Investor Presentation

Transcription

1 Investor Presentation March 2, 2017

2 Important Disclaimer This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act ), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act ). The words anticipate, believe, ensure, expect, if, intend, plan, estimate, project, forecast, predict, outlook, aim, will, could, should, potential, would, may, probable, likely, and similar expressions that convey the uncertainty of future events or outcomes, and the negative thereof, are intended to identify forward-looking statements. Forward-looking statements, which are not generally historical in nature, include those that express a belief, expectation or intention regarding our future activities, plans and goals and our current expectations with respect to, among other things: Our outlook on the market for our services and products; general business and economic conditions; crude oil and natural gas commodity prices; demand for services in our industry; our plans to deploy our fleets; our maintenance backlog, expected recovery and future prices and utilization; our outlook with respect to industry growth and market demand; our business strategy and future activity; pricing pressure and competitive factors; our ability to obtain or renew customer contracts; the market price and availability of materials or equipment; technological developments; financial strategy, liquidity, capital required for our ongoing operations and acquisitions and our ability to raise additional capital; our ability to obtain permits, approvals and authorizations from governmental and third parties, and the effects of governmental regulation; dividends; future financial and operating results; and plans, objectives, expectations and intentions. Forward-looking statements are not assurances of future performance and actual results could differ materially from our historical experience and our present expectations or projections. These forward-looking statements are based on our current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us, and other factors believed to be appropriate. Although we believe 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). Our forward-looking statements involve significant risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: a decline in demand for our services, including due to declining commodity prices, overcapacity and other competitive factors affecting our industry; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by exploration and production companies; a decline in, or substantial volatility of, crude oil and gas commodity prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; pressure on pricing for our core services, including due to competition and industry and/or economic conditions, which may impact, among other things, our ability to implement price increases or maintain pricing on our core services; the loss of, or interruption or delay in operations by, one or more significant customers; the failure to pay amounts when due, or at all, by one or more significant customers; changes in customer requirements in markets or industries we serve; costs, delays, regulatory compliance requirements and other difficulties in executing our long-term growth strategy, including those related to expansion into new geographic regions and new business lines; the effects of future acquisitions on our business, including our ability to successfully integrate our operations and the costs incurred in doing so; business growth outpacing the capabilities of our infrastructure; adverse weather conditions in oil or gas producing regions; the effect of environmental and other governmental regulations on our operations, including the risk that future changes in the regulation of hydraulic fracturing could reduce or eliminate demand for our hydraulic fracturing services; the incurrence of significant costs and liabilities resulting from litigation; the incurrence of significant costs and liabilities resulting from our failure to comply, or our compliance with, new or existing environmental regulations or an accidental release of hazardous substances into the environment; the loss of, or inability to attract, key management personnel; a shortage of qualified workers; the loss of, or interruption or delay in operations by, one or more of our key suppliers; operating hazards inherent in our industry, including the significant possibility of accidents resulting in personal injury or death, property damage or environmental damage; accidental damage to or malfunction of equipment; uncertainty regarding our ability to improve our operating structure, financial results and profitability and to maintain relationships with suppliers, customers, employees and other third parties following emergence from bankruptcy and other risks and uncertainties related to our emergence from bankruptcy; our ability to maintain sufficient liquidity and/or obtain adequate financing to allow us to execute our business plan; and our ability to comply with covenants under our new credit facility. For additional information regarding known material factors that could affect our operating results and performance, please see our most recently filed Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, which are available at the SEC s website, Should one or more of these known material risks occur, or should the underlying assumptions change or prove incorrect, our actual results, performance, achievements or plans could differ materially from those expressed or implied in any forward-looking statement. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. All subsequent written or oral forward-looking statements concerning us are expressly qualified in their entirety by the cautionary statements above. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law. All information in this presentation is as of March 2, 2017 unless otherwise indicated. Non-GAAP Financial Measures: This presentation includes Adjusted EBITDA, a measure not calculated in accordance with generally accepted accounting principles in the U.S. ("U.S. GAAP"). Please see slide 25 for a reconciliation of Adjusted EBITDA to net income (loss), the nearest measure calculated in accordance with U.S. GAAP. C&J Energy Services, Inc

