NINE COMPANY OVERVIEW Focused on building a full-cycle PRO FORMA REVENUE BY SERVICE LINE3 ROIC business Asset-light business model with Completion Tools strong barriers to entry and 100% 25% 34% completions focused Cementing…
STRATEGY
EXECUTION OF STRATEGY Grew top-line contribution of completion tools from 3% in 2017 to 25% in 2020 Reduced capex requirements (2018: 53mm; 2019: 62mm; 2020 Guidance: 10-15mm1) Became 100% completions focused Lowered headcount by 71%…
DRIVING VALUE FOR CONSTITUENTS CUSTOMERS Ability to decrease cost to complete and increase EUR VALUE EMPLOYEES INVESTORS Socioeconomic Financial movement & career Sustainability progression & Returns 7
TECHNOLOGY-DRIVEN COMPLETIONS OFFERING NINE IS CAPABLE OF ADDRESSING 100% OF THE ONSHORE WELLS DRILLED IN NORTH AMERICA, REGARDLESS OF COMPLETION TYPE Long-string Cementing Large Diameter Coil + Memory Tools PRE & POST STIMULATION…
MULTI-WELL PADS CONCENTRATE RISK BARRIERS TO ENTRY AND OPERATIONAL EFFICIENCIES CONTINUE TO INCREASE SINGLE-WELL PAD COMPLETIONS MULTI-WELL PAD COMPLETIONS LONGER LATERALS TIGHTER SPACING PAD DRILLING Increased capital efficiency…
BROAD NAM FOOTPRINT FOOTPRINT IN EVERY Canada 2% MAJOR NAM BASIN EXCELLENT NAM REACH CAPABILITY Bakken 4% LOCALIZED TEAMS WITH REGIONAL Rockies 2% KNOWLEDGE Marcellus / Utica 17% MidCon 6% Permian 49% Barnett 1%…
ASSET LIGHT BUSINESS MODEL PRESSURE PUMPING E-LINE Pressure pumping E-line 11
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…
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 for…
CONSISTENT PROFITABLE MARKET SHARE GAINS Demonstrated Market Share Gains Throughout Cycles +267% 22% 16% 17% 11% 8% 6% 6% 2014 2015 2016 2017 2018 2019 Q3 2020 Nine US Wireline & Completion Tools % of stages completed1…
CUSTOMERS WHO TRUST US Diverse, blue-chip customer base with minimal concentration
CONTINUED EXCELLENCE IN SAFETY NINE TRIR 2.47 1.5 1.44 1.26 0.88 0.77 2014 2015 2016 2017 2018 2019 16
RETURNS-FOCUSED GROWTH PHILOSOPHY Balance of Organic Growth and Strategic M&A: Augment technology portfolio + Enhance NAM footprint ORGANIC GROWTH DISCIPLINED M&A Market penetration of technology portfolio, including new Target only…
DISSOLVABLE PLUG THESIS & OVERVIEW
THE PLUG REVOLUTION 19
NINE DISSOLVABLE PLUG BENEFITS NEUTRAL OR REDUCE AFE INCREASED IRR REDUCED EMISSIONS INCREASED SAFETY WITH FEWER HUMANS AT SURFACE 20
DISSOLVABLES REDUCE LIFECYCLE OF WELL TRADITIONAL COMPOSITE PLUG COMPLETION CAN BE 18-38 DAYS PER WELLBORE DRILLING & CEMENTING WIRELINE & FRAC COMPLETE COILED TUBING OF WELLBORE MULTISTAGE STIMULATION OR STICK PIPE DRILLOUT…
NEW GENERATION OF DISSOLVABLE PLUGS NINE STINGER DISSOLVABLE PLUG PLUG OVERVIEW Shorter design, decreasing plug size by over 70% Predictable and reliable dissolution for entire addressable isolation tool market Completely…
NAM DISSOLVABLE PLUG MARKET Mixed Area (High-temp/low-temp) High-temp Coverage Area 150F Low-temp Coverage Area 150F 23
INTERNATIONAL MARKET ARGENTINA SAUDI ARABIA High-temp Coverage Area 150F 24
CASE STUDY: FULL WELLBORE DEPLOYMENT IN PERMIAN In efforts to reduce significant costs and risks associated with using composite plugs, a large diversified in the Permian Basin deployed Nines Stinger Dissolvable plugs in 3, full…
PROVEN DISSOLUTION AT ROOM TEMPERATURE In the Marcellus Shale, a large independent deployed 10 Stinger Dissolvable plugs in a challenging, low- temperature (75 F) environment with chlorides ranging from 22,000 ppm - 58,000 ppm. With…
SIGNIFICANT AND SCALABLE EMISSION REDUCTIONS STINGER Dissolvable Frac Plug DISSOLVABLE FRAC PLUGS ON A 6-WELL PAD TAKE 84 CARS OFF THE ROAD: 404 METRIC TONS OF CO2E 27 source: ERM
ENVIRONMENTAL RESULTS (ELIMINATION OF COILED TUBING) DISSOLVABLE WITH NO CLEAN-OUT VS. CONVENTIONAL DRILL-OUT PER WELLBORE Conventional Dissolvable CARBON FOOTPRINT OF 70-PLUG DEPLOYMENT IN METRIC TON CO2 EQUIVALENTS 74,146 6,873…
ENVIRONMENTAL RESULTS (DISSOLVABLE WITH CLEAN-OUT) DISSOLVABLE CLEAN-OUT VS. CONVENTIONAL DRILL-OUT PER WELLBORE Conventional Dissolvable CARBON FOOTPRINT OF 70-PLUG DEPLOYMENT IN METRIC TON CO2 EQUIVALENTS 74,146 kg 60,843 kg…
FINANCIAL OVERVIEW
Q3 2020 FINANCIAL SNAPSHOT Q3 2020 (MM) FINANCIAL & OPERATIONAL PERFORMANCE Maintained sizeable cash balance with current cash position as of 9/30/20 of 80.3 million, and an undrawn ABL REVENUE 50 Market remained very challenged in…
9/30/20 CAPITALIZATION PRO FORMA CAPITALIZATION COMMENTARY As of September 30, 2020 During and subsequent to Q3, Company repurchased 23.6mm par value of bonds for (MM) 7.2mm of cash Cash 80.3 To date, Nine has repurchased 53.3mm of…
UNIQUE VALUE PROPOSITION Asset-light business model Completions focused Technology and service differentiation Ability to service the most technically demanding wells Returns-focused business philosophy Access to entire…
CLOSE TO PERFECTION. FAR FROM ORDINARY. DRIVEN TO SUCCEED.
APPENDIX
OUR LEGACY 36
NINE ADJ. EBITDA RECONCILIATION Year ended December 31 ( mm unless otherwise noted) 30-Sep-20 30-Jun-20 31-Mar-20 2019 2018 EBITDA Reconciliation Net income (loss) (18.5) (24.2) (300.9) (217.8) (53.0) Interest expense 9.1 9.2 9.8 39.8…
ROIC RECONCILIATION ( MM UNLESS OTHERWISE NOTED) Year ended December 31 30-Sep-20 30-Jun-20 31-Mar-20 2019 After-tax net operating profit reconciliation: Net Income (loss) (18.5) (24.2) (300.9) (217.8) Add back: Impairment of property…
Loading...
