ProPetro Holding Corp. · NYSE:PUMP
ProPetro — Q3 2022 Earnings Presentation
22 slides from ProPetro's earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 Investor Presentation
Client to confirm use of this image again Q3 2022 Investor Presentation November 1, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical information contained herein, the statements and information in this presentation, including the oral statements made in connection herewith, are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities
Slide 3: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation references “Adjusted EBITDA” and “Free Cash Flow,” which are non-GAAP financial measures. We define EBITDA as our earnings, before (i) interest expense, (ii) income taxes and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA, plus (i)
Slide 4: Our Strategy
Our Strategy 3Q22 Financial Results – Consensus Beat Electric Fleet Purchases / Capital-Light Lease Agreements Acquisition of Silvertip – M&A Strategy Execution Generate robust earnings, increasing free cash flow, and Pursue opportunistic build towards strategic transactions enhanced Pursue a
Slide 5: Company Snapshot
Company Snapshot NYSE Combined 3Q22 Revenue (1) Oilfield services leader in the Permian Basin providing complementary PUMP $383 million completions services in Hydraulic Fracturing, Pro Forma Liquidity (2) Combined 3Q22 Adjusted EBITDA (1) CCC Cementing, and Wireline to leading upstream oil $203 mil
Slide 6: Global Hydrocarbon Macro Environment
Global Hydrocarbon Macro Environment A bullish demand outlook coupled with constrained supply availability reinforces our belief that we are in a long-term up-cycle that supports incremental margins and sustainable cash flow generation for completion services While demand was initially impacted by t
Slide 7: Large Addressable Market Opportunity
Large Addressable Market Opportunity The Permian Basin Market Opportunity Remains Robust for Decades to Come… The Permian Basin consists of mature, legacy, onshore oil and liquids-rich natural gas reservoirs spanning ~86,000 square miles in West Texas and New Mexico, with multiple prospective geolog
Slide 8: Who We Are and Where We Are Going
Who We Are and Where We Are Going Customer Dedicated and Transitioning Relied upon Disciplined Reducing Diversified focused; efficient to a young, by premier capital emissions and customer Team driven customer base efficient customers allocation and investing in base including harnessing the capital
Slide 9: Proven Success in the Most Challenging Environment: Unrivaled Completions Services
Proven Success in the Most Challenging Environment: Unrivaled Completions Services COMPLETION-RELATED SERVICES HYDRAULIC FRACTURING SPECIAL APPLICATIONS Consistent with ProPetro’s ProPetro’s premier service line Customized treatments and Hydraulic Fracturing, Cementing, delivering industry-leading c
Slide 10: Innovation Leading to Our #1 Customer Ratings
Innovation Leading to Our #1 Customer Ratings - A ProPetro Competitive Advantage Transitioning to Fully-Remote Engineering Support 2022 2023E FLEETS FLEETS On Site Remote On Site Remote Source: management estimates. Evolving operations and Reduce on-site Drive best-practices Enhance safety adapting
Slide 11: Commitment to Our People, Our Community, and Our Environment
Commitment to Our People, Our Community, and Our Environment ENVIRONMENTAL SAFETY PEOPLE OPTIMIZED OPERATIONS & FLEET TRANSITION COMMITTED TO AN ACCIDENT-FREE WORKPLACE FOCUSED ON OUR TEAM Innovation • Strong training and development culture • Education and tuition reimbursement to engage and advanc
Slide 12: Fleet Transition: Executing on The Strategy
Fleet Transition: Executing on The Strategy RECAPITALIZATION OF OUR FLEET TIER IV DGB AND ELECTRIC FLEETS • Converting our fleet to Tier IV DGB dual-fuel and • More fuel-efficient fleets to reduce costs, while displacing diesel – up to ~70% - with cleaner-burning enhancing competitiveness and free c
Slide 13: Recent Events – Acquisition of Silvertip Completion Services
Recent Events – Acquisition of Silvertip Completion Services Purchase Price (1) 2023 Estimated Free Cash Flow (2) $150 million $55-60 million Equity Consideration (1) 2022 Estimated Free Cash Flow (2) Headquarters 10.1 million $30-35 million Midland, TX Shares of PUMP Provider of wireline perforatin
Slide 14: Transaction Rationale – Acquisition of Silvertip Completion Services
Transaction Rationale – Acquisition of Silvertip Completion Services Accretive Financial Metrics Expected to be accretive on all metrics based on Adjusted EBITDA multiple, earnings per share (“EPS”), and free cash flow per share (“FCFPS”) Highly Complementary Completions Service Offering Adds a high
Slide 15: Pro Forma Revenue Mix by Service Line
Pro Forma Revenue Mix by Service Line: Hydraulic Fracturing, Wireline, and Cementing 2022 REVENUE MIX BY SERVICE LINE Wireline Cementing Hydraulic Fracturing Source: 2022 management estimates. © 2022 ProPetro Holding Corp. All Rights Reserved. 15 15
Slide 16: 3Q22 ProPetro Standalone Financial Highlights
3Q22 ProPetro Standalone Financial Highlights (in millions TOTAL EFFECTIVE ADJUSTED FREE CASH TOTAL except %’s and fleet counts) REVENUE UTILIZATION EBITDA(1) FLOW(2) LIQUIDITY(3) Fleets 3Q22 $333 14.8 $90 $(26) $155 Delivering Strong Results Strong sequential improvement and performance that is exc
Slide 17: Strong Adjusted EBITDA and Free Cash Flow
2023 Estimated Adjusted EBITDA-to-Cash Adjusted EBITDA (1) Flow Conversion Rate (1) (in millions) Strong Adjusted CCC EBITDA and ProPetro $436 ~40% Free Cash Flow Go forward company poised to generate Silvertip $65-75 ~80% significant cash flow in 2023 and beyond Note: All data is illustrative and s
Slide 18: Capital Allocation Framework: Strategy Meets Opportunity
Capital Allocation Framework: Strategy Meets Opportunity OPTIMIZE OPERATIONS FLEET TRANSITION DISCIPLINED GROWTH Enhancing operational efficiency by focusing With robust industry fundamentals, transitioning Prudently assessing value-enhancing investment resources on the most relevant technologies, o
Slide 19: Our Leadership
Our Leadership LEADERS COMMITTED TO SHAREHOLDER VALUE CREATION SAM SLEDGE ADAM MUÑOZ DAVID SCHORLEMER Chief Executive Officer & Director President and Chief Operating Officer Chief Financial Officer Former ProPetro President. Also served as Chief Joined in 2010 to initiate ProPetro’s Permian Previou
Slide 20: Our Board of Directors
Our Board of Directors EXPERIENCED, COMMITTED, AND CAPABLE OVERSIGHT PHILLIP A. GOBE ANTHONY BEST SAM SLEDGE Chairman of the Board Lead Independent Director Chief Executive Officer & Director Chairman of board in August of 2021 and 40+ years of experience in the energy industry. Former ProPetro Pres
Slide 21: ProPetro: The Oilfield Services Leader Built For The Future
ProPetro: The Oilfield Services Leader Built For The Future Efficient operator with a Cutting edge technologies drive Disciplined capital allocation and debt-free balance sheet leading profitability and asset deployment strategy customer solutions The premium completion services Consistently outperf
Slide 22: Investor Contacts
Investor Contacts CORPORATE HEADQUARTERS INVESTOR RELATIONS 1706 South Midkiff Road DAVID SCHORLEMER Midland, TX 79701 Chief Financial Officer david.schorlemer@propetroservices.com 432.688.0012 432.277.0864 www.propetroservices.com MATT AUGUSTINE Investor Relations matt.augustine@propetroservices.co