Liberty Energy Inc. · NYSE:LBRT
Liberty Energy — Liberty Oilfield Services — Merger or Acquisition (September 2020)
24 slides from Liberty Energy's merger presentation, Sep 1, 2020
Slide 1: Schlumberger to Contribute OneStim to Liberty
Exhibit 99.2 Schlumberger to Contribute OneStim to Liberty September 1, 2020Exhibit 99.2 Schlumberger to Contribute OneStim to Liberty September 1, 2020
Slide 2: Liberty: A Premier North American Frac Service Provider
Liberty: A Premier North American Frac Service Provider A Combination That Offers Compelling Value Creation S U P E R I O R R E T U R N S (1) Liberty’s proven performance across cycles with 27% average CROCI driven by accretive investment in downcycles and balance sheet strength, with full exposure
Slide 3: A Transformational Combination: Technology, Integration & Scale
A Transformational Combination: Technology, Integration & Scale An Unrivaled Pureplay Frac Service Provider Liberty Pro Forma Operational Footprint Schlumberger OneStim Basin Overlapping Operations Liberty Basin $5.2B $664MM Alberta, Canada (1) Northeast 2019 Revenue 2019 Adjusted EBITDA + OneStim r
Slide 4: Transaction Terms Aligned with Liberty's Strategic Priorities
Transaction Terms Aligned with Liberty’s Strategic Priorities ◼ Liberty announced an agreement to acquire Schlumberger’s North American pressure pumping business TM (OneStim ) Acquisition □ Assets include frac equipment, pumpdown perforating wireline business, and Permian sand mining business units
Slide 5: Schlumberger OneStim Snapshot
Schlumberger OneStim Snapshot nd Historically 2 Largest Frac Company in North America Technology leader in 2019 Financials Snapshot Diversification: Broad Real Estate Footprint Synergistic Geographic and pressure pumping for over 20 Owned Revenue Customer Profile 60+ years Facilities $3.2B Intellect
Slide 6: Achieving Scale: A Transformative Transaction that Sets Liberty Apart
Achieving Scale A Transformative Transaction that Sets Liberty Apart 2019 Liberty 2019 Liberty Pro Forma REVENUE ◼ $2.0B◼ $5.2B (2) ◼ $277MM ADJUSTED EBITDA◼ $664MM (1) MARKET SHARE ◼ 9%◼ 22% FINANCIAL LEVERAGE ◼ Net Cash◼ Net Cash AVAILABLE FOR SERVICE HORSEPOWER ◼ 1.25MM HHP◼ 2.50MM HHP (3) ◼ N/A
Slide 7: Accretive on 2019 Pro Forma Metrics
Accretive on 2019 Pro Forma Metrics Disciplined Investment Drives Returns (1) (1)(2) (1)(3) Revenue Per Share Adjusted EBITDA Per Share Free Cash Flow Per Share $30 $4.00 $3.00 $29 $3.64 $2.08 $20 $2.00 $2.39 $17 $2.00 $10 $1.00 $0.57 $0 $0.00 $0.00 Liberty Liberty Pro Forma Liberty Liberty Pro Form
Slide 8: Strategic Acquisitions
Strategic Acquisitions Liberty’s Proven Track Record of Disciplined Growth & Returns Through Cycles 2016: Sanjel 2018: ST9 2020: Schlumberger OneStim • Positioned Liberty for next wave of growth • Increased control of supply chain • Establishes premier completions provider in North America • Added T
Slide 9: Liberty's Unmatched Track Record of Attractive Returns
Liberty’s Unmatched Track Record of Attractive Returns Proven Steward of Capital in the Energy Sector (1) Liberty Cash Return on Capital Invested (CROCI) Strategic Priorities 47% 44% 45% 43% Disciplined 1 Growth High Rates of 2 35% Return 29% 27% LBRT Average Balance Sheet 3 25% Strength 20% 19% Unm
Slide 10: A Powerful Completion Services Platform
A Powerful Completion Services Platform Customer Perception: Bringing Together The Best Kimberlite Frac Performance Perception 2019 Market Share Safety Value Disadvantaged Premium Service Provider Provider 22% Liberty pro forma (1) market share Service Quality #2 Largest frac OneStim company pro for
Slide 11: Improving Customer $/BOE Drives Liberty Returns
Improving Customer $/BOE Drives Liberty Returns Synergistic Technology Offerings Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS Field Studies FracTrends LibertyMVA Petrophysical Knowledge Frac Design Perforation Placement and Design Calibrated Fr REAL ac Mod-eT linIME g TM LB
Slide 12: Bringing Advanced Technologies to Optimize $/BOE
Bringing Advanced Technologies to Optimize $/BOE Tech Highlight: Implement Frac Design Changes in Real-Time Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS Fracture Diverter Technology TM (1) • BroadBand Shield : fracture geometry control • Minimize frac hits, avoid undesirabl
