Investor Presentation Bank of America Merrill Lynch Leveraged - - PowerPoint PPT Presentation

OUR LIFE’S WORK IS THE LIFE OF THE WELL™

Investor Presentation

Bank of America Merrill Lynch Leveraged Finance Conference December 4-5, 2018 Boca Raton, Florida

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Forward-Looking Statements

Important factors that may affect Basic’s expectations, estimates or projections include: A decline in or substantial volatility of oil and gas prices, and any related changes in expenditures by its customers The effects of future acquisitions on its business Changes in customer requirements in markets or industries it serves Competition within its industry General economic and market conditions Its access to current or future financing arrangements Its ability to replace or add workers at economic rates Environmental and other governmental regulations This presentation contains forward-looking statements. Basic has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting the financial condition of its business. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, among other things, the risk factors discussed in this presentation and other factors, most

• f which are beyond Basic’s control.

The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect” and similar expressions are intended to identify forward- looking statements. All statements other than statements of current or historical fact contained in this presentation are forward-looking statements. Although Basic believes that the forward-looking statements contained in this presentation are based upon reasonable assumptions, the forward- looking events and circumstances discussed in this presentation may not

• ccur and actual results could differ materially from those anticipated or

implied in the forward-looking statements. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic’s Form 10-K for the year ended December 31, 2017 and subsequent Form 10-Q’s filed with the SEC. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Basic’s forward-looking statements speak only as of the date of this

• presentation. Unless otherwise required by law, Basic undertakes no
• bligation to publicly update or revise any forward-looking statements,

whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. A reconciliation of each such measure to the most comparable GAAP measure is presented in the Appendix hereto. We use “EBITDA” and “Adjusted EBITDA“, non-GAAP financial measures, for internal reporting and providing guidance on future results. These measures are not measures of financial performance under GAAP. We strongly advise investors to review our financial statements and publicly filed reports in their entirety and not rely on any single financial measure. See the Appendix for a reconciliation of these measures to GAAP.

Company Overview

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Basic Energy Services, Inc. – At a Glance

• Well servicing and water logistics levered to production
• Completions & remedial levered to new drilling and well recompletions
• Strong presence in most prolific U.S. oil basins

Balanced & Diversified Product Portfolio

• Recently completed refinancing freed up $47 million in restricted cash with new ABL facility(1)
• Pro forma ~$86 mm in cash (after closing our private placement of senior secured notes)(1)
• Recent refinancing extends debt maturity profile with $300 million senior secured notes due 2023

Improved Liquidity with No Near-Term Debt Maturities

• More multi-well pads mean more wells to maintain for ongoing production
• Well service rig is the increasingly preferred completion method for long lateral wells
• Increasing production volumes result in increasing water disposal

Core Business Strengthening with Increasing Production Volumes

• Investments targeting core businesses with high return profiles
• Rationalizing business by divesting non-core service lines to streamline G&A
• De-lever through retained cash flows and investment discipline, taking advantage of $732 mm in NOL carry forwards(1)

Capital & Strategic Initiatives Drive Increasing Efficiencies

• 1. As of October 2, 2018

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Proven Operating Strategy

The right fleet and the right people in the right basins to support financial returns for the Life of the Well.

Basic supports customer wellsite activities from initial drilling to plugging & abandonment Diversified service offering with emphasis on stable producing wells, and optionality to capitalize on growth with increasing U.S. oil production Strong market position in the most prolific U.S.

• il basins

Our Life’s Work is the Life of the Well TM

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Extensive Footprint in Prolific Basins

3 1 6 2 4 5 Core Regions

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Permian

2

Eagle Ford

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Mid-Continent

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Niobrara

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Williston

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California

Significant Exposure to Major Oil Basins with >80% Revenue Exposure to Oil and Liquids Activity

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Primary Service Lines

Well Servicing Water Logistics Completion & Remedial

Periodic major maintenance and renovation to sustain or improve production Routine maintenance of down-hole equipment to return well to production Plugging and abandonment One of the most extensive networks

