SPN Investor Day

SPN 2013 Analyst & Investor Day: A Global Perspective

SPN Investor Day: A Global Perspective

International

U.S. Land

Offshore

Introduction

SPN 2013 Analyst & Investor

Day

Introduction

Forward-Looking Statements

This presentation contains forward-looking statements, including, in particular, statements about Superior Energy’s plans, strategies and prospects. These statements are based on the Company’s current assumptions, expectations and projections about future events, which are subject to a wide range of business risks.

Although the Company believes that the assumptions reflected in these forward-looking statements are reasonable, the Company can give no assurance that these assumptions will prove to be correct or that financial or market forecasts, savings or other benefits anticipated in the forward-looking statements will be achieved.

Forward-looking statements are not guarantees of future performance and actual results may differ materially from those projected. The information contained in this presentation is only current as of November 11, 2013, and the Company undertakes no obligation to update this presentation.

3

Introduction

Objectives

• Access to broad range of management

• Overview of business strategy

– International expansion

– Operational execution

– Generate stable/consistent cash flows

• Progress on achieving business strategy through presentations/discussion on a geographic basis

Introduction

4

Introduction

International (2:30 – 4:00)

• International Overview

• Discussion of Target Markets

• Organizational Structure

• Keys to Success

• Questions and Answers Session

15-minute Break

• Premium Drill Pipe Overview


• Completions Tools Overview


10-minute Break

• Automated Well Service Rigs

• Pressure Pumping Business Model


Wrap Up

Offshore (4:15 – 5:00)

U.S. Land (5:10 – 6:00)

Agenda

5

Introduction

Safety Check

• In case of an emergency we will be asked to

evacuate the building via the public address

system.

• Please evacuate through the nearest

accessible exits which are located at the

front of the room. You may also exit down

the main stairs to the lobby area.

• You will be advised of the assembly area via

the public address system.

• Restrooms are located on the left side of the

lower foyer.

6

Introduction

Executive Management Team

Administrative

Operational

Robert Taylor, Chief Financial Officer and Executive Vice President

Bill Masters, Executive Vice President and General Counsel

Danny Young, Executive Vice President – Corporate Services

Greg Rosenstein, Executive Vice President – Corporate Development

Brian Moore, Senior Executive Vice President – North America Services

Pat Bernard, Senior Executive Vice President – Subsea and Technical Solutions

Guy Cook, Executive Vice President – Drilling Products and Services

Westy Ballard, Executive Vice President – International Services

7

Introduction

Global Perspective of Superior Energy Services

8

Introduction

Cash Flow from Diverse U.S. Service Mix Supports International Expansion

9

U.S. Land • Multiple products and services across all major basins • Stable market environment (rig count, well count,

customer spending) • Focus is on maintaining margins, not market share • Little growth capital required to maintain profitability • Expected to generate cash flow for deployment

internationally and GoM

Gulf of Mexico • Deepwater growth

continues • Shallow water growth

to normalize • Some growth capital

required

International • Early stages of growth • Diverse product/service

mix helps minimize risk • Requires capital • Geomarket approach • Should generate highest

growth rate long-term

9

Introduction

Legacy Markets

• Legacy Markets: United Kingdom, Norway, Continental Europe, Mexico, Trinidad, Ecuador, Peru, and Venezuela

• Represent approximately 35% of international revenue

10

Introduction

Core Markets

• Core Markets: Argentina, Brazil, Colombia, Australia, Indonesia, Malaysia, Saudi Arabia, Kuwait, and India

• Represent approximately 40% of international revenue

11

Introduction

Hot Spot Markets

• Hot Spot Markets: Ghana, Angola, Nigeria, and Thailand • Represent approximately 10% of international revenue

12

Introduction

Stretch Markets

• Stretch Markets: Kurdistan, Russia, China, Egypt, Libya, and Algeria • Represent less than 1% of international revenue

13

Introduction

Organized to Maximize Executive Focus on Expansion

Executive Brian Moore Westy Ballard Pat Bernard Guy Cook

Title SEVP North America Svcs. EVP International Svcs. SEVP SubTech EVP Rental Tools

Geographic Responsibility

North America International Global Global

Product Line Responsibility

Fracturing Cementing Acidizing Slickline Electric Line Testing & Optimization Coiled Tubing Fluid Management Well Services Drilling Services

Fracturing Cementing Acidizing Slickline Electric Line Testing & Optimization Coiled Tubing Fluid Management

