Goldman Sachs Global Energy Conference January 8, 2015
Disclaimer Important Information for Investors and Stockholders In connection with the proposed transaction between C&J Energy Services, Inc. (C&J) and Nabors Industries Ltd. (Nabors), Nabors Red Lion Limited (which will be renamed C&J…
Overview and Key Takeaways Leading energy services company building scale across key basins, expanding with 1 new product lines and vertical integration to achieve long-term growth strategies Focused on executing best-in-class…
C&J Energy Services Strategic Overview Accelerate scale to increase market share and grow footprint in cost-advantaged basins Long-Term Integrate offerings across customer base Growth Strategy Business line diversification Robust R&D…
C&J Energy Services Today Diversified provider of premium, technologically-advanced completion services Fracturing services division provides customized stimulation services Hydraulic Engineering teams offer extensive front-end…
Operational Model Drives Best-In-Class Performance Operating efficiencies capitalize on targeted opportunities Target high volume, high efficiency customers who recognize that the value C&J provides through efficiency gains results…
Operational Model Driving Significant Growth and Margin Expansion Gaining market share with targeted customer base Well-positioned to capitalize on high service intensity and high efficiency work Consistently active, financially…
Experienced and Proven Leadership Josh Comstock, Larry Heidt, Chairman and President, Chief Executive Officer, Nabors Production Services C&J Energy Services Randy McMullen, Ronnie Witherspoon, President and Chief Financial…
Current Industry Outlook While the steep decline in commodity prices will result in reduced operator spending, budget cuts expected to vary widely between basins High cost basins and speculative acreage will face elevated risk levels…
Industry Visibility: Growth in Intensity & Stages Rising frac intensity per well drives completion spending Organic revenue growth will be driven by growth in rig count, wells Increase in horizontal drilling activity in oil- and…
Overview of Nabors C&P Transaction
Key Deal Facts Creates a leading diversified completion and production services provider and accelerates C&Js growth strategy to grow domestically and internationally Provides addition scale to capitalize on market dynamics with cost…
Combination Creates Provider of Choice with Operations in Key Basins New Completion and Production Services The integration of C&J and Nabors Completion & Production Services business introduces New C&J Energy Services to…
Combined Company At-A-Glance Vertically Integrated and Other Services Equipment Manufacturing Specialty Chemicals Downhole Tools and Directional Drilling Data Control Systems Research and Technology Completion Services…
Strategic Rationale Creates a leading diversified completion and production services provider with modern, high-quality asset base Creates Leading Fourth largest completion and production services provider with over 1.2 million HHP,…
New C&J Completion Services Fracturing services division provides customized stimulation services Hydraulic Engineering teams offer extensive front-end technical evaluation Fracturing Demonstrated operating efficiencies and superior…
New C&J Production Services Over 540 workover and well-servicing rigs in every major oil and gas area in the U.S and Western Canada Workover and Rigs range from 200 to 900 HP and are involved in the routine repair and Well…
Capital Structure and Liquidity Estimated Total Debt at Closing 1.3 billion Estimated Debt/TTM Adjusted EBITDA(1) at Closing 2.3x Generation of free cash flow anticipated to allow C&J Energy to de-lever its balance sheet following…
Appendix
Nabors C&P Transaction Overview C&J to combine with Nabors Completion & Production Services business in the US and Canada (creating, New C&J) in a stock for stock transaction C&J stockholders to receive one share of New C&J common…
Combination Broadens Reach to Most of the Major US Basins and Canada Nabors Completion & Production Facilities Nabors Completion & Production SWDs C&J Facilities C&J Energy Services, Inc. 2015 23
Financial Profile Comparison LTM as of 9/30/14 Completion & (mm) Production Services Revenue 1,390 2,209 Adjusted EBITDA 208(1) 326(2) % Adjusted EBITDA Margin 14.9% 14.8% Total Assets 1,520 2,320(3) Source: Public filings…
New C&J Will Be the 6th Largest Hydraulic Fracturing Company by Market Share Rank Company 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 Halliburton 30.0% 29.2% 28.8% 28.3% 30.3% 25.7% 25.3% 25.8% 25.7% 24.9% 2 Schlumberger…
New C&J Will Be the Largest Well Servicing Company by Market Share Rank Company 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 New C&J 14.4% 15.1% 14.3% 13.8% 13.1% 11.4% 13.5% 13.7% 14.1% 14.0% 2 Key Energy Svs 17.6% 17.1%…
C&J Financials 5 Year Income Statement Year Ended December 31, ( i n thous a nds , except per s ha re a mounts ) 2010 2011 2012 2013 YTD 9/30/14 Statement of Operations Data (Una udi ted) Revenue 244,157 758,454 1,111,501 1,070,322…
C&J Financials 5 Year Cash Flow Statement Year Ended December 31, ( in thousands) 2010 2011 2012 2013 YTD 9/30/14 Cash Flow Data (Unaudited) Capital expenditures 44,473 140,723 182,179 157,987 222,379 Cash flow provided by (used…
C&J Financials 5 Year Balance Sheet Year Ended December 31, ( in thousands) 2010 2011 2012 2013 9/30/2014 (Una udi ted) Cash and Cash Equivalents 2,817 46,780 14,442 14,414 20,295 Accounts Receivable, Net 44,354 122,169 166,517…
C&J Financials EBITDA and Adjusted EBITDA(1) Reconciliation Year Ended December 31, ( in thousands) 2010 2011 2012 2013 YTD 9/30/14 LTM 9/30/14 (Una udi ted) (Una udi ted) Net income (loss) 32,272 161,979 182,350 66,405 46,512 53,800…
C&J Financials EBITDA and Adjusted EBITDA(1) Reconciliation - Quarterly Year Ended December 31, ( in thousands) Q1 2014 Q2 2014 Q3 2014 Net income (loss) 11,588 11,108 23,816 Interest expense, net 1,749 2,195 2,778 Provision…
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