seventy seven energy presentation

8/11/2019 Seventy Seven Energy Presentation

1/30

INVESTOR PRESENTATION

AUGUST 2014


2/30

2

ASSUMPTIONS AND FORWARD-LOOKING STATEMENTS

This presentation contains certain statements and information that may constitute forward-looking statements within the

meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as

amended. All statements, other than statements of historical facts that address activities, events or developments that we expect,

believe or anticipate will or may occur in the future are forward-looking statements. The words anticipate, believe, ensure,

expect, if, intend, plan, estimate, project, forecasts, predict, outlook, aim, will, could, should,potential,would, may, probable, likely, and similar expressions, and the negative thereof, are intended to identify forward-looking

statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically

include statements, estimates and projections regarding our business outlook and plans, future financial position, liquidity and

capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance

regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking

statements are based on managements current expectations and beliefs, forecasts for our existing operations, experience, and

perception of historical trends, current conditions, anticipated future developments and their effect on us, and other factors

believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-

looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that

any of these expectations will be achieved (in full or at all). Moreover, our forward-looking statements are subject to significant

risks and uncertainties, many of which are beyond our control, which may cause actual results to differ materially from our

historical experience and our present expectations or projections which are implied or expressed by the forward-looking

statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements

include, but are not limited to, risks relating to economic conditions; volatility of crude oil and natural gas commodity prices;

delays in or failure of delivery of current or future orders of specialized equipment; the loss of or interruption in operations of one

or more key suppliers or customers; oil and gas market conditions; the effects of government regulation, permitting and other

legal requirements, including new legislation or regulation of hydraulic fracturing; operating risks; the adequacy of our capital

resources and liquidity; weather; litigation; competition in the oil and natural gas industry; and costs and availability of resources.

For additional information regarding known material factors that could cause our actual results to differ from our present

expectations and projected results, please see our filings with the Securities and Exchange Commission, including our Current

Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q, Annual Report on Form 10-K and the

Information Statement included as Exhibit 99.1 to our Form 10 (Commission File No. 001-36354) filed on June 16, 2014.

Readers are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which

such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date

such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.


3/30

3

Jerry Winchester, CEO

Served for thirteen years as the President and CEO of Boots & Coots International Well Control, Inc. which was acquired by Halliburton in

September 2010

Started his career with Halliburton in 1981 as a fracturing equipment operator and served in positions of increasing responsibility, most

recently as Global Manager over Well Control, Coil Tubing and Special Services 29 years of industry experience

Cary D. Baetz, CFO

Served as Senior Vice President and Chief Financial Officer of Atrium Companies, Inc. From November 2010 to December 2011

Served with Mr. Winchester as Chief Financial Officer of Boots & Coots from August 2008 to September 2010

Served as Vice President of Finance, Treasurer, and Assistant Secretary of Chaparral Steel Company from 2005 to 2008

26 years of industry experience

Karl Blanchard, COO

Joined SSE in June 2014

Previously served as Vice President of Production Enhancement of Halliburton Company

Began his career at Halliburton in 1981, also serving as Vice President of Cementing, Vice President of Testing and Subsea, and President

Director of PT Halliburton Indonesia

Jay Minmier, President - Nomac Drilling

President since June 2011

Previously served as Vice President and General Manager for Precision Drilling Corporation

More than 20 years experience with drilling contractors, notably Grey Wolf Inc. and Helmerich & Payne, Inc.

William R. Stanger, President Performance Technologies (PTL)

President since 2011

Joined Chesapeake Energy in January 2010 as President of Great Plains Oilfield Rentals

A former Vice President of Schlumberger with more than twenty-five years experience in oilfield services

Jerome Loughridge, President Great Plains Oilfield Rental

President since September 2012

Previously served as President of Black Mesa Energy Services, the oilfield investment arm of private equity firm Ziff Brothers Ventures;

Executive Chairman of completions service provider Legend Energy Services; and Chief Operating Officer of Great White Energy Services

Eight years of oilfield management experience

MANAGEMENT TEAM
http://mysite.mychk.com/Person.aspx?accountname=chkenergy/CBaetz


4/30

4

COMPANY HIGHLIGHTS

Attractive US industry dynamics

Drilling: increasing horizontal drilling and efficiency improvements through pad drilling; technology of rig fleet driving margins

Pressure Pumping: market is expected to tighten in 2014 as frac intensity continues to rise

Large integrated footprint in high activity basins and close proximity to customers

