Capital One Securities 13th Annual Energy Conference DECEMBER 5, 2018 1
Why Invest in C&J Energy Services
Diversified, New Well Focused Service Provider 3Q18 Revenue: 568 Million Committed to Safety Strong Focus on Quality Management and Quality and Safety Record Fluids Management New Well Specialized Completions, Well 6% Focused…
with a Leading Presence in the Most Active U.S. Basins(1) Operating Footprint Revenue by Basin 5% 11% 40% 10% 11% 23% C&J Energy Services Assets West Texas South Texas / East Texas Purposely focused on U.S. onshore…
We Create Value for Our Shareholders Objectives Strategies Results Safe, high-quality and reliable service that demands a higher Price Structure margin because we can reduce customer total well cost Attractive Margins Reflects…
Disciplined Capital Deployment is Key to Sustainable Returns Operating segments compete for capital based on returns Balanced Capital Capital deployed with clear visibility on revenue generation Expenditures Flexibility to divert or…
Diversified Customer Base Diverse Customer Base No Individual Why Customers Choose C&J Exposure Greater than 10% of 2017 Revenues Reputation for Safety and Service Quality High Quality Assets and Execution Service Line and…
Our Service Lines
3Q18 Financial Highlights & Market Conditions Market Conditions Consolidated Revenue Year-over-year revenue and Adjusted EBITDA(1) increased 28% ( in millions) and 66%, respectively; however, results declined sequentially 611 553…
Hydraulic Fracturing Is Our Biggest Business Line 2018 Strategy and Reactivation Plan Focused on committed customers who appreciate the value we provide Best-in-class execution and technology enhanced efficiencies attract…
A Proven Market Leader in Wireline & Pumping Casedhole Solutions Leading The 1 service provider and market leader(1) Position Introduced advance pressure control and greaseless cable systems Scalable Established in most U.S.…
Well Construction & Intervention Services Segment Overview 3Q18 Highlights Reported Segment Revenue ( in millions) Segment revenue increased 167% year-over-year to 95.7 million largely due to the O-Tex Pumping 99 96 acquisition in…
Expanding Presence in Cementing and Coiled Tubing Market 4th largest provider of cementing services in Position U.S. land with purchase of O-Tex Pumping(1) A market leader in high spec coiled tubing(1) All 2 and 2 coil units are fully…
Well Support Services Segment Overview 3Q18 Highlights Reported Segment Revenue Segment revenue was essentially flat year-over-year ( in millions) and sequentially at 99.0 million 98 99 99 92 91 Segment Adjusted EBITDA increased…
Established Provider of Well Support Services Market Top 2 well services company in the U.S. Position with a proven brand name(1) Top 10 customers are majors and large independents recurring and stable Diversified Strong operating…
Technology Innovation Drives Higher Margins Research and Technology Initiatives Focused on Increasing Safety, Efficiencies and Profitability Significant Savings YTD 18 million of savings to operations and 3rd party sales, vs. 8 million…
Continued Focus on Rightsizing Cost Structure SG&A Expense D&A Expense ( in millions) ( in millions) 61 68 66 54 60 60 46 50 40 36 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 3Q18 Highlights 4Q18 Cost…
Strong Capital Structure and Reasonable Growth Plan No Leverage and Ample Liquidity 2018 Capital Budget & Highlights(1) ( in millions) 466 414 393 Maintenance Fracturing Fleet Reactivations 32% 32% 356 326 317 88 110 76…
C&J Tenants: The Differentiated U.S. Oilfield Services Company Leading Diversified Focused on Quality, Safe 1 and Reliable Execution 2 Service Provider in most U.S. Land Basins Established and Growing Modern, High-Quality 3…
APPENDIX: Additional Information & Non-GAAP Reconciliation
Thoughts on the Forward Outlook 4Q18 Outlook Preliminary 2019 Thoughts Expecting consolidated revenue and Adjusted EBITDA to Remain focused on dedicating multiple frac fleets with long- decline sequentially due to continued weakness in…
Returns Example: Fleet Reactivation vs. Newbuild Fleet Reactivation Provides Superior Returns and Other Benefits Illustrative Return of a Reactivated Fleet(1) Illustrative Return of a Newbuild Fleet(1) IRR % Annual EBITDA IRR %…
Historical Financial Summary Select Historical Financial Information MM; unless otherwise stated Full Year Full Year 2016 1Q'17 2Q'17 3Q'17 4Q'17 2017 1Q'18 2Q'18 3Q'18 Revenue Completion Services 524 192 263 309 343 1,107 374…
Non-GAAP Reconciliation Adjusted EBITDA Reconciliation* MM Full Year Full Year 2016 1Q'17 2Q'17 3Q'17 4Q'17 2017 1Q'18 2Q'18 3Q'18 Net income / (loss) (944) (32) (13) 10 57 22 21 28 10 Interest expense, net 157 1 0 0 0 2 0 2 1 Income…
Non-GAAP Reconciliation (continued) C&J ENERGY SERVICES INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (In thousands, except per share data) (Unaudited) Three Months Ended September 30, 2018 June 30,…
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