Sherif Foda
Chairman and Chief Executive Officer
Barclays Conference | National Energy Services Reunited Corp.
New York - Sep 2018
Barclays Conference | National Energy Services Reunited Corp. New - - PowerPoint PPT Presentation
Barclays Conference | National Energy Services Reunited Corp. New York - Sep 2018 Sherif Foda Chairman and Chief Executive Officer Safe harbor This presentation contains forward-looking statements within the meaning of the U.S. federal
Chairman and Chief Executive Officer
New York - Sep 2018
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This presentation contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “believe,” “plan,” “estimate,” “intend,” “anticipate,” “should,” “could,” “will,” “see,” “likely,” and other similar words. Forward looking statements address matters that are, to varying degrees, uncertain, such as statements about our financial and performance targets and other forecasts or expectations regarding business outlook; growth of NESR as a whole and of each of our product lines or group companies, NPS or GES (and for specified product lines or products or countries); oil and natural gas demand and production growth; oil and natural gas prices; rig activity; pricing; improvements in operating procedures and technology; capital expenditures by NESR and the oil and gas industry; the business strategies of NESR’s customers, joint ventures and alliances; future global economic conditions; geopolitical situations and future results of operations. These statements are subject to risks and uncertainties, including, but not limited to, global economic conditions; changes in exploration and production spending by NESR’s customers and changes in the level of oil and natural gas exploration and development; general economic, political and business conditions in the MENA regions; foreign currency risk; pricing pressure; weather and seasonal factors; the inability to recognize the benefits of NESR’s recent business combination; changes in government regulations and regulatory requirements, including those related to onshore and offshore oil and gas exploration, radioactive sources, explosives, chemicals, in country value creation and climate-related initiatives; the inability of technology to meet new challenges in exploration or improvements in production; and other risks and uncertainties detailed in our most recent reports filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this presentation, and NESR disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or
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Drilling and Workover Rigs
Oil and gas well drilling & work overs
Rig Services
Machine shop & rig services
Drilling Services and Rentals
Drilling tools & services
Fishing and Remedials
Fishing, milling, workover, casing repairs
Directional Drilling
Directional drilling services & solutions
Turbines Drilling
Turbines designed for all drilling conditions
Drilling Fluids
Drilling fluid systems
Slicklines Services
All slickline applications
Wireline Logging
Open hole & cased hole logging
Well Testing Services
Testing equipment and services
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Coiled Tubing
Well intervention services
Nitrogen Services
N2 equipment and applications
Completions
Safety systems, HP packers, flow controls
Cementing
Primary & remedial cementing
Laboratory Services
Engineering design & all mobile labs
Filtrations Services
Filtration equipment for fluids
Stimulation & Pumping
Stimulation pumping and frac services
Artificial Lifting Services
Wide range of artificial lift solutions
Pipelines
Pipeline services to plants & refineries
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§ Head office in Houston and regional offices across MENA and Asia Pacific § Operations Bases: 12 Countries § 3,200 Employees § 19 Product Lines § Clients Portfolio: 25+ Customers (Major IOCs | NOCs | Independents) § Major Operations: KSA | Oman | Qatar | Iraq | Algeria | UAE
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Customer Centric Customer satisfaction is at the center of everything we do We deliver fit-for-purpose technologies & solutions with best-in-class service People and Teamwork Employee engagement, professional development, diversity and health & safety are top priorities Social Responsibility Committed to developing local talent, contributing to local economies, protecting the environment and operating with the highest standards of integrity
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Source: NESR Note: Geographic splits and segments splits in % of 2017 Proforma revenue for NESR, NPS and GES
Revenue Split by Country
NPS
Revenue Split by Country Revenue by Country Revenue Split by Segment Revenue by Segment
GES NESR
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Best-in-class Services Provider Across The MENA Region And Beyond
NPTr= Non Productive time for every 1,000 hr of operating time; Source: NESR internal systems and client data
98.4% 98.3% 97.9% 96.0% 98.9%
SLB HAL BHI WFT NESR NPT Hrs Efficiency
Largest Client Q2-18 NPT and Efficiency
Other Service Providers
Technology National Champion
MENA Presence
Employer of Choice Latest Technology Adoption In-Country Value Creation Superior Execution & Delivery Exceeding Customer Expectations Doing Business Ethically
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Saudi Arabia Spare capacity Kuwait New reservoirs Qatar LNG Demand UAE Export growth Oman Grow production
200 Q1-14 Q1-17 Q4-18 Q1-14 Q1-17 Q4-18 Q1-14 Q1-17 Q4-18 Q1-14 Q1-17 Q4-18 Q1-14 Q1-17 Q4-18
Iraq Large projects
Q1-14 Q1-17 Q4-18
Source: BHI International Rig Count
Rig Counts
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Source: Westwood Global Energy Source: Baker Hughes, rig count for Kuwait, Saudi Arabia, UAE, Qatar, Oman, Bahrain, Yemen
Resilient and growing onshore rig market
16,274 19,546 19,556 21,188 20,735 21,390 146 187 226 274 305 328 960 1,207 1,421 1,604 1,719 1,722 4,324 4,864 4,614 5,642 5,726 5,974 1,507 1,756 1,712 1,938 1,992 2,203 1,654 1,898 2,057 1,853 1,573 1,482 3,710 4,038 4,180 4,527 4,784 4,784 1,178 1,601 1,554 1,772 1,454 1,273 2,796 3,995 3,792 3,578 3,182 3,624 2016 2017 2018 2019 2020 2021 Bahrain Iraq Saudi Arabia United Arab Emirates Qatar Oman Kuwait Other
§ Higher growth rate § Kuwait § Saudi § Oman 140 160 180 200 220 240 260 280 Jan 2014 Oct 2014 Jul 2015 Apr 2016 Jan 2017 Oct 2017 Jul 2018 GCC onshore rig count 24% (40 %) Growth Jan-14 to Jul-18
Middle East OFS spend by country ($mm)
North America
NESR 2017A revenue by country
Source: 2017A NESR Proforma revenue split
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Q1'11 Q1'14 Q1'17 Q1'19 Q1'21 Q4'22
§ Approximately 5 B$ per quarter market § Industry analyst estimate of 6% CAGR growth for Middle East market § Pricing recovery as well as activity growth § Pricing pressures to continue for a few quarters with timing of tenders § Includes both organic and inorganic growth
6% CAGR
14.5 B$ 18.5 B$
4% 6% 4% 4%
2018 NESR Market Share
~1 B$ ~2 B$
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