Based in Oklahoma City operating in close proximity to some of the most active U.S. unconventional resource developers

Comprehensive service offerings with modern, high quality asset base

Multi-well pad capable Tier 1 and Tier 2 rigs represent 62% of fleet including fit-for-purpose PeakeRigsTM

Hydraulic fracturing assets among the newest in the industry with an average age of 25 months1

Industry-leading contracted backlog providing robust visibility to asset base

Contracts with multiple large, well-capitalized customers with an industry leading 3-year backlog of approximately $2.8B1of

expected future revenue

Experienced and skilled management team

Experience working at highly regarded oilfield services companies including Boots & Coots , Halliburton, Helmerich & Payne and

Schlumberger

Growth drivers in all business segments

Recently delivered one newly constructed PeakeRigTMwith 15 additional newbuilds scheduled to be in service by the end of

2015

Pressure pumping business will add an additional spread in second half of 2014, investigate potential acquisitions for

additional growth

1See Backlog and Service Contract Summary on page 10 of this presentation


5/30

5

BUSINESS SEGMENTS AND OUTLOOK

Drilling

Provides land drilling and drilling-related services,

including directional drilling and mudlogging

Marketed fleet includes 20 Tier 1 rigs, including

10 fit-for-purpose PeakeRigs, 57 Tier 2 rigs and

13 Tier 3 rigs (currently the 5thlargest U.S. land-

based drilling rig fleet)

Hydraulic Fracturing

Provides high-pressure hydraulic fracturingservices

9 hydraulic fracturing fleets with an aggregate of

360,000 horsepower

Oilfield Rentals

Provides premium rental tools and specialized

services for land-based oil and natural gas drilling,

completion and workover activities

Provides water transport and disposal solutions

Oilfield Trucking

Provides drilling rig relocation and logistics

services

Description

2014 - 2015 Business

Outlook Drivers

6 new contracted rigs by YE

2014

10 new contracted rigs by

YE 2015

1 additional spread by YE

2014 (40,000 additional HP) Flat pricing in 2015

Other third party expansion

Consolidation potential



Note: $mm1Adjusted Revenue is a non-GAAP financial measure that we define as Revenue including the pro forma effects of the spin-off; excludes Geosteering and Crude hauling revenue of $4mm and $24mm; excludes

Other Operations revenue of $75mm2 Adjusted EBITDA is a non-GAAP financial measure that we define as net income before interest expense, income tax expense, depreciation and amortization, as further adjusted to add back impairments andgain or loss on sale of property and equipment; Total and Nomac Drilling reflects EBITDA net of rig rental expense of $15mm ( EBITDAR) and lease termination cost of $54mm; see Reconciliation of Net Income

to Adjusted EBITDA slide on page 22 o f this presentation

H 1 2 1 4 H 1 2 1 4 Ad jus te d

Adjus ted Adjus ted E BITD A

R eve nue E B ITD A M a rgin

366 131 35.9%

428 62 14.5%

75 24 31.8%

88 8 9.1%


6/30

6

6.2

4.6

3.4

2.7

2.22.0 2.0

1.9 1.91.6

1.51.3

1.11.0 0.9 0.8

0.3

NBR SPN HP PTEN SSE TCW ESI PD RES KEG CFW BAS CJES PES PKD TDG FRC

SSE IS AMONG THE LEADING NORTH AMERICAN SERVICECOMPANIES

SSE has significant scale to effectively compete with its North American-centric peers

2013 Revenue (in billions)

Source: Bloomberg


7/307

SSE IS WELL POSITIONED FOR CURRENT INDUSTRY TRENDS

Large, integrated footprint in 8 active basins

Shale development expertise (its in our DNA)

Full scale development

plans of large shale

resources existing and

emerging)

Modern, efficient land fleet of 91 operating rigs by year end 2014

Actively converting our fleet mix to meet customer demand

Newest pressure pumping fleet in the industry

Modern well-maintained tool rental fleet

Increased drilling

efficiencies through

modern equipment and

integrated operations

Highly efficient, integrated service model providing single-source Drilling and

Completion solutions

Customer base of large acreage holders that are pioneering factory-style

approach

Winning integrated contracts

rend towards factory

style development

Industry leading safety performancencreasing focus on

safety and regulatory

Current Industry Trend

SSE Positioning

Average age of 25 months as of 6/30/2014


8/308

AREAS OF OPERATIONS

Niobrara Shale

nadarko Basin

Permian Basin

Oklahoma City Headquarters

Selected Field Offices

Eagle Ford Shale

Haynesville Shale

Barnett Shale

Marcellus Shale

Utica Shale

(As of June 30, 2014)