• f SWDs

Trucking and access to third-party pipelines to transport produced waste water to SWDs Water sourcing, storage, recycling, and chemical treatment Pipeline and SWD design with installation/construction Pumping services for cementing, acidizing, squeeze-cementing (workover), fracturing and re-fracturing Rental and Fishing Tools (“RAFT”) for drilling, workovers and remedial Snubbing and coiled-tubing for completions and workovers

Used extensively in well service operations

26% of total revenues

(YTD through 9/30/18)

24% of total revenues

(YTD through 9/30/18)

49% of total revenues

(YTD through 9/30/18) Note: Excludes Contract Drilling segment, which contributed ~1% of revenue for YTD ended 3Q18

Increasingly preferred completion method for longer laterals

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Company Overview

Overview by Segment

310 workover rigs Leading high-spec workover fleet of 272 rigs Vertically-integrated cost savings and flexibility with in-house maintenance and refurbishment capabilities 86 SWDs with connections to an extensive third- party pipeline network 858 trucks and 3,218 fluid storage tanks Pipelines contributed ~27% of total SWD water volumes and ~49% of SWD Permian water volumes in 3Q18 13 rental & fishing tool stores, 36 snubbing units and 18 coiled tubing units (10 units 2” diameter or larger) ~516k hydraulic horsepower (“HHP”) focused on Mid-Continent and SCOOP/STACK

% of Total Direct Margin by Activity* (YTD through 9/30/18)

Diversified Business Across the Well Lifecycle C&R Direct Margin Breakdown

Rental and Fishing Tools(1) 39%

(19% of total company direct margin

Hydraulic Fracturing 22%

(11% of total company direct margin

Well Servicing 22% Water Logistics 29% Contract Drilling 1% Completion and Remedial Services 48%

Well Services Water Logistics Completion and Remedial

• Utilization of 82% in 3Q18
• Equipped for completions activity

Coiled Tubing 18%

(9% of total company direct margin

Cement & Acid 21%

(10% of total company direct margin

*Calculated as revenue minus direct operating costs Note: Equipment and asset counts as of 9/30/18

• 1. Includes nitrogen and snubbing

Company Profile

As of 11/27/18

NYSE Ticker BAS Current Share Price $6.10 Shares Outstanding 26.5 mm Market Capitalization $161.7 mm Enterprise Value (PF as of 10/02/18) $450.6 mm 30-Day Daily Trading Volume 335,151

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Market Fundamentals Support Production Services Growth, Where Basic is Expected to Build on its Industry Leading Position

Wells per Pad Trend U.S. Land Produced and Flowback Water Volume (Evercore ISI Estimates) New Horizontal vs. Vertical Well Trend (% of total)

2013 2014 2015 2016 2017

>8 5-7 3-4 2 1

Lateral Length (’000s ft.) Trend by Basin

2010 2012 2014 2016 2018 8 10 6 14 16 12

Horizontal Vertical Source: DrillingInfo, Spears & Associates, 2010-2018, IHS WaterIQ, and Evercore ISI estimates

• 1. For U.S. Land Produced Water Volume chart, Mid-Continent include: Barnett and other Mid-Continent; Rockies include: Bakken and DJ Basin; Gulf Coast includes: Eagle Ford; and

Ark-La-Tex includes Haynesville Ark-La-Tex Gulf Coast

We are well-positioned to capture growth due to:

• Well service rigs are the

preferred completion method for laterals > 10K feet (due to coil-tubing limitations)

• Pairing of well service rigs and

rental tools in 24-hour package has potential to increase day rate by 2-3x and improve margins

• Basic’s SWDs are critical to

upstream producers as piped disposal volumes increase to support large scale pad development

2014 2015 2016 2018 2020 2017 2019 E E E E

Mid-Continent Permian Rockies (BBbl)

(1) (1) (1) (1)

2 4 6 8 10 12 14

2014 2015 2016 2017 2018E 2019E 2020E 2021E

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Core, Production-Levered Businesses Have Differentiated Scale

Estimated High-Spec Well Service Rigs(1)

272 226 138 135 125 32 21 13

50 100 150 200 250 300 350

BAS Public Company A Public Company B Public Company C Public Company D Private Company A Private Company B Private Company C

Scale in high-spec rigs with utilization near or at labor constraints should mean continued improvement in pricing

