Investor Presentation Johnson Rice Energy Conference September 24-25, 2019
Forward-Looking Statements Important factors that may affect Basic’s expectations, estimates or This presentation contains forward-looking statements. Basic has based these forward-looking statements largely on its current expectations and projections include: projections about future events and financial trends affecting the financial • condition of its business. These forward-looking statements are subject to a A decline in or substantial volatility of oil and gas prices, and any related number of risks, uncertainties and assumptions, including, among other changes in expenditures by its customers things, the risk factors discussed in this presentation and other factors, most • The effects of future acquisitions on its business of which are beyond Basic’s control. • Changes in customer requirements in markets or industries it serves The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect” and similar expressions are intended to identify forward - • Competition within its industry looking statements. All statements other than statements of current or • General economic and market conditions historical fact contained in this presentation are forward-looking statements. • Its access to current or future financing arrangements Although Basic believes that the forward-looking statements contained in this presentation are based upon reasonable assumptions, the forward- • Its ability to replace or add workers at economic rates looking events and circumstances discussed in this presentation may not • Environmental and other governmental regulations occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Non-GAAP Financial Measures Additional important risk factors that could cause actual results to differ This presentation contains certain non-GAAP financial measures. A materially from expectations are disclosed in Item 1A of Basic’s Form 10 -K reconciliation of each such measure to the most comparable GAAP for the year ended December 31, 2018 and subsequent Form 10-Qs filed measure is presented in the Appendix hereto. We use “EBITDA” and with the SEC. While Basic makes these statements and projections in good “Adjusted EBITDA“ non -GAAP financial measures, for internal reporting and faith, neither Basic nor its management can guarantee that anticipated providing guidance on future results. These measures are not measures of future results will be achieved. Basic’s forward -looking statements speak financial performance under GAAP. We strongly advise investors to review only as of the date of this presentation. Unless otherwise required by law, our financial statements and publicly filed reports in their entirety and not Basic undertakes no obligation to publicly update or revise any forward- rely on any single financial measure. See the Appendix for a reconciliation looking statements, whether as a result of new information, future events or of these measures to GAAP. otherwise. 1
Company Overview
Our Basic Story Investing in our business to capture efficiencies and modernize how we work and engage with customers and employees, along with targeted investments in our midstream water disposal business with a focus on continuing to de-lever the Company while opportunistically participating in OFS consolidation is our Basic story. 2020 Vision 2019 Optimize 2018 Re- … • Increased liquidity and • Focus on the Human Factor / • Realignment trading volume Improve Safety • Refine investment plans • Efficiency excellence with • Technology and capital discipline Technology differentiation visible • Re-team and re-group • Protect liquidity; exercise • Maintain capital • Refinancing / Replenish capital discipline Liquidity • Investments in wholly-owned discipline • Refine incentive structure Agua Libre Midstream and 24- • Discerning M&A hour packages • Pursue opportunistic M&A to de-lever and scale business 3