3 C&J Energy Services Market Data (3/2/2017) Ticker (NYSE Mkt) (1) CJ Share Price (2) $40.00 Estimated Fully Diluted Shares Outstanding (MM) 57.5 Market Capitalization ($MM) $2,300 Net Cash Position (3) ($MM) $159 Enterprise Value ($MM) $2,141 (1) The company s common stock has been approved to be listed on the NYSE MKT and the company expects it to begin trading on the NYSE MKT on or about 3/6/2017 (2) Share price as of 3/2/2017 as traded on the OTC Grey Market under the ticker CJJY (3) As of emergence on 1/6/2017 C&J Energy Services, Inc

4 C&J Energy Services Snapshot One of North America s largest vertically-integrated oilfield services providers with equipment, facilities and technical expertise distributed across all active onshore basins Key Differentiators Leading Provider of Fracturing, Wireline, Coiled Tubing, Service Rigs and Fluids Management One of the largest integrated providers of completion and production services with assets deployed across all active onshore basins in the continental United States and Western Canada Diversified portfolio of products and services across the life of a well, focused on premium customers in all active onshore basins in the continental United States and Western Canada A technology leader, with a state-of-the art Research and Technology Platform focused on new products, improving margins and assuring cost-effective supply Key Facts Hydraulic Fracturing Activity: ~820K HHP fracturing capacity, 11 deployed fleets and 9 fleets available, plans to deploy 1-2 fleets per quarter through 2018 Other Equipment: 127 wireline trucks, 44 coiled tubing units, 57 pumpdown units, 36 cementing units, 459 well service rigs, 1,121 fluid trucks and support equipment Supply: New supply contracts support 80% of future sand needs at attractive pricing; internal manufacturing and refurb capabilities Technology: Dedicated technology center, 25+ patents; path to new products, margin expansion and cost effective supply San Joaquin Basin Los Angeles Basin Montney Uinta Basin Piceance Fracturing was 53% of 2014 Revenue and is expected to track back towards this in coming years Expansive Geographic Footprint Cardium Denver-Julesburg Basin Niobrara Granite Wash Permian Basin Bakken Shale Mississippian Cana Woodford Shale Tuscaloosa-Marine Shale Haynesville Shale Eagle Ford Shale Appalachian Basin Utica & Marcellus Basins / Shale Plays Business Units Regions C&J Energy Services Assets Diversified Revenue Across the Spectrum 2016 Revenue: $971MM 20% 4% 14% 16% 6% 4% Hydraulic Fracturing 36% Wireline & Pumping Other D&C Services Well Service Service Rigs Rigs Fluids Services Management CT Coiled Tubing Other Well Support C&J Energy Services, Inc

5 Portfolio Growth Corporate Developments Our Evolution Into Today s C&J Energy Services : Josh Comstock founded C&J in Robstown, TX 2011: Initial Public Offering on NYSE 2011: Corporate office moved to Houston, TX : Opened New R&T Center in Houston, TX 2016 Mar: Josh Comstock passed away Jun: New CEO, CFO and GC appointed following strategic management changes Jul: Filed for Chapter Jan: Emergence from Chapter 11 January 6 th Mar 2017 Re-introduction of the New C&J Energy services : Introduced coiled tubing services 2007: Introduced fracturing services : 2012: Introduced wireline services with acquisition of Casedhole Solutions 2013: Acquisition of Tellus Oilfield directional drilling technology 2013: Acquisition of MDT data acquisition and controls manufacturing 2014: Acquisition of Tiger Casedhole Solutions, expanding wireline services and geographic footprint into California 2015 Mar: Combination with Nabors Completion and Production May: Acquisition of ESP Completion Technology, artificial lift systems business 2016 Jun: Divested Blue Ribbon Technology (started in 2012) Jul: Exited MENA Operations 2017 Feb: Divested Total Equipment and Services (acquired in 2011) Focused Our Operations on Core Activities C&J Energy Services, Inc

