Propetro Holding Corp. · NYSE:PUMP
Propetro — Merger or Acquisition (November 2018)
13 slides from Propetro's merger presentation, Nov 14, 2018
Slide 1: Acquisition of Pumping Services Assets from Pioneer Natural Resources
PROPETRC Acquisition of Pumping Services Assets from Pioneer Natural Resources November 13, 2018 NYSE: PUMP www.propetroservices.com
Slide 2: Forward-Looking Statements
PROPETRO’ FORWARD-LOOKING STATEMENTS Certain information included in this presentation constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to numerous risks and uncertainties, many of which are diffic
Slide 3: Discussion Topics
PROPETRO’ DISCUSSION TOPICS Transaction Summary Strategic Rationale Implied Valuation Asset Overview Sources & Uses and Pro Forma Capitalization Pro Forma ProPetro Overview
Slide 4: Transaction Summary
PROPETRO’ TRANSACTION SUMMARY = ProPetroto acquire Pioneer Natural Resources Pressure Pumping ("PPS") Assets Overview ProPetro to become a strategic long-term service provider to Pioneer, providing pressure pumping and related services fora term of up to 10 years = PPS assets include 8 fleets with 5
Slide 5: Strategic Rationale
PROPETRO’ STRATEGIC RATIONALE pumper in the Permian Basin Y Efficient transition through existing 4,415,000 HHP partnership with leading Permian operator 28 Fleets Y Acquiring 510,000 HHP for $653 / HHP“) 905,000 HHP. ¥ Long-term agreement provides contracted demand for nearly 30% of pro forma fleet
Slide 6: Compelling Valuation in Today's Market
PROPETRO’ COMPELLING VALUATION IN TODAY’S MARKET Valuations | $ / HHP VY Attractive $/ HHP valuation relative to current corporate levels and estimated newbuild levels Current oF $1,600 ‘ * PUMP i Y Prudent investment in assets with a net neutral impact to market supply v Expected to be accretive on
Slide 7: Efficient Optimization of PPS Assets
PROPETRO’ EFFICIENT OPTIMIZATION OF PPS ASSETS Steady ramp to run-rate activity and efficiency by year-end 2019 PPS Estimated Active Fleets 8 1” Increased scale likely to generate 1 greater purchasing power 1“ Three coiled tubing units 'V Additional HHP dedicated to wireline | pumpdown Operational e
Slide 8: Horsepower Allocation
PROPETRO’ HORSEPOWER ALLOCATION Asset Breakdown Frac Fleets: 50,000 HHP / Fleet x 8 Fleets:(") 400,000 + Pumpdown: 7,500 HHP / Fleet x 8 Fleets:() 60,000 + Extra HHP (Potential Maintenance Savings): 50,000 {Seat asi sn nv annDn ED Us tn nn nO UO hs nn nt nD NOUN Ue Un nt OO ; ' i) 1= Total HHP: 510,
Slide 9: Transaction Sources & Uses and Pro Forma Capitalization
| TRANSACTION SOURCES & USES AND PRO PROPETRO’ FORMA CAPITALIZATION Sources and Uses (Sin millions) Sources Uses Equity issuance $290 Pressure Pumping Assets $3233 ABL Draw at Closing $55 RE Facilities and Other Assets” S67 ABL Draw 60 Days Post-Closing $65 Total Sources $400 Total Uses $400 Pro For
Slide 10: Pro Forma ProPetro
PROPETRO’ = 100% Frac Operations Permian Concentrated — 1,415,000 HHP Spread over 28 Crews") = Customer and Employee Focused Business Model = Fully Utilized Fleet — Including a 10 year strategic, long-term service agreement for ~30% of the fleet PRO FORMA PROPETRO = Permian Focused Customers PIONEER
Slide 11: Horsepower Growth and Utilization
PROPETRO’ HORSEPOWER GROWTH AND UTILIZATION 1,500,000 56% Increase in Total Horsepower 510,000 total HHP additions Homogenous Fleet Fully Maintained Through the Downturn Continue to Maintain Industry Leading Utilization 1,250,000 1,000,000 750,000 500,000 250,000 Chart basedon end of period HHP coun
Slide 12: Permian Focus: Unchanged Positioning for Success
PROPETRO’ a Permian Focus — Positioned in the low cost basin Blue Chip Customers — Large drilling inventories and sizeable rig programs Superior Performance — Consistently outperforming the competition on location Full Calendar Fully booked calendar through the end of 2018 and beyond Strong Balance
Slide 13: Contact
PROPETRO’ CONTACT Corporate Headquarters: 1706 S. Midkiff, Bldg. B Midland, TX 79701 432.688.0012 www.propetroservices.com Investor Relations: Sam Sledge sam.sledge@propetroservices.com Office Direct 432.253.5111 13
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