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Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc.

Carbo Ceramics Inc. · Mar 25, 2014 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 1
    ....provides industry leading technology for Production Enhancement and Environmental Services Howard Weil 42nd Annual Energy Conference New Orleans, Louisiana March 25, 2014
  2. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 2
    ....provides industry leading technology for: Production Enhancement Environmental Services
  3. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 3
    We increase well Production and EUR through our Design, Build, and Optimize the FracTM workflow The value we create, is lower F&D costs and a higher Recovery Factor Well Cost = Lower F&D (/BOE) Increased Production & EUR
  4. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 4
    .a leading production enhancement company Frac Design Frac Conductivity & Durability Economic Optimization Production Assurance Reservoir Performance Production Intelligence Post Job Analysis Flow Enhancement Well Site…
  5. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 5
    Is the industrys most widely used hydraulic fracturing design software, clients include E&P Operators, Service Companies, Universities Provides Frac Design, Economic Optimization, Reservoir Performance and Post Job Analysis. Ties…
  6. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 6
    Experienced, industry experts working in Unconventional Reservoirs Reservoir Provide technical consulting from Wellsite to Office to Full Field Enhancement Workflow Completion Analysis Integrating leading Technology to…
  7. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 7
    Proppant Delivered Technology Platforms CARBOHYDROPROP CARBOECONOPROP KRYPTOSPHERE CARBOPROP CARBOLITE CARBOHSP Ceramics Higher EUR Proppant Proppant Proppant Delivered Delivered Delivered Production Flow…
  8. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 8
    Ultra-conductive ultra-high strength proppant technology Developed for deep wells and ultra-high stress formations
  9. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 9
    More conductivity 100% more baseline conductivity
  10. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 10
    PrecisionEngineered More strength More durability More uniformity More roundness More smoothness More Space to Flow More flow space More uniform flow paths More longterm conductivity Plant produced proppant grains More…
  11. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 11
    Highest Conductivity Proppant in the Industry Outstanding performance under pressure
  12. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 12
    Ceramic Proppant Sales vs Capacity Lbs (Millions) 3,000 2,750 CRR Manufacturing Capacity (YE) 2,500 CRR Ceramic Sales Volume 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 0 Millen Line 1 est completion near end of…
  13. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 13
    Proppant is one of the biggest factors in determining Production and EUR in fracture stimulated wells. It is important that E&P Operators know what Proppant is being used in their wells. Make sure you are getting the Conductivity and…
  14. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 14
    Hierarchy of Proppant Conductivity Highest Production, EUR, ROI Highest Conductivity Ceramic Engineered product Ultrahigh strength Ultraconductive Ceramic Monosize and spherical High strength Tier 1 High conductivity Uniform…
  15. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 15
    Industry Awareness of Low Quality Chinese Ceramics The Stakeholders E&P Operators, Service Companies, Royalty Owners, State Agencies.. are becoming more aware of the losses to well Production and EUR that can occur when using low…
  16. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 16
    Proppant Quality Matters in Well Production As an E&P Operator investing 4M 12M on a well, how much Production & EUR are you sacrificing by using low quality Chinese ceramic proppant Production & EUR Loss Chinese 20/40 Chinese…
  17. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 17
    CARBO vs Low Quality Chinese Ceramic Comparison of three field samples from North Dakota from low quality, low Conductivity Chinese ceramic proppant suppliers, compared to CARBOLITE : CARBOLITE Chinese 20/40 Chinese 20/40 Chinese…
  18. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 18
    CARBO vs Low Quality Chinese Ceramic Three more field samples of low quality, low Conductivity Chinese ceramic proppant suppliers, compared to CARBOLITE : CARBOLITE Chinese 20/40 Chinese 20/40 Chinese 20/40 20/40 IDC 4C IDC 5C IDC…
  19. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 19
    CARBO vs Brazilian & Russian Ceramic Two Brazilian & one Russian field samples of low quality, low Conductivity lightweight ceramic proppant suppliers, compared to CARBOLITE : CARBOLITE Brazilian 20/40 Brazilian 20/40 Russian 20/40…
  20. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 20
    Bakken Operator CARBO vs Chinese 30 Day Cum Oil *EUR 12 300 6 wells with 10 CARBOECONOPROP low250 +20% density ceramic (LDC) +120,000 bbl 8 200 4 wells with Chinese intermediate density 6 ceramic (IDC) 150 4 Frac Design (per…
  21. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 21
    Effects of Pressure and Temperature on Sand Conditions: Northern White Sand 20/40 9,000 psi, 250 F Flowing 2% KCL for 30 days Cross sections of Proppant pack shown At 9,000 psi, the Sand experienced severe crushing and the…
  22. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 22
    Effects of Sand Crushing at Higher Pressure Crushing reduces frac width and the Space to Flow Wfrac Less Wfrac Formation White Sand 6,000 psi stress White Sand 12,000 psi stress .most wells are conductivity limited with Sand
  23. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 23
