Outline Casing Overview Business Segments International Services Business US Offshore Services Business US Land Services Business Tubular Sales Finance/Business Model 3
Casing is Key to Well Construction During the process of Structural Casing constructing a new well, pipe Provides well support to prevent collapse of varying diameters and Conductor Casing lengths is installed in the hole Provides…
Depending on Well Architecture and Geology Casing Design Can Differ Casing for three typical well types in the Gulf of Mexico 5
Offshore Wells Are More Complex With More Casing Offshore Well Rig Floor 75 Structural String 36 5,000 Conductor String 28 6,000 Surface Casing 22 8,000 Intermediate Liner 18 9,000 16 12,000 13 5/8 13,000 Liner…
Onshore Wells Tend to be Shallower and Require Less Casing Onshore Well Conductor String 20 100 Surface Casing 13 3/8 2,000 Intermediate Casing 9 5/8 3,500 Product Casing 5 9,000 7
Casing & Tubing Running Market Expected to Grow to 4.6B in 2015 5,000 International Offshore 4,500 International Land 4,000 NoAm Offshore 3,500 NoAm Land 3,000 Millions 2,500 2,000 1,500 1,000 500 0 2010 2011 2012 2013…
Franks International Has 27% Global Market Share 2012 market size: 3.3 billion WFT Frank's 28% BHI 33% Tesco Others 5% 7% 27% Source: Spears & Associates 9
Franks International Proprietary Tools Provide Unique Solutions Majority of tools are designed and manufactured inhouse Tools allow Franks to provide unique solutions to oil companies to handle different geologies and environments…
Outline Casing Overview Business Segments International Services Business US Offshore Services Business US Land Services Business Tubular Sales Finance/Business Model 11
Deep and Ultra Deep Water Rig Activity Drives Business International business tends to be longterm contracts Terms of contracts vary, but generally charge rental rates for equipment and labor with defined minimum Rent tool…
Franks International has a Strong Presence Internationally International Offshore (1.2B Market) International Land (0.5B Market) Frank's 17% WFT 31% 31% BHI Others 52% 26% 11% 27% 5% Source: Spears & Associates 13
Gulf of Mexico is a CallOut Business Proximity of rigs to land makes the Gulf of Mexico a callout business with day rates for equipment and crew Most equipment is mobilized and demobilized for each different sized casing string…
Franks Has Strong Market Share in Deepwater Gulf of Mexico 2012 US Offshore market size: 842 million Franks is focused on deepwater and ultra deepwater and has a majority of that market share WFT 18% Frank's BHI Tesco 3%…
Franks International Has Presence in All Major US Basins Franks has over 25 facilities in nearly all major US basins Large footprint allows for movement of equipment and crews as necessary Customers include major oil companies…
US Land Market is Highly Competitive US Land competitive challenges: During boom times in the oil and gas industry, small, regional casing and tubing service companies flood into the North American market Low technical and…
Tubular Sales Distribution and Welding of Large OD Pipe Franks distributes large OD (outside diameter) pipe not smaller OCTG In addition to distributing pipe, Franks welds inhouse and third party connectors Large OD pipe is used…
Outline Casing Overview Business Segments International Services Business US Offshore Services Business US Land Services Business Tubular Sales Finance/Business Model 19
Franks Maintains a Conservative Balance Sheet to Drive Growth Historically Franks has had minimal debt Opportunities for growth both organic and inorganic Acquisitions Competitors: Expand geographic reach and acquire labor…
CapEx and Capital Allocation Capital Expenditures Elevated CapEx in 2012, 2013 and expected in 2014 ahead of anticipated market growth Historical maintenance CapEx averages 5% 7% of revenues Capital Allocation Generate free cash…
Financial Modeling of Fully Diluted Earnings Per Share Diluted EPS Calculation Diluted EPS Calculation Per Financial Statements Per FI Guidance Income from Continuing Income from Continuing Fully diluted share count for Operations…
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