National Energy Services Reunited Corp · NASDAQ:NESR
National Energy Services Reunited — Barclays 2020 Virtual CEO Energy-Power Conference
16 slides from National Energy Services Reunited's conference presentation, Sep 8, 2020
Slide 1: National Energy Services Reunited Corp. The National Champion of MENA
NEED TO ADD DIVERSITY PIC National Energy Services Reunited Corp. The National Champion of MENA Barclays 2020 Virtual CEO Energy-Power Conference – September 8, 2020 Sherif Foda Chairman and Chief Executive Officer
Slide 2: Safe Harbor and Other Disclaimers
Safe Harbor and Other Disclaimers This presentation (the “Presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of National Energy Services Reunite
Slide 3: NESR – Paradigm Shift for the Region
NESR – Paradigm Shift for the Region |3 Strictly confidential – Do not reproduce or distribute Copyright NESR Corp.
Slide 4: COVID-19 Response
COVID-19 Response Maintained 100% operational capacity and customer first approach while ensuring personnel wellbeing ▪ Crisis Management Team (CMT) formed early in the cycle along with country Emergency Response Teams (ERT) Government ▪ Coordination with Customers and Local authorities Operations S
Slide 5: Middle East – Best positioned in the post COVID world
Middle East – Best positioned in the post COVID world Most of oil production growth in 2021 will come from The risk level of upstream projects due to take FID in 2020 Middle East based on remaining breakeven prices 19 v 18 20E v 19 21E v 20E 15% 13% 11% 10% 6% 5% 4% 0% 1% 0% 0% -2% -5% -7% -7% -8% -
Slide 6: Unconventionals – A First for a Local Company
Unconventionals – A First for a Local Company ▪ Proposal to execution < 1yr ▪ Project management and 24-hour operations ▪ Sites & Camp (Pre-Frac, During Frac and in Flowback phase), Frac, Testing, SMS and Flowback, WL, Plugs, Coil, Slickline, Milling, Proppant, Chemicals, Water, Wellheads, Explosive
Slide 7: …and then to Conventionals
…and then to Conventionals ▪ Been done in the region for over two decades; primarily Acid Fracs ▪ Asset light model and leverage existing strategic partnerships ▪ 100% manned by NESR Nationals ▪ Smaller HHP fleet compared to Unconventionals, different operating methodology (more data, less stages pe
Slide 8: SAPESCO Acquisition
SAPESCO Acquisition ▪ Oldest oilfield service company in the region ▪ Transaction effective from June 1, 2020 ▪ Egypt ~ 1 B$ OFS Market, NESR does not exist in Egypt ▪ Addition of Industrial Cleaning (pipeline maintenance) product line which can be expanded to other NESR markets ▪ Non-overlapping pr
Slide 9: NESR - The Undervalued Growth Story
NESR - The Undervalued Growth Story |9 Strictly confidential – Do not reproduce or distribute Copyright NESR Corp.
Slide 10: Exceptional and Unmatched Growth
Exceptional and Unmatched Growth Growth in the worst downturn in 25 years 807 658 553 458 415 431 369 328 186 205 147 162 129 141 104 111 2013 2014 2015 2016 2017 2018 2019 2020 Analyst Revenue ($mm) Adjusted EBITDA ($mm) | 10 NPS financial results for 2013, 2014 are prepared under IFRS and 2015-201
Slide 11: and Significant Upside Potential
and Significant Upside Potential TEV/EBITDA 2020E TEV/EBITDA 2021E (26%) (48%) (24%) (42%) (28%) 23% YOY Rev Growth* (5%) (0%) (7%) (24%) (5%) 16% 18.1x 18.1x 15.7x 13.0x Significant Significant valuation valuation 9.5x upside 10.1x 9.4x 9.0x upside potential potential 6.6x 7.1x 4.7x 4.0x Equipment
Slide 12: NESR vs. Big 3 International OFS
NESR vs. Big 3 International OFS ➢ Superior projected financial performance 2019 – 2021 Revenue Change % 2021 EBITDA % 2021 Net Margin % OFS1 OFS2 OFS3 NESR OFS1 OFS2 OFS3 NESR OFS1 OFS2 OFS3 NESR ➢ Significant upside valuation potential 2021 EV / EBITDA 2021 EV / FCF 2021 FCF Yield (FCF/EV) OFS1 OF
Slide 13: National Energy Services Reunited Corp. The National Champion of MENA
National Energy Services Reunited Corp. The National Champion of MENA Barclays 2020 Virtual CEO Energy-Power Conference – September 8, 2020
Slide 14: 2020 Adjusted EBITDA by Quarter
2020 Adjusted EBITDA by Quarter (Non-GAAP reconciliation) NESR ($million) Q1 2020 Q2 2020 Revenue 199.3 203.2 Net income (loss) 11.4 10.5 Depreciation and amortization 30.8 32.5 Finance Cost 4.5 4.2 Tax 2.5 2.8 Transaction, Integration & Start-Up Costs 1.7 1.8 Other Provisions - - Adjusted EBITDA 50
Slide 15: 2018/2019 Adjusted EBITDA
2018/2019 Adjusted EBITDA (Non-GAAP reconciliation) NESR ($million) 2019 2018 (1) Revenue 658.4 552.5 Net income (loss) 39.4 39.5 Depreciation and amortization 93.8 69.5 Finance cost 19.0 19.5 Tax 13.1 13.1 Charges & credits 20.7 20.1 Adjusted EBITDA 186.0 161.7 | 15 (1) Successor and Predecessor Co
Slide 16: Historical Adjusted EBITDA
Historical Adjusted EBITDA (Non-GAAP reconciliation) Adjusted EBITDA NPS financial results for 2013, 2014 are prepared under IFRS, and 2015-2017 are prepared under US GAAP; GES 2013-2017 financial results are prepared under IFRS. EBITDA is adjusted for impairment, which is not recognized as part of
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