National Energy Services Reunited Corp · NASDAQ:NESR
National Energy Services Reunited — SPAC Merger (April 2018)
29 slides from National Energy Services Reunited's SPAC merger presentation, Apr 4, 2018
Slide 1: National Energy Services Reunited Corp. Investor presentation
Investor presentation National Energy Services Reunited Corp. NASDAQ - NESR April 2018
Slide 2: Disclaimer and Forward Looking Statement
Disclaimer and Forward Looking Statement “his presen (ne -Peseaionfsrtraton pues on aris ing eevee Jour ese pupse your cositeraon ang evan ops avesmer net saris of ‘Notons ene SvcesReoned Cos. (Nesw” te Conga’ ans docs no conees ono 2 saan of oro uy, fsamnenionb peas ny oe py 01 et ‘naa asus of NES,
Slide 3: Disclaimer and Forward Looking Statement (Continued)
stl Disclaimer and Forward Looking Statement (Continued) ‘x S: ‘Te regingit of co i at tse Aan inbmaion concen ese and ome Hk SCOR ae one in NESAs mos eet ngs wie SEC. Al suse witen nd ol ae ‘Gung sane conerng WEEN, G25 an Neth neers dazed hate Sneed sande ® NESR, GES, NPS snd GES snd NPS shetty pav
Slide 4: Core Team Overview
and shareholder base * SheritFoda, President, CEO & Chairman ofthe Board + Uteyearserperienceinthecl8&. gasindustry * Officers President of Production Groupfor Schlumberger * Presidentof Europe Airc Caspian and ND ofthe Arabian * Director atEnergy Recovery, Inc, (NASOAO: ERI) NESR has assembled an e
Slide 5: Transaction highlights
Transaction highlights ‘= National Eneray Services Reunited Corp. (NESR) agreed to acquire Gutf Energy SAOC (GES) and NPS Holdings Ltd (NPS or National Petroleum Services), at the closing ofthe contemplated transaction - = The combined acquisition Firm Value (FV) will be ~$1.1bilion implying a 5 8x
Slide 6: Transaction structure
s i \ Transaction structure = Illustrative source and uses (with no redemption) oes eye wt) ounce wae NPS contributors’ equity retained 4132 GES contributors ‘equity retained 2823 te! ttt] nnn oneua nor ts | cashto balance sheet assuming ful $150 m) 760 Tela st talue oss Hana Investments NESR pro fo
Slide 7: Detailed Post Close Equity Structure — Diverse and global shareholder base
AE Detailed Post Close Equity Structure — Diverse and global / \ = it shareholder base Hana Investments 143% NPS Sell Shareholders Backstop Investor 118% 14% NESR HoldingsIGES NPS Investors < \ 10% 2 I oti reLd| | rab IPO GES NESR Existing Shareholders, 30.0% GES Seling Shareholders 192%
Slide 8: Transaction milestones
Transaction milestones Key process milestones Initial Public Offering May 12, 2017 Announce NPS and GES acquisitions Nov 12, 2017 File preliminary proxy Feb 14, 2018 Obtain required regulatory approvals Early May 2018 Transaction closing Mid-End May 2018
Slide 9: Transaction overview
» Transaction overview
Slide 10: The combination will create the largest regionally focused oilfield services player
The combination will create the largest regionally focused / \ oilfield services player 46% 20920142015 «0IT = = Leading regional provider of integrated I= Provider of high-quality integrated oilfield ! Y Leading regional well services ' ‘energy services in the MENA and Asia I Setvice solutions in t
Slide 11: Positioning vs. key peers
Revenue CAGR 2013-2017A Leverage (2017A)" 40x ae Enaet ” ox 1% [] [ee |“ ee Se (20%) —— Positioning vs. key peers. Y¥ Growth track record Y leverage capacity Y Resiliency through eycles Long term growth potential Better margin profile oY low tax rate env Ere ee ony eovoge no Od rn Seca esha be ot sd
Slide 12: NESR is expected to compare favourably to its listed peers
NESR is expected to compare favourably to its listed peers; FVIEBITDA YEAR 1 FVIEBITDA YEAR 2 14x 117K “Acquisition rutipte 79x a Eaupment ltemational Nor Equpment tert! Noh diverifed America ‘went! Amen Amarea_— NPS onshore onshore onshore craers driers ences
Slide 13: Transactions compare favourably to precedent transactions in the sector
Transactions compare favourably to precedent transactions; ie a, in the sector ‘Select recent transactions - FV/LTM EBITDA. 16%" 1531 Average 12.4 tsar 120 om aa ax topmost Drett onst8 =n wors8 ves? a at o 4 Tat ERERGY mAcKMAwee NABORS er seine reresa g Frwy, Not toy need ni AES nes GES nNOS
Slide 14: Equity story
Slide 15: The combination will accelerate growth through synergies, increased market share and a broad portfolio of services
