voodoo The Future of Frac Delivering on the Right Strategy at the Right Time Robert Drummond, President & CEO 4
Passionate & Unrivalled Team Strong Balance Sheet Low Emission, Natural Gas-Powered Fleet Enabled by Digital Innovation Leading the Future of Frac 5
The Resilience of U.S. Shale 6
The Return of Balance in the Post-Pandemic Recovery Global oil demand is set to reach pre-pandemic levels late in 2022 or in 2023 So far, supply has not kept up with demand during U.S. EIA: World Liquid Fuels Production and…
World energy consumption The rise in renewables won't be enough to will need Oil and Gas for satisfy global energy years into the future demand World Primary Energy Demand by Fuel Type, 2020-20451 120 +17.6 mboe/d Global oil…
Driving Commodity Commodity pricing Price Recovery has recovered to exceed pre-pandemic era levels 90 West Texas Intermediate Spot Oil prices are well above 60 even Tier 2 acreage break-even per Barrel across US Shale…
Crude Production Growth According to OPEC1, Reliant on US Shale more than 50% of global production growth from 2023- 2026 will come from US Tight Oil Production Growth US Shale Indexed to 2021, U.S. EIA 2021 Reference Case2 3…
U.S. Total Production Forecast By Working Frac Fleets U.S. EIA Production L48 Horizonal Shale Production Forecast by Working Frac Fleet Count1 Outlook2 2021 to 2026E 30,000,000 High Case +9.9 MBOE Reference Case +5.4 MBOE…
Average HHP intensity across US Land Increased Frac Intensity and limited supply is basins has increased 22% with operators setting up historically high equipment utilization requesting higher pump rates and simul- frac capable…
The NexTier Fleet Transformation 13
Active US Land HHP1 Active NexTier HHP Febraury 2022 February 2022 Not all Horsepower is created equal in a multi-tiered market Natural Gas Fueled Natural Gas Fueled Natural gas-powered frac equipment occupies a premium…
Fuel Savings vs. Capital Cost Natural gas-powered equipment options Maximizing Returns with 4x Dual-Fuel Conversion We believe Tier 4 Dual-Fuel conversions are the most capital efficient way to lower costs and emissions Sweet…
Fleet Profitability Illustrative Adjusted GP per Fleet Incremental Pricing Power Tier IV Dual-Fuel Tiered Pricing is amplified in a constrained HHP market Tier IV Dual-Fuel Diesel Raising the Base: Tier 2 Diesel tightness…
Strategy Enabled by: Integrated Power Sustainable Services Solutions Equipment 17
Integrate for Efficiency Create Value HYDRAULIC WIRELINE AND NEXMILE POWER SUBSURFACE FRACTURING PUMPDOWN LOGISTICS SOLUTIONS OPTIMIZATION Top 3 U.S. Frac Integrating 1 U.S. Trucking business Natural gas fueling Real-time downhole…
Reduce Carbon, Reduce Cost NexTier has the Fuel Cost Carbon Dioxide per Diesel Gallon Equivalent Pounds per mmBtu Energy Produced2 1 NATURAL GAS- -40% -30% POWERED Frac Fleet in the U.S.1 -80% Diesel CNG Field Gas Diesel…
In 2020 8,474,333 2021 ESG Initiatives in Action Gallons of diesel displaced In 2021 16,775,436 Gallons of diesel displaced 57,000 10 Million 2.7 Billion Tons CO2e Reduced Heavy-Haul Miles Gallons of Water with Low Emissions…
About Us 21
We are the Leader in U.S. Land Completions 1 Largest Active Wireline Plug & Perf Fleet1 1 Permian Basin Completion Service Provider1 Integrated Platform Amplified with Scale Wireline + Logistics + Natural Gas Fueling + 1…
NexTier + Alamo Size and Scale where it matters most The Premier Permian Partnership Ac quis ition H ig hlig hts Total HHP Tier IV DGB Capable Permian Scale +460k 88% 2x Late model CAT Converted or ready-to-convert Doubles…
Finance Impact 24
Consistent Top Line Growth 2021 Q4 Results: Quarterly Revenue Positive trajectory with incremental growth throughout 2021 Revenue Growth 600 + 30% Growth vs. Q3 2021 + 30% with contribution from all Product and Service Lines +…
Elevate Value NexHub Digital Operations Integration Innovative Elevate the value created by a standalone Engineering fleet through cost-saving and efficiency at the wellsite + NexHub Digital Operations: Extend the lifecycle of…
Our Presentation Team Courtney Brownie Kevin McDonald Robert Drummond Matt Gillard Zach Wilbur Haitham Soliman Aaron Hilber Senior Finance CAO & General President & CEO EVP & COO VP, Frac VP, Wireline VP, Power Solutions…
voodoo Integration Works Wellsite Solutions with Value Generation at the Core Matt Gillard, Chief Operating Officer - NexTier Joe McKie, President - Alamo Pressure Pumping 29
