National Energy Services Reunited Corp · NASDAQ:NESR
National Energy Services Reunited — Barclays CEO Energy-Power Conference 2024
19 slides from National Energy Services Reunited's conference presentation, September 2024
Slide 1: National Energy Services Reunited Corp. – National Champion of MENA
National Energy Services Reunited Corp. National Champion of MENA Barclays CEO Energy-Power Conference September 2024 Sherif Foda – Chairman & Chief Executive Officer |1
Slide 2: Safe Harbor and Other Disclaimers
Safe Harbor and Other Disclaimers Non-Solicitation: 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 Energ
Slide 3: Company Snapshot
Company Snapshot |3 Confidential– Do not reproduce or distribute Strictly confidential Copyright NESR Corp.
Slide 4: Who We Are
Who We Are ▪ Diversified Energy Services Focused in Middle East/North Africa (MENA) Region ▪ Reporting Segments: Drillings & Evaluation (D&E) | Production Services (PS) ▪ Unique, decentralized structure with multiple HQ (Houston, Saudi Arabia, Oman, UAE) and regional offices to support across MENA ▪
Slide 5: What We Do
What We Do Construct Intervene Produce & Protect Cementing Coiled Tubing Artificial Lift Production Advanced Solutions for Zonal Isolation Integrated Solutions for Complex Well Interventions Optimized Performance, Reduced Downtime Filtration Production Assurance Stimulation, Pumping & Nitrogen Servi
Slide 6: Our Growing “Anchor Country” Footprint
Our Growing “Anchor Country” Footprint 2018 (SPAC) 2024E ** Shading based on annual revenue run rate Entry-Level Country Anchor Country Source: NESR Company Data – Shading based on annual revenue contribution by country Copyright NESR Corp. |6
Slide 7: Segment “Pull Through” to Establish Leading Share
Segment “Pull Through” to Establish Leading Share Business Line 2018 (SPAC) 2023 Future Vision 1H24 MENA Rank Cementing Top 5 Coil/Stim/Pump Top 5 Hydraulic Fracturing Top 5 N2 & Filtration Top 5 Well Testing Top 5 Slickline Top 5 Fishing & Remedial Top 5 Thru Tubing Past 5 Years Next 5 Years Top 5
Slide 8: Timeline – Open Tech Platform & Investment Approach
Timeline – Open Tech Platform & Investment Approach 2018 2018 (SPAC) 2019 2020 2021 2022 2023 2024+ (NORI R&D Center Inauguration) (Partnership) (Early-Stage Investment) (Acquisitions) (Commercialization) (Drilling Partnerships) (Early-Stage Investments) (Early-Stage Investment) (HIROX Plant Iraq, S
Slide 9: NESR Oilfield Research & Innovation (NORI)
NESR Oilfield Research & Innovation (NORI) Portfolio expansion to enhance core offering & expand to new frontiers… Surface & Downhole Technologies ▪ Drilling & Evaluation (D&E) – W.D. Von Gonten lab domiciled in Saudi Dhahran Techno Drilling Performance Manufacturing Valley (DTV), bringing world-cla
Slide 10: NESR Oilfield Research & Innovation (NORI)
NESR Oilfield Research & Innovation (NORI) “NESR’s commitment to building a collaborative, open technology platform is a powerful W.D. Von Gonten Lab – Unconventional & Innovative Chemistry to Support Core testament to its alignment with Saudi Vision 2030 and IKTVA. Thanks to this milestone, I Conve
Slide 11: Investment Thesis
Investment Thesis | 11 Confidential– Do not reproduce or distribute Strictly confidential Copyright NESR Corp.
Slide 12: Investment Thesis #1 – MENA Growth Outlook Remains Solid
Investment Thesis #1 – MENA Growth Outlook Remains Solid Consensus Supports Multi-Year Middle East Upstream Growth Outlook Country-Specific Upstream Activity Drivers ➢ Underpinned by 1 Lowest-Cost Resource, 2 Broad-Based Country Growth, and 3 Saudi Arabia (Growth) Record-Level Regional Spending & Ac
Slide 13: Thesis #2 – Continued Core Business Growth Outperformance
Thesis #2 – Continued Core Business Growth Outperformance Recent Growth Outperformance Runway for Accretive Returns (ROCE %) Aim to Hit Net Leverage Target (1.0x) in 2H24 (vs. estimated high-teens % 2023 Middle East activity growth) Historical Outperformance (5yr CAGR) Advantaged Margins & Cash Conv
Slide 14: Thesis #3 – Frontier Growth with D&E Tech & NEDA Solutions
Thesis #3 – Frontier Growth with D&E Tech & NEDA Solutions Pin-point your Steering Ultra-Seek your Reservoir Fast-Stream your Data TAM ~$2.5B/yr ✓ Outperform MENA Market Growth Core Growth + Frontier Growth = Outlook Framework ✓ Maintain (or Improve) Current Margins ✓ 40-50% FCF Conversion Long-Term
Slide 15: Valuation Upside Potential
Valuation Upside Potential TEV/EBITDA 2023 TEV/EBITDA 2024E 24% 17% 25% 26% 36% 33% YOY Rev Growth* 7% 8% 9% 15% 10% 6% Significant Significant 7.7x 7.7x 9.6x valuation valuation 8.8x upside upside potential 6.1x potential 7.6x 3.9x 4.1x 4.9x 3.6x 3.9x 3.2x Equipment International European NAM NAM E
Slide 16: Appendix: Historical Financials & Board of Directors
Appendix Historical Financials & Board of Directors | 16
Slide 17: Historical Financial Summary – Non-GAAP Reconciliation
Historical Financial Summary – Non-GAAP Reconciliation 2Q24 vs. NESR ($million) 2022 1Q23 2Q23 1H23 2H23 1Q24 2Q24 1H24 2Q23 Revenue $909 $258 $280 $538 $608 $297 $325 $622 +16% Net Income (Loss) ($36.4) ($6.4) $1.9 ($4.4) $17.0 $10.0 $18.9 $28.9 +870% Depreciation & Amortization 125.1 36.3 38.9 75.
Slide 18: Appendix – Diverse & Experience-Rich Board
Appendix – Diverse & Experience-Rich Board BoD Member Years Bio & NESR Board of Directors Responsibilities Chairman & CEO – Sherif Foda has served as the Chairman and Chief Executive Officer of NESR since inception. He founded the company in 2017 as a SPAC to create the first and largest energy serv
Slide 19: Thank you
Thank you | 19
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