Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - ProPetro Holding Corp. | pressreleasedatedseptember.htm |
| 8-K - 8-K - ProPetro Holding Corp. | a8-kseptember262017.htm |
Johnson Rice 2017 Energy Conference
September 26, 2017
NYSE: PUMP
www.propetroservices.com
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2
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 difficult to predict, and generally
beyond our control. Actual results may differ materially from those indicated or implied by such
forward-looking statements. For information on identified risks and uncertainties that could
impact our forecasts, expectations, and results of operations, please review the risk factors and
other information disclosed from time to time in our filings with the Securities and Exchange
Commission.
This presentation references “Adjusted EBITDA,” a non-GAAP financial measure. This non-
GAAP measure is not intended to be an alternative to any measure calculated in accordance with
GAAP. We believe the presentation of Adjusted EBITDA provides useful information to investors
in assessing our financial condition and results of operations. Net income is the GAAP measure
most directly comparable to Adjusted EBITDA. Non-GAAP financial measures have important
limitations as analytical tools because they exclude some, but not all, items that affect the most
directly comparable GAAP financial measures. You should not consider Adjusted EBITDA in
isolation or as a substitute for an analysis of our results as reported under GAAP. Further,
Adjusted EBITDA may be defined differently by other companies in our industry, and our
definition of Adjusted EBITDA may not be comparable to similarly titled measures of other
companies, thereby diminishing their utility. A reconciliation of non-GAAP measures to the most
directly comparable measures calculated in accordance with GAAP, is set forth in the Appendix
hereto.
FORWARD-LOOKING STATEMENTS
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ProPetro at a Glance
Permian Basin Update
2017 Q2-Q3 Highlights
2017 Q2 Financial Review
Fleet Expansion Initiative
Unique Positioning
Outlook
DISCUSSION TOPICS
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4
100% Frac Operations
Permian Concentrated
– 690,000 HHP(1) Spread over 16 Crews
Over 7x Organic HHP Growth
Since 2013(2)
Customer and Employee
Focused Business Model
(1) Estimate as of YE 2017
(2) Growth calculated using YE 2012 to estimated YE 2017
OVERVIEW
600,000 HHP
(1)
Spread Over 14 Units
100% Permian
Fracturing Operations
Blue Chip Permian-Focused
Customers
Over Four Times Organic
HHP Growth
Installed Capacity Has Grown 4x Over the Past Four Years
94% Pressure Pumping
(2)
Other Services Include: Coiled Tubing,
Flowback Services and Surface Air Drilling
16 Hydraulic
Fracturing
Units(1)
690,000 HHP(1)
14 Cementing
Units
3 Coiled Tubing
Units
10 Acidizing
Pumps
Flowback
Operations
*
Permian Focused Customers
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Healthy Frac Demand Outpacing HHP Capacity
– Driven by Recent E&P Acquisitions and Attractive Economics
Increasing Pricing Leverage for Services
– Driven by Rig Activity and Short Supply of HHP Capacity
Mature and Evolving Infrastructure
– Driven by Historical Activity Levels and New Regional Sand Mines
*Baker Hughes Rig Data, September 15, 2017
PERMIAN MACRO
Total U.S. Onshore
Oil Directed Rig Count: 749*
Total U.S. Onshore Oil Rigs Added
Since Trough (May 2016): 433*
Permian
Basin
49%
Permian
Basin
54%
Permian
Basin
51 %
Other
49 %
Permian
Basin
56 %
Other
44 %
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Significant financial improvement Q2 vs Q1
- Revenue of $213.5 MM (24% increase Q/Q)
- Net income of $4.9 MM
- Adjusted EBITDA of $30.7 MM (89% higher Q/Q)
- Adjusted EBITDA margin grew to 14% from 9% Q/Q
Continued frac fleet utilization of 100%
- Will exit Q3 with 15 deployed fleets
Fleet deployment ahead of schedule
- Deployed two new-build fleets in Q2
- Deployed three new-build fleets in Q3
Tier 2 engine commitments
Stainless fluid end conversion on schedule (fully converted in Q4)
2017 Q2-Q3 HIGHLIGHTS
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Permian
97%
Non-
Permian
3%
Revenue: $213.5 MM
EPS: $0.06
Adjusted EBITDA: $30.7 MM
Conservative Leverage Profile(1)
– Cash: $25.1 MM
– Total Debt: $16.5 MM
– Total Liquidity: $175.1MM (2)
(1) As of June 30, 2017.
(2) Including an undrawn revolving credit facility with a borrowing capacity of $150 MM.
2017 Q2 FINANCIAL HIGHLIGHTS
2017 Q2 Revenue Mix
Frac
90%
Non-Frac
10%
Pressure
Pumping
95%
All Other
5%
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Hydraulic Fracturing (~690,000 HHP by Year End)
Cementing
– Deployed new-build units in June and September
– Brings total capacity to 14 units
FLEET EXPANSION
Deployed Fleets HHP Cum HHP
As of 9/1/16 1-10 420,000 420,000
5/2/17 11 45,000 465,000
6/6/17 12 45,000 510,000
7/14/17 13 45,000 555,000
8/14/17 14 45,000 600,000
9/25/17 15 45,000 645,000
Mid Q4 16 45,000 690,000
“Due to strong Permian demand within our superior customer base, we will continue
to expand our operations while maintaining industry leading performance.”
- Dale Redman, CEO
98
218
380
420
420
690
2012A
2013A
2014A
2015A
2016A
2017E
Year End Frac Fleet HHP ('000s)
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Chart based on end of period HHP counts
Horsepower Growth and Utilization
Modern Homogeneous Fleet
– 85% of Current Fleet Built by Single Manufacturer Since 2013
91% of Fleet Currently Works 24/7
Fully Maintained Through the Downturn
No Speculative New Builds
Tier 2 Engine Purchase
Gives Expansion
Optionality
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2
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Q4
E
Total Horsepower Utilized Horesepower
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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 well into 2018
Strong Balance Sheet
– Minimal debt with disciplined capital allocation
No Speculative New Builds
– Strong customer commitments
High Utilization Through Cycles
– Great history of battling cyclicality
Delaware Upside
– Untapped opportunities with current customers and beyond
UNIQUELY POSITIONED FOR SUCCESS
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APPENDIX
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CONSOLIDATED & SEGMENT FINANCIALS
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RECONCILIATION OF ADJUSTED EBITDA
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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
CONTACT