Marine Engineering & Design Completion Tools Well & Pressure Control Subsea Services Diving & ROV Services Plug & Abandonment Decommissioning Hydraulic Workover Torqueing & Testing

Specialty Tubulars Inspection Services Accommodations Bottom Hole Assemblies Specialty Rentals Environmental Services

14


International Overview

Westy Ballard

Executive Vice President

International

U.S. Land

Offshore

Introduction


Day

International

Key Messages to Remember Today…

16

• Balanced & Flexible Approach – Diverse geographical footprint to mitigate concentration in one region – Broad portfolio of products to reduce exposure to one part of well lifecycle – Execution through acquisitions and organic growth – Measurement of success through market share increase and ROIC

• Leverage our Strengths – Best-in-class product offerings as catalysts – rental tools, pressure control, snubbing and

hydraulic workover and completion tools – Decentralized decision-making resulting in adaptable and timely operations to address fluid

and disorderly markets

• Local Leadership – Years of experience in relevant markets – Intimate customer relationships

International

Our Approach

17

Execution Structure Strategy Opportunity

International

The Opportunity…

18

U.S. Oilfield Services Market

$191 B

INTERNATIONAL Oilfield Services Market

$195 B

Total Global Spend - $386 B

Total Global oilfield products & services spend is estimated to be $386B and growing 7% per year

$35 B

+

Our Opportunity

$77 B

Our Current Share

$4 B

<$1 B

Source: Spears & Associates OMR 2014 & Pressure Pumping Market Report 2013, Barclays 2013 E&P Spending Report, Barclays “Rethinking the Big Four”, J.P. Morgan “Oil Services & Equipment”

International

Our Strategy

LEGACY

CORE

HOT SPOTS

LEGACY CORE HOT SPOTS STRETCH

U.K. Norway

Continental Europe Mexico Trinidad Ecuador

Peru Venezuela

Argentina Brazil

Colombia Australia Indonesia Malaysia

Saudi Arabia Kuwait India

Ghana Angola Nigeria

Thailand

Kurdistan Russia China Egypt Libya

Algeria

Development Time

Ris

k

Market Considerations… • Capabilities Alignment • Competitive Landscape • Geopolitical Considerations • Financial Return Forecast

19

STRETCH

International

• Legacy Markets – Guy Cook- Drilling Products & Services

• Core Markets – Westy Ballard- International Services

– Carlos Cervo- Latin America

– Ruud Boendermaker- Asia Pacific

• Hot Spot Markets – Guy Cook- Drilling Products & Services

• Stretch Markets – Guy Cook- Drilling Products & Services

Our Speakers

20

International

LEGACY Markets

Our Capabilities • Drilling Products & Services

– Specialty Tubulars – Accommodations – Bottom Hole Assemblies

• Production Services – Coiled Tubing

• Subsea & Technical Solutions – Well Control – Pressure Control Services – Subsea Construction – Decommissioning & Engineering – Snubbing & Hydraulic Workover – Electric Line

Our Base of Operations • United Kingdom • Norway • Continental Europe • Ecuador

21

• Mexico • Trinidad • Venezuela • Peru

International


– Premium Drill Pipe & Landing Strings

– Pressure Control Equipment

– Accommodations

• Subsea & Technical Solutions

– Well Control Engineering and Training Services

– Snubbing & Hydraulic Workover

Our Base of Operations • Saudi Arabia

• UAE

CORE Markets – Middle East

22

Customer Insights • High pressure well environment

• Paradigm shift in Aramco contracting

• Work spread evenly among contractors in Kuwait

Our Opportunities Saudi Arabia

• Coiled tubing, hydraulic fracturing, drill pipe, accommodations

Kuwait

• Coiled tubing, snubbing & hydraulic workover, well testing

International

LATIN AMERICA OVERVIEW CARLOS CERVO 33 YEARS EXPERIENCE – SCHLUMBERGER, BAKER HUGHES

23

International

CORE Markets – Argentina

Footprint • Site Locations: Buenos Aires, Neuquen, Rincon de los

Sauces, Mendoza, Comodoro Rivadavia, Cañadón Seco, Rio Gallegos, Rio Grande, Tartagal

