NexTier Oilfield Solutions Inc
NexTier Oilfield Solutions — Investor Presentation (September 2020)
19 slides from NexTier Oilfield Solutions's investor presentation, Sep 30, 2020
Slide 1: Investor Presentation
Investor Presentation September 30, 2020
Slide 2: Important Disclosures
Important Disclosures Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Sec
Slide 3: Overview of NexTier's Leadership Position
Overview of NexTier’s Leadership Position Taking today’s oilfield to the NexTier Our Position L48 Geographic #2 #1 #1 Overview Leadership % of total revenue2 U.S. land completion Wireline plug & Dual-Fuel NG position in all services provider perf fleet1 powered HHP1 operating basins Strategic Pillar
Slide 4: Taking Today's Oilfield to the NexTier
Taking Today’s Oilfield to the NexTier The evolving oilfield demands innovative service providers Fortified ̶ Completions leadership position; #2 frac provider Position ̶ Strong balance sheet = staying power & flexibility Digitally ̶ Lower operating costs for us and our customers Enabled ̶ Optimizin
Slide 5: Fortified Balance Sheet
Fortified Balance Sheet Strong and flexible financial position provides staying power Capital priorities focused on cash preservation until visibility improves $430mm ̶ $337mm cash NexTier Offering Liquidity1 ̶ $93mm ABL availability Invested in equipment readiness = ready on demand Financial Streng
Slide 6: Focused Digital Strategy
Focused Digital Strategy The digital oilfield of tomorrow, realized today NexTier’s Digital Lower cash costs Reduce costs per Objectives: of our operations barrel for customers Built for: scale, wellsite scope enhancement & integration KEY BENEFITS: NexHub • Remote operations Powered by: • Extended
Slide 7: NexHub Delivering Returns
NexHub Delivering Returns Automation & data science lowers operating cost & optimizes capital expenditures ▼66% ▼32% >99.9% Reduction in Frac NPT reduction per Inventory and billing OPERATIONS engineers/fleet fleet1 accuracy ▲124% ▼$2.1mm ▼22% Early failure / pump hour 2Q20 savings from 1H20 YoY cap
Slide 8: Leading Market Readiness
Leading Market Readiness Protecting & preserving HHP capacity for readiness & future growth Staying power & platform readiness provides for differentiated value creation in market recovery PROTECT KEY COMPONENTS Creating long-term value via: Real-time, data driven visibility on location & 1. Leading
Slide 9: Carbon Reducing Technologies that Lower Operating Cost
Carbon Reducing Technologies that Lower Operating Cost Holistic emissions reduction platform with significant results #1 Low emission dynamic Up to 80% Exceeding peers by an Dual-Fuel NG average of 20% due to gas blending technology NG Substitution2 powered HHP1 proprietary control system NexESG Tra
Slide 10: Significant Earnings Power
Significant Earnings Power NEX currently valued at ~0.7x normalized earnings potential NEX 2019 Normalized Adjusted EBITDA ($mm) NEX Discount vs. Peers EV1 / ADJ. EBITDA 0.7x EV1 / Adj. EBITDA (2019)3 $MM 0.8x $125 $504 2.6x $446 ($67) $504mm 0.7x PF Adjusted Less: Well Support Add: Captured Normali
Slide 11: Attractively Valued vs. Peers
Attractively Valued vs. Peers Discount per HHP valuation to peers despite superior platform & position EV / Total HHP ($/HHP) $589 NEX EV/HHP >50% Discount to Peers Despite… $515 Peer EV/HHP Peer Average Robust liquidity + zero financial leverage $343 ▼~56% Leading profitability per fleet $249 $
Slide 12: Market Update
Market Update Focused on people, market readiness & balance sheet 2H 2020 Outlook • Asset preservation program driving speed-to-deploy at attractive cost • High success rate in bringing back furloughed workers • Activity steadily improving off cycle trough realized in late-May / early-June 2020 • Q3
Slide 13: Key Takeaways
Key Takeaways Taking today’s oilfield to the NexTier Relentless focus on evolution & enhancement of our digital program Leader in sustainable development & overall wellsite emission reduction Emerging from the downturn in a leadership position Compelling investment opportunity with attractive relati
Slide 14: Appendix
APPENDIX © NexTier Completion Solutions Inc. 2019
Slide 15: Non-GAAP Information
Non-GAAP Information Unaudited Pro Forma Financial Information: In order to provide the most meaningful comparison of results of operations for 2019, supplemental unaudited pro forma financial information has been included in this presentation. The unaudited pro forma financial information is based
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2019 (amounts in thousands, except per share amounts) Adjustments NexTier (1) Historical C&J (2) Reclass (3) Pro forma (4) Pro Forma Revenue — — 3,406,288 1,821,556 1,584,732
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations UNAUDITED PRO FORMA NON-GAAP FINANCIAL MEASURES (amounts in thousands) Year Ended December 31, NEX Enterprise Value: 2019 Closing NEX stock price 9/24/2020 $1.71 Pro forma net loss (1) (196,577) NEX Fully Diluted Shares Outstanding 216,536,067 Interest expense, net 21,856 as
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations UNAUDITED PRO FORMA NON-GAAP FINANCIAL MEASURES (amounts in thousands) Year Ended December 31, 2019 Completion Well Support WC&I Total Services Services Pro forma revenue(1) 293,430 385,989 3,406,288 2,726,869 Pro forma cost of services 2,126,654 245,870 318,720 2,691,244 Pr
Slide 19: Investor Contacts
Investor Contacts: Kenny Pucheu Chief Financial Officer Marc Silverberg Managing Director (ICR) marc.silverberg@icrinc.com © NexTier Completion Solutions Inc. 2019 © NexTier Completion Solutions Inc. 2019
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