9/309

CUSTOMER DIVERSIFICATION STRATEGY

Replicate Nomac success in winning other third party

business with PTL and Great Plains

Increased NOMAC other third party rigs to 39% todayfrom 9% at beginning of 2012

Build business development team

Increasing business development staff

Focusing on significant industry experience

Building out Great Plains sales team in second halfof 2014; focus on growth without material additional

capital outlay

Selected Customers


10/3010

BACKLOG AND SERVICE CONTRACT SUMMARY

As of July 1, 2014, our contractual backlog was approximately

$2.8B, ~4% of which related to contracts with third parties other

than Chesapeake

Backlog expected to provide 50% to 60% of revenue from July 2014 to

July 2015

Backlog includes new services contracts entered into with

Chesapeake in connection with the spin-off under which

Chesapeake committed to use the services described below,

subject to its rights to terminate the contracts in specified

circumstances

Nomac rig-specific daywork drilling contracts for a term ranging from

three months to three years as set forth below:

1 year term 10 Rigs

2 year term 5 rigs

3 year term 25 Rigs

Three month terms plus three month auto renewal option 11

Rigs

PTL hydraulic fracturing services agreement that provides Chesapeake

will utilize the lesser of (i) the number of crews set forth below:

Year 1 7 Crews

Year 2 5 Crews

Year 3 3 Crews

or (ii) percent (50%) of the total number of all pressure pumping crews

working for Chesapeake in all of its operating regions during the

respective year.

Recent other third party customer contract wins for PTL and Great

PlainsNomac CHK PTL CHKNomac Other third party

$2.8B 3 Year Backlog

367 347 314

163

5717

738

517

293

1,268

921

624

Year 1 Year 2 Year 3

Contracted Revenues by Business Segment

$MM

We calculate our contract drilling backlog by multiplying the day rate under our contracts by the number of days remaining under the contract. We calculate our hydraulic

fracturing backlog by multiplying the rate per stage by the number of guaranteed stages remaining under the contract. The backlog calculation does not include any reduction

in revenues related to mobilization or demobilization, nor does it include potential reductions in rates for unscheduled standby or during periods in which the rig is moving, on

standby or incurring maintenance and repair time in excess of what is permitted under the drilling contract. In addition, man y of our contracts are subject to termination by the

customer on short notice and provide for an early termination payment to us in the event that the contract is terminated by the customer. As a result, revenues could differ

materially from the backlog amounts presented.


11/3011

NOMAC DRILLING

Based on RigData marketed rig count as of 6/19/2014

Rig count from the 6/30/2014 Nomac report: excludes refurbished, stacked, training and under construction rigs

Marcellus Shale

(6 - CHK, 0Other)

Utica Shale

(7 - CHK, 9 - Other)

Haynesville Shale

(7 - CHK, 0 Other)

Eagle Ford Shale

(16 - CHK, 1 - Other)

Powder River and DJ

Basins


nadarko Basin

(13 - CHK, 15 - Other)

Nomac Operating reas

(Bubble Size by Nomac Rig Count)

Permian Basin


Currently the 5th

largest drilling rig

contractor in the U.S.

Nomac has 83 active

rigs which operate

across unconventional

plays (51 operating for

CHK; 32 operating for

third parties)


12/3012

OVERVIEW OF NOMAC RIG FLEET BY AREA

Nomac provides land drilling and

drilling-related services, including

directional drilling and mudlogging

Operations are geographically

diversified across many of the most

active oil and natural gas plays

Strong presence / market share in

key markets (Anadarko, Eagle Ford,

Utica) provides benefits of scale,

but growth opportunities still

remain

Nomacs directional drilling unit

focuses on horizontal well

applications to maximize drilling

efficiencies and lower customer

costs

Based on Baker Hughes Rig Count as of 6/27/2014

Active

SSE

Rigs

Total

Active

Rigs

Anadarko Basin 13 15 28 186

Eagle Ford Shale 16 1 17 214

Utica Shale 7 9 16 43

Marcellus Shale 6 0 6 82

Niobrara Shale 2 2 4 60

Haynesville Shale 7 0 7 41

Permian Basin 0 5 5 554

Total 51 32 83 1,180

Operational Area CHK Other

Active

SSE

Rigs

Total

Active

Rigs

Market

Share


13/3013

49

228 7 0

56

57

57 5757

8

12

20 26 41

113

9185

90

98

30%

32%

34%

36%

38%

40%

42%

0

40

80

120

160

2011 2012 2013 2014E 2015E

Fleet Evolution and Operating MarginNumber of Rigs - Year End Operating Margin

EVOLUTION OF OUR FLEET

Improving tier mix contributes to higher operating margin, continuing to increase with rig

newbuilds, conversions, and removal of Tier 3 rigs

Based on contracted newbuilds, we expect to have 98 rigs by YE 2015 with 42% Tier 1rigs