Slide 13: Next Generation Field Operations & Equipment
Next Generation Field Operations & Equipment Driving Improvement with Advanced Equipment & Controls on Location Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS Next Generation Proprietary Control Pump Design & Equipment Monitoring Equipment Systems Manufacturing ▪ Tier 4 dual
Slide 14: Vertical Integration Capturing Margin & Creating A Competitive Advantage
Vertical Integration Capturing Margin & Creating A Competitive Advantage Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS Pumpdown Perforating Wireline Wireline: Leading Cause of Frac Delays Frac Sand Mining & Logistics Sand: Largest Consumable Cost of Completions Capital Light
Slide 15: ESG: An Unrivaled Commitment to Environmental Progress
ESG: An Unrivaled Commitment to Environmental Progress Performance with Purpose: Business Strategy Advances Industry ESG Efforts Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS OneStim 2013 2015 2018 2020 2021 TM Dual Fuel Spirit Tier IV DGB Tier IV DGB digiFrac Liberty’s firs
Slide 16: ESG: Social Engagement at the Core of Our DNA
ESG: Social Engagement at the Core of Our DNA The Liberty to Pursue Your Dreams Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS Our efforts evolved from our name, Liberty. We believe in human liberty. Everyone should have the opportunity and freedom to follow their dreams. We
Slide 17: ESG: Governance in Focus
ESG: Governance in Focus Liberty Team Aligned with Shareholders Since its Founding Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS William Kimble ZERO Former Managing Partner of KPMG LBRT Lead Director LBRT Audit Committee Chair Executive Team Executive Team Turnover Low Emplo
Slide 18: A Culture of Collaboration Drives Results
A Culture of Collaboration Drives Results Safety, Service Quality, Efficiency & Technology Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS L I B E R T Y C U L T U R E Empower High Expectations Treat People Right Employees Innovation-Based Common Sense Low Turnover Culture Safe
Slide 19: Significant Upside Beyond Frac Assets
Significant Upside Beyond Frac Assets Growth & Scale in the Asset Base Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS Frac Assets Acquired Other Assets Expanding our asset base and right-sizing the market Available for Service Maintenance Support Permanently Retired 8MM TPA P
Slide 20: A Plan Forward: Opportunities Abound
A Plan Forward: Opportunities Abound Execution in Focus Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS Day One Synergies Operational Efficiencies Supply Chain ▪ $125MM reduction in Schlumberger ▪ Less NPT enables profitability ▪ Vertical integration provides increased OneStim
Slide 21: Value Creation: Aligning Our Strategy to Business Realities
Value Creation: Aligning Our Strategy to Business Realities Significant Cash Flows Even in a Modest Cyclical Recovery Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS (1) Historical Liberty Adjusted EBITDA Per Fleet Historical Combined Market Share Significant Cash Flow Potenti
Slide 22: Scale & Balance Sheet Strength
Scale & Balance Sheet Strength INVESTABLE rd Creating the 3 Largest North American Oilfield Service Company Leader in TECHNOLOGY Leader in ESG Leader in CULTURE Leader in RETURNS (1) (2) North American Oilfield Services Revenue ($B) Financial Leverage $11.9 Net Cash Pro Forma $7.6 Net Cash Stand Alo
Slide 23: A Transformational Combination at the Right Time
A Transformational Combination at the Right Time Compelling Investment Rationale I N C R E A S E D S C A L E & T E C H N O L O G Y Complementary Assets & Services V E RT I C A L I N T E G R AT I O N Capturing Margin & Improving Returns D I V E R S I F I C AT I O N Geographic Expansion + VA L U E C R
Slide 24: Important Disclosures
Important Disclosures FORWARD LOOKING STATEMENTS The information in this presentation includes “forward-looking statements”. All statements, other than statements of historical fact included in this presentation regarding Liberty Oilfield Services Inc.’s (“Liberty” or the “Company”) expectations reg
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