TF The combination will accelerate growth through synergies, / \ increased market share and a broad portfolio of services Proven and tested manag team who have grown the business => coer a SS Demonstrable track: N E S R NOC/IOC focused customer organic and inorganic g with long-term contract (+) Ind
Slide 16: The Middle East has development costs at the bottom end of the curve
The Middle East has development costs at the bottom end of the curve Cost of supply’ Global liquids ditingproduction coat curve Brent equaler foward lokingbeskeven ol re, USD 0 70 i sia ” Ext heavy of cna ‘Not Aeron shale “0 50 0 70 ny Py ‘Cumulative quis producton in 2022 (roms ‘00 110 * Fullcycie
Slide 17: Robust growth profile across its key services and countries of operations
Robust growth profile across its key services and countries of operations Mee Ea OF ey cot) [GCC onshore rig count a 26% 260 160 140 Siem an2%S sanz nw Fane = oa cmmrerenetntr Te Hekate I =
Slide 18: Comprehensive provider of services with scalable platform
1 t ¥ Comprehensive provider of services with scalable ll, if platform G-GuErRsyY SS ZA =) i | I v Lege % of mies conn Integration of complementary businesses Footprint across key markets NOCs-focused and local positioning Substantial growth potential Sustainability of margins through the cycles Tec
Slide 19: NOC/IOC focused customer base — long-term contract structure
NOC/IOC focused customer base — long-term contract structure Key NOC customers > y A Diversified client ~~ portfolio , ae ob Laced YW tongstanding relationships ee Ciavith be bparcor, including Saudi Aramco, PDO, QP and ADCO > Key IOC customers bp of jylincreasingwliene preference for high quality l
Slide 20: NPS and GES have demonstrated sector leading resiliency since 2013
NPS and GES have demonstrated sector leading resiliency since 2013 Revenue CAGR 13A-17A' 2017 vs. 2013 EBITDA Highlights Wh bof) Coir a events dima ite downturn iW _ Resiliency of margins maintained through cost focus and strong delivery Future growth supported by overall market dynamics Significant
Slide 21: Demonstrable track record of organic and inorganic growth
vit Demonstrable track record of organic and inorganic / \"% growth 2012 2013 2014 2015 2016 2017 hes won span cont ini er
Slide 22: Highly experienced management teams combined with supportive shareholder base
Highly experienced management teams combined with supportive shareholder base Hana Investments ‘4% Backstop Investor Sherif Foda EO 62) | & es hire Deja MeACommeral om) a & SR John Brieoe ‘Sevior Financial Advisor © ce ing NESE | shareholders SS) socech Nawal Senin Avior « GES contibutor inde i equi
Slide 23: NESR - Strategy and Ambition
NESR - Strategy and Ambition The leading national oilfield services company Growth Ambi ( wv Customer focused and in-country value champion ( vo MENA land & shallow water OFS focused investment vehicle |. V/\ Piatform for faster deployment of it for purpose technologies | LY iv Target regional value
Slide 24: Targets detailed overview
. Target detailed overview
Slide 25: GES at a glance
GES at a glance Gulf Energy (GES) is a high quality integrated oifield service 1 ae solutions provider in the MENA region, with a workforce of ~1,300 employees Operating in the main MENA region oil producing counties Established relationships with almost all major operators in Oman as well as with i
Slide 26: GES at a glance (cont'd)
GES at a glance (cont'd) of 074 revenue Fishing services Milinglcutng senices Others 0%
Slide 27: NPS at a glance
NPS at a glance NPS Holdings Limited (NPS) isa leading regional provider of 4 integrated energy services in the MENA and Asia Pacific regions = Currently present in 12 countries across the MENA-Asia Paaific region ~ Long-standing relationships with leading IOC and NOC cients Strong customer retentio
Slide 28: NPS at a glance (cont'd)
NPS at a glance (cont'd) Business highlights Key servos and 2017 revenue contribution Coiled tubing services Cementng services Somuiaton, pumping. nitrogen Cased hole logging services Slckine services Fation and pipeine services Sy, Surface we testing with high J) pressure andtest rap ra | Mutshase
Slide 29: NESR — A growth story
NESR —A growth story Proven and tested manag team who have grown the f Demonstrable track S R NOC/OC focused: ner organic and inorganic g with long-term contract (+) Industry leading financial metrics and res
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