(Number of Active High-Spec Rigs) Public Companies

Note: High-Spec rigs include Class IV or higher, definition per AESC with 102’ masts or taller and 210k lb hook load capacity or greater 120 86 66 35 26 26 18 16 15 11 7 42 33 13 18 20 4 16 15 11 7

20 40 60 80 100 120 140

Public Company 1 BAS Public Company 2 Private Company 1 Private Company 2 Private Company 3 Public Company 3 Private Company 4 Private Company 5 Private Company 6 Private Company 7

Basic’s large SWD footprint in the Permian and other U.S. oil basins is expected to allow for continued water-by-pipe development for disposing of produced volumes

(Number of Wells)

Salt Water Disposal Wells

Source: SEC Filings, Company Presentations and Websites, Basic Estimates

• 1. Excludes idle and warm stacked rigs
• 2. Does not specify the number of rigs which are Class IV or higher, definition per AESC with 102’ masts or taller and 210k lb hook load capacity or greater
• 3. Permian SWDs not disclosed

Total SWD Wells Permian SWD Wells

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Production Service Businesses Continuing to Recover

• Invest in new

equipment

• Expand into new

markets

• Maximize utilization

to increase market share

• Develop new service
• fferings

Well Service Rig Hours

421 421 421

Avg. # of Rigs

310*

SWD Volumes

310 310

Rig Hours (‘000s) Utilization(1) Total SWD Volumes (MBbls) Pipeline Volume (MBbls) 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 310 rigs, and removed these rigs from the active rig count

• 1. Based on a 55-hour week

158 162 165 160 169 182 180 52% 54% 55% 72% 76% 82% 82% 0% 20% 40% 60% 80% 100% 100 115 130 145 160 175 190 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 8,098 8,424 8,628 9,270 7,966 8,977 9,219 1,609 1,191 1,560 1,921 1,551 2,064 2,526 2,000 4,000 6,000 8,000 10,000 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

*

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Core Business Trends and Outlook

Well Servicing appears to have passed an inflection point, with improved utilization and rates driving margins higher

• Several opportunities to increase rates remain, with several rate increases implemented

throughout the quarter

• Number of 24-hour packages remains strong, averaging 23 for 3Q
• Equipment rentals associated with completions and larger workovers can double or triple overall

rate paid on jobs (booked as C&R segment revenue) Transition of water disposal volumes to pipe continues, with pipelines contributing 27% of total water volumes and ~49% of SWD Permian water volumes in 3Q18

• Higher margin business with less operational risk than trucking
• Recurring, long-term steady revenue with development upside

Rental and fishing tools (“RAFT”) benefiting from 24-hour packages; rentals are booked in this segment Coiled tubing activity focused on drilling out frac plugs along with cementing, acid and snubbing seeing stability and positive outlook Hydraulic fracturing assets have been repositioned from the Permian to the Mid-Con, which provides scale in an attractive market

Well Servicing Water Logistics Completion and Remedial

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Operational Update

3Q18 2Q18 1Q18 Well servicing rig hours 180,300 181,600 168,500 Well servicing utilization rate 82% 82% 76% Number of well servicing rigs (end of period) 310 310 310 Revenue per rig hour (excluding manufacturing) $357 $348 $338 Fluid services truck hours 448,200 486,800 479,600 Number of fluid service trucks (average) 870 903 960 Total Disposal Water Volumes (in thousands) 9,219 8,977 7,966 Pipeline Water Volumes (in thousands) 2,526 2,064 1,551 Total pressure pumping HHP (end of period) 516,500 516,500 522,565 Frac HHP (end of period) 386,000 407,800 522,565 Coiled tubing units (end of period) 18 18 18 Rental and fishing tool stores 16 16 16

Note: HHP is hydraulic horsepower.