6 The Differentiated NAm Oilfield Services Company Leading Provider of Products and Services Across the Life of a Well Strong Footprint in All Active Onshore Basins in the Continental U.S. and Western Canada Modern, High-Quality Asset Base and Streamlined Cost Structure Robust Logistics Network Ensures Efficient Operations for Our Customers Long-Term, Established Relationships with Blue-Chip Customer Base Unique Research & Technology Platform Capitalized for Growth No Leverage and Significant Liquidity Recognized Leader in Quality, Safety and Reliability Experienced Management Team with Deep Operational Expertise C&J Energy Services, Inc

7 Market Leadership Across the Life of the Well We are a leading provider in our core service offerings Hydraulic Fracturing (1) Casedhole Wireline & Pumpdown Coiled Tubing Rig Services Fluids Management Top 5 #1 Top 3 #2 #1 Well Construction Drilling and Cementing Primary Cementing Remedial Cementing Directional Services Completions Solutions Drill / Clean Out Re-Stimulation Well Servicing Decommissions Horizontal Vertical Agitator Wireline Coiled Tubing TCP Pump Down Tanks Fluids Management Tractor Lateral Science Diverters Plugs Fracturing Wireline Toe Prep Lateral Science Diverters Plugs SCS Wireline Tanks Fluids Management Stage Frac Well Completions Coiled Tubing (Stdby) Pump Down Tanks Fluids Management Coiled Tubing Rig Services Tanks Fluids Management Disposal Snubbing Rigs Flowback Re-Con Design Diverters Coiled Tubing Rig Services SCS Pump Down (Acid) Wireline Fishing Tools Tanks Fluids Management Waste & Water Disposal Flowback Well Services Rig Services Fluids Management Fishing Tools Tanks Waste & Water Disposal Wireline Coiled Tubing Special Services Squeeze Cementing Well Abandonment Rig Services Fishing Tools Wireline (dedicated) Cementing (dedicated) Tanks Fluids Management R&T Research and Technology Lateral Science Diverters Plugs Re-Con Design ~70% of Total Well Cost; 3-6 months Capital Expense Driven C&J Core Services C&J Manufactured Products ~30% of Total Well Cost; 20+ years Operational Expense Driven 3 rd Party Products Note: Rankings based on internal data and industry sources (1) Based on active fleets as of 1/1/2017 C&J Energy Services, Inc

8 Our Modern, High Quality Asset Base We have rationalized our fleet of equipment across all service lines, leaving us well-positioned to deliver high quality services to our customers and attractive returns to our shareholders Fracturing Casedhole Wireline & Pumpdown Cementing Rig Services Fluids Management Coiled Tubing 20 hydraulic fracturing fleets, ~820,000 HHP 11 deployed fleets Advanced, proprietary design with CAT-CAT configurations 127 fit-for-purpose casedhole wireline trucks 57 pumpdown units Standard in the market for reliability and efficiency 36 advanced cementing units Advanced in-house lab capabilities #1 in Customer Satisfaction, EnergyPoint Survey 459 workover rigs Capability to support complex, deep wells with long laterals ~60% have 400 HP or greater 1,121 service trucks, 4,243 tanks and 29 captive (C&J only) salt water disposal facilities Provides customers with integrated waste and fluids solutions 44 coiled tubing units Over 70% of the fleet consists of large diameter coil (2 or greater) Majority of fleet optimized to support operating depths of ~23,000 feet C&J Energy Services, Inc

