Slide 1: Q4 2020 Investor Presentation
Q4 2020 INVESTOR PRESENTATION February 23, 2021
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: ProPetro at a Glance
PROPETRO AT A GLANCE Customer Focused .49 100% Sustainability Full Year 2020 TRIR Concentration of Frac Investments Team Driven operations in the Permian 2010 2017 2020 Begins hydraulic Initial Electrically Teamwork & fracturing operations public offering Powered DuraStim Collaboration in the Permia
Slide 4: Capital Migrating to Our Backyard
CAPITAL MIGRATING TO OUR BACKYARD Over $60 billion in Permian E&P transactions since 2018 Notable Transactions Date Buyer Value ($MM) 10/20/20 Pioneer Natural Resources $7,621 10/19/20 ConocoPhillips $13,337 12/16/19 WPX Energy $2,500 Recent Permian Upstream Transactions 12/21/20 Diamondback Energy
Slide 5: Permian Macro
PERMIAN MACRO Total U.S. Onshore Rigs Capitalizing on demand for efficient services Oil Directed Rig Count: 299(1) • Driven by E&P acquisitions, dedicated fleet model, and completion intensity • Strategic investments in both Tier IV DGB and fully electric DuraStim to reduce emissions profile 34% 66%
Slide 6: Safety Culture on Display
SAFETY CULTURE ON DISPLAY Best in class workforce operating safely and efficiently through market volatility Total Recordable Incident Rate (TRIR) FY2019 0.83 FY2020 0.49 Training & Education Safety performance Continue to maintain expertise yields driven by commitment to safety standards 100% perfo
Slide 7: Positioning for a Cleaner Future
POSITIONING FOR A CLEANER FUTURE Displacing Conventional Diesel Fleets with Tier IV Dynamic Gas Blending (DGB) Dual Fuel Equipment through Conversions and New-Build Purchases Hydraulic Horsepower (HHP) Composition YE2020 180 Pounds of CO2 per mmbtu(1) Tier II Conventional Diesel Diesel 100% 90 YE202
Slide 8: Recent Highlights
RECENT HIGHLIGHTS $395.1 Prudent approach to utilization Revenue $133.7 $154.3 (in $millions) $106.1 • Effective utilization of 9.6 fleets in Q4 Q1 2020 Q2 2020 Q3 2020 Q4 2020 • Plans to deploy 50,000 HHP of Tier IV DGB in 2021, and invest $17 million in Tier IV DGB conversions $(7.8) Net Loss (in
Slide 9: 2020 Q4 Financial Highlights
2020 Q4 FINANCIAL HIGHLIGHTS 2020 Q4 Revenue Mix Revenue: $154.3 MM Net Loss: $44.1 MM 1% 99% Non- Permian Permian Adjusted EBITDA: $23.8 MM (1) Free Cash Flow: $9.1 MM (2) Durable Capital Structure: 2% 98% All Other Pressure • Cash: $68.8 MM Pumping • Total Debt: $0 MM • Total Liquidity: $120.8 MM
Slide 10: Uniquely Positioned for Success
UNIQUELY POSITIONED FOR SUCCESS Permian Blue Chip Superior Sustainable Future Focus Customers Performance Positioned in the low Large drilling Consistently Investing in lower emissions cost basin with sector leading inventories and outperforming the competition on equipment to reduce our carbon oper
Slide 11: Appendix
PRO APPENDIX
Slide 12: 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 13: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Three Months Ended (in $ thousands) March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Net Cash from Operating Activities $61,724 $35,186 $21,116 $21,136 Net Cash used in Investing Activities ($46,557) ($31,468) ($4,154) ($12,038) Free Cash Flow $15,167 $3,71
Slide 14: Contact
Confidential Draft CONTACT Corporate Investor Headquarters Relations 1706 S. Midkiff Rd Sam Sledge Midland, TX 79701 sam.sledge@propetroservices.com 432.688.0012 Office Direct 432.253.5111 www.propetroservices.com © 2021 ProPetro Holding Corp. All Rights Reserved. 14