Agenda WELCOME Anjali Voria, CFA T H E L I B E R T Y S T O R Y: C R E AT I N G VA L U E & R E T U R N S Chris Wright T E C H N O L O G Y: B E L O W T H E S U R FA C E - B I G D ATA , P H Y S I C S , I N N O VAT I O N A N D T H…
The Liberty Story: Creating Value & Returns CHRIS WRIGHT
Energy is Transformative 2020 ESG Report: Bettering Human Lives BETTERING HUMAN LIVES 5
Korean Peninsula: North Korea & South Korea Energy Access is Enlightening and Green Hispanolia: Haiti (on left) & Dominican Republic (on right) The Energy, Poverty, & Climate Change Nexus 6
U.S. Leadership in Delivering Natural Gas Liquids (NGLs) Worldwide The Worlds Largest Exporter of Liquid Petroleum Gas (LPG) LPG Addressing the U.S. Global LPG Exports Challenges of Energy Poverty & the Environment U.S.…
Worldwide Oil & Gas Demand: An Economic Necessity The Energy Transition Narrative In Perspective O I L & N AT U R A L G A S REMAIN ESSENTIAL SOURCES OF ENERGY Global Oil Demand by Region(1) U.S. Energy Consumption by Fuel(2) (AEO2021…
North American Oil & Gas Production in Global Context A Competitive Industry in World Oil Markets OPEC Spare Production Capacity 30 North America: A Significant 25 mb/d Average North America Liquids Global Supplier of Liquids…
The Shale Revolution From Growth to Capital Discipline U.S. Field Production of Crude Oil 14,000 Shale Revolution 12,000 Shale revolution expands from gas to oil in 2009 10,000 U.S. production more than Thousands…
North American Demand from Public vs. Private Companies Shifts Over Time Liberty Customer Base Commensurate with North American Activity Levels 2014-2015 2016-2017 2018 2019-2020 YTD 2021 2,000 Public 63% Private 37% Public 56%…
Liberty: A Premier North American Completions Service Provider A Decade of Liberty: Compelling Value Creation SUPERIOR R E T U R N S Libertys proven performance across cycles with 24% average CROCI(1) driven by accretive…
An Unrivaled Completion Service Provider: Technology, Integration & Scale A New Era of Leadership in a Structurally Changed Industry Liberty Operational Footprint Liberty Basin 3rd 24% Largest North American Alberta, Canada…
Libertys Unmatched Track Record of Attractive Returns Proven Steward of Capital in the Energy Sector Strategic Liberty Cash Return on Capital Invested(1) (CROCI) Priorities 47% 45% 44% 44% 1 Disciplined Growth Schlumberger…
A Culture of Collaboration Drives Results Safety, Service Quality, Efficiency & Technology L I B E R T Y C U LT U R E Empower High Expectations Treat People Right Employees Innovation-Based Common Sense Low Turnover Culture…
Striking the Right Balance for Our Customers Creating Value for a Varied Set of Customer Priorities Priority 1 Priority 2 Priority 3 Majors & Large Operational Prowess ESG & Surface Technology Subsurface Technology…
Libertys Digital DNA: Pushing the Frontiers of Digital Technology in the Energy Industry Optimize Operations & Elevate Productivity with Real Data S U B - S U R FA C E E N G I N E E R I N G EQUIPMENT DESIGN & & WELL DESIGN O P E R…
Integrated Cloud-Based Technology: Monetizing Innovation Scalable Infrastructure Enables Rapid Development Cycle CLOUD BASED INFRASTRUCTURE + D ATA LAKE AND WAREHOUSES Schlumberger LBRT OneStim Salesforce Proprietary…
Sub-Surface Technology: Improving Customer /BOE Drives Liberty Returns Big Data Analytics Guided by World Class Engineers Integrating Engineering & Economics to 365-Day Production (oil/ft) on Water Maximize Returns Saturation…
Surface Technology: Rapid Innovation Cycle Technology-Driven Operational and Environmental Improvement Drives Returns Event / issue identification through data assessment 180K data points captured per minute per fleet Data…
ESG: An Unrivaled Commitment to Environmental Progress Performance with Purpose: Business Strategy Advances Industry ESG Efforts OneStim 2013 2015 2018 2020 2021 Dual Fuel Spirit Tier IV DGB Tier IV DGB digiFracTM Libertys first…