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Well Servicing

Well Servicing Rigs Facilitate Down Hole Activity

Revenue Segment Direct Margin* 310 Rigs by Market Area**

*Calculated as revenue minus direct operating costs **As of 6/30/18; on 12/31/17, we classified 111 rigs from our current fleet as “cold-stacked”, reducing our total active rig fleet to 310 rigs, and removed these rigs from the active rig count

Completion

Well preparation for production after successful drilling of a well; packaged ancillary equipment is a differentiator

Workover

Periodic major maintenance and renovation to sustain or improve production; deferred maintenance activity increasing

P&A

Plugging and abandonment

• f depleted wells

Service Work

Routine maintenance of down-hole equipment to return well to production

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 1Q14 2Q15 3Q16 4Q17 Millions 0% 5% 10% 15% 20% 25% 30% $0 $5 $10 $15 $20 $25 $30 1Q14 2Q15 3Q16 4Q17 Millions Gross Profit Gross Margin

Permian Basin 46% Rock Mtns. 14% California 5% Ark-La-Tex 5% Gulf Coast 10% Mid-Continent 12% Appalachia 2% Inactive 6%

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Well Servicing Fleet Overview

*On December 31, 2017, we classified 111 rigs from our current fleet as “cold-stacked”, reducing our total active rig fleet to 310 rigs, and removed these rigs from the active rig count

Fleet Distribution by Class Active Rig Class by Region

Larger, late model equipment deployed in most active basins

Fleet Metrics

310 Well Service Rigs Fleet ranges from 200HP-900HP rigs

• 272 rigs or 88% of the fleet are late model Class IV (102’ Mast
• r taller / 210k lb hook load capacity or greater), Class V, and

Class VI rigs

• All Class IV and V rigs are capable of longer lateral horizontal

projects

87% of the Class IV / V / VI and 79% of the total fleet are Taylor brand rigs

4 2 32 247 21 4 50 100 150 200 250 Class 1 Class II Class III Class IV Class V Class VI

*As of 12/31/2017

272 Class IV or Larger Rigs

30 60 90 120 150 Rocky Mtn. California Permian Gulf Coast Appalachia Central Class I Class II Class III Class IV Class V Class VI

*As of 12/31/2017

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Well Service Company of Choice

BAS operates the largest domestic fleet of active high-spec well service rigs

80% 100% 120% 140% 160% 180% 1Q16 2Q 3Q 4Q 1Q17 2Q 3Q 4Q 1Q18 2Q18 3Q18 BAS Peer 1 Peer 2 Peer 3

Source: Public filings, Company press releases Note: Peer 3 hourly rig data indexed to 4Q16, earliest date for which that data is available

Quarterly Rig Hours Indexed to 1Q16 vs Public US Peers

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Well Servicing is Rapidly Becoming a 24-Hour Operation

24 Hour Rig Packages

• Bundling of Basic’s rental and fishing tools with a 24-hour well service job has been well received by customers
• Packages vary and include additional Basic crew, hydraulic catwalk, 10k pump, swivel and/or snubbing and

BOP

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Water Logistics

Basic’s Integrated Fluid Service Business Anchored by Access to an Expansive SWD Network

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18

Millions

0% 5% 10% 15% 20% 25% 30% 35% $0 $5 $10 $15 $20 $25 $30 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18

Millions

Gross Profit Gross Margin

Water sourcing and storage SWD design and installation Integrated truck fleet and SWD portfolio also connected to third-party pipeline network Pipeline design and infrastructure construction Water recycling and chemical treatment programs One of the largest networks of SWDs in the industry

Revenue Segment Direct Margin*

*Calculated as revenue minus direct operating costs

86 SWDs & 858 Trucks by Market Area**

Rocky Mountains

12%

Mid-Continent

9%

Gulf Coast

16%

Ark-La-Tex

9%

Permian Basin

54%

33 SWDs 5 SWDs 13 SWDs 11 SWDs 24 SWDs

**As of 9/30/18; truck distribution shown as %’s

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• 200,000

400,000 600,000 800,000 1,000,000 1,200,000

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18

Total Trucked Piped Water Linear (Total Trucked) Linear (Piped Water)

Paradigm Shift from Trucks to Pipe for Midstream Transport of Produced Water to Our SWD Network

Basic’s SWD Trend - Trucked Volumes vs. Piped Volumes

Note: Piped vs. Trucked not Drawn to Scale

• Longer laterals and pad drilling are

shifting produced water disposal from trucking to fixed-infrastructure pipelines to drive maximum efficiency

