Quintana Energy Services — Merger or Acquisition (May 2020)
14 slides from Quintana Energy Services's merger presentation, May 4, 2020
Slide 1: Merger of KLX Energy Services and Quintana Energy Services
1 Merger of KLX Energy Services and Quintana Energy Services May 4, 2020
Slide 2: Cautionary Statement on Forward-Looking Statements
2 Cautionary Statement on Forward - Looking Statements This communication contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amend ed, and Section 21E of the Exchange Act. Some of these forward - looking statements can be identified by the use o
Slide 3: Merger announcement: industry-leading provider of asset-light oilfield solutions
3 • KLX Energy Services Holdings, Inc. ("KLXE") (NASDAQ: KLXE) and Quintana Energy Services Inc. ("QES") (NYSE: QES) today announced that they have entered into a definitive agreement to combine in an all - stock merger transaction • The merger will create a leading provider of production, completio
Slide 4: Overview of Key Transaction Terms
4 Overview of Key Transaction Terms Transaction Structure • All - stock merger • QES shareholders will receive 0.4844 shares of KLXE common stock for each share of QES common stock Ownership • KLXE and QES shareholders will, respectively, own 59% and 41% of the equity of the combined company on a fu
Slide 5: Compelling Strategic and Financial Benefits
5 Compelling Strategic and Financial Benefits + Creates a premier provider of production, completion and drilling solutions with a returns - driven strategy focused on asset - light services, low capex, free cash flow generation and ROIC Substantial combined asset base with the largest fleet of larg
Slide 6: Combined Company Positioned Across the Well Life-Cycle
6 Combined Company Positioned Across the Well Life - Cycle Expected Recovery Sequence 1 st 2 nd 3 rd Key Drivers Shut - in Wells and Well Count DUC’s New Well Drilling Activity Selected Product Service Lines (PSLs) • Certified Pressure Control Services • Fishing and Clean - out Services and Tools •
Slide 7: Well-Positioned to Service Customers Across All Key U.S. Basins
7 Well - Positioned to Service Customers Across All Key U.S. Basins Bakken Shale Permian Basin Haynesville Shale Utica Shale Marcellus Shale Northeast / Mid - Con Southwest Rockies Powder River Basin DJ Basin Piceance Basin Eagle Ford Shale KLXE Locations QES Locations 1 Based on respective 2019 fis
Slide 8: Significant Revenue and Adjusted EBITDA Generation Capacity
8 $25 $107 $79 $41 $60 $27 9% 15% 10% 0% 4% 8% 12% 16% 2017 2018 2019 Adj. EBITDA 1, 2 ($ in millions) KLXE QES Margin $106 $167 $66 Significant Revenue and Adjusted EBITDA Generation Capacity $321 $495 $544 $428 $604 $484 $0 $250 $500 $750 $1,000 $1,250 2017 2018 2019 Revenues 1 ($ in millions) KLX
Slide 9: Significant Value Creation Opportunity from Near-Term Cost Synergies
9 Significant Value Creation Opportunity from Near - Term Cost Synergies 1 $40 million represents annualized synergies Rationalization of KLXE’s Wellington, Florida Corporate Headquarters • Cross - selling opportunities across the organization • Vertical integration through leveraging QES trucking a
Slide 10: Modern Equipment Fleet Supporting Diversified Revenue Base
10 Modern Equipment Fleet Supporting Diversified Revenue Base and Pull Through of Asset - Light PSLs PF 2019 Revenues 27% 51% 22% Combined Fleet Substantially Increases Scale Combined Asset Base • Leading Suite of Fishing Tools • 24 Modern, Large - diameter Coiled Tubing Units • 14 2” or Less Coiled
Slide 11: Combination Creates Leading U.S. Coiled Tubing and Wireline Services Provider
11 Combination Creates Leading U.S. Coiled Tubing and Wireline Services Provider Source: Company filings, Wall Street research 1 Defined as 2.375” and larger Others + U.S. Wireline Fleet 158 131 125 104 98 65 54 51 41 33 25 104 Combined Asset Base Dramatically Reduces Incremental Capex Requirements
Slide 12: High Quality and Broad Customer Base with Cross-Selling Opportunities
12 • Strong, long - standing relationships with Blue Chip customers across key U.S. basins and PSLs • More than 1,000 customers served on a pro forma basis • No customer comprises greater than 10% of pro forma revenue High Quality and Broad Customer Base with Substantial Cross - Selling Opportunitie
Slide 13: Strong Pro Forma Financial Position
13 Strong Pro Forma Financial Position 1 Represents KLXE fiscal year - end of 31 - Jan - 2020 and QES fiscal year - end of 31 - Dec - 2019; Pro - Forma cash is adjusted for repayment of QES ABL 2 KLXE Senior Secured Notes not subject to change - of - control upon close of transaction 3 Represents si
Slide 14: Platform for Ongoing Consolidation
14 • Well positioned to continue to pursue a strategy of leading the effort to consolidate the oilfield service industry • Transaction results in increased scale, improved balance sheet, and liquid public currency • Focus on continued consolidation of well - capitalized businesses with strong strate
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