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Credit Suisse 24th Annual Energy Summit – FTS International Inc.

FTS International Inc. · Feb 11, 2019 · 20 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 1
    INVESTOR PRESENTATION FEBRUARY 2019
  2. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 2
    IMAGINE MORE Too often, we settle. We settle for the average. The ordinary. The runofthe mill. We tell ourselves this is just the way it is. This is as good as it gets. And that we should simply accept what is presented, and make do.…
  3. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 3
    COMPELLING INVESTMENT THESIS Large, pure play provider of hydraulic fracturing services Market leading positions in the most active basins 1.7 million total HHP across 34 total fleets(1) with idle fleets ready to be reactivated…
  4. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 4
    OPERATIONAL FOOTPRINT IN ACTIVE BASINS Currently have 20 fleets active and expect to deploy one or two additional fleets in 1Q 19 Midcontinent Marcellus/Utica Shale Active Fleets 3 Active Fleets 1 District Location Washington,…
  5. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 5
    LEADER IN PROFITABILITY & EFFICIENCY Adjusted EBITDA Performance(1) Consistently among industry in millions leaders in margins, annualized 200 25 EBITDA per fleet and capex per 21 21 20 19 20 fleet 150 17 16 15 13…
  6. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 6
    VERTICAL INTEGRATION DELIVERS SIGNIFICANT COST ADVANTAGES Operating Expenses Maintenance Capex Growth Capex We manufacture our own fluid ends We perform all engine, transmission We build all of our new fleets and and perform…
  7. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 7
    CENTRALIZED FLEET MONITORING ENABLES CONSISTENT, RELIABLE OPERATIONS National Operations Center operates 24/7, monitoring realtime job and equipment data Centralized location of engineering functions enables sharing of…
  8. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 8
    OTHERS WAIT WHILE WE CREATE Only top 1% of the market fully leverages 21st century technology to optimize equipment performance and design 2016 Stage 1 2017 Stage 2 2018+ Stage 3 Catch Failures Reduce Damage Change Behavior Smoke…
  9. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 9
    CULTURE OF INNOVATION PAYS DIVIDENDS... ...AND WE THINK IT IS ONLY THE BEGINNING ...Which Helped Bring We Increased Fluid End Life Over 45% in 2018... NonProductive Time (NPT) Down by 25% Minimizing NPT time is a major focus at…
  10. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 10
    RETURNS-FOCUSED APPROACH 18 mm 2.5 mm Zero Maintenance Effective federal EBITDA capex per fleet (1) per fleet tax rate (2) Best in class free cash flow Solid operational execution with a focus on efficiency Low…
  11. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 11
    CASH GENERATION FTSI IS BEST IN THE BUSINESS Free Cash Flow Comparison(1) Adjusted EBITDA Less Capex Comparison(2) 307M 388M 309M 116M FTSI Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 FTSI Peer 1 Peer 2 Peer 3 Peer 4 Peer…
  12. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 12
    CONSISTENT DELEVERAGING in millions 1,400 1,200 1,081 750M 1,069 1,014 reduction 1,000 922 in net debt 800 447M more than 580 IPO proceeds 600 509 508 398 400 330 200 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 (1)…
  13. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 13
    FTSIS VALUE PROPOSITION Given the illustration below, we believe FTSI receives little credit for its inhouse manufacturing and taxsaving attributes, which provide us with a substantial cash flow advantage over our peers Illustrative…
  14. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 14
    OPERATIONAL UPDATE Based on discussions with our customers, we Average Active Fleets currently expect to deploy one or two additional 21 fleets in the first quarter 2019 20 Adapting Quickly 20 Ample idle capacity and ability to…
  15. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 15
    APPENDIX
  16. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 16
    ADJUSTED EBITDA RECONCILIATION ( in millions except average active fleets) Preliminary Results Preliminary Results Three Months Ended Year Ended Three Months Ended Three Months Ended Dec 31, 2018 Year Ended Dec 31, 2018 Mar 31, 2017…
  17. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 17
    ADJUSTED EBITDA LESS CAPITAL EXPENDITURES RECONCILIATION Last Twelve ( in millions) Three Months Ended Year Ended Three Months Ended Months Ended Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Dec 31, 2017 Mar 31, 2018 Jun 30,…
  18. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 18
    NET DEBT RECONCILIATION ( in millions) Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Dec 31, 2018 Senior floating rate notes due June 2020 350.0 350.0 350.0 290.0 Term loan due April 2021…
  19. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 19
    FREE CASH FLOW RECONCILIATION Last Twelve ( in millions) Three Months Ended Year Ended Three Months Ended Months Ended Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Dec 31, 2017 Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Sep 30,…
  20. Credit Suisse 24th Annual Energy Summit – FTS International Inc. – slide 20
    FREE CASH FLOW, EXCLUDING CHANGES IN OPERATING ASSETS AND LIABILITIES, RECONCILIATION ( in millions except VWAP and Common S/O) Three Months Ended Sep 30, 2018 Net income (loss) 49.6 Add: non cash items Depreciation, depletion and…

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