• Basic’s 86 SWDs and associated, largely

customer-built pipelines provide a competitive advantage

• Pipeline activity is longer-term,

recurring revenue with higher margins

• Basic’s strategy is to build out Basic-
• wned pipelines in the future,

continuing to support key upstream customers

• Trucking provides a bridge to pipeline

build out and serves as a competitive advantage for Basic in the short to medium term

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Specialized Completion & Production Services

Support drilling, workover and production processes

C&RS Revenue by Service Line

$0 $30,000 $60,000 $90,000 $120,000 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18

(in 000s)

Frac Cementing Acid Coil RAFT

Segment Direct Margin Progression*

12.4% 9.3% 18.5% 14.2% 16.4% 24.4% 31.7% 30.0% 23.8% 20.3 22.6%

• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 Frac Cementing Acid Coil RAFT

Pumping services for cementing, acidizing, squeeze-cementing (workover), fracturing and re-fracturing activities

• ~516k total HHP
• ~386k HHP devoted to frac
• ~130k HHP for acid/cementing/other
• Repositioned Permian frac fleets to the Mid-Continent

providing Basic with scale in an attractive market

• Spreads currently booked into 1Q

in the Mid-Con, including the SCOOP/STACK

Tubular services Fishing tools and rental equipment for drilling and workover processes, including 24-hour packages Coiled tubing and nitrogen services for completion, remedial and P&A applications

• 18 coiled tubing units, including 10, 2” diameter or larger

Snubbing services to allow “live-well” completion and workover operations

Note: Equipment and asset counts as of 9/30/18 *Calculated as revenue minus direct operating costs

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• SWD/pipeline projects where

demand is outstripping capacity

• Convert SWDs from internal

use to open-market access

• SG&A to target of 10%-12%
• f revenue

Overview of Strategic Realignment Initiatives

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• Reposition assets to enhance

core operating regions

Strategic Initiatives

• Enhance 24-hour rental

packages with controlled ramp

• f asset base

Utilization + Margins Margins with 2-year pay back period Revenue + Margin opportunities Revenue + Margin opportunities Margin and cash flow

Strategic Initiatives

Financial Overview

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CapEx and Liquidity Update

Source: Company filings Note: Dollars in millions *See Appendix for reconciliation of Adjusted EBITDA to nearest comparable GAAP measure **Free Cash Flow calculated as Cash Flow From Operations less the Purchase of Property and Equipment, excluding capital leases

Predecessor Successor ($39) ($8) $1

Free Cash Flow**

$9 ($28) ($41) ($89) ($25) Predecessor Successor ($11) $5

Adjusted EBITDA* Cash Flow From Operations Capital expenditures (including capital leases) for 3Q18 totaled $23.1 million

• Maintenance/sustaining expenditures were $14.7 million
• Expansion projects and other totaled $8.5 million

At October 2, 2018, after the closing of our private placement offering of $300 mm in senior secured notes due 2023, our cash balance was $86.1 million with total liquidity of $167.0 million With fewer trucks needed due to focus on pipeline volumes, the Company is effectively de-levering, with capital leases declining from $85 mm as of 6/30/18 to $75 mm as of 9/30/18

• Expect to reduce capital leases by another $17 mm in 4Q18, and $12 mm in 1Q19, less any additions

($8.3) ($9.2) $0.9 $5.1 $3.2 $18.3 $32.4 $28.8 $22.8 $27.0 $24.9

($20.0) ($10.0) $0.0 $10.0 $20.0 $30.0 $40.0

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 ($21.0) ($21.0) ($30.0) ($80.0) ($13.0) ($0.0) $15.0 $24.0 $5.0 $21.0 $31.0

($100.0) ($80.0) ($60.0) ($40.0) ($20.0) $0.0 $20.0 $40.0

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

$15

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Balance Sheet and Liquidity Summary

Pro Forma Cash and Liquidity Summary

(in millions)

As of Oct. 2, 2018 Cash $86.1 Senior Notes 300.0 Capital Leases 75.0 Net Debt $288.9 ABL Availability 80.9 Total Liquidity $167.0 Net Debt/LTM Adj EBITDA1 2.8x

