness as we move assets and close underperforming yards Production-oriented segment…
Financial Policy & Targets Maintain a conservative financial position for operational flexibility and resilience through market cycles Goal for minimum liquidity (cash plus revolver availability) of 100 million Goal of long-term…
Basic Investment Highlights Diversified service offerings for U.S. oil and natural gas producers Modern and maintained fleet routinely outperforms on reliability; vertically-integrated well service business The largest active…
Appendix
Historical Financial Summary ( in millions) Predecessor Predecessor Successor Successor Successor 2015 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Income Statement Well Servicing 217.2 164.0 48.6 53.1 54.6 54.5 210.8…
Non-GAAP Reconciliation ( in millions) Predecessor Predecessor Predecessor Successor Successor Successor 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Net Loss (241.7) (83.3) (89.9)…
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