9 Strong Presence in All Active Onshore NAm Basins Established Footprint Provides a Scalable Platform Founded in South Texas with a proven reputation in the Eagle Ford and Haynesville shales, we expanded our footprint through organic and acquisitive growth Casedhole Solutions: Bakken, Mid-Con, West Texas, Rockies, North East Tiger Casedhole: California Nabors C&P: US and Western Canada Today, C&J has a strong presence in all active onshore basins in the continental US and Western Canada Four out of five major service lines are present in all active US basins, which avails our diversified offering to all customers and provides scale benefits Also serves as a platform for growth as we develop new services and products organically and through bolton acquisitions C&J is Present in All Active Onshore Basins in the Continental U.S. and Western Canada San Joaquin Basin Montney Los Angeles Basin Uinta Basin Piceance Cardium Denver-Julesburg Basin Granite Wash Permian Basin Niobrara Bakken Shale Mississippian Cana Woodford Shale Tuscaloosa-Marine Shale Haynesville Shale Eagle Ford Shale Appalachian Basin Utica & Marcellus Basins / Shale Plays Business Units Regions C&J Energy Services Assets with a Diversified Offering In All Active Onshore NAm Basins Number of Segments Served in Each Basin West Texas South Texas North East Mid- Continent South East 2016 Revenue by Geography California 13% Rockies / Bakken 14% California Bakken / Rockies Frac Wireline & Pumping Coil Tubing Rig Services Fluids Mgmt. Mid-Con 8% North East 8% Canada 4% Corp. 1% West Texas 34% South Texas / South East 18% Canada C&J Energy Services, Inc

10 Performance Metrics Drivers Completions Footprint Poised to Benefit from Cyclical Rebound U.S. Drilling and Completion Spending is Increasing Key Drivers Point Towards Cyclical Recovery $Bn Rigs Avg Rig Efficiency 2014 Peak 2016 Average 1, HZ Wells per Rig-Year 447 (49% y/y) 17.3 HZ Wells per Rig-Year 2018 Estimate(1) vs A 2015A 2016E 2017E 2018E % HZ Rigs 73% 87% +4% y/y Source: Coras Oilfield Research % in Completion Spending $Bn 24.0 Drilling Completion Spending Growth Levered to Completions 70% 14% 58% 10% 22% 22.3 Stages Per Well Well Count Stage Count 17.7 Stages per Well 37, , Stages per Well +49% y/y 9,124 (51% y/y) 233,521 (27% y/y) Frac HHP Demand 14.7MM HHP 7.2MM HHP (25% y/y) Frac HHP Utilization 79% 48% (3% y/y) Permian Bakken Mid-con Eagle Ford Marcellus / Drilling Completion Utica Source: Coras Oilfield Research Increased Spending Increased HZ Drilling Source: Coras Oilfield Research Rig Efficiency More Stages Greater Intensity Higher Frac Demand (1) Management estimates based on industry sources C&J Energy Services, Inc

11 Our Frac Refurbishments Are Targeting Fleet Optimization Standardized Fleet Will Increase Efficiency and Lower Costs A C Illustrative Reactivation Cost $ MM per Warm-Stacked Fleet Refurb & Maintenance: ~35% ($ MM) D B Standardization: & Upgrades: ~65% ($ MM) A Cat-On-Cat Lowest cost of total ownership 30% longer run times and fewer catastrophic failures B Enables real-time data sharing Higher reliability throughout all conditions C Stainless Fluid Ends Higher upfront costs but longer durability Requires sophisticated maintenance program D Warm Start Potential 25% fuel savings Higher reliability, longer equipment life Frac Iron Internal capabilities save up to 50% on re-cert costs (1) Increased reliability, shortened turnaround Support Equipment Patent pending sand silo system Integrated silica dust management Our In-House Manufacturing and Refurb Capabilities Provide Secure Capacity to Service Our Equipment Rigorous preventative maintenance program results in less downtime, lower operating costs and ensures reliable operations Targeting equipment upgrades, providing a platform of standardized equipment with truly differentiated operating capabilities Internal maintenance and service center provides reliable access to upgrades / refurbishment and reduces cost Standardizing our fleets with upgraded technology will improve operating efficiency and lower cost of ownership (1) Relative to third party providers and based on internal estimates of re-certification costs C&J Energy Services, Inc