ESG: A Culture of Excellence The Liberty to Pursue Your Dreams Liberty Family Residences Across the U.S. in 2020 Liberty families live in rural communities and big cities across the U.S. (and now in Canada) 60 652 Families…
ESG: Active Community Engagement Supporting Our Communities to Fulfill Their Dreams THREE CORE Our efforts evolved from our name, Liberty. We believe in human liberty. PRINCIPLES Everyone should have the opportunity and freedom to…
ESG: Governance in Focus Liberty Team Aligned with Shareholders Since its Founding William Kimble 7/9 ROBUST INDEPENDENT BOARD OVERSIGHT Former Managing Partner of KPMG LBRT Lead Director LBRT Audit Committee Chair…
2020 ESG Report: Bettering Human Lives Energy is Transformative E N E R G Y M AT T E R S Libertys mission is to B E T T E R H U M A N L I V E S . Liberty is a T E C H N O L O G Y P I O N E E R of the shale revolution and has…
Technology: Below the Surface Big Data, Physics, Innovation and the Future DR. LEEN WEIJERS, VICE PRESIDENT OF ENGINEERING
How Liberty Is Different and Why That Matters to Our Customers Lowering the Bottom of Happy Valley in Every Basin Has Made Our Customers More Competitive We all work toward Happy Valley Liberty benefits Our customers benefit We all…
We Love Data and the Message Contained Within Understanding in Bliss 28
Getting to Happy Valley Liberty Can Help In a Changing Environment Everyones Happy Valley is Different Happy Valley Changes: Cost per Barrel (/BO) Oil & Gas Prices Company Revenues Service Costs Rock Quality Cost and…
Liberty Engineering Tools Spiral Up Workflow and Sticky Customer Relationships Real-Time Analysis DFIT Support & Analysis RT Design Refinement Stepdown Test / Perfs Open Analysis Production & Economics FracSense Micro-Strain…
Finding Happy Valley Through Liberty FracTrends, LibertyMVA & Fraconomics DR. LEEN WEIJERS
32 FracTrends The Industrys Most Reliable Completion Database Data Evaluation of Middle Bakken Production 11 Basins & 110,000 Horizontal Wells Canada coming soon +50% Outperforming Production Over Entire Rock Quality…
Liberty MVA Haynesville Example Statistical Analysis Identifies Independent Production Drivers Haynesville Formation Production Drivers Haynesville Basin Wells 2015 - 2020 Texas Louisiana Frac Design Control No Frac Design…
34 Fraconomics Get Us to Happy Valley Applying Statistics to FracTrends with a Cost Model to Determine Design Optimum Happy Valley Surface with Well & Completion Cost per 365-Day BO Liberty MVA FracTrends BO F R AC O N O M I…
Calibrated Frac and Reservoir Models: Why it Matters to Our Customers D R . M I K E M AY E R H O F E R
Modeling Tools & Model Calibration Also Get Customers to Happy Valley Our Toolbox Has Been Significantly Extended with Complementary Modeling Tools Reach Happy Valley (/BO Optimization) through: Fracture Design (Geometry and…
Liberty Has the Prettiest Models For Fracture Design Delivering Optimum Frac & Completion Designs to Our Customers Proppant Mass = 600 lbs/ft Well Spacing Affects Frac Design Complex Rock Affects Frac Design Proppant Mass =…
Engineering Solution Example: Optimizing Perforation Clusters More Clusters Results in More Surface Area than Fewer Clusters per Stage 10 Clusters results in smaller length coverage per frac BUT significantly more total fracture…
Frac Modeling - Impact of Well Sequence on Frac Surface Area Delaware Basin Three-Well Sequencing Evaluation Sequence 1 (upper well fracd first) Sequence 2 provides 6% more early time oil production. Big impact for simply changing…
Materials Selection Based on Economics & Engineering Performance Just-Good-Enough-Proppant Conductivity Has Provided New Competitiveness to Our Industry Regional sand is perfectly sufficient from actual production data, lab data and…
