Phx Energy Services Corp. · TSX:PHX

Phx Energy Services — AltaCorp Capital/ATB Corporate Financial Services Conference 2019

14 slides from Phx Energy Services's conference presentation, January 2019

  1. Slide 1: AltaCorp Capital/ATB Corporate Financial Services Conference

    ALTACORP CAPITAL/ATB CORPORATE FINANCIAL SERVICES CONFERENCE JANUARY 8-10, 2019

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Some matters discussed in this presentation may be considered to be forward- looking statements. Such statements include declarations regarding management’s intent, belief or current expectations. Prospective investors are cautioned that any such forward-looking statements

  3. Slide 3: Third Quarter Highlights

    Third Quarter Highlights Significant improvements in operating and financial results in 2018 – Highest quarterly earnings per share and net earnings since the third quarter of 2014 – Highest level of adjusted EBITDA since the fourth quarter of 2014 – US operations led growth N i n e - M o nt h N i n

  4. Slide 4: Financial Results

    Financial Results Stated in thousands of dollars except per unit Three-Month Period ended September 30, Nine-Month Period ended September 30, amounts, percentages and operating days 2018 2017 % Chg 2018 2017 % Chg Operating Results (unaudited) (unaudited) Revenue 85,033 65,396 30 224,800 180,340 25

  5. Slide 5: Focused on Profitability

    Focused on Profitability $90.0 50% $80.0 $85 45% 40% $70.0 $70.8 $69 35% Revenue $60.0 $60.7 30% $50.0 25% $40.0 20% $30.0 15% 15% 16% $20.0 10% Margin as % 10% of$10.0 Revenue 8% 5% $- 0% Q4 2017 Q1 2018 Q2 2018 Q3 2018

  6. Slide 6: Focus on Growth in the US Market

    Focus on Growth in the US Market US Quarterly Revenue and Profitability $60.0 $53.9 40% $51.6 35% $50.0 30% $36.3 $38.1 $40.0 25% Revenue $30.0 20% 21% $20.0 19% 15% 10% Margin $10.0 as % 5% of$- Revenue 7% 6% 0% Q4 2017 Q1 2018 Q2 2018 Q3 2018 US Revenue As A Percentage Of Consolidated Revenue 62%

  7. Slide 7: PHX Energy's objective is to offer unique solutions powered by disruptive technologies

    PHX Energy’s objective is to offer unique solutions powered by disruptive technologies

  8. Slide 8: PowerDrive Orbit Rotary Steerable System

    PowerDrive Orbit Rotary Steerable System  Entered an agreement to purchase Schlumberger’s PowerDrive Orbit RSS to operate in the US market  PowerDrive Orbit RSS is widely recognized as the industry’s leading RSS technology  PHX Energy has developed internal engineering and operational competencie

  9. Slide 9: Velocity Real-Time MWD System

    Velocity Real-Time MWD System  Continues to be in high demand in all operating areas – Majority of the fleet is deployed to the Permian – Clients include Shell, Chevron, Pioneer and COG  Benefits include: – Unified telemetry – Greater reliability – Improved data rates – Advanced measurements, ex:

  10. Slide 10: The Atlas Motor… Discover the Power

    The Atlas Motor… Discover the Power  Industry demanded a motor that could perform with upgraded high specification drilling rigs  We designed the Atlas to be the motor – Exclusively developed and manufactured by PHX Energy with proprietary bearing and power section – Propels rate of drilling with

  11. Slide 11: Sizable Opportunity

    Sizable Opportunity 1,077 US PHX currently 7.25" High rigs/day Performance has a small fleet of Atlas 2018 Estimated Motor Rig Count Motors 647 US Small fleet rigs/day with 3,235 * High Performance from multiple suppliers 8 ½"/ 8¾" motors 7" Motors Est. fleet of 200 Motors Hole Size required Legacy

  12. Slide 12: Atlas High Performance Drilling Motor drilled a client's pacesetter well

    Our 7.25” Atlas High Performance Drilling Motor recently drilled a client’s pacesetter well in the Delaware basin. (Q3 2018)

  13. Slide 13: Record-breaking first run of high performance fleet

    We have been building an unmatchable fleet of high performance technology and the very first run was record-breaking! We broke our client’s record for footage drilled in a 24 hour period in the lateral section and generated impressive performance numbers (Q4 2018)

  14. Slide 14: Direction for 2019

    Direction for 2019  PHX Energy has become a premium provider by developing a fleet of disruptive technologies – Market will reward robust and reliable technology that can enhance drilling performance; Bottom line is drill faster! – High performance fleet of technology is expanding with additional f

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