Managing Complexity at the Wellsite A large, multi-well pad can have as much as: Logistics Equipment 4,000 40,000,000 Routes Coordinated Asset Value Deployed Suppliers Proppant 20+ 160,000,000 Managed Vendors Pounds Pumped…
Its complex and large. Successful integration is KEY. NexMile Logistics Next-Gen Frac Equipment Power Solutions Fueling Wireline Subsurface Client Suppliers + Integrated solutions designed to increase efficiency and lower…
Traditional = % Bundle Discount The Core of Model our Integration Discounted OFS Client One-Stop No Value Price Margins Shopping Creation Strategy vs. NexTiers Integrated Solutions Model Value Lowest Landed Cost…
Products Integration today is a whole different world Client Equipment K E Y O U TCO M E S : Business Continuity Value-Centric Optimization Value Creation Integration in todays resource-constrained market has to come…
Integration with multi-fleet clients: True Integrated Solutions Partnership SERVICE INTEGRATED PROVIDER SOLUTIONS RELATIONSHIP PARTNERSHIP Shared Multi-Fleet Economies of Scale Integrated Fleet - Multiple Fully Integrated Deploy…
NexTier Integrated Wellsite Solutions The Completion Cycle NexTier integrates industry-leading logistics, innovative technology, best-in-class equipment and AI-driven solutions to deliver: VALUE to clients Fully Integrated…
NexTier Integrated Wellsite Solutions Agenda Ben Dickinson Director, NexHub Brian Bidigare SVP, Operations Support Zach Wilbur VP, Frac NexHub Digital Operations Operations NexMile Logistics Next-Gen Frac Equipment Power…
NexTier Integrated Wellsite Solutions NexHub Digital Operations The digital link to connect clients, engineering, logistics, and maintenance Automation-backed digital tools to improve decision-making and optimize…
The Tools Have Changed The Future of Digitally Integrated Operations Ben Dickinson, Director - NexHub Operations 38
Barriers to Efficient, Cost-Effective Operations Rising Costs Human Errors Limited Skillsets Manual Processes Inconsistent Practices Growing Reliance on Data Traditional Data Architecture
The NexTier Strategy Reduced Costs Fewer Personnel Cloud Integration Digital Automation Machine Accuracy Data-Driven Decisions Unified Operating Platform
The Solution Equipment Health Monitoring Digitally driven predictive maintenance 24/7 equipment technical support Optimized diesel displacement Digital Engineering Operations 24/7 remote engineering support Real-time job…
Engine Lifecycle +110% Equipment Health Monitoring drives higher equipment performance at lower operating costs Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 Nov-21 Power End Lifecycle +125% Mar-20 Jul-20 Nov-20 Mar-21 Jul-21…
ENGINEERING Pre-Digital Revolution 01
01 04 Digital Operations Engineering 03 02 Workforce Efficiency Saved: 445k annually per fleet
Power Solutions CNG Fueling Unique service line launched with existing digital tools to operate business Provides instant scale using NexHub automation and workflows Power Solutions Engineers control: All trucking and CNG…
Integrated Logistics Control Mileage Reduction Tower provides an efficient 910,000 network for on-time delivery Q4 2021 West Texas Optimized Trucking Mileage Annually, per fleet 100 using optimized model 90 80 70 60 50…
NexHub Capabilities Enable Full Client Integration Automated Data Entry Aligned Incentives Integrated Data Partnered Data Agendas Removal of Wellsite Silos Complete Visibility of Operations
Traditional Digital Operating Model SERVICE COMPANY PLATFORMS INEFFICIENCES DOWNHOLE DATA SERVICE CLIENT COMPANY EMISSIONS DATA LACK OF INTEGRATION OPERATIONS DATA 48
NexHub Partnership Model One Source of Truth Digital Synergies Open-Source Client Platform Fully Automated Integration 49
Equipment Health Logistics Control Wireline Tower Power Solutions Clients Digital Engineering Reservoir
NexHub Elevate Value Digital Operations NexHub Integration Elevate the value of standalone fleet operations through cost-saving and efficiency-driving synergies at the wellsite + Equipment Health Monitoring: Early failure…
NexTier Integrated Wellsite Solutions NexMile Logistics Large presence creates economies of scale and flexibility Digitally-driven Logistics Control Tower = highest load/day efficiency Enabled with NexTier internal drivers…
voodoo Logistics Control Tower Leveraging Scale and Technology to Enhance Frac Efficiency Brian Bidigare, SVP, Operations Support Enabled by: 53
The Issues We Saw That Made Us Invest Truck Driver Shortage from 2011 to 2028 160,000 140,000 Market Challenges 120,000 100,000 Driver Availability 80,000 Increased Costs 60,000 Growing Demand 40,000 Asset Availability…