1 Please refer to slide 29 for non-GAAP reconciliation of adjusted EBITDA

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New Notes Collateral Coverage Analysis

• The Collateral for the notes and Subsidiary Guarantees will include the

following assets: (1)

• Material Real Property that is owned or hereafter acquired by

the Company and the Guarantors

• Vehicles, equipment and fixtures owned by the Company and

the Guarantors, including all trucks, tanks, rigs and other equipment;

• Intellectual property rights of the Company and the Guarantors
• Equity Interests in each of the Guarantors
• Net PP&E – $386 million of net book value as of 9/30/18 (excludes
• bligations under various capital leases for certain vehicles and

equipment)

1

Management estimates replacement value on a few key items is in excess

• f book value:
• Well Servicing Per Rig –
• Pressure Pumping Per Horsepower –
• Coiled Tubing Per Unit –
• Rental Equipment Replacement Cost –
• Saltwater Disposal Well (SWD) Per Well –

1

• 1. Secured Notes collateral will be subject to materiality thresholds and limitations as outlined in the offering documents

($ in millions) Book Value As of Sept. 30, 2018 Well service units and equipment $120.4 Pressure Pumping equipment (incl. ~ 516 HHP) 122.5 Coiled Tubing (incl. 18 Coiled Tubing Units) 101.5 Rental equipment 62.4 Disposal facilities (incl. 85 SWDs) 57.9 Fluid services equipment 78.9 Buildings and improvements 40.5 Light vehicles 25.4 Land 21.4 Contract drilling equipment 11.5 Other 5.0 Brine and fresh water stations 3.1 Construction equipment 0.4 Software 0.8 651.8 Less: Accumulated depreciation and amortization (186.2) Less: Property and equipment under capital lease, net (79.6) Net PP&E $385.9 Senior Secured Notes Principal $300.0

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4Q18 and 1H19 Outlook

• We expect the fourth quarter to be very similar to the third quarter in terms of

pricing

• Shorter daylight hours and normal seasonal impacts of weather and holidays should

impact utilization rates

• We expect the strategic realignment initiative to result in choppiness as we finalize

asset relocations and close underperforming yards.

• Thus we anticipate a typical fourth quarter revenue decrease of mid-single digits on a

sequential percentage basis

• After severe rains in Texas in October, the 24-hour rig package count has

bounced back quickly, hitting an all-time high of 30 since the Thanksgiving holiday.

• Water Logistics segment should see further margin progression as disposal

volumes via pipeline continue to increase

• The outlook for pumping services revenue is improving, as utilization and margin

improvements are already being realized after relocating two spreads from Midland to the Mid-Con

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Financial Policy & Targets

Maintain a conservative financial position for operational flexibility and resilience through market cycles

• Goal for minimum liquidity (cash plus revolver availability) of $100 million
• Goal of long-term leverage under 2.0x

Position Basic for long-term financial success to execute on strategic initiatives Continue to rationalize non-core assets to provide additional liquidity and deleveraging Disciplined management with a focus on cash flow generation

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Basic Investment Highlights

Diversified service offerings for U.S. oil and natural gas producers Modern and maintained fleet routinely outperforms on reliability; vertically-integrated well service business The largest active high-spec well service rig fleet and one of the largest networks of SWDs in the Permian and other prolific U.S. oil basins Production Services currently experiencing strong momentum in activity levels Experienced management team with long-lasting customer relationships Providing a safe work environment is a top priority

Appendix

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Non-GAAP Reconciliation

This presentation contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or “EBITDA.” This presentation also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, retention expense, due diligence for M&A activities, restructuring costs,, and the gain or loss on disposal of assets or “Adjusted EBITDA.” EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

(000s)

Three Months Ended 9/30/18 Net Loss ($27.3) Adjustments Income Tax Provision (Benefit) 0.0 Interest Expense 10.8 Depreciation & Amortization 32.8 EBITDA $16.2 Adjustments: (Gain) Loss on Sale of Assets 0.2 Non-cash stock compensation 5.6 Due Diligence for Business Development 0.0 Impairment Expense 0.7 Strategic Consulting 2.2 Adjusted EBITDA $24.9

OUR LIFE’S WORK IS THE LIFE OF THE WELL™