12 Optimized Logistics & Supply Chain Capabilities Secure supply of critical materials and streamlined processes will provide operating leverage in the recovery Active Supply Chain Initiatives Sand & Chemicals Fleet Repair and Upgrades Last Mile Solution C&J Sand Silo System Streamlined the number of sand and chemical vendors while meeting future volume needs Eliminated all take or pay contracts related to sand 80% of future sand needs secured at attractive pricing San Angelo facility provides internal capacity as third party rebuilders become capacity constrained Preferred supply agreement with a premier pump manufacturer for fluid ends and component needs Proprietary design, fully automated and tied in with our MDT controls (patent pending) Effective dust control and accurately measures amount of sand delivered per stage Smaller footprint on location C&J Sand Silo System Trucking Fleet Internal capacity supports sand supply and logistics, as well as lowers Last Mile costs In negotiations with key trucking vendors to ensure driver and vehicle support ahead of projected shortages C&J Energy Services, Inc

13 Well Servicing Presence Provides Long-Term Upside Horizontal Wells 100,000 80,000 60,000 40,000 20,000 Source: IHS Supply of Older Horizontal Wells is Growing Horizontal well maintenance also includes work related to the vertical portion of the horizontal well Cumulative HZ Wells >4 Years Old Cumulative HZ Wells >4 Years Old Horizontal Wells Activity Levels Poised For Mid / Late Cycle Recovery Active U.S. Workover Rig Count Utilization (1) 2,500 2,000 1,500 1, ,066 Jan-14 WTI: $95 1,826 Jan-15 WTI: $47 1,170 Jan-16 WTI: $32 Jan 2017 posted the first significant yoy increase in rig count in key regions since % yoy 5% yoy 1,099 Jan-17 WTI: $53 Permian Texas Gulf Coast Rockies West Coast Mid-Con Arklatex Eastern US South Louisiana Utilization Source: AESC, Bloomberg ~65,000 HZ wells to enter well maintenance phase over next 4 years 75% 60% 45% 30% 15% 0% Commodity Recovery Demand Normalization Deferred Maintenance Backlog Aging Horizontal Oil Well Backlog Demand for Completions Activity Multiple Drivers of Growth Increased prices shorten payback, drive frequency of well maintenance An increase in commodity pricing should result in increasing workover demand for existing vertical well infrastructure Maintenance and workover activity lagged through the downturn due to capex deferrals, but activity is expected to turn around Proliferation of horizontal wells has created a significant service backlog each well comprised of vertical & horizontal components requiring well services Well services rigs are also used for frac plug mill-outs during completions Historically Profitable in All Market Conditions Multiple Sources of Demand Growth Limited Capital Needed to Drive Significant Cash Flow Note: WTI prices quoted are monthly averages per Bloomberg (1) Utilization defined as active rigs as a percent of total rigs (active rigs, available rigs, idle rigs and stacked rigs) C&J Energy Services, Inc

14 High Spec Well Servicing Rig Fleet A Leading Provider of Service Rigs in the Market Leading Provider of Service Rigs ,000 Premium Equipment Optimized For High Spec Services # ~60% of Service Rigs are Class 4 or better 459 Total Service Rigs 275 Capable of HZ Services Class 1 Class 2 Class 3 Class 4 Class 5 Rig classifications: Class 1: HP, Class 2: HP, Class 3: , Class 4: HP, Class 5: 500+ HP Significant Scale Diversified Footprint Premium Provider Loyal Customers 2 nd largest well service rig business in NAm ~60% class 4+ rigs capable of the most complex jobs Strong operating presence in California, Rockies, Permian, South Texas and Western Canada Attract new customers due to our culture of service and safety AESC 2016 Gold Safety Award Top 10 customers are majors and large independents 300+ customers served in 2016 C&J Energy Services, Inc

15 Long-Term Relationships With Blue-Chip Customers Core Customers with Deep Ties to C&J Energy Services Logos from next few pages We Seek Customers Aligned With Our Strengths Established E&P companies significant portion of our revenue generated by IOCs, large independents and wellcapitalized companies Premium acreage positions in the most active basins targeting manufacturing oriented operators seeking dedicated resources Customers who value our technology, scale, diversification and expertise and the efficiencies C&J can generate for them Our strong reputation / track record opens doors for crossselling opportunities at existing clients delivering integrated services Our Relationships Have Spanned the Cycle Our customer base has proven to be reliable through market and company changes High customer retention driven by safety and superior service quality Differentiated capabilities and management focus resulted in our retention of nearly all customers through recent restructuring Minimal lost revenue from bankruptcy and now working with nearly all previous customers post emergence We maintain a diverse customer base with no individual customer accounting for more than 10% of 2016 revenue C&J Energy Services, Inc

