pacwest fracdb capabilities overview, nov 2011

8/3/2019 PacWest FracDB Capabilities Overview, Nov 2011

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PacWest Consulting Partners920 Memorial City Dr, Suite 160

Houston, TX 77024

FracDB: The First US Frac Database

A Powerful Tool for Understanding the Market

Houston, Texas

November 14, 2011

TERMS & CONDITIONS

Information furnished in all reports produced by PacWest may be used by Client for internal purposes, as Client deems beneficial, as

long as due care is taken to hold the information confidential within Clients organization and PacWest is not liable for the information

provided.

All rights to the information remain with PacWest. PacWest represents that it will not breach any obligation of confidentiality with

respect to information contained in the study. PacWest will maintain in confidence and not disclose any information related to Client,

without prior written consent of the Client. PacWest will not disclose to any person, including, without limitation, any of the Clientscompetitors or suppliers, the fact that Client has engaged PacWest in this project scope, the scope of the assignment or any other

information relating to Client.


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Client Confidential

FRACDB CAPABILITIES OVERVIEW

PacWest 2011 | All rights reserved | 2

Contents

1. PacWest Snapshot

2. FracDB Capabilities

FracDB Overview

Pressure Pumper & Customer Relationships Case Study

Completions Chemical Market Case Study

3. PacWest Market Intelligence Offerings


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Client Confidential



Firm Overview & Capabilities

PacWest is a boutique strategy consultancy and market intelligencefirm that specializes in unconventional oil & gas

Provide strategy consulting and

advisory services to Oil & Gas

Strength in Oil & Gas supply market- Often work with operator supply

chain groups analyzing

supply/demand, developing

sourcing strategies, building

capabilities, etc.

With oilfield suppliers, often work at

C-Level or business lead

Consulting & Advisory

Offer industry-leading analysis of

unconventional market

Deep knowledge and strength in thepressure pumping / frac market

Employ combination of primary

intelligence+ secondary research

Unique in market: apply strategy

consulting capabilities to turn

research into actionable intelligence

Market Intelligence Products

All key staff come from top-tier strategy firms; consulting and market

intelligence capabilities reinforce/inform each other


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Client Confidential



Sample of Recent PacWest Consulting Projects

A sampling of some of PacWests recent projects demonstrate ourdepth of experience in North American and international shale

We have resources in nearly every major unconventional

country/region to support international shale needs

PacWest Project Client Outcome

Analyzed Bakken & Eagle Ford supply/demand; conducted

demand planning exercise to develop new pressure pumping

sourcing/contract strategy

Operator avoided completion

delays, avoided significant

additional costs

Developed Poland unconventional market entry,

product/service, and JV strategy for a potential shale servicecompany for a private equity client

PE firm focused on high-growth

segments only, with the rightstrategic partners

Developed an innovative economic and strategic analysis of

operator all-in water management costs over 20-year

timeframe, for Bakken & Eagle Ford assets

Operator understood cost

implications, made optimal

economic decisions

Conducted a study of frac pump market focused on supplier

strategic plans, manufacturing capabilities, and supply chaincapabilities

Equipment manufacturer

developed optimal strategicinvestment plans

Conducted study of evolving service company landscape in

Poland, including equipment, resources, and expansion plans

Operator made better informed

contract award decision


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Client Confidential



Contents

1. PacWest Snapshot


FracDB Overview





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Client Confidential



FracDB is the definitive database of fracs and frac chemicals that canbe used to conduct sophisticated market analyses

Data ElementsProduct Overview

Frac date

Well number, API number

Operator

TVD

Water volume

Pressure Pumper

Play

Chemical type Chemical ingredient

Chemical supplier

Contact us for more detail

Database of US fracs and frac chemicals, built

into a rich structured data set

- The data set already contains nearly 7,000

fracs conducted in 2011 A sophisticated tool that can be used to run a

variety of analyses:

- Pressure pumping/frac market share

- Completion chemicals market share

-Regional frac design practices

- And dozens of other analyses

Updated quarterly

FracDB is a powerful tool for the sophisticated market analyst

available late 2011


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Contents

1. PacWest Snapshot


FracDB Overview








PacWests FracDB provides unprecedented insights into the completionchemicals market

Analysis of Pressure Pumper Customer Relationships

The PacWest FracDB is a database of US fracs and frac chemicals, built into a rich,

structured data set

- The dataset currently contains detailed data from over nearly 7,000 US fracs

conducted in 2011

-The FracDB provides a granular view of pressure pumper customer relationshipsacross US plays/basins

As an example of the analysis possible with the PacWest FracDB, we have provided a

detailed view of pressure pumper customer relationships for one key shale play and

one of Baker Hughes key customers





BHI has a well-established presence in the Barnett but works primarilywith Devon, while HAL and WFT have a broader customer base

Pumper / Customer Relationships in the Barnett (major E&Ps only)

Note: Analysis includes data from 637 fracs in the Barnett executed between January 2011 and September 2011 from the PacWest FracDB