• Employees: 430

• First Entered: 2012

Customer Insights • Market driven by well intervention; production

increase from conventional-mature fields

• Unconventional market at early stage, preparing ground for massive development

• 40,000 + wells, 22,000 in production

Big Opportunities • Pressure Pumping

• Coiled Tubing

• Snubbing & Hydraulic Workover

• Drilling Products & Services

24

Our Capabilities • Onshore Completion & Workover Services

– Cased Hole Logging & Perforation

– Well Testing

• Production Services

– Rigless Well Intervention

– Slickline


International

CORE Markets – Brazil

Footprint • Site Locations: Rio de Janeiro, Macaé, Pojuca,

Carmópolis, Aracajú, Mossoró

• Employees: 289


Customer Insights • Pre-salt development pushed forward

• Increase in offshore well completions

• Early stage of unconventional exploration onshore

• Libra field peak production in 2025

Big Opportunities • Drilling Products & Services

• Offshore Pumping - FPSOs & Fixed Platforms

• Onshore Cementing and Fracturing

• Offshore Continuous Chemical Injection

25


– Premium Drill Pipe & Landing Strings – Bottom Hole Assemblies – Pressure Control Equipment – Accommodations

• Onshore Completion & Workover Services

– Onshore Cementing and Fracturing

• Production Services – Offshore Pumping - FPSOs & Fixed Platforms – Offshore Continuous Chemical Injection – Onshore Cementing and Fracturing


– Completion Tools

International

CORE Markets – Colombia

Footprint • Site Locations: Bogota, Yopal, Neiva,

Barrancabermeja, Villavicencio, Briceño, Pacific Rubiales Compound

• Employees: 242


Customer Insights • Field rejuvenation need

• Well intervention

• Speed-up environmental licenses grant process

Big Opportunities • Coiled Tubing

• Nitrogen

• Matrix Acidizing

• Well Testing

• Cased Hole Logging & Perforating

26


– Premium Drill Pipe

– Bottom Hole Assemblies

– Inspection Services

• Onshore Completion & Workover Services – Cementing

– Onshore Cementing and Fracturing


– Gravel Packing


– Completion Tools

International

ASIA PACIFIC OVERVIEW RUUD BOENDERMAKER 28 YEARS EXPERIENCE – HALLIBURTON

27

International

CORE Markets – Australia

Customer Insights • Lower than anticipated gas production from CSG wells

requires more wells to be drilled in both QLD and Cooper basin

• Need for mobile, quick rig-up Snubbing & Hydraulic Workover and Coiled Tubing package for QLD workover and well intervention programs after the wells come online by mid 2014

Big Opportunities • Quick Rig-up Mobile Snubbing & Hydraulic Workover

Land Unit

• Drill Pipe for Land Operations

• Quick Rig-up Mobile Coiled Tubing Equipment

28

Footprint • Site Locations: Perth, Toowoomba, Sale

• Employees: 149



– Premium Drill Pipe

• Onshore Completion & Workover Services

– Cementing


– Coiled Tubing

– Hydraulic Workover and Snubbing

International

CORE Markets – Malaysia

Customer Insights • Marginal Fields and EOR Projects looking for cost

effective solutions, i.e. rigless side track prep, slot recovery, running completions and Snubbing & Hydraulic Workover

• Subsea well intervention will be in demand by 2015


• Coiled Tubing

• Well Services (Rigless P&A, Side Track Prep, Slot Recovery and Completions Installation)

• Snubbing & Hydraulic Workover

29

Footprint • Site Locations: Kuala Lumpur, Kemaman, Labuan

• Employees: 24





– Well Services

– Subsea Construction

– Completion Tools and Products

– Rigless Well Intervention

International

CORE Markets – Indonesia

Customer Insights • Shift from Oil to Gas and shallow water to deepwater

• Well P&A and Decommissioning opportunities across Indonesia both offshore and onshore including geothermal wells


• Coiled Tubing

• Rigless P&A, Side Track Prep, Slot Recovery and Completions Installation

• Completion Tools

30

Footprint • Site Locations: Jakarta, Balikpapan

• Employees: 38






– Completion Tools and Products

International

HOT SPOTS MARKETS OVERVIEW GUY COOK

31

International

HOT SPOTS Markets



– Bottom Hole Assemblies

– Accommodations

– Specialty Rentals

• Subsea & Technical Services

– Completion Tools & Services

– Pressure Control Services


– Decommissioning & Engineering


Our Base of Operations • Ghana • Angola • Nigeria • Thailand

32

International

STRETCH Markets

Areas Under Consideration • Kurdistan • Russia • China • Egypt • Libya • Algeria

33

International

New Market Entry – “Pathfinder Team”

Pathfinder Team

Finance

Treasury

Tax

Legal

HR IT

HSEQ

Risk Mgt.