    Ceramic vs Sand Realistic* Conductivity (20/40 mesh) Mdft Mdft 3,500 3,500 Eagle Ford Stress Range 3,000 3,000 Higher Production, EUR Bakken Stress Range 2,500 2,500 Haynesville Stress Range 2,000 2,000 Ceramic CARBOLITE…
  24. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 24
    Over 150 SPE papers have been written documenting the benefits of increased conductivity on well Production and EUR. Generally, the payout on the additional Proppant investment is less than 2 6 months, and increases Production and…
  25. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 25
    Ceramic Success Grows Into Key Basins
  26. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 26
    Bakken Ceramic Proppant Growth Continues 50,000 view 1,000 view Ground view SPE Paper 163827 Liberty Resources
  27. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 27
    Bakken ( Liberty Resources ) LR 37 Wells from Williams County 90 Day Production BubblePlot Liberty Resources wells (RED) outperform offset wells LR 49,100 BBLs 29,100 BBLs SPE Paper 163827 Liberty Resources Feb 2013 SPE…
  28. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 28
    Bakken ( Statoil / Brigham Exploration ) SPE Paper 134595 & 146376 Brigham Exp/Statoil
  29. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 29
    Ceramic Success Grows Into Key Basins
  30. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 30
    * Public data : Unknown proppant type not included in analysis: Ceramic proppant verified Eagle Ford (4,000 wells*) through internal CARBO data 50,000 view Cumulative Frequency 1,000 view Ceramic completions offer a 20% -…
  31. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 31
    Karnes County (600 wells*) * Public data : Unknown proppant type not included in analysis: Ceramic proppant verified through internal CARBO data 50,000 view Cumulative Frequency 1,000 view Ceramic completions offer a 20% -…
  32. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 32
    * Public data : Unknown proppant type not included in analysis: Ceramic proppant verified Karnes County Operator (300* wells) through internal CARBO data 50,000 view Ceramic completions offer a 30% 50% improvement 1,000…
  33. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 33
    Ceramic Success Grows Into Key Basins
  34. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 34
    * Public data : Unknown proppant type not included in analysis: Ceramic proppant verified through internal CARBO data Permian Basin Bone Spring
  35. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 35
    Ceramic Success Grows Into Key Basins
  36. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 36
    How to Increase the Recovery Factor In horizontal wells in resource plays, there are two critical factors that determine the level of economic success 1.) Creating large reservoir contact area, through multiple, transverse frac…
  37. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 37
    Page 219
  38. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 38
    We take customers from high risk containments High risk for spills & higher LOE: Unlined tanks corroding inside & outside Tanks sitting on pea gravel & corroding Unlined, permeable dirt berm
  39. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 39
    To industryleading environmental protection More than 6,000 installations, with 100% environmental success Minimize risk for spills & lower LOE: Lined tanks, prevents corrosion Tank bases prevent corrosion Lined…
  40. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 40
    Client Base is Growing & Market will Change Client Growth, 2009-2013 Market Segments 178 Falcon Polymer 119 Coatings 68 11 25 HDPE Liners 2009 2010 2011 2012 2013 Dirt Berm We continue to push growth through: We believe the…
  41. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 41
    Finance
  42. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 42
    CARBO Financials 1,000 3,000 200 200 Revenue M Cash From Operations M Net Income M 900 2,700 180 180 171 NAM Total Rigcount 800 2,400 160 156 160 138 700 667 2,100 140 140 646 130 626 600 1,800 120 120 110 106 500 473…
  43. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 43
    CARBO Financials 900 9.00 9.00 Revenue M Cash Flow Per Share Earnings Per Share 800 8.00 8.00 7.43 700 667 7.00 6.80 7.00 646 626 6.02 600 6.00 6.00 5.62 500 473 5.00 4.80 5.00 4.59 388 400 4.00 4.00 3.67 342 3.57 3.47…
  44. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 44
    Dividends Increased 13 Years Per Share Shares Millions 1.20 36 Dividend Amount Paid Per Share Per Year 1.10 1.14 34 Shares Outstanding 1.00 1.02 32 0.90 30 0.88 0.80 28 0.76 0.70 26 0.70 0.60 0.62 24 0.50 0.52 22 0.40 0.44…
  45. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 45
    Industry Factors First Quarter of 2014 Activity quartertodate impacted by harsh weather conditions in the Bakken and northern regions of NAM. Railroads operational issues and congestion have severely impacted the distribution of…
  46. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 46
    Summary Create value by lowering E&P Operators F&D costs and increasing the Recovery Factor Differentiate by continuing to develop industry leading technology Grow our clients knowledge of CARBO as the leading Production…
  47. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 47
    ....provides industry leading technology for Production Enhancement and Environmental Services Howard Weil 42nd Annual Energy Conference New Orleans, Louisiana March 25, 2014
  48. Howard Weil 42nd Annual Energy Conference – Carbo Ceramics Inc. – slide 48
    Cash Flow from Operations Reconciliation Results from Continuing Operations in 000s For The Years Ended Dec 31 2005 2006 2007 2008 2009 2010 2011 2012 2013 Net Income 45,463 52,245 49,641 60,405 52,810 78,716 130,136 105,933…

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