16 Our Evolutionary Technology Advantage Research & Technology Initiative Product improvement and new technologies expand quality service offerings and improve operational execution and safety Quality services and tools that cater directly to client s needs resulting in lower overall costs and greater customer retention Allows for more effective competition vs. peers and establishes C&J as the partner of choice Initiatives improve margins and help protect market share in current environment, positioning C&J for growth as activity levels improve Ensures that we have the best components and a secure supply as market intensity increases Lateral Science Perf. Guns & Switches MDT (1) Frac Controls Engineering Services Engineered solution that optimizes the frac design and reduces overall costs Over 320 wells analyzed to date Successfully used on frac jobs for Oasis, Silverback, Virtex, Covey Park and Energen One of the lowest cost producers of perforating guns in the industry Added new line of proprietary addressable switches At least 20-30% savings over 3rd party on switches and accessories Costs ~50% less than competing systems Total fleet synchronization improves automation and efficiency Automated blender control improves job execution 3 rd party contracts with major IOC Casing w/ burst discs and stringshot wireline tool to replace perf cluster Sold proprietary Resistivity Tool technology to a major OEM Ongoing engineering services (1) Mobile Data Technologies C&J Energy Services, Inc

17 R&T Capabilities Provide Product Development Platform Our Facility Supports and Enhances Our Product Portfolio Operational Efficiency Mobile Data Technologies (MDT ) Pumpdown Tension Tools Experienced management team with expertise in the development and manufacturing of oilfield service products Cost Reduction Experts in perforating, downhole and high-temperature electronics, data acquisition, controls, drilling tools and nuclear measurement 25 engineers and 75 technicians dedicated to customers' most difficult well site challenges New Business Perforating Guns & Tools Frac Pump Warm Start Sizable Patent Portfolio: 25 granted, 40 pending, 30 patent families Lateral Science Directional Drilling (USBS) C&J Energy Services, Inc

18 Our Strong Track Record of Safety Total Recordable Incident Rate Focus on QHSE and Risk Management is lowering reportable incidents / accidents and winning us new customers Our customers value safety and choose us because our record rivals larger oilfield service majors Industry Average (1) C&J Energy Services Programs That Make a Difference QHSE OSHA VPP Employee Training Start Safe. Finish Safe Quality, Health, Safety, Environmental ( QHSE ) identifies critical risks and requires our employees to apply a company-wide risk mitigation strategy in everything they do Partnered with OSHA to adopt the Voluntary Protection Plan including comprehensive safety and health programs that exceed basic compliance; recognized by the program at 6 of our Well Service facilities (C&J has 6 out of 7 of OSHA VPP worksites) Customized training and development centers that feature intense skill-based learning courses on well control, crane operation, field & hydraulic operations, driver and master driver training All employees are trained to work within our industry leading initiative featuring 12 Rules to Live By that promotes a culture where safety is second nature (1) Industry average based on Bureau of Labor and Statistics C&J Energy Services, Inc

19 Quality Management System That Rivals the OFS Majors Our Quality Management System supports our core values and sets us apart from other companies of our size How it Works Identify the critical risk Systematically and consistently streamline our work processes utilizing our best practices Focus on pragmatic employee training and development Adopt firm-wide risk mitigation strategy and management analytics Why QMS Creates standardization throughout all facets of our business Allows replication of success and efficiency across every business line and location Reduces on-the-job incidents and accidents Enhances the reliability and quality of our products Core Focus Areas of QMS Well Control Maintenance Telematics Partnerships Comprehensive training system designed to prevent injury and environmental damage Improved visibility of transfers, standardized processes, ability to monitor equipment in real time Active employee monitoring and consequence management Partnerships with organizations like OSHA strengthen safety and health in the workplace C&J Energy Services, Inc

