US Sha S Shale le So Soluti utions ons Reinvented. ented. - - PowerPoint PPT Presentation

SLIDE 1

US Sha S Shale le So Soluti utions

• ns

Reinvented.

• ented. Reliable.
• able. Real-Tim

ime. e.

SLIDE 2

Who We Are

Comprised of four well-know businesses with diverse and strategic product and service

• fferings

More than 1,600 employees A diversified fleet of more than 3,000 pieces of equipment 11 equipment yards serving Texas, New Mexico, Oklahoma, Louisiana and Canada An exemplary safety record Experienced management team with extensive operational expertise

From W

• m Well

ell To

• Sell

Sell US Shale Solutions is a premier, technology-enabled strategic solutions provider to the oil and gas industry.

SLIDE 3

Why USSS?

We deliver integrated services based on te techn hnolog

• logy and lean

lean pr principles inciples to address our customer’s need for efficiency, innovation and pr pred edicta ictable ble ou

• utc

tcome

• mes.

Our compr comprehe ehens nsiv ive and fle flexible xible product and service line allows us to ad adapt pt to customer needs and market environment. We are a service company. Your problem is our

• problem. Customer service is the

cornerstone of our business.

We want to change what

SOLUTIONS

means to our customers…

SLIDE 4

The USSS Difference

Con Conso soli lida date te Ser Service vices Reduc educe e Cy Cycle le Tim Time Incr Increa ease se Ef Effi ficien ciencies cies

SLIDE 5

How We Do It

Safety

Safety is the driving force behind our business

Partnerships

Building trust with our customers and turning problems into

• pportunities

Our Word is Our Contract

Honesty, reliability and integrity aren’t just words – they are our commitment

Our Team

We are touch

• n problems.

Our team is your solution

Performance

We are driven by our customers’ success

Customer Value

Deliver value through efficiency, productivity and safety

Innovation

Continually seeking better solutions to assist our customers

US Shale Solutions’ Leadership Principles

SLIDE 6

A Strong Legacy

Culber Culberson

• n Cons

Constr truction uction (CCI CCI) Founded in 2005 Full-service pipeline construction company with a focus

• n flow back, gathering lines, salt water disposal

facilities, maintenance and reclamation as well natural gas processing plant facility construction. CCI also provides lease operations service. Operates in Eagle Ford, Permian and Barnett J4 J4 Fluid luid Ser ervices ices Founded in 2008 Integrated well-completion fluids oilfield services company with an emphasis on data acquisition and computer-controlled chemical blenders associated with coiled tubing circulating fluids and hydraulic fracturing. Operates in the Eagle Ford and Permian Ritter Ritter Cons Constr truction Company uction Company Founded in 2004 Full service pipeline construction company providing a range of midstream infrastructure and production equipment installation services to natural gas gathering, processing and transmission, and E&P companies. Operates in Eagle Ford, Permian and Haynesville WP WPW W Ltd Ltd Founded in 1983 Full service pipeline and facilities construction company that provides pipeline installation and fabrication services in challenging conditions that involve difficult climate and terrain. Operates in the Western Canada Sedimentary Basin

The four divisions of US Shale Solutions were deliberately selected based on their comprehensive and cohesive service offerings, exemplary safety record and strong legacy of reliability and success.

SLIDE 7

Leadership Team

Jer errit rit Co Cowar ard,

CEO Years of Experience: 22 years Most Recently With: Willbros Group Executive Vice President, Business Development Education: B.S in Engineering from Texas A&M Galveston

Mik ike S e Stophlet, tophlet,

EVP of Operations Years of Experience: 32 years Most Recently With: ASRC Energy Services and Schlumberger ASRC, President and CEO Schlumberger, Geomarket General Manager Education: B.S. in Geology from University of Arkansas Continuing education at Darden and Thunderbird and Schlumberger Industry Training

Patric trick Sc k Schne hneide ider,

, CFO Years of Experience: 16 years Most Recently With: Willbros Group Senior VP Finance and Accounting Education: Master’s degree in Accounting from Texas A&M University

USSS retained the leadership and employee teams of all four portfolio companies to ensure institutional knowledge and customer continuity.

