Investor Presentation November 2018 NYSE: LBRT www.LibertyFrac.com
Liberty Snapshot Liberty: The Facts Market leading, returnsfocused provider of Williston Basin hydraulic fracturing services with demonstrably superior financial performance Powder River Basin 13 Fleets Relentless pursuit of…
Shale Revolution and Role of Liberty Principals Technological innovations in hydraulic fracturing, 100 Years of US Oil Production Shale Oil horizontal drilling and well completions starting in the late 1990's launched the Shale…
Where we play Hydraulic Fracturing Frac enables production from unconventional reservoirs Largest single component of well capital spend Total Projected 2018 Lower 48 Drilling and Completion Capex Spend1: 90 Billion…
Frac Demand is Strong Lower 48 Increased Intensity Increases HHP Requirement1 Liberty Proppant Pumped Growth vs Industry1 Total Proppant Pumped (HHP Proxy) Horizontal Wells Completed Avg Proppant per Well Liberty Proppant Pumped…
ReturnsFocused Company PreTax Return on Capital Employed (ROCE)(1) LTM 3Q18 Superior Returns on Capital Meticulous Focus on Frac and Frac Only Highly Profitable Operating Structure Disciplined Capital Investment Industry…
Strong Returns on Capital from Day One Cash Return on Capital Invested (CROCI)(1,2) 47% 46% 44% 29% 28% 6 Year avg 19% 14% (1%) 2012 2013 2014 2015 2016 2017 3Q2018 YTD Compounding Share Value by reinvesting…
How We Generate Our Differential Returns Sustaining Free Cash Flow per Fleet 2 People and Culture Treat people right, empower employees, foster an innovation based culture, significantly lower turnover, common sense safety culture…
The Economics of Frac Companies The Effect of Efficiency Highefficiency frac companies Illustrative MidCycle Frac Rate of Return: generate strong returns when Frac Company Efficiency Low Mid High prudently managed through the cycle…
Liberty DNA: Technology Meets Execution Technology Highlights Impact Liberty FracTrends 50,000+ well database Proprietary Database Proprietary viewer and analysis tools Integrated engineering & big data approach to Fraconomics…
Partnering to Lower the Cost of a Barrel Fraconomics and Liberty FracTrends Integrated engineering & big data approach to lower a customers cost to produce a barrel of oil Proprietary inhouse software Industry leading simulation…
Relentless Focus on Operational Efficiency We track all 1,440 minutes on every fleet, Higher Throughput By Lowering NonPerforming Time (NPT) every day Example Pad Customer NPT Meticulous downtime analysis to determine Activity…
Liberty The Employer of Choice Employeecentered culture which attracts and retains high potential talent Get the best talent and you win Lower personnel turnover Zero layoffs during the 2014 2016 downturn Safety first incident…
Liberty PurposeBuilt Fleet 1.2 Million HHP 1.2 Million HHP Owned/Under Construction Expected in the Field by H1 2019 Liberty Purpose Liberty Quiet Liberty High Liberty Pump Down The Liberty Fleet Built Frac Fleets FleetTM Frac Fleets…
What Drives Financial Performance The Way Superior technology, service and safety Utilization Excess demand for Liberty The Right People, Libertized Fleets, Minimize NPT Throughput Partner with customers to accelerate…
Market and Financial Update Strong fundamental demand for differentiated frac services through 2018 Pricing was positive through mid year. Takeaway issues slowed completions growth in the second half of 2018, which created an…
Our Strategy Maximize per Share Value 1 Disciplined Organic Growth 2 Reinvest Cashflow at High Rates of Return 3 Return Capital to Shareholders Investment Highlights 4 Balance sheet strength low leverage and ample…
Appendix NYSE: LBRT www.LibertyFrac.com
Adjusted EBITDA Reconciliation 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended Year Ended 30Sep18 30Jun18 31Mar18 31Dec17 31Dec17 Net Income (loss) 66.4 94.7 54.0 57.7 168.5 Deprecia on & Amor za on 32.3 30.6 28.0 25.6…
Calculation of PreTax Return on Capital Employed Calculation of Pre-Tax Return on Capital Employed Tw elve Months Ended Septem ber 30, 2018 2018 2017 Net income 1 272,778 Add back: Income tax expense 36,238 Pre-tax net income…
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