Basic Energy Services – At a Glance Balanced & Diversified Product Portfolio • Well servicing and water logistics levered to production, with upside from completions • Completions & remedial levered to new drilling and well recompletions • Strong presence in most prolific U.S. oil basins Improved Liquidity with No Near-Term Debt Maturities • 2018 refinancing extends debt maturity profile with $300 million senior secured notes due 2023 • October 2018 refinancing freed up $47 million in restricted cash with new ABL facility 1 • $53.7 mm in cash as of June 30, 2019, with no borrowings on the ABL currently Core Business Strengthening • Growing number of producing wells results in increasing maintenance work • Well service rig is an increasingly preferred completion tool for long lateral wells • Increasing production volumes result in increasing water disposal requirements Capital & Strategic Initiatives Drive Increasing Efficiencies • Investments targeting core businesses with strong return profiles • Ongoing share repurchase initiative driving value to shareholders • De-lever through retained cash flows and investment discipline 1 As of October 2, 2018 4
Extensive Footprint in Prolific Basins Significant exposure to oil basins with a best-in-class Permian position representing over 40% of 1H19 revenue Core Areas (in descending order of 1H19 revenue) 5 Permian 1 Mid-Continent 2 4 Eagle Ford 3 6 PRB / Niobrara 2 4 1 Williston 5 3 California 6 5
Company Overview % of Total Direct Overview by Segment Margin by Activity* (1H19) Well Services (31% of 1H19 Revenue) Diversified Business Across the Well Lifecycle • 307 workover rigs • Leading high-spec workover fleet of 273 rigs • Utilization of 70% in 2Q19 • Equipped for high-intensity completions activity • Vertically-integrated cost savings and flexibility with Well Water Servicing in-house maintenance and refurbishment Logistics 29% capabilities 37% Water Logistics (28% of 1H19 Revenue) Completion and • Agua Libre Midstream (wholly-owned subsidiary): Remedial Services Other 86 SWDs with connections to an extensive third- 35% Services party pipeline network <1% • Pipelines contributed ~32% of total Agua Libre SWD water volumes and ~60% of Permian water volumes in 1H19 Coiled Tubing • Cement Basic: 814 trucks and 2,764 fluid storage tanks 13% & Acid (4% of total company 21% direct margin (8% of total company C&R Direct direct margin Completion and Remedial (40% of 1H19 Revenue) Margin • Rental and Fishing 15 rental & fishing tool stores, 36 snubbing units Breakdown Hydraulic Tools 1 and 17 coiled tubing units (10 units 2” diameter or Fracturing 55% larger) 11% (19% of total company (4% of total company direct • ~479k hydraulic horsepower (“HHP”) focused on direct margin margin Mid-Continent and SCOOP/STACK Note: Equipment and asset counts as of 6/30/19 *Calculated as revenue minus direct operating costs 1 Includes nitrogen and snubbing 6
Production Service Businesses Scaled Production Businesses Seeing Steady Demand Well Service Rig Hours Agua Libre Disposal Volumes Total SWD disposal volumes (MMBbls) Rig h ours (‘000s) Pipeline disposal volume (MMBbls) Rig utilization (1) 182 100% 180 160 180 169 165 165 162 10.0 160 9.9 9.8 158 165 155 9.3 9.2 9.0 80% 150 82% 8.6 8.4 82% 8.1 8.0 135 76% 74% 72% * 70% 72% 120 55% 60% 54% 52% 105 90 40% 75 3.2 60 3.2 45 3.1 2.1 20% 1.9 1.6 2.5 30 1.6 1.6 15 1.2 0 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 421 421 421 421 310* 310 308 2 Avg. 310 310 310 # of Rigs Source: Company Filings * On December 31, 2017, we classified 111 rigs from our current fleet as “cold - stacked”, reducing our total active rig fleet to 31 0 rigs, and removed these rigs from the active rig count 1 Based on a 55-hour week 2 During 2Q19, two rigs were removed from the active rig count, with a third removed from the count in July. 7
Operational Update 2Q19 1Q19 4Q18 Well servicing rig hours 155,200 165,000 159,600 Well servicing utilization rate (average) 70% 74% 72% Number of well servicing rigs (end of period) 308 310 310 Revenue per rig hour (excluding manufacturing) $375 $367 $368 Fluid services truck hours 403,200 424,100 438,500 Number of fluid service trucks (average) 814 818 837 Total Disposal Water Volumes (in thousands) 10,024 9,822 9,880 Pipeline Water Volumes (bbls in thousands) 3,208 3,050 3,221 Total pressure pumping HHP 1 (end of period) 479,000 489,000 513,000 Coiled tubing units (end of period) 17 17 18 Rental and fishing tool stores 15 15 16 1 Reduction includes 17 hydraulic pumps moved from pumping services to RAFT to support well service operations 8
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