Apergy Combination with ChampionX December 19, 2019 Copyright 2019 Apergy. All rights reserved.
Important Additional Info and No Offer or Solicitation Important Information About the Transaction and Where to Find It In connection with the proposed transaction, Apergy and ChampionX intend to file registration statements with the…
Todays Presenters Soma Jay Deric SOMASUNDARAM NUTT BRYANT President & Chief Senior Vice President & Executive Vice President & Executive Officer Chief Financial Officer President of Ecolabs Upstream Energy Business 3 Copyright…
Combination Creates Global Leader in Production- Optimization Solutions Brings Together Differentiated Portfolio of Production-Optimization Solutions onto Single Platform for Enhanced Customer Productivity Combines Two Highly…
Transaction Summary Apergy to combine in tax-free Reverse Morris Trust transaction with ChampionX, Ecolabs Upstream Energy Business Combined enterprise value of 7.4bn1,2 Apergy shareholders and existing Ecolab shareholders to own 38%…
Merger of Complementary Leaders in Production Technologies & Services Production- Leading provider of highly engineered equipment and Global leader in onsite, technology driven, sustainable Focused technologies throughout the…
Apergy is a Premier, Independent Oilfield Equipment & Technology Company Key Financial Metrics (2019E)1 Geography2 Product Line2 ROW Drilling Revenue 1.1bn Middle East 10% Technologies 4% 23% Canada 7% Adjusted EBITDA 265m…
ChampionX is a Global Leader in Onsite, Technology- Driven, Sustainable Chemistry Programs and Services Key Financial Metrics (2019E) Geography1 Product Line1 LatAm APAC Specialty Performance Revenue 2.4bn 4% U.S. Europe 7% 19%…
How ChampionX Creates Value for Customers + + = Applied by Backed by Innovative, Unrivaled On-site Leading Tailored Value for Technical Global Chemistry Customers Experts Supply Chain Supported by a World-Class Safety…
ChampionX: Highly Differentiated, Proprietary Offering Combined with Large Global Sales & Service Force Innovation Powerhouse Drives Ongoing Highly Trained Technical Experts Applying Value Creation for Customers Our Differentiated…
ChampionX Has a Leading Position in the Global Oilfield Chemicals Segment Estimated Global Production Chemicals Market Share ChampionX benefits from top 3 leadership positions across key categories: Corrosion management and control…
High Exposure to Production Supports Relatively Stable and Recurring Revenue Through-The-Cycle Drilling Performance & Automation Technologies Technologies Specialty Oilfield Performance Performance 20%1 80%1 Cumulative Revenue…
Strategic Rationale Differentiated Portfolio of Complementary Products and Services with Well- 1 Known Brands 2 Creates a Global Leader in Production-Optimization Solutions 3 Broad & Diverse Global Customer Base Enhances…
1 Differentiated Portfolio of Complementary Products and Services with Well-Known Brands Best in Class Products & Customer Service Iconic Brands Diamond Drill Bits Combined 160 year history of operational Electrical Submersible…
2 Creates a Global Leader in Production-Optimization Solutions Production Products and Solutions Revenue1 Drilling 80% of Combined Company Revenue from Production-Related Products and Solutions 20% APY Production PAT2 80%…
2 Artificial Lift & Production Chemicals on a Single Platform to Enhance Customer Productivity Production Chemicals Reduce Artificial Lift Failures and Increase Equipment Run-life Creating Value for Customers Case Study Results:…
3 Broad & Diverse Global Customer Base Enhances Cross-Selling Opportunities Long-standing relationships IOCs NOCs with diverse, blue-chip customers Increases weighting towards IOCs, NOCs, and large independents Independents…
4 Global Presence with Balanced Portfolio Across Regions and Production Types Pro Forma Geography1 Pro Forma Onshore / Offshore Mix1 Latin APAC ROW United States: 59% Offshore America 1% 6% Middle East 3% 20% & Africa 11% U.S.…
5 Platform to Deliver Production Optimization Solutions and Accelerate Digital Adoption in the Oilfield Fluid and Chemical Injection Optimization Controlled dosing of chemicals for well optimization Chemical and performance…
6 Compelling Value Creation Through Synergies Day 1 Cost Avoidance Run-rate Cost Synergy Estimate Public company cost avoidance Within 24 Months of Closing Cost of Goods Sold 75m Production and supply chain initiatives Corp Cost…
6 Transaction Reduces Cyclicality Compared to Stand-alone Apergy Combined Company % Change in Peak to Trough EBITDA of (60%) Compared to (74%) for Stand-alone Apergy Lower decrease in peak to trough EBITDA % Change 2019E EBITDA as…
6 Strong Capital Structure and Disciplined Capital Allocation Net Debt / Adj. EBITDA Current 1-Year Apergy1 Pro Forma2 Post-Close Deleveraging transaction 2.0x 1.7x 1.5x Maintain low capital intensity 1.0x Significant free…
Combined Company is a Top Box Performer Key Attributes Combined Company Characteristics Top Box Performer Business Mix Diversified business mix including higher Strategy exposure to production Stronger in Downturn Strong Across…
Summary of Transaction Benefits Creates Differentiated Portfolio of Production Focused Equipment and Chemical Solutions for Enhanced Customer Productivity Combines Two Highly Complementary Leaders with Established Operational…
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