Facilities

34

Designed to establish “beach-heads” in markets identified as strategic

– “Clearing house” for all business units to interact with prior to beginning operations in target countries

– Proactive planning, implementation and deployment of infrastructure ahead of operational activities in target countries

– Infrastructure scaled to support current and future operational requirements

International

Hybrid Operating Model

Business Development & Operations

Decentralized

Back Office & Shared Services

Centralized

• Decentralized business development & operations supported by centralized back office

Approach Benefits

• Adaptable and timely business development and operations to address fluid and disorderly markets

• Allows for scale and efficiencies for routine business functions

35

International

Why We Will be Successful…

36

Superior’s positioning as the only true mid-market services provider affords us significant advantages over small and large cap providers

Large Caps $22.6 B – $63.3B

Small Caps

<$4.3B

$7.8B

Source: Represent asset values; CapitalIQ as of June 30, 2013

• Bureaucratic & static • Large cost-structures

• Focus primarily on well construction and premium projects

Large Cap Small Cap

• Limited product offering

• Limited financial resources • Low familiarity on a global scale • North America-centric

Tremendous incremental revenue opportunity – roughly 4% 2012 revenue generated from NOCs which represent an estimated 95% of world’s oil & gas reserves

Mid Cap

• Hybrid operating model • Cost effective setup

• Broad product line offering

International

International Revenue

$0

$200

$400

$600

$800

$1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013E (1)

Total International Revenue

Drilling Products and Services International Revenue

27%

(1) 2013E is annualized international revenue from first nine months of year.

$ in millions

37

International

International Opportunity

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2005 2006 2007 2008 2009 2010 2011 2012 2013E (1) 2014E 2015E 2016E

International Revenue Compound Annual Growth Rate: 31%

Next 3 Years Estimated CAGR:

15-20%

$ in millions

38

(1) 2013E is annualized international revenue from first nine months of year.

International

Fit for Purpose…Around the Globe

39

International

QUESTIONS

40


Workstrings International Drill Pipe is a Design, Not Just a Rental

Greg Elliott and Leianne Sanclemente

Engineering Solutions International

U.S. Land

Offshore

Introduction


Day

Offshore

• Challenging Well Plans

• Project Design Approach

• Correct Tubulars

• Proper Quality of the Equipment to Ensure Quality Performance

• Engineering “Solutions”, Design and Support, to Meet the Challenges

Drill Pipe is a Design

42

Offshore

Typical Wells 20 yrs Ago

43

• Water Depth – Normal 50 – 300 Ft

– Deep Water was 800 – 1000 Ft

• Well Depths – Normal 8,000 – 12,000 Ft

– Deep was > 15,000 Ft

• Well Paths – Typically Vertical to 40 degrees

– Difficult Directional > 45°

Offshore

Challenging Wells in Deep Water

44

Correct Equipment • Drill Pipe to drill to these depths

– tension and torsional

• Accessories to complement the drill string – proper ratings

• Landing strings for casing strings in excess of 1.5MM lbs – 2-2.5MM lbs ratings

• Now looking at 3MM lbs!!!

• Tubulars to complete the well to deliver oil and gas to surface

2000 2013

Vertical Well 20,000 – 25,000 Ft 5000 Ft Water Depth 3 – 4 Miles

Directional Well 30,000 – 35,000+ Ft 10,000 Ft Water Depth 5 – 6 Miles

Offshore

Vertical View Horizontal View Horizontal Well

Challenging well plans worldwide!

Challenging Directionals

45

10,000 FT Vertical 10,000 FT Horizontal 6” Hole on Bottom

Offshore

WSI Engineering Support Team behind Operator’s Engineering Team!!!

• Cradle–to-Grave Design Approach – Planning phase to ensure or design correct tubulars – Final design for permitting – Support with redesigns – Calibrate and review for planning of the next well

• WSI is Lead by Engineers – Strategically placed globally – >275 years of industry engineering experience – Engaging customers for the future projects’ challenges – In-front with solutions – It is a vision and a way of thinking!

Currently average 1 well design per work day!!! Involvement with well designs secures >90% of pipe rental awards!!!

Project Approach

46

Offshore

What sets Workstrings apart from

the traditional rental tool company?

