Slide 1: Second Quarter 2020 Investor Presentation
peson > Second Quarter 2020 Investor Presentation Technology * Deployed « Simply
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements and information which reflects the current view of Pason Systems Inc. ("Pason" or the "Company") with respect to future events and financial performance. Any such forward-looking statements are subject to risks and u
Slide 3: Who We Are
Who We Are Pason is a leading energy services and technology company. We develop and deliver high-value hardware, software and services, primarily for the drilling industry. Our motto is: Technology Deployed Simply YEARS OF INNOVATION 1978-2018
Slide 4: Pason Highlights
Pason Highlights Clear Market Leader Sustained leading market positions in North America, South America, and Australia Access to the majority of land rigs and users of drilling data in the Western Hemisphere High barriers to entry for profitable operations driven by scope of technology, service inte
Slide 5: Overview of Pason
Overview of Pason
Slide 6: Company Snapshot
Company Snapshot Established 1978; public since 1996 COTO Taye ssles) Calgary, AB, Canada USTs el aile) Houston, TX, United States Argentina, Australia, Bolivia, Brazil, ustedes) ea) Colombia, Dubai, Ecuador, Mexico, Peru, Saudi Arabia (JV) E&P Operators AUS CO SS) Drilling Contractors Other Oilfiel
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Slide 8: Strong Market Positions and Global Reach
Strong Market Positions and Global Reach * Headquarters © Regional Offices Estimated Pason EDR market penetration (percentage of active drilling rigs)
Slide 9: Overview of the Pason Data Ecosystem
Overview of the Pason Data Ecosystem e Customer staff, Field / Rig Sit ! Cloud / Offi Customer sf ield / Rig ite ex; amp loud / Office Gaya Ree Third-Party Assets ' | Customer Back-Office Systems Products * Rig Systems — H + ERPs, Payroll Systems * Downhole Tools H ' * Real Time Operation Centers Na
Slide 10: Superior Service Model
Superior Service Model PASON SUPPORT SERVICE @QlOlol @lOl@@! @|e1a1010 10
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Slide 12: Data Capture by Pason
Data Capture by Pason 675,000+ 2,300+ oil and gas wells in Pason DataHub, including more than 150,000 drilled since 2014 active drilling rigs simultaneously feeding data to the Pason DataHub during peak activity levels (in 2014) Categories of Data Captured Examples of Data Pason Surface Sensors Data
Slide 13: Financials
Financials
Slide 14: Financial Summary
Financial Summary TOTAL REVENUE ($MILLIONS) 2015 2016 2017 BY CUSTOMER TYPE Drilling Contractors & Other E&P Operators REVENUE BY PRODUCT 12 MONTHS ENDED DECEMBER 31, 2019 Analytics & Other Drilling Intelligence Zo Mud Management and Safety REVENUE BY BUSINESS UNIT 12 MONTHS ENDED DECEMBER 31, 2019
Slide 15: Financial Summary
Financial Summary ADJUSTED EBITDA ($MILLIONS) 2015 2016 2017 2018 2019
Slide 16: Financial Summary
Financial Summary REVENUE (C$ MILLIONS) REVENUE PER EDR DAY (US$) [mf WwW (735) =ero eo ® UNITED STATES CANADA REVENUE (C$ MILLIONS) REVENUE PER EDR DAY (C$) : o © c — & m © INTERNATIONAL 23) : (23) , ‘= ' is ae ni mie ze a8 zoe ore 16
Slide 17: Cash Returns to Shareholders
Cash Returns to Shareholders 87 2010 2011 2012 2013 2014 2016 2017 2019 * Pason moved from semi-annual to quarterly dividends in 2014 BB Regular dividends J Share repurchases Over $500 million returned to shareholders over the past 10 years 7
Slide 18: Financial Results
Financial Results e in CS000s is ended June 30, 2019 Revenue United States $66,107 $108,096 -39% Canada 22,416 27,728 -19% International 12,287 19,213 -36% 100,810 155,037 -35% Adjusted EBITDA 32,457 71,540 -55% Net income 11,753 28,289 -58% Capital expenditures $3,887 $14,533 -73% Dividends paid 32
Slide 19: Outlook
Outlook
Slide 20: Well-Positioned for Growth
Well-Positioned for Growth $ 3. Establish pillars of growth beyond 0&G . : lb Enter adjacent O&G Energy Toolbase (ETS) spaces * Intelligent Wellhead Systems (IWS) 1. Defend and grow the core business International growth New products for the drilling market * Rig site * Pricing * Back office * Marke
Slide 21: % of Revenue
42 43 38 34 32 31 28 25 2012 2013 2014 2015 2016 2017 2018 2019 % of Revenue 9% 10% 9% 13% 16% 11% 10% 11%
Slide 22: Source: Wood Mackenzie, BloombergNEF
1,400 45 40 1,200 35 1,000 30 800 25 600 20 15 400 10 200 5 - - Source: Wood Mackenzie, BloombergNEF
Slide 23: Energy Toolbase well-positioned in the Intelligence Layer of Energy Storage
Energy Toolbase well-positioned in the “Intelligence Layer” of Energy Storage © ENERGY TOOLBASE ae nz In Sep. 2019, announced the acquisition of an 80% interest of Energy Toolbase (ETB), a US-based SaaS company. Battery Pack ETB provides industry-leading software package to model Grid economics and
Slide 24: Appendix
Appendix
Slide 25: Pason's History
Pason’s History 1978: Founded by Wayne Parks and Ron Mason who created the name “Pason” based ona hybrid of their last names Brian Taylor Early 1990s: Inventor designed and introduced the Pit Volume Totalizer 2006: Entered ro94:First Australia EDR rental 2014: Entered 1997: Entered the US into Joint