Calibrated Frac & Reservoir Models Close the Loop on Design Optimization Well Spacing Optimization in Emerging Gas Play Frac Model Calibration Economic Optimization 80 70 60 50 ROR % Frac Model matches Microseismic…
Real-Time Frac Diagnostics & Perforating/Cluster/Staging Tradeoffs C H R I S W R I G H T & R AY E L L I S
What We Do to Cover the Intended Target and Reach Happy Valley Perforation Clustering Strategy Tools, Offset Well Diagnostics, Real-Time Analysis and a Diverse Diverter Approach Perforation clusters are the gateway to Economic…
Diagnostics Tools For Improved Insight Real-Time Data For On-Site or Tech Team Analysis DFIT (Diagnostic Fracture Injection Test) WellWatch (Design Optimization) Real-Time Data Interaction Simple, Offset-well pressure monitor…
Stepdown Test A Practical Diagnostic Tool to Assess Open Perfs and Near-Wellbore Tortuosity 25 Years Ago, Liberty Tech Nerds Proposed a Practical Test to Determine Open Perfs and Near-Wellbore Blockage High entry friction High…
Reservoir Optimization with Fiber Optic Monitoring New FracSense Partnership Optimizes Cluster Efficiencies and Frac Hits and Enhances Our WellWatch Observations Create a more productive reservoir with the most uniform fracture…
Controlling Perf Cluster Efficiency to Right-Size Complex Fracture Systems Perforation Clustering Strategy Tools, Offset Well Diagnostics, Real-Time Analysis and a Diverse Diverter Approach Standard Diverters Sequence Diverter Cost…
Material Choices for Modern Frac Designs BEN POPPEL
Material Selection Process Picking the Best Ingredients ESG Focus Streamlined GreenSelect Quick to the Market Engineering Produced Water Operationally Efficient Compact Chemistry Regulatory Approval Opportunity Lab Testing New…
Kruss Drop Shape Analyzer Anton Paar Oscillatory Rheometer Chemical Testing Research Grade Equipment Ofite CST ATP test kit DSA Output Chandler Flow Loop Flow Loop Test Crosslink Break Test Chandler 5550 HPHT 50
FracRx A Prescription for Success Right Products for the Problem Regional Concerns Surfactant Formation Chemistry Water Quality 95% Microbial Concerns Spirit Fluid Biocide Produced Water System Scaling Tendency Formation…
FR Arsenal One Size Does Not Fit All Brine Tolerance Brine Tolerance Divalent Low Mid High Low Mid High Product Form Charge Viscosifying Fresh Water Current Availability Pour Point 50k-100k mg/L < 50k mg/L TDS 100k mg/L TDS <…
Spiraling Up: West Texas A Case History D R . L E E N W E I J E R S & D R . M I K E M AY E R H O F E R
Liberty MVA Delaware Basin Example Statistical Analysis Identifies Main Production Drivers Delaware Basin Production Drivers Delaware Basin Wells 2015 - 2020 Frac Design Control No Frac Design Control Equation for Predicted…
Liberty MVA Delaware Basin Example Statistical Analysis Identifies Main Production Drivers Delaware Basin Production Drivers Including Cluster Spacing Delaware Basin Wells 2015 - 2020 Frac Design Control No Frac Design…
MVA Production Prediction as a Function of Cluster Spacing Low-cost opportunity to increase well production by 9% 9% increase from 24 ft (13 clusters/stage) to 16 ft (20 clusters/stage) 20% production increase from historical…
Fraconomics 2015-2021 Delaware Wolfcamp Wells with Perforation Cluster Data Couple MVA production prediction with cost model: Proppant Costs Pumping, Fluid and Chemical Costs Stage Costs Water Disposal Costs Other fixed costs…
Production Modeling - Impact of Stage Length and Cluster Spacing Supporting Data Analytics with Physical Models to Better Understand Cluster Sensitivities and Stage Spacing Tradeoffs Getting to Happy Valley: Reduce : Increasing…
Production Modeling - Impact of Treatment Size Supporting Data Analytics with Physical Models to Better Understand Job Size Getting to Happy Valley: Increase BO: Increasing treatment size from 1,500 lb/ft to 2,500 lb/ft…