SLIDE 8

Safety Vision

The best way to convey our vision for high performance safety is to share with our stakeholders what WE BELIEVE to be true about safety, what WE PROMISE to ourselves and each other, and what EVERYONE SHOULD SEE on our projects.

WE BELIEVE…

… that great safety is good business. … that workplace injuries and illnesses are simply unacceptable. … relentless continuous improvement leads to a zero harm culture.

WE PROMISE…

… to make people first and statistics last. … that unsafe productivity won’t be valued by our leaders. No exceptions. … to always make safety performance a key element of our broader vision and purpose.

EVERYONE SHOULD SEE…

… an environment where everyone is comfortable and active in stopping unsafe acts and conditions. … great planning as a key contributor to high performance safety. … active and passionate safety leadership

SLIDE 9

Safety Performance

Our Our saf safet ety vi y vision sion is is dir direc ectl tly y tr tran ansla slate ted d into into an an e exemp emplar lary y sa safety r ty record. .

1.8 1.1 1.1 0.42 0.5 1 1.5 2 2011 2012 2013 2014

Total Recordable Injury Rate, USSS

SLIDE 10

Our Footprint

Our comprehensive management systems and processes ensure that the quality of our services is consistent across the board.

SLIDE 11

USSS Key Customers

• BHP
• Chevron
• Cinco
• ConocoPhillips
• Continental Resources
• Devon
• EOG Resources
• Enable Midstream
• Energen
• Energy Transfer
• EnLink
• Marathon
• Pioneer
• Regency

SLIDE 12

Comprehensive Service Offering

SLIDE 13

Define

Identify disruptions in the process Identify waste – time materials

Measure

Outline targets and performance measurements

Analyze

Brainstorm solutions – where can we eliminate waste and save time

Improve

Execute custom, standardized plan Record and compare results to targets

Control

Develop a standardized, repeatable best practice

Kaizen – Change for the Better

We use Kaizen Events or Solutions Events to identify waste and develop custom, consistent operations plans to lower costs and cut overall construction time.

Meth ethodo

• dolog

logy

SLIDE 14

Brewer Facility

Case Case Study Study – A A Le Lean an App pproa

• ach

h to to Constr Construc uction tion

Situation

With crude prices below $50/bbl, companies are looking for price concessions – in this case, 5%-8%

Opportunity

• Create a standardized process to reduce total cycle time and cost in a repetitive facility build
• Become primary vendor given first choice to perform

Approach

• USSS was given uninterrupted access to the construction site for the duration of the build
• Conducted a postmortem analysis of process steps, delays, and costs
• Facilitated a full-day Kaizen event, documenting the situation and brainstorming solutions
• Reinvented. Reliable. Real-time.

A premier technology-enabled, strategic solutions provider to the unconventional oil and gas industry 9

POSTMORTEM ANALYSIS OF EACH FACILITY BUILD

Lyle% Land Keelee Brewer Resources Consumed And Cost Value Stream Maps – Flow Of The Construction Process Cycle Times, Work Days, Crewing Con nental Facility Builds Tank Ba eries, Flow Lines, ECD, Sales Lines Keelee Brewer Days billed

• :

trucks

• 17
• 17
• truck

Mileage

• 17
• 17
• Trailer
• 10
• 1
• Supervisor
• Salaried
• 8
• 7
• Supv

Truck

• 8
• 7
• Supv

Truck-mileage

• 8
• 7
• Backhoe
• 11
• 11
• Backhoe-Truck/trailer
• 1
• 1
• Backhoe-Truck/mileage
• 1
• 1
• Haul