20 C&J Energy Services, Inc FINANCIAL REVIEW

21 Well Support Services Completion Services Summary of Key Business Drivers (1) (1) Product Lines Q 2016 Average Active HHP (k) 1, Hydraulic Fracturing Total Stages 29,800 18,649 11,413 2,760 Revenue ($MM) 2, Wireline and Pumpdown Cementing & Other Average Active Wireline Trucks Average Active Pumpdown Units Revenue ($MM) Revenue ($MM) Rig Services Fluids Management Coiled Tubing Other Well Support Average Active Rigs Rig Hours (k) Revenue ($MM) Average Active Trucks 1,216 1, Truck Hours (k) 3,107 2,215 1, Revenue ($MM) Average Active CT Units Revenue ($MM) Revenue ($MM) (1) Pro forma for March 2015 Nabors Completion & Production Services transaction C&J Energy Services, Inc

22 Well Support Services Completion Services Company s Current Outlook on Market Hydraulic Fracturing Wireline & Pumpdown Cementing & Other Rig Services Fluids Management Coiled Tubing Other Well Support EBITDA Margins & Capex Activity Outlook Given current market trends, we anticipate redeploying K HHP of additional upgraded HHP in 2017 and another K HHP in 2018 Anticipated utilization gains expected to drive stage count per fleet growth of 15-20% in 2017 with sustained performance through 2018 We anticipate activating an additional combined wireline trucks and pumpdown units by the end of 2017 An additional trucks and units would be deployed in 2018 if the rebound continues to show strength We expect annual revenue growth between 20-25% in 2017 and approximately 40-50% in 2018 Majority of the growth driven by our cementing service line We expect high single digit percentage increases in rig hours across 2017 and 2018 as a result of improving utilization and more efficient operations Robust demand fundamentals point to a strong mid / late cycle recovery for well services We estimate low single digit percentage increases in total truck hours in 2017 improving by 5-10% in 2018 Given current activity, we anticipate operating between units on average in 2017 and between units on average in 2018 Pricing Expectations We expect pricing to increase 30-35% from 2016 average Pricing to-date is up 15-25% versus the Q4 16 average Anticipated further improvement in 2018 of between 15-25% assuming activity remains strong We expect 2017 average revenue per wireline truck and pumpdown unit to rise 20-25% over the 2016 average as a result of improving pricing and utilization Further improvement of between 10-20% is expected in 2018 assuming robust activity levels We anticipate pricing remains near Q with a modest rise of less than 5% in 2017 and a 10%+ improvement in 2018 We expect 2017 pricing to remain flat versus 2016 average and anticipate a modest rise through 2018 We expect 2017 pricing, utilization and efficiency gains should result in revenue per unit growth of between 35-40% over the 2016 average, with further improvement of between 10-20% anticipated in 2018 We anticipate annual revenue growth between 5-10% in 2017 and approximately 10-20% in 2018 Expect consolidated adjusted EBITDA margins to be in the mid single digits for 2017 and to be in the mid-teens in 2018 ~65-75% of the adjusted EBITDA to be related to our Completion Services line and ~25-35% related to our Well Support Services line By 2018 we expect margins to be generally in line with 2014 PF margin, which included select underperforming assets Total capital expenditures expected to range between ~$140 - $160 million in 2017 and ~$180 - $220 million in 2018 C&J Energy Services, Inc

23 Conservative Capital Structure Key Highlights As of emergence, C&J had ~$224MM in total liquidity comprised of $159MM of cash and additional liquidity provided by its $100MM credit facility Initial ABL availability is limited to $80MM and subject to any outstanding letters of credit At time of emergence, outstanding letters of credit totaled ~$15MM We do not anticipate the need to draw on our ABL facility in the near term At emergence, C&J had no outstanding long term debt or any off-balance sheet arrangements $MM Clean Balance Sheet and Strong Liquidity At Emergence 1/6/2017 Total Debt - Liquidity Total Cash 159 ABL Availability 80 Letters of Credit (15) Total Liquidity 224 Note: All metrics as of emergence on 1/6/2017 C&J Energy Services, Inc