16 PeakeRig newbuilds over next 18 months

Tier 2Tier 1 OperatingMargin1Tier 3

1 Operating Margin through YTD Q2 2014; rig count as of year end

YTD Q2 2014


14/3014

10%

27%

0%

9%

35%

15%

46%

5%

50%

11%

35%

21%

58% 49%

33%

63%35%

83%

48%89% 55% 52% 42% 42% 32% 22% 19% 12% 2%

Helm.&Payne

Nabors

Trinidad

Nomac2015E

Precision

Patterson-UTI

NomacQ22014

Pioneer

Cactus

Unit

US La nd Rig Fleet Mix

Q2 2 14

1

NOMAC RIG FLEET COMPARED TO PEERS

Working to convert fleet to meet long-

term drilling needs of all customers

Currently 90% of our Tier 1 rigs and

61% of our Tier 2 rigs are multi-well

pad-ready and able to meet the robust

demands of E&P customers focused on

unconventional resource development

Fabricating 16 newbuild proprietary

PeakeRigs, 6 of which are expected to

be delivered in 2014 with an additional

10 rigs expected to be delivered in

2015

Total US Land Rig Fleet Mix

Tier 2Tier 1 Tier 3 Source: RigData Weekly Locations and Operators Report list as of 6/27/2014, internal estimates2Nomac rig total based on marketed rigs, excludes cold stacked and rigs held for sale

Tier 1 37%

Tier 2 26%

Tier 3 37%


15/3015

PTL OPERATIONS OVERVIEW

Provides high-pressure hydraulic fracturing

services

As of June 30, 2014, owned nine hydraulicfracturing fleets with an aggregate of 360,000

horsepower

Eight fleets contracted by Chesapeake and one

fleet contracted by other third party customers

Operating throughout the Anadarko Basin, Eagle

Ford, Barnett, and Utica Shales

Equipment consists of high pressure rated,

premium hydraulic fracturing equipment

specially suited for unconventional resource

plays

Among the newest in the industry with an averageage of 25 months as of June 30, 2014

10thfleet totaling 40,000 HP expected to be

online by Fall 2014

Potential to add more capacity / scale through

acquisitions

Source: Spears & Associates Q2 2014

Total HP 19,057

2,530

245

250

255

272

300

360

400

460

660

702

710

750

1,064

1,084

1,194

1,596

1,825

1,900

2,500

Other

Canyon

Bayou

Go Frac

BAS

PES

PTL

Pro Petro

Sanjel

SPN

PTEN

RPC/Cudd

WFT

CFW

TCW

CJES

FTS

BHI

SLB

HAL

North American Horsepower by Capacity

Horsepower (000s)


16/3016

PERFORMANCE TECHNOLOGIES

Eagle Ford Shale

4 spreads operating

Utica Shale

2 spreads operating

1 spread projected

nadarko Basin

2 spreads operating

Barnett Shale

1 spread operating

PTL Operating reas

(Bubble Size by Spread Count)


17/3017

Own and operate two strategically positioned sand storage and trans

load facilities, one in Oklahoma with storage capacity of 140 million

pounds and one in south Texas with 80 million pound capacity

South Texas facility accepts multi unit trains which secures more

favorable rail rates and significantly reduces the number of rail

car leases required to manage inventory

Executed JV with a dedicated hydraulic fracturing sand carrier toensure adequate truck transportation services for hauling hydraulic

fracturing sand from regional distribution points to the well site

Long term rail car leases procured for the bulk transportation of

hydraulic fracturing sand by rail from the mine to regional distribution

hubs

Own mineral mining leases totaling approximately 2,000 acres at

multiple sand mining sites in Wisconsin; plan to self source a majority

of sand supply by 2016 helping to mitigate future impact of sand price

volatility

HYDRAULIC FRACTURING SUPPLY CHAIN INTEGRATION

Rail Cars

Sand Reserves

Transloading Facilities

Storage and Distribution

Facilities


18/30


19/30

19

GREAT PLAINS CURRENT AND POTENTIAL SERVICE LINES

SSE has established and is executing a plan to build out the Great Plains organization to

improve profitability

Great Plains equipment utilization improved to 48% in Q2 2014 from 34% in Q4 2013