Operator Pumpco BHI HAL SLB WFT Superior Trican

Univer-

sal Pioneer

Frac

Tech C&J

Chesapeake

EOG

Devon

XTOPioneer

Williams

ConocoPhillips

Enervest

Titan

Vantage

Range

Major customer

Minor customer





Baker is Devons frac provider of choice, but Devon still uses otherpumpers in its other assets

Frac Providers Used by Devon in 2011 (Jan-Sep)

CommentsDevons Frac Providers

Note: Analysis includes data from 274 fracs executed for Devon between January 2011 and September 2011from the PacWest FracDB

Play BHI HAL WFT

Arkoma Woodford

Barnett

Eagle Ford

Green River

Haynesville

Permian

Major customer

Minor customer

Although Baker Hughes has provided

the vast majority of Devons fracs in

2011 (92%), Devon has also worked

with Halliburton and Weatherford

Baker Hughes is creating anopportunity for its competitors to

gain a foothold with one of its major

customers

Is Baker Hughes leaving value on the table by opening the door for other pumpers to

work with Devon?





Contents

1. PacWest Snapshot


FracDB Overview









PacWests FracDB provides unprecedented insights into the completionchemicals market

Completion Chemicals Market Analysis

The PacWest FracDB is a database of US fracs and frac chemicals, built into a rich

structured data set

- The dataset currently contains detailed data from over nearly 7,000 US fracs

conducted in 2011

-The FracDB provides extremely detailed data on types and volumes of chemicalsused in the hydraulic fracturing process

As an example of the granular detail provided by the PacWest FracDB, we have

conducted an initial analysis of the market for biocides used during stimulation in the

DJ Basin






BHI is the dominant supplier (75%) of biocide in the DJ basin, although itonly runs 27% of frac jobs

Frac and Biocide Market Share in the DJ Basin

27% 28%

23%

20%

1% 1%

19%

36%

22% 22%

1% 0%

75%

10%

0%

13%

1% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

Baker Hughes Halliburton Superior Calfrac Unknown Maverick

MarketShare

Share of Frac Jobs (total = 612)

Share of Fluid Pumped (total = 6.9M barrels)

Share of Biocide (total = 336K pounds)

CommentsFracs vs. Biocide in the DJ Basin (Jan-Sep 2011)

HAL is the largest frac provider in the

DJ Basin, with 28% of the market by

number of frac jobs, and 36% of the

market by total fluid pumped

However, BHI is the dominantsupplier of biocide in the DJ Basin,

with 75% of the market by weight

Baker supplied 56% of biocide used in

its competitors frac jobs (i.e. frac

jobs not executed by Baker)

Note: Analysis includes data from 612 fracs in the DJ Basin executed between January 2011 and September 2011 from the PacWest FracDB






Although there are eight different biocides used in the DJ Basin, BakersDBNPA product is by far the most common

Biocide Market Share in the DJ Basin

253,532

44,18234,768

3,8590

50,000

100,000

150,000

200,000

250,000

300,000

Baker Hughes Calfrac Halliburton Unknown

PoundsBiocide

MBNPA

Propietary

Bronopol

NaOH

THPS

NaClO

PEG

DBNPA

CommentsBiocide Consumption in the DJ Basin (Jan-Sep 2011)

Baker is the dominant biocide

supplier in the DJ Basin, with 75% of

market share

Baker sells two biocide products in

the DJ: DBNPA (94%) and THPS (6%)

Calfrac is the 2nd largest supplier, with

13% share (44,182 pounds), followed

by Halliburton with 10% share

(44,182 pounds)

Total =

336,342 pounds

Short-Hand Biocide Full Name

Bronopol 2-Bromo-2-Nitro-1,3-Propanediol

DBNPA 2,2-Dibromo-3-Nitrilopropionamide

MBNPA 2-Monobromo-3-itrilopropionamide

NaClO Sodium Hypochlorite

NaOH Sodium Hydroxide

PEG Polyethylene Glycol

Proprietary Unknown Proprietary

THPS Tetrakis (Hydroxymethyl) Phosphonium Sulfate

Note: Analysis includes data from 612 fracs in the DJ Basin executed between January 2011 and September 2011 from the PacWest FracDB






Contents

1. PacWest Snapshot


FracDB Overview









Market Intelligence Offerings

PacWest currently offers multiple unconventional market intelligenceproduct offerings to support subscriber decision-making

Breakdown of pressure pumping fleets/capacity by basin

and supplier with strategic analysis of latest regional

supply market trends

Interactive database of 100+ critical unconventional

suppliers

Cost escalation forecast for major D&C categories

Detailed breakdown of frac activity by basin, operator,

pumper

Database of fracs including basin, operator, pumper,

chemicals, chemical suppliers






PumpingIQ provides the only granular breakdown of regionalfleets/capacity by pressure pumper and analysis of market trends