Truck

• 1
• Haul

Truck Mileage

• 1
• manli
• 7
• 8
• sky

track

• 12
• 9
• Subcontractor
• crane
• materials
• screenings
• Hours

worked

• Pusher
• 105
• 181
• Pusher

OT

• 87
• 22
• Hand
• 242
• 373
• Hand

OT

• 189
• 59
• Welder
• 54
• 57
• Welder

Helper

• 35
• 57
• Total

Hours Worked

• 712
• 749
• Cost

Buildup

• Tools/

Trucks/ Equip

• 9,882
• 10,319
• Supervision
• 2,783
• 2,435
• Pushers
• 6,950
• 6,593
• Hands
• 13,970
• 11,989
• Welders
• 7,024
• 8,208
• Materials
• 1,944
• 2,045
• Rentals
• 494
• Sub

contractors

• Travel/Perdiem
• 3,895
• 3,050
• Housing
• 285
• 576
• Accumulated

cost

• 46,734
• 45,709
• Total Days

14 work 47 Wait 61 Cycle Time

SLIDE 15

Brewer Facility

Tangible Results

• Developed a standardized, repeatable build plan and schedule
• Developed a standardized operating procedures, aligned with build plan and schedule
• Calculated the impact on total time and cost to customer
• 10 % reduction of total cost and customer invoice
• 44% reduction in total cycle time
• Adequate construction profit margins maintained
• Reinvented. Reliable. Real-time.

A premier technology-enabled, strategic solutions provider to the unconventional oil and gas industry 4 FUTURE STATE SCHEDULE AND RESOURCE PLAN Setup Pad Mob In Pick up ECD Setup Eqpt & Prefab fittings Plumbing for Tanks & Production Sales Line Flowline & ECD Punch list, DeMob, PSSR Clean Site Materials Arrive at Site Schedule Crew & Vendors Notice to build facility

• 9
• 7
• 8

6

• 3
• 5

2 1

• 3
• 2
• 1

DAY Manpower

• *

Assume 12 hour work days; 9 days straight Supervisor 0.5 0.5 0.5 0.5 0.5 0.5 Pusher 1 2 2 2 2 1 Hands / Eqpt Optr 3 4 4 4 4 4 Welder / Helper D3 = / D4,D5 = 2 2 Total Manpower 4.5 6.5 D3 = 6.5 / D4,D5 = 8.5 8.5 6.5 5.5 Assets Truck / Tools 2 2 2 2 2 2 Trailer 2 D7 = / D8 =2 2 Supervisor Truck 0.5 0.5 0.5 0.5 0.5 0.5 Backhoe 1 1 1 1 1 1 Threading Trailer 1 1 1 1 1 Manli 1 1 1 1 1 Skytrack 1 1 1 1 1 Standard Facilities Construction Procedures Step Sub-Step Plan Actual Seq Tasks Time (hrs) Eqpt Crew Welder Notes

• A. Mob
• 1. Haul

Equipment 1 1 Backhoe Backhoe Day before best. Sometimes day of 1 2 Manlift Manlift will take a day depending on how far is trip 1 3 Skytrack Skytrack 1 4 Haul truck Haul truck Screenings already delivered to site 1 5 Trailer Trailer CCI orders the screenings & bills client

• B. Setup

Pad

• 1. Mark Off

1 1 Square pad using the fence as guide 0.25 2 1 2 Mark off with paint 0.75 2

• 2. Build

1 1 Check level using laser 0.25 Laser level 1 1 2 Find highest point and build pad to that point 0.25 1 1 3 Move screenings from pile to marked area to build pad 6 Backhoe 1 Time spent depending on well pad level to plane 1 4 Check level while spreading screenings 6 Laser level 1 4 in rise. Over that 8 hours when over a foot

• C. Set

Equipment

• 1. Prep

2 1 String line mark out where all tanks and equipment will be set 1 3 Tank pads are ordered by Continental and are on site