20/30

20

GREAT PLAINS CURRENT ASSETS

Great Plains provides water transport and

disposal service solutions

As of June 30, 2014 we own a fleet of 150water transport trucks that haul water to

and from wells in the Anadarko Basin and

the Eagle Ford, Marcellus, and Utica Shales

Hodges has provided drilling rig relocation

and logistics services for over 80 years

As of June 30, 2014 we own a fleet of 260

rig relocation trucks and 67 cranes and

forkliftsHodges Crane

Transportation Truck

Water Hauling Truck

Truck Fleet

Transportation Trucks 195

Water Hauling Trucks 150

Crane & Forklift 67

Rig Up 65

Oilfield Trucking Assets

Units

Note: Unit counts include pro format effects of the spin-off; excludes Crude hauling assets


21/30

21

MATURITY AND DEBT SERVICE SCHEDULES

4.00% base rate; 1.75% letter of credit

6.625% Senior Notes due 2019; first call price at 103%.313 on 11/15/2015

3.00% + LIBOR with 75bps LIBOR floor4 6.500% Senior Notes due 2022; first call price at 104.875% on 7/15/20175Assumes Term Loan interest of 3.75% and no early call on Sr. Notes

3.992% 6.500%4

6.625%

3.750%

$650$500

$2 $4 $4 $4 $4

$4

$4

$374

$275

2014 2015 2016 2017 2018 2019 2020 2021 2022

Maturity Schedule

Sr. Notes Term Loan ABL Credit Facilty

$15 $15 $15 $15 $15 $15 $15 $15

$76 $76 $76 $76 $76 $76

$33 $33

$33

2014 2015 2016 2017 2018 2019 2020 2021 2022

Interest Schedule

T erm Loan Sr. Notes

RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED


22/30

22

RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTEDEBITDA

2014 2013 2014 2013

Net Income 21,710$ 7,176$ 3,155$ 21,407$

Add:

Interest expense 17,615 14,138 32,307 28,149

Income tax expense 14,036 4,867 3,338 14,866

Depreciation and amoritzation 71,829 72,490 144,294 142,601

Impairments and other 3,172 6,718 22,980 6,741

Gains on sales of property and equipment (8,964) (1,746) (7,986) (1,371)

Impairment of equity method investments 4,500 1,789 4,500 1,789

Rent expense on buildings and real estate

transferred from Chesapeake4,081 4,079 8,187 8,331

Rig rent expense 6,016 22,570 15,075 45,551

Less:

Compression unit manufacturing Adjusted

EBITDA6,357 5,244 13,073 10,302

Geosteering Adjusted EBITDA 763 1,074 957 1,850

Crude hauling Adjusted EBITDA (4,521) 3,702 (5,066) 8,563One-time credit to stock compensation expense 10,530 - 10,530 -

Adjusted EBITDA 120,866$ 122,061$ 206,356$ 247,349$

(In thousands)

Three Months Ended June 30, Six Months Ended June 30,


23/30

23

RECONCILIATION OF OPERATING CASH TO EBITDA

2014 2013 2014 2013

Cash provided by operating activities 67,352$ 57,477$ 121,934$ 144,870$

Add:

Changes in assets and liabilities 41,782 32,273 40,154 38,987

Interest expense 17,615 14,139 32,307 28,149

Lease termination costs 70 108 8,449 108

Amortization of sale/leaseback gains 925 1,549 5,139 3,079

Amortization of deferred financing costs (3,235) (729) (3,972) (1,455)

Loss from equity investement - 735 (917) 616Current tax expense 363 221 696 437

Rent expense on buildins and real estate

transferred from Chesapeake4,081 4,079 8,187 8,331

Rig rent expense 6,016 22,570 15,075 45,551

Other (974) (341) (1,202) (609)

Less:

Compressoin unit manufacturing Adjusted

EBITDA6,357 5,244 13,073 10,302


Crude hauling Adjusted EBITDA (4,521) 3702 (5,066) 8,563

One-time credit to stock compensation expense 10,530 - 10,530 -

Adjusted EBITDA 120,866$ 122,061$ 206,356$ 247,349$

(In thousands)