The Issues We Saw That Made Us Invest Price Index - General Freight Trucking 180 170 160 Supply Chain Deliverables 150 Maximize Frac Efficiency Business Continuity 140 130 120 Fleet Mobilization 110 Cost Management…
Answers to Logistics Platform the Challenge Results: 31% STEP 1 Reduction in Downtime Increase in 6% STEP 2 Integrated Frac Profitability 35% Reduction STEP 3 in Drivers 3M+ Reduction in Haul STEP 4…
STEP 2 AI PREDICTIVE ALERTS Optimize LOGISTICS CONTROL TOWER the Machine SMART DISPATCH AI Technology Maximizes: Driver Utilization OPTIMIZED MINE SELECTION Lowest Landed Cost Asset Turns REGIONAL SAND MINE Back Office…
STEP 3 ONE SIZE DOES NOT FIT ALL Run the Machine Fit-for-Purpose Last- Mile Solution (sand mine to wellsite) Supplier Capital Real-Time Route Optimization Box Bottom Drop Pneumatic System System Systems ESG Conscious 59
STEP 4 Sustain the Machine NexMile Tractor Maintenance Service Insulates NexTier from general market Repair priorities aligned to frac services Reduce cost through buying power Increased asset turns 60
A Third-Party, Single Source Model Out of Network Logistics Variables: Driver E-Logs Driver Locations Best Delivery Route Impact to Operations: Lowest Sand Mine Contract OVERALL COST Weather Conditions NO. OF TRUCKS…
NexTier Model Logistics Variables: Driver E-Logs Driver Locations Best Delivery Route Impact to Operations: Lowest Sand Mine Contract OVERALL COST Weather Conditions NO. OF TRUCKS Real-Time Frac Operations…
Number of Drivers Required1 Integration 602 390 and Scale Reduced Drivers by -35% 35% 302 207 302 207 -31% Reduced Customer Haul Cost by 3M/Fleet/Year 61 46 Unbundled Integrated Unbundled Integrated Unbundled…
Elevate Value Integrated Logistics Distinctive Logistics Platform Addresses Market Challenges Ensures Continuity of Supply Focused on Maximized Frac Efficiency 1.1M Potential Annual Incremental Less Downtime Adjusted EBITDA…
NexTier Integrated Wellsite Solutions Next-Gen Frac Equipment Largest Tier 4 dual-fuel frac fleet in US 1 operator of natural gas- powered frac equipment Top Permian pressure pumper by active fleet count Source: Company…
voodoo Next-Generation Frac Optimizing Fuel Sources and Reducing Emissions at the Wellsite Zach Wilbur, VP - Frac 66
Drivers for Market: ESG Investors Next-Generation and Customers Regulatory and Political Infrastructure Gas Availability and Grid Power Financial 67
Oxy teams with Macquari to deliver worlds first carbon- Chevron venture capital neutral oil from Permian basin to arm launches 300M India low-carbon energy fund Exxon Mobil to achieve net zero GHG emissions in Climate activists…
Regulatory and Political Drivers Initiatives Supporting Flare Capture and Reduced Emissions Increased Natural Gas Infrastructure Increased Natural Gas Fuel Availability The Oil and Gas Industry Increased Access to Diesel…
Delaware Basin Load Forecast Grid Power Actual vs. 5-yr Load Forecast Comparison Infrastructure 4000 3000 Permian Grid Power Demand Growth Load (MW) Outpacing Texas 5:1 2000 1000 Some E&P's developing private…
Natural Gas Infrastructure 7,700+ miles of Natural NexTier Gas Transmission built in Virtual CNG Pipeline past 6 years, with 1,300 miles built in 2021 Flare capture regulation driving more natural gas availability and…
The Natural Gas Advantage Disproportionately advantaged vs. Diesel to lower well costs All-in Annual Frac Fuel Cost2 Estimated for typical US Land Frac Fleet, 4,000 pump-hrs on Field Gas 90 16 MM 60 11 MM 8.5 MM 30 6…
Optimized choice to balance fuel cost savings, low emissions, and returns Fleet Type Comparison Conventional Tier 2 Tier 4 eFleet +NG eFleet +NG Diesel Dual Fuel Dual Fuel Turbine Generator Total Active Market 60% 21% 9%…
US Land Fleet Segmentation Increase in Gas-Fueled Fleets Forecast Market interest is driving an increase in natural gas CONVENTIONAL capable fleets DIESEL 42% 48% 62% Demand is greatest for 77% fleets with the…
Horsepower Market: Investment & Emissions HIGH ESG LEADER Investment Low Emissions fleets are worth a premium in the BALANCED market for better ESG performance INVESTMENT LOW FOCUSED HIGH Emissions LOW 76
Elevate Value Next-Gen Equipment Illustrative Annualized Adjusted EBITDA per Fleet +6-8M Tiered Equipment +6M Elevate the value created by a standalone +3M fleet through multiple tiers of natural gas substitution and low emissions…
NexTier Integrated Wellsite Solutions Power Solutions Natural Gas Fueling Innovative and propriety CNG gas-blending technology Uninterrupted fuel supply to ensure optimal natural gas fueling Highest diesel displacement to…