Focus MarketsFleet/Capacity Breakdown & Trends

Bakken

Eagle Ford

Permian

DJ Basin

Anadarko

Marcellus

Uinta/Piceance/Green River

Haynesville Fayetteville

Barnett

On-going monitoring of pressure pumping

fleets and capacity in major US onshore frac

markets

Granular regional breakdowns offleets/capacity by pumper

Key customers by pumper

Detailed discussion of major trends and

strategic insights for each region and US

market in aggregate

PumpingIQ is the only granular fleet breakdown available in the

market






SupplierIQ is an interactive database of 100+ suppliers that arecritical players in shale supply markets

Profile ContentsSupplier Analysis

PacWest Supplier Classification

Company Overview & Analysis

Service Offerings

Geographic Footprint

Financials

Customers

Organizational Footprint

Detailed discussion of ServiceOfferings: 15 product/services

that are critical for shale

production

Interactive database of 100+ companies that

supply critical D&C products/services for

shale production

Database is updated quarterly with newsuppliers; updates made to existing suppliers

bi-annually

Subscribers can request supplier additions

Offer two forms of subscription to database:

full SupplierIQ access or a subset of suppliers,

customized to subscriber needs

SupplierIQ provides insightful snapshots of your key suppliers and

competitors






CostIQ provides a forecast of cost increases for key drilling andcompletion cost drivers

Cost SegmentsForecast Analysis

Drilling

- Land rigs

- OCTG

-Drilling fluids

- Cementing services

Completion

- Pressure pumping services

-

Proppant- Frac chemicals

- Completion hardware

- Completion rigs

3-year forecast of D&C cost escalation,

segmented into major categories

Includes strategic discussion of trends driving

increases and/or decreases Updated bi-annually (every 6 months)

PacWest utilizes three quantitative methods

to forecast prices changes for each market

segment:

-Multi-variable regression

- Demand/supply models

- Macroeconomic models

CostIQ provides 3-year cost forecasts for each key US region



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Client Confidential



FracIQ is the source of frac activity data by operator and pressurepumper, with data broken down US-wide and regionally

ContentsProduct Overview

Aggregate US fracs:

- By operator

- By pressure pumper

Regional breakdown of fracs:

- By operator

- By pressure pumper

- By frac type

Operator and pumperrelationships

Frac practices, including

chemicals usage

The definitive subscription publication on

frac activity across the US

Summary of fracs by region, operator,

pressure pumper Market share by pumper and operator across

multiple metrics

Strategic analysis of frac trends and market

dynamics, including implications for

operators, pressure pumpers, and other

stakeholders

Updated quarterly

Your Land Rig Newsletter for the frac market available late 2011



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Client Confidential



FracDB is the definitive database of fracs and frac chemicals that canbe used to conduct sophisticated market analyses

Data ElementsProduct Overview

Frac date

Well number, API number

Operator

TVD

Water volume

Pressure Pumper

Play

Chemical type Chemical ingredient

Chemical supplier

Contact us for more detail

Database of US fracs and frac chemicals, built

into a rich structured data set

- The data set already contains nearly 7,000

fracs conducted in 2011 A sophisticated tool that can be used to run a

variety of analyses:

- Pressure pumping/frac market share

- Completion chemicals market share

-Regional frac design practices

- And dozens of other analyses

Updated quarterly

FracDB is a powerful tool for the sophisticated market analyst

available late 2011



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Client Confidential



The ShaleIQ bundled product provides access to 3 useful products at areduced price point

Breakdown of pressure

pumping fleets/capacity

by basin and supplier with

strategic analysis of latestregional supply market

trends

Interactive database of

100+ critical

unconventional suppliers

Cost escalation forecast

for major D&C categories

The ShaleIQ bundle is a valuable resource to add to your decision-

making toolkit

Bundle Includes



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Actionable Intelligence

Transforms volumes of disparate market data, insider industry activity and expert

input into strategic and actionable recommendations for decision-makers

Aggregates, organizes and distills a wide range of data and intelligence to provide

information to our clients that is comprehensive, focused and strategic

Analyzes this information to assess its strategic implications and provide a clear path

of action for each stakeholder

PacWest delivers actionable intelligence that is designed to providestrategic recommendations to key decision-makers

Decision-Makers



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Methodology

PacWest uses a multi-pronged approach to develop its market intelligence offerings;the team:

1) Gathers and reviews all information available publicly and via proprietary

databases

2) Engages its diverse network of industry contacts to gather real-time intelligence

3) Processes and synthesizes raw information into actionable intelligence

PacWest employs a comprehensive methodology that relies onprimary intelligence and rigorous research and analysis

Insights are based on:

Constant conversations with our source

network of field experts on-the-ground

Surveys from operators and suppliers

In-depth interviews and conversations with

operators and suppliers

Industry-leading experts and technical

specialists

PacWest internal databases

Primary Intelligence Gathering

These sources are regularly consulted:

Market research and reports

Company annual reports, 10-Ks, 10-Qs Speeches and presentations by company

leadership and other industry experts

Analyst reports from leading banks

Government data

Secondary Research

pacwest fracdb capabilities overview, nov 2011

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