24/30

24

RECONCILIATION OF DRILLING NET INCOME TO EBITDA

2014 2013 2014 2013

Net Income 9,541$ 1,162$ 7,182$ 5,719$

Add:

Income tax expense 5,941 810 4,612 4,169

Depreciation and amoritzation 34,398 33,822 69,301 66,010

Impairments and other 3,171 3,504 22,772 3,528Losses (gains) on sales of property and

equipment14,086 (352) 15,795 180


transferred from Chesapeake809 913 1,688 1,815

Rig rent expense 6,016 22,570 15,075 45,551

Less:



Adjusted EBITDA 68,881$ 61,355$ 131,150$ 125,122$


(In thousands)

RECONCILIATION OF HYDRAULIC FRACTURING NET INCOME TO


25/30

25

RECONCILIATION OF HYDRAULIC FRACTURING NET INCOME TOEBITDA

2014 2013 2014 2013

Net Income 11,722$ 15,417$ 12,317$ 34,005$

Add: 20,915


Depreciation and amoritzation 17,851 16,417 35,960 -Impairments - - 207 -

Gains on sales of property and equipment - (17) - -

Impairment of equity method investment 4,500 - 4,500 1,120


transferred from Chesapeake630 502 1,259

Less: -

One-time credit to stock compensation expense 477 - 477

Adjusted EBITDA 41,669$ 41,813$ 61,818$ 88,353$


(In thousands)


26/30

26

RECONCILIATION OF OILFIELD RENTALS NET INCOME TO EBITDA

2014 2013 2014 2013

Net Income 340$ (477)$ (1,796)$ 1,558$

Add:

Income tax expense (benefit) 225 (256) (1,013) 1,125Depreciation and amoritzation 13,368 15,476 26,715 30,747

Gains on sales of property and equipment (183) (572) (925) (477)



Less:

One-time credit to stock compensation expense 601 - 601 -

Adjusted EBITDA 13,844$ 14,757$ 23,795$ 34,126$


(In thousands)

RECONCILIATION OF OILFIELD TRUCKING NET INCOME TO


27/30

27

RECONCILIATION OF OILFIELD TRUCKING NET INCOME TOEBITDA

2014 2013 2014 2013

Net Income 12,218$ 2,076$ 8,821$ 2,518$

Add:


Depreciation and amoritzation 5,429 6,529 11,357 13,084Gains on sales of property and equipment (22,863) (787) (22,871) (1,056)

Impairment of equity method investment - 1,789 - 1,789



Less:

Crude hauling Adjusted EBITDA (4,521) 3702 (5,066) 8,563


Adjusted EBITDA 5,954$ 8,229$ 8,015$ 11,575$

(In thousands)



28/30

28

OUTLOOK AND OPERATING ASSUMPTIONS

Outlook for 2014-2015

Rig day rates to trend

upwards 2% to 5%,primarily due to

improving fleet blend

Frac stage pricing to

remain largely flat

through 2015

Rentals utilization to

trend towards long term

goal of 60% to 70%

Based on top f ive tool rental services

Nomac and Services

Average Active Rigs 76.3 83 - 85 94 - 95

Revenue per Operating Day ($k) $23.9 $23 - $24 $24 - $25

Newbuild Rigs Placed into Service 0 6 10

Directional Job Days 4,897 5,000 - 5,200 5,700 - 5,900

PTL

Average Active Spreads 8.4 9 - 10 10

Average Stage Price $126 $110 - $115 $110 - $115Additional Spreads Placed into Service 2 1 0

Total Stages Completed 7,124 7,500 - 8,000 8,250 - 8,750

Great Plains

Rental Utilization (%) 44% 45% - 50% 55% - 60%

Rental Utilization (%) 44% 45% - 50% 55% - 60%

Hodges and OTS

Average Operating Units (Trucks, Cranes, Forkl ifts) 349 320 - 340 320 - 340

Water Trucks 148 150 - 160 150 - 160

Corporate

Depreciation and Amortization 315-330 375-400

GAAP Tax rate 38.5% 38.5%

CORPORATE INFORMATION


29/30

29

CORPORATE INFORMATION

SSE HEADQUARTERS

77nrg.com

777 NW 63rd St.

Oklahoma City, OK 73116

405-608-7777

CORPORATE CONTACTS

Bob Jarvis

Senior Director Investor

Relations and Marketing

[email protected]

405-935-2572
http://www.77nrg.com/mailto:[email protected]:[email protected]://www.77nrg.com/


30/30

seventy seven energy presentation

Documents