voodoo Power Solutions Leading the Transition to Alternative Fuels Aaron Hilber, VP - Power Solutions Courtney Brownie, Senior Finance Director 79
New Natural Gas Fueling Service to Address Common E&P Challenges E&P Experience Level with Natural Gas Fueling Little to None Extensive Defining the scope. Realizing only some of the Common Securing the right service equipments…
How Does Natural Gas Become Fuel for Wellsite Equipment Home Electricity Process Natural gas-powered Step up Transmission Step down Distribution power plant transformer lines transformer lines CNG Process Midstream gas…
Unique Service with Integrated Frac and Natural Gas Producing Cryogenic Gas Wells Processing Plant Field Gas Lean Treated Gas Pressure Reduction System (PRS) CNG Transportation Integrated CNG Compression 82 Wellsite…
Deploying the Next-Generation of CNG Equipment Highest-capacity mobile PRS available Only dual-purpose PRS in the market High reliability, built-in redundancy Highest CNG capacity transport trailer in 40 ft Advanced CNG…
Revolutionary Approach to Field Gas Patent-pending technology that blends lean CNG with rich field gas Single supplier and equipment solution for every pad Easiest and most reliable method to use field gas Supplemental CNG always…
The Results Tell the Story +40% Enabling customers to increase fuel savings and emission reductions by an additional 40% or more 2021 Average Diesel Displacement Customer A with NexTier Fleet NEX Fracturing Fleet + NEX Fracturing…
Barriers to Entry NexTier has four critical legs to stand alone with our unrivaled strategy. 86 1Source: Company estimates based on deployed and working fleets as of December 2021
Capturing Natural Multiple options to Gas Available Market expand and diversify US Natural Gas Frac Fleet Market Permian Basin Core Drilling Rigs, Remote US Land Market Power Generation, Water Treatment, Gas Lift,…
Strong Independent Integrated Best-in-Class Maximum Diesel Financials Fueling Equipment Displacement Returns on fuel sales Only completions service Highest performing CNG With the best equipment, provide attractive payback provider to…
Standalone Power Solutions Profit Delivers a Quick Return on Capital 2-4M potential 23-year payback for Removes barriers for annual incremental dual-fuel fleets clients to transition to adjusted EBITDA/fleet natural gas fleets for…
Elevate Value Integration with Power Solutions Elevate the value of standalone fleet operations through cost-saving and efficiency-driving synergies at the wellsite 750k Potential Annual Incremental Adjusted EBITDA Value per…
NexTier Integrated Wellsite Solutions Wireline Operations 1 wireline fleet in the US by active trucks deployed Fully integrated to frac with single-point operations manager Real-time link between subsurface data and…
voodoo Wireline Capturing the Value of Integration at the Wellsite Haitham Soliman, VP Wireline 92
Why NexTier Wireline BAKKEN 1 Plug & Perf Wireline Company1 ROCKIES NORTHEAST Synergy at the Wellsite MID-CONTINENT Performance & Technology WEST TEXAS ARKLATEX SOUTH TEXAS Integrated Completions Value…
Revisiting Integration 20% Reduction in Typical Completions Wellsite Headcount NexTier Integrated Team 95
Performance and Technology ELECTRIC SOLUTIONS Perforation Fracturing Lower Carbon Digital Solutions Technology & Optimization Footprint with that Enhance Support Increased Reliability Wellsite Efficiency 96
1 Consolidation of Suppliers Enhancing Frac Efficiency The Results and The Recipe Pumping Hours per Day 2 Incentives Aligned to Win Increase in Daily Operating 22% Completions Efficiency1 3 More Efficiency, Non-NEX…
2.5 40 6-8 1.5M Additional pumping Production days Added wells Adjusted EBITDA hours per day per crew per fleet annually per fleet annually added per frac fleet annually Integrated Completions Value Potential Source: NEX internal…
Elevate Value Integrated Wireline Elevate the value of standalone fleet operations through cost-saving and efficiency-driving synergies at the wellsite + Improved Frac Efficiency: 22% increase in 2.0M daily completions…
voodoo Reservoir Unlocked Engineered Solutions to Elevate Performance in US Shale Otman Algadi, Director of Engineering 101
Using Technology to Add Value and Reduce Cost per BOE US Shale Horizontal Well Production Rate Production results of optimizing for Total Value vs. Total Cost 1000 Engineering Toolbox: 900 800 Production Rate - BOPD 700…
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