How Liberty Is Different and Why That Matters to Our Customers Lowering the Bottom of Happy Valley in Every Basin Has Made Our Customers More Competitive We all work toward Happy Valley Liberty benefits Our customers benefit We all…
Technology: Above the Surface Next Generation of Equipment and Service RON GUSEK, PRESIDENT
Project 1440: Generating Efficiencies with Equipment Management and Digitization RON GUSEK, PRESIDENT
What Drives Financial Performance Focus on the Variables We Can Control T H E L I B E R T Y WAY Superior technology and service Utilization Demand for Liberty x The right people, Libertized fleets, minimize NPT Throughput…
Tracking Every Minute of Every Day Since Inception Project 1440 Measurement is the first step that leads to control and eventually to improvement. If you cant measure something, you cant understand it. If you cant understand it,…
Rapid Innovation Cycle Field Level Operations & Monitoring Data Integrated Into Early Stages of Parts Manufacturing Event / issue identification through data assessment 180K data points captured per minute per fleet Data…
Project 1440: Above Ground Equipment RON GUSEK
From Water Tank to Wellhead Optimizing the Fluid/Proppant Path on Location Monoline and high-pressure hoses are expected to deliver a 30% reduction in flowline replacement costs 67
From Water Tank to Wellhead Optimizing the Fluid/Proppant Path on Location Pressure transfer from one fluid stream to another via positive displacement Bearing support in the form of a hydrodynamic film between the rotor and the…
From Water Tank to Wellhead Optimizing the Fluid/Proppant Path on Location Eliminating transition times can add up to 100 minutes of pump time per day Automated pressure equalization enables any tool to enter a pressurized…
Complex Equipment and Systems Increasing Efficiency Through Maintenance and Monitoring Key Maintenance Points Cooling Package High Horsepower Engine Multi-Speed Transmission High Pressure Pump Advance Control Systems Fire…
Facility Advancements and Teamwork Advanced Communication to Drive Performance Key Differentiators Streamlined workflow to maximize shop throughput Advanced equipment testing prior to job deployment to ensure functionality Robust…
Digital Maintenance and Predictive Analytics Targeted Component Modeling Key Differentiators Equipment Telemetry Data and Predictive Models Data collection through custom applications and integrations Equipment telemetry data used…
Digital Twin: Virtual Equipment Health Holistic Digital Equipment Representation Key Differentiators Virtual representation of equipment to interact with condition-based alarm systems and equipment firmware. Built around targeted…
Project 1440: Wireline KIRSTIE ROSS
Electric Wireline Unit & StreamLine Cable Cleaner, Quicker and Quieter Customer - Long-term Liberty Diesel reduction sustainability Less maintenance of 20,000 gal/yr - Market Share Eliminates NPT ESG factors - Profit Quieter…
FracSense & Fiber Optics New FracSense Partnership Optimizes Cluster Efficiencies and Frac Hits Cross-Well Communication Monitoring Service Distributed Acoustic Sensing (DAS) Distributed Temperature Sensing (DTS) Strain and…
Market Perforating Trends Meeting the Evolving Needs of Our Customers Perforating Trends Challenges Solution Offering Increasing number of guns More guns require more connection Modular gun systems with factory per stage points and…
Gun Reliability & Efficiency Driving down non-productive time and keeping the pump time rolling New technology including plug and play, pre- Guns Shot Between Failures YOY loaded, pre-wired, addressable, port less, and modular…
Wireline Digital Arena Project 1440 tracking every minute of time on location Field Operations and Gun Shop Live Tracking Real-time sync with daily sequence of events Industry metrics (OPT, NPT, NPTr R/MR, HSE Events) Perforating…
