Acquisition of Alamo Pressure Pumping August 4, 2021 NYSE: NEX
NexTier Acquires Alamo Pressure Pumping Highly-strategic acquisition of leading pressure pumper Acquisition Summary Alamo at a Glance NexTier to acquire Alamo Pressure Pumping A Permian leader Alamo is a pure-play Permian pressure…
Transaction Summary Attractive transaction valuation for high quality next-gen asset base NexTier to acquire 100% of the pressure pumping operations of Alamo for a Overview Transaction Valuation of 268 million1. Close expected…
Strategic Rationale Consolidates leading Permian providers of low carbon completion solutions Accelerates Low-Cost, Expanded Tier IV Dual Fuel fleet provides a proven cost-effective path to low emissions Low-Carbon Strategy Enables…
Accelerates NexTiers Low-Cost, Low-Carbon Strategy Alamo fleet aligns with our next-gen leadership goals The acquisition of Alamo accelerates & magnifies the impact of our Next Gen Technology Strategy Our Strategy enables Our…
Next-Gen Market Leadership Highly compatible fleet allows seamless integration into platform Ease of integration As of 8/1/2021 Alamo key leadership & current Total fleets 37 9 46 operational teams continue operating independently…
Leading Permian Position + Minimal Customer Overlap Intra-basin diversification with attractive customer expansion Permian Overview (pro-forma) Top 5 Alamo Customers (1H 21) Permian Fleets New Existing Alamo Revenue By to NEX in NEX…
Accelerates Next-Gen Frac Strategy Strategy drives cost & carbon reduction NexTier has largest deployed fleet fueled by low-emission Dual Fuel Gas Powered natural gas in the market today 1 Horsepower in the U.S. US Total Frac…
Generates Significant Integration Opportunities Supercharges value adding potential of high performing asset base Current capability Incremental growth opportunity Benefits of Integration Low Emissions Next-Gen Natural Gas Substitution…
Broad Recognition of Technology Benefits Recognition of Tier IV Duel Fuel advantages based on experience Weve cut those emissions, reduced related noise and Benefits of Tier IV Dual Fuel shrunk our operational footprint by replacing…
Earn-out Indicative of Attractive Valuation Transaction Valuation reflects 3.4x (or lower) multiple on 2022 2022 Alamo Achieved EBITDA Levels Triggering Earn-out Valuation overview Earn-out to Alamo (MM) Earn-out triggered at 80mm…
Confidence in Earnings Potential Capabilities & playbook set foundation for integrated success Consistency: Integration: Digital: Sticking to the game plan Where (and when) it counts... Leverage innovation platform Alamo…
10mm of High-Confidence Cost Synergies NEX has strong track-record of delivering on synergy commitments 10mm of Annualized Expected Cost Synergies Supply Chain 30% Leverage best pricing across suppliers (proppant & chemicals)…
Maintain Balance Sheet Strength NexTier positioned with 272 million of pro-forma liquidity Balance Sheet Highlights As of 272mm of estimated pro- NexTier Liquidity June 30, 2021 forma liquidity1 NexTier Cash 250.4 No new credit…
Rich History of Successful M&A Track-record of M&A selection, execution and integration Proven Ability to Committed to Focused on Expansion, Disciplined Capital Successfully Integrate & Shareholder Value Technology & Allocation…
Alamo Transaction Summary Highly strategic transaction extends NexTiers leadership position 1. Aligns with low-cost, low-carbon strategy and advances sustainability journey 2. Further establishes NexTier as early-adopter and leader…
Appendix
Alamo EBITDA Reconciliation As of December 31, 2020 Consolidated Audited Estimated Attribution Estimated Activity Financial Statements of Unacquired E&P Attributed to 000s Provided by Seller Business Purchased Business Net Income…
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