OUR LIFES WORK IS THE LIFE OF THE WELL Investor Presentation Bank of America Merrill Lynch Leveraged Finance Conference December 4-5, 2018 Boca Raton, Florida
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 Well Servicing Water Logistics Completion & Remedial 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* (YTD through 9/30/18) Well Services Diversified Business Across the Well Lifecycle 310 workover rigs Leading high-spec workover fleet of 272 rigs Well…
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 Continuing to Recover Well Service Rig Hours SWD Volumes Rig Hours (000s) Total SWD Volumes (MBbls) Utilization(1) Pipeline Volume (MBbls) Invest in new 10,000 190 182 equipment 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 3Q18 2Q18 1Q18 Well servicing rig hours 180,300 181,600 168,500 Well servicing utilization rate 82% 82% 76% Number of well servicing rigs (end of period) 310 310 310 Revenue per rig hour (excluding…
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
CapEx and Liquidity Update Capital expenditures (including capital leases) for 3Q18 totaled 23.1 million Maintenance/sustaining expenditures were 14.7 million Expansion projects and other totaled 8.5 million At October 2, 2018, after…
Balance Sheet and Liquidity Summary Pro Forma Cash and Liquidity Summary (in millions) As of Oct. 2, 2018 Cash 86.1 Senior Notes 300.0 Capital Leases 75.0 Net Debt 288.9 ABL Availability 80.9 Total Liquidity 167.0 Net…
New Notes Collateral Coverage Analysis ( in millions) Book Value The Collateral for the notes and Subsidiary Guarantees will include the As of Sept. following assets: (1) 30, 2018 Material Real Property that is owned or hereafter…
4Q18 and 1H19 Outlook We expect the fourth quarter to be very similar to the third quarter in terms of pricing Shorter daylight hours and normal seasonal impacts of weather and holidays should impact utilization rates We expect the…
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…
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