Live Operational Data Feeds Combined, real time, downhole operation visibility with Frac Clear display of crucial perforating run statistics in real time Depth Casing Collar Locator Speed Tension Pressure Well condition…
Project 1440: Digitization TERENCE GOETTSCH & ROBERT HENDERSON
SonicStrap ISO Tank System High Accuracy, Contactless Measurement Key Differentiators System for Large Volume Tanks Next generation, contactless, and intrinsically safe radars Accurate and precise volumetric measurement to 0.05…
Mantis Proppant System LBRT and PropX Joint Project Key Differentiators Next Generation Intelligence for High Reliability and Throughput Proppant System Automatic box openers based on box run order and position Automatic feed rate…
Uber for Sand Wellsite Workflow Automation Key Differentiators Increases visibility of products dispatched to the wellsite Reduction of manual user input Allows trucking companies to maximize truck utilization Value Proposition…
PumpIRIS Pump Idling Reduction Intelligent System Key Differentiators: Automatically stops the pump after 10 minutes of idling Built in cooling temperature monitoring for extreme cold engine restart Value Proposition: Idling…
StimCommander Pumps Automated Fracturing Pump Control Key Differentiators: Automatic control of both rate and pressure Greater equipment reliability Reduced risk of high pressure HSE incidents Optimizes natural gas…
FracCAT X Control System Data Van Control Software Key Differentiators Modular, modern, and new control software Built with established software methods and tools Extensible for future modifications Value Proposition Tight…
Logistics & Supply Chain GREG McKEE
Supply Chain: Cross Functional Management Supply Chain Scope S U P P LY C H A I N M A N A G M E N T LAST MILE RAIL CHEMICALS SERVICES & MAINTENANCE PROPPANT FUEL LOGISTICS LOGISTICS RENTALS PARTS An Efficient, Reliable…
Integrated Supply Chain Management If Supply Chain Had an Arch Nemesisit would be Bad Communication EXTERNAL INTEGRATION: SUPPLY OPERATIONS PARTNERSHIPS INTERNAL INTEGRATION: Streamline our supply chains for mutual OPERATIONS, SALES &…
Strategic Automation Artificial Intelligence (AI) Supporting Human Intelligence Proppant / Chemical Last Mile Logistics Logistics System Flow Developing Artificial Intelligence to Support Human Intelligence. Utilize Origin,…
Solving the Puzzle Striking the Right Balance Between Quality, Speed and Cost Put the puzzle together while providing a best-in-class supply chain service It All Starts with the TEAM NO Silos The right people, the right tools and…
Next Generation Equipment & Emissions ROY AUNE & CHRIS BUCKLEY
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Developing Technology Solutions for Noise Mitigation Socially Responsible Approach to Operational Execution Q U I E T F L E E T TM TECHNOLOGY Sound Pressure Map & Measurements Thats one thing he hated Conventional Frac…
Reducing Our Impact Evolution of EPA Off-Highway Diesel Emissions NOx (g/kW-hr) 0.03 0.1 0.2 0.54 Next generation technology meeting the latest emissions requirements is critical to meeting regulatory requirements around…
The Combustion Reaction Minimizing the CO2e footprint NATURAL GAS + ENERGY Illustration 196295350 / Conservation Mass Designua Dreamstime.com DIESEL Hydrocarbon + Air = Carbon Dioxide + Water + Energy 99
Powering a Frac Pump A Technology Comparison BASELINE Tier 2 Tier 2 Tier 4 Tier 4 Gas Turbine Nat. Gas Recip. Diesel Dual Fuel Diesel DGB eFleet digiFrac About the same About the same 36% About the same 5-7% lower 3% higher…
digiFrac A Novel Electric Pump Design Market leading technology First purpose built electric frac pump Lowest emission profile a 25% reduction compared to Tier 4DGB First phase AI Intellectual property Freedom to operate…
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