24 Historical Financial Summary $MM; unless otherwise stated Select Historical Financial Information Revenue Full Year Pro Forma (1) Q1'16 Q2'16 Q3'16 Q4'16 Full Year Completion Services 1,933 2,597 1, Well Support Services 1,202 1, Other & Corporate Total Revenue 3,147 3,861 2, Gross Profit Total Gross Profit (5) % Margin 27% 22% 11% 3% (2%) 7% 2% 2% Net Income / (Loss) 96 (244) (879) (428) (291) (106) (118) (944) Adjusted EBITDA (2) Completion Services (18) (17) (6) 1 (39) Well Support Services Other & Corporate (66) (84) (82) (20) (17) (19) (17) (73) Total Adjusted EBITDA (32) (33) (18) (12) (95) % Margin 18% 14% 3% (12%) (15%) (8%) (5%) (10%) (1) Pro forma for March 2015 Nabors Completion & Production Services transaction (2) Please see slide 25 for a reconciliation of Adjusted EBITDA to net income (loss), the nearest measure calculated in accordance with U.S. GAAP C&J Energy Services, Inc

25 Non-GAAP Reconciliation Adjusted EBITDA Reconciliation* $MM Full Year Pro Forma (1) Q1'16 Q2'16 Q3'16 Q4'16 Full Year Net Income / (Loss) (2) 96 (244) (879) (428) (291) (106) (118) (944) Interest Expense Income Tax / (Benefit) (330) (94) (11) (21) (2) (129) Depreciation and Amortization Other (Income) / Expense (0) (3) (2) (7) 3 (10) (Gain) / Loss on Disposal of Assets 9 2 (1) 3 2 (1) (1) 3 Impairment Expense Debt Restructuring & Reorganization Costs Inventory Write-down Acquisition-Related Costs Severance, Facility Closures and Other Adjusted EBITDA (32) (33) (18) (12) (95) * We present Adjusted EBITDA, because management believes that the disclosure of Adjusted EBITDA as a measure of the Company s operating performance allows investors to make a direct comparison to competitors, without regard to differences in capital and financing structure and the incurrence of other charges that impact comparability of our results of operations to those of our competitors. Investors should be aware, however, that there are limitations inherent in using Adjusted EBITDA as a measure of overall profitability because it excludes significant expense items. An improving trend in Adjusted EBITDA may not be indicative of an improvement in the Company s profitability. To compensate for the limitations in utilizing Adjusted EBITDA as an operating measure, management also uses U.S. GAAP measures of performance, including operating income (loss) and net income (loss), to evaluate performance. As required under Regulation G and Item 10(e) of Regulation S-K, the table above provides a reconciliation of Adjusted EBITDA, a non-gaap financial measure, to net income (loss), which is the nearest comparable U.S. GAAP financial measure for the years ended December 31, 2016, 2015, 2014 and We generally define Adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization, other income (expense), gain or loss on the disposal of assets and other items that our management considers to be extraordinary, such as impairment expenses, acquisition-related costs, costs and charges associated with severance, facility closures, write-offs of bad debts and similar charges. Additionally, for the year ended December 31, 2016, we have deducted in calculating Adjusted EBITDA several categories of expenses and charges incurred in connection with our Chapter 11 proceedings which are detailed in the table above. For the years ended December 31, 2013, 2014 and 2015, we are presenting Adjusted EBITDA and net income on a pro forma basis for the March 2015 Nabors completion and production services transaction. For a discussion of the adjustments made in preparing the pro forma information, please see the pro forma financial statements included in our Registration Statement on Form S-4/A, Current Report on Form 8-K/A and Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 12, 2015, May 29, 2015 and March 2, 2017, respectively. A reconciliation of 2017 and 2018 Adjusted EBITDA cannot be provided without unreasonable efforts due to the uncertainty in identifying the categories and amounts of items that will impact net income in those periods. (1) Pro forma for March 2015 Nabors Completion & Production Services transaction (2) FY 2014 and FY 2015 pro forma net income (loss) is net of acquisition related costs of $20MM and $43MM, respectively, as disclosed in the K filing C&J Energy Services, Inc