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4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service

Nine Energy Service · Mar 7, 2019 · 25 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. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 1
    NINE ENERGY SERVICE INVESTOR PRESENTATION Q4 2018 1
  2. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 2
    COMPANY OVERVIEW
  3. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 3
    NINE COMPANY OVERVIEW OUR COMPANY Focused on ROIC 2019 annual target of 7% Leveraged to increasing completion intensity including mega-well pads, lateral lengths and stage count Super lateral, deep reach capable service offering…
  4. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 4
    NINES UNIQUE STRATEGY Sustainability Returns (ROIC) Mitigation of financial risk Cash flow generative Capital Intensity Capital Light Wellsite Execution Customer Legitimacy Real-time information R&D 5
  5. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 5
    DRIVING VALUE FOR CONSTITUENTS CUSTOMERS Ability to decrease cost to complete and increase EUR EMPLOYEES INVESTORS Socioeconomic Financial movement & career Sustainability progression & Returns 6
  6. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 6
    TECHNOLOGY-DRIVEN COMPLETIONS OFFERING Nine is capable of addressing 100% of the onshore wells drilled in North America, regardless of completion type PRE & POST STIMULATION HORIZONTAL LATERAL TOE OF THE WELL Large Diameter Coil +…
  7. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 7
    PREMIER ISOLATION TOOL PROVIDER ABLE TO SERVE THE ENTIRE ADDRESSABLE ISOLATION TOOL MARKET WITH PROVEN DISSOLVABLE AND COMPOSITE OFFERINGS 2 MARKET SHARE IN DISSOLVABLE FRAC PLUGS AND 1 IN POLYMER-BASED (PLASTIC) DISSOLVABLE PLUGS…
  8. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 8
    INTEGRATED COMPLETIONS SOLUTION NINE CAN HELP OPERATORS DESIGN AND EXECUTE THE MOST COST-EFFICIENT AND PRODUCTIVE DEEP-REACH LATERALS THROUGH BROAD OFFERING OF COMPLETION TOOL PORTFOLIO ILLUSTRATIVE HYBRID WELLBORE SOLUTION FlowGun…
  9. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 9
    SUSTAINABLE VALUE PROPOSITION OF SERVICE & TECHNOLOGY Service and technology drives efficiencies and lowers total cost of ownership for operators SERVICE/TECHNOLOGY PERFORMANCE DAYS SAVED REVENUE GENERATION FOR OPERATORS1 BreakthruTM…
  10. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 10
    MULTI-WELL PADS CONCENTRATE RISK BARRIERS TO ENTRY CONTINUE TO INCREASE SINGLE-WELL PAD COMPLETIONS MULTI-WELL PAD COMPLETIONS LONGER LATERALS TIGHTER SPACING PAD DRILLING l l Concentration of dollars / pad + exponential impact…
  11. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 11
    BROAD FOOTPRINT ENABLES TECHNOLOGY LEADERSHIP FOOTPRINT IN EVERY Canada 4% MAJOR NAM BASIN EXCELLENT NAM REACH CAPABILITY Bakken 6% LOCALIZED TEAMS WITH REGIONAL Rockies 3% KNOWLEDGE Marcellus / Utica 19% MidCon 10%…
  12. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 12
    BARRIERS TO ENTRY THROUGH TECHNOLOGY AND SERVICE HOW DOES NINE BUILD MOATS AROUND THE BUSINESS Service + technology / equipment + people to service the longest laterals today and tomorrow COMPLETION SOLUTIONS PERFORMANCE BARRIERS…
  13. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 13
    ADVANCEMENTS IN CEMENTING SOLUTIONS SLURRY HIGHLIGHTS Light-density slurry engineered to build strength 60% faster and deliver 40% higher compressive strength than similar density slurries Blend 27 Provides the lightness needed…
  14. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 14
    PROOF OF PERFORMANCE Majority Of Nines Completion Work Is Long Laterals Has Led To Increased Efficiencies And Higher Barriers To Entry 58 200% 18% 115% 13.0 136% 27 5.5 6% 2014 Q4 2018 2014 2018 2014 Q4 18 2 Nine US…
  15. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 15
    CUSTOMERS WHO TRUST US Diverse, blue-chip customer base with minimal concentration COMPLETION PRODUCTION 16
  16. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 16
    SAFETY IMPROVEMENT THROUGHOUT NINE NINE TRIR 2.47 64% 1.50 1.44 REDUCTION 1.26 0.88 2014 2015 2016 2017 2018 17
  17. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 17
    RETURNS-FOCUSED GROWTH PHILOSOPHY Balance of Organic Growth and Strategic M&A: Augment technology portfolio + Enhance NAM footprint ORGANIC GROWTH DISCIPLINED M&A Strategic expansion of existing service lines within NAM Continue to…
  18. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 18
    FINANCIAL OVERVIEW 19
  19. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 19
    2018 FINANCIAL PERFORMANCE REVENUE (MM) 2018 FINANCIAL AND OPERATIONAL HIGHLIGHTS 827 2018 ROIC of 12% for legacy Nine business, +52% 544 exceeding Managements target of 8% and 8% for consolidated Nine, Magnum and Frac Tech…
  20. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 20
    CAPITALIZATION In conjunction with the Magnum transaction, which closed on October 25, 2018, Nine put a new capital structure in place with long-dated maturities and enhanced financial flexibility PRO FORMA CAPITALIZATION COMMENTARY As…
  21. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 21
    UNIQUE VALUE PROPOSITION Completions focused Technology and service differentiation Ability to service the most technically demanding wells Returns-focused business philosophy Access to entire addressable market Leading market…
  22. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 22
    CLOSE TO PERFECTION. FAR FROM ORDINARY. DRIVEN TO SUCCEED. 23
  23. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 23
    APPENDIX
  24. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 24
    NINE ADJ. EBITDA RECONCILIATION Three Months Ended Year ended December 31 ( mm unless otherwise noted) 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 2018 2017 2016 EBITDA Reconciliation Net income (loss) (77.3) 13.7 9.0 1.7 (53.0) (67.7)…
  25. 4Q and FY 2018 Earnings Conference Call Presentation – Nine Energy Service – slide 25
    ROIC RECONCILIATION Nine Legacy Consolidated Three Months Ended Year Ended Three Months Ended Year Ended ( MM UNLESS OTHERWISE NOTED) 31-Dec-18 31-Dec-18 31-Dec-18 31-Dec-18 Net Loss (77.3) (53.0) (77.3) (53.0) Add back: Impairment…

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