• 2. Tanks

2 1 Assemble tank pads in marked place 0.5 3 2 2 Set back row of tanks first (two water tanks and oil tank). Bolt on A le 2 Knuckleboom 4 Knuckleboom provided by tank company 2 3 Bolt Catwalk 1 2 On the ground work (putting together) 2 4 Bolt Stairs 1 2 On the ground work (putting together) 2 5 Set Catwalk and bolt to A legs 1 Knuckleboom 4 Knuckleboom provided by tank company 2 6 Set Stairway and bolt to Catwalk 1 Knuckleboom 4 Knuckleboom provided by tank company 2 7 Set front row of tanks 2 Knuckleboom 4 Knuckleboom provided by tank company 3. Production 2 1 Set concrete blocks for heater 0.5 Skytrack 3 2 2 Bolt ladder on to heater 0.5 Skytrack 3 2 3 Bolt on crows nest 0.5 Knuckleboom 3 Sometimes it's already assembled 2 4 Set Heater on to concrete block 0.5 Knuckleboom 4 2 5 Set concrete blocks for separators (2) 0.5 Skytrack 3 2 6 Set separators (using skytrack) 1 Skytrack 4 D. Plumbing - Tanks

• 1. Prefab

fittings 2 1 Load lines: bottom of tanks (6 pieces) 2 2 2 2 Equalizer lines (10 pieces) 2 2 2 3 Dump lines (8 pieces) 3 2 2 4 Vent line (6 pieces) 2 2 2 5 Re-circulation line (6 pieces) 2 2

• 2. Install

Prefab fittings and Tie-in 3 1 Install load line parts (pre-fab parts) 0.5 2 3 2 Cut and thread pipe (5 pieces, 3" pipe) 1 Thread trailer 2 3 3 Tie in load lines (5) 2 3 3 4 Install PCC pot. Install valve in PCC pot 0.5 2 3 5 Install equalizer parts (pre-fab parts) 1 2 3 6 Cut and thread pipe for equalizer line (5 pieces, 3" pipe) 1 Thread trailer 2 3 7 Tie in equalizer lines (5) 2 2 3 8 Install Dump line parts (pre-fab parts) 1 2 4 9 Cut and thread pipe for equalizer line (8 pieces, 3" pipe) 2 Thread trailer 2 4 10 Tie in dump lines (8) 2 Skytrack 3 4 11 Install vent line parts (pre-fab parts) 2 2 4 12 Cut and thread pipe (6 pieces, 3" pipe) 1 Thread trailer 2 4 13 Tie in vent lines (6) 2 Skytrack 3 4 14 Install re-circulation line parts 1 2 5 15 Cut and thread pipe (9 pieces, 2" pipe) 1 Thread trailer 2 5 16 Tie in re-circulation lines (9) 3 2 Total Cycle Time in Days Actual Work Days Keelee 61 14 Brewer 16 10 Kaizen Results 9 9 Reduc on In Cycle Time :

• Compared

to Keelee

• 85%
• Compared

to Brewer

• 44%
• Comparison – Invoice Amount

Days To Complete

Total Cycle Time Compared to Actual Work Days Discount Available Using the Kaizen Model

• Compared

to Keelee

• 10.4%
• Compared

to Brewer

• 8.4%

$46,734 $45,709 $41,882 $39,000 $40,000 $41,000 $42,000 $43,000 $44,000 $45,000 $46,000 $47,000 $48,000 Keelee Brewer Kaizen Results Total Bill Out 61 16 9 14 10 9 10 20 30 40 50 60 Keelee Brewer Kaizen Results Days - Total Cycle Time and Work Days Reduc on In Work Days :

• Compared

to Keelee

• 36%
• Compared

to Brewer

• 10%

SLIDE 16

US Shale Solutions

Corporate Office 7670 Woodway Drive Suite 250 Houston, TX 77063 832-742-7492 www.usshalesolutions.com