Engineering “Solutions”, Design and Support

Quality Equipment and Service

Leading Edge Vision

Workstrings Engineering Solutions

47

Offshore

QUESTIONS


Completion Services Division

Ed Smith

Sand Control and Completion Tools International

U.S. Land

Offshore

Introduction


Day

Offshore

Sand Control and Completion Tool Technology

50

• “Standard” sand control system – Low to medium pressure and temperature – Full line of tools and accessories – Well screens – Production packers – Safety valves

• “Deepwater” sand control system – Medium to high pressure and temperature – Fit-for-purpose line of tools and accessories – CRA metallurgy – Well screens – Production packers – SMART systems

• Single Trip systems – Horizontal Openhole system – Perforate and Stimulate – Multi-zone single trip system

Offshore

Deepwater Sand Control Experience

51

June 2000

July 1999 First DW completion – British-Borneo

First industry 7” sand control SMART well – Anadarko

• 143 Deepwater wells and 289 intervals • 62 SMART well installations • 288 LZ Patented flow valve installations (V1) • 104 LZ Patented flow valve installations (V2) • 123 UZ Patented flow valve installations

Offshore

Deepwater Customer List

52

• Anadarko • Apache/Mariner • BP • ENI • ERT/Tallos • Noble • Marubeni • Petrobras • Walter Oil and Gas • W&T Offshore

Offshore

Stacked Sand Control Completions

53

• Current completion technology – Perforate and complete zone #4

– Repeat process for each zone

• Rig Time – Depth dependent

– Takes 2-4 days per zone

• Rig Cost – Water depth dependent

BEST.GR_4

GAPI0 120

24500

25500

26500

27500

28500

29500

30500

25000

26000

27000

28000

29000

30000

DEPTHFEET

23500

24000

24500

25000

25500

26000

26500

27000

27500

28000

28500

TVD

FEET.

L

OT

(p

pg

)

9.625

RDEEP_1

OHMM0.2 20

Install across each interval

Offshore

Multi-Zone Single Trip (MST) System

54

• Complete all zones at same time • Rig Time – 2-4 days/zone - huge $$$ • 1st Commercial install – April 2007 • 1st GoM install – July 2007 • 1st Deepwater install – Aug 2008 • 1st Deepwater GoM install – Dec 2009 • 1st installation in Brazil – June 2013

– 2nd install ongoing

• 40 wells and 155 zones to date • Largest global market is Indonesia

– Awarded 3 year contract for MST – Awarded Premier MST contract – Awarded CNOOC MST contract

Zone #2

Zone #3

Zone #1

Offshore

Tool R&D Test Facility

55

• Eight (8) test Cells

• Simulate Well Conditions

• Temperature range – 40 to 1000o F

• Pressure – up to 30,000 psi

• Push and Pull – 500,000 lbs.

Offshore

Marine Stimulation Business

56

• Stimulation Vessels

• Skid Based Equipment

• Started with 2 vessels –

decommissioned one

– Redeployed assets

• Current GoM fleet – 5 vessels

Offshore

Business Environment

57

• Started as US based offshore GoM company only

• Post-Macondo – moratorium

• Initial strategy – SURVIVE – grow outside GoM quick

0

10

20

30

40

50

60

70

US Gulf of Mexico Rig Count

Offshore

Completion Tool Business Strategy

58

Sand Control provider for Gulf of Mexico shelf, deepwater and certain international markets

Global Completion Equipment Provider

$6,088

$6,557 $7,716

$8,958 $9,854

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2009 2010 2011 2012 2013

Global Completion Equipment Market - Spears

Packers $2,450

Safety Valves $600

SMART wells $600

Sand Control Tools $1,625

Multiple Stage Frac Tools $900

Spears Data

$ in millions

Offshore

QUESTIONS


Well Service Innovation

Jeff Kaufmann

Well Services & US Coiled Tubing International

U.S. Land

Offshore

Introduction


Day

U.S. Land

• Concept

• Design Drivers

• Applications

• Functions

• Development • Commercialization Status

• Q & A

Complete Automated Technology System

61

U.S. Land

• Customers want efficient, coordinated, consistent performance in horizontal well completions

• Completion Package – Rig, Pumps, Tanks, Pipe Handling, Power swivel, Live well intervention

• 24 hour operations …. Horizontal Well Factory • Harsh Environments • Automation …. Safer & Easier to Staff, Smaller Crew • Real-time monitoring | Process analysis • Extend capabilities in long, lateral horizontal wells • Walking System …. Pad Drilling, Greater flexibility

Concept

62

U.S. Land

Resource play horizontal well completion requirements

• Long laterals

• Stage fracs – (Plug & Perf | Sleeves & Baffles)

• Well Factory – 24 hour operations

– Simultaneous operations on Multi-well pads

• Live well intervention

• Labor constraints

• Efficiency Driven

Customer Driven Design Parameters

63

U.S. Land

Unique Application of Multiple Technologies

64

Top Drive Walking Platform

Service Rig

Pump Package

Pressure Control

Automated Pipe Handling

• Patents Pending – 30 applications filed for method & apparatus

• 2013 OTC Spotlight on New Technology Award

• Strong interest from active Majors and Large Independents

Control House

Real-time Monitoring

U.S. Land

Capabilities Bridge Gaps

65

U.S. Land

• Innovative well service rig

• Fit-for-purpose design driven by resource play horizontal well completion requirements

• Delivers safe, efficient well pad operations – Walking System – Automated pipe handling | No personnel on rig floor – Smaller crew – 24 hour operations | Simultaneous operations – Advanced control, monitoring & communications – Harsh Environment Advantages

• Capabilities bridge gaps between conventional well service rig, snubbing and coiled tubing

• Unique application of multiple technologies – In-house initiative including conception, design,

engineering, manufacturing and implementation, over last 3 years. Proto-type field testing completed

– Patents pending – 30 method & apparatus applications – 2013 OTC Spotlight on New Technology Award

Recipient

• Commercialization ongoing – Prototype completed late 2012 – First field model deployed, Rig #2 completed

Summary

66

U.S. Land

QUESTIONS


Hydraulic Fracturing

Brian Moore

Superior Energy Services International

U.S. Land

Offshore

Introduction


Day

U.S. Land

Overview

69

Basin Distribution Growth

Built for the Resource plays

Driven by E&P’s with competencies in geology, reservoir engineering, completion expertise and field development

Alignment for the long term with key customers in the right basins

Modern fleets and commercial model built for resource play well factory

660,000 horsepower

Majority of equipment committed to long-term contracts for dedicated spreads

Organic Growth since 2008

2008 Acquisition (2 Barnett Fleets)

2006 – Acquired Pumpco (3 Barnett Fleets)

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000

2008

2009

2010

2011

2012

2013Eagle Ford33%

Permian20%

Barnett6%

Marcellus11%

Bakken30%

Expanded from Barnett & added crosslink fluid capabilities

Bakken & Marcellus

Eagle Ford (2010)

Permian (2011)

U.S. Land

Pumpco Overview

70

Equipment

Business Model

Execution

Alignment with key customers in the right basins

Built for the Resource plays

Commitment to long term relationships

U.S. Land

Multiple Components of Fleet … Single Approach to Design

71

Blender Liquid Additive Unit

Pump Units Treating Van

Frac Fleet

Resource Play Driven Design Functional & Versatile

Basin Specific Configurations Robust & Durable

Accessible Components Simplicity over Complexity

Reliability over Novelty

U.S. Land

Equipment Built for Resource Plays

72

Pump Configuration Matters • Quintaplex Preference - Higher rate capabilities - Fewer steering wheels - 80% of current fleet • Accessible Components - Easier maintenance - Quicker repairs - Safety

U.S. Land

Long Term Relationships Through Sustainable Business Model Alignment

73

• Efficiency Driven, Dedicated Spreads

– Two shifts per day … 18 hour minimum working day

– Weekday or everyday schedules

– Well to well

• Simple Rate Structure

– Daily Rate – Base Spread & Minimum Pumps

– Chemicals – Cost Plus Model

– Proppant – Cost Plus, Price List or Customer Provided

– Additional Equipment Price List

• Performance Alignment

– Safety First

– Downtime Penalties

– Incentives aligned with performance objectives

• Stages/day

• Proppant pumped incentive above monthly thresholds

• Commitment to long term relationships

– Accessible Senior Management

– Responsive, Adaptive, Easy to Work With (10 of 11 contracts extended beyond initial term)

– Attractive returns | Commercially Sustainable

U.S. Land

Contract Extension Experience

74

Horsepower Extensions

13 22,500 1

12 36,000

11 36,000 0

10 13,500 1

9 13,500 1

8 29,250 0

7 29,250 1

6 29,250 1

5 29,250 3

4 13,500 3

3 13,500 1

2 13,500 2

1 13,500 2

Bar

net

tEa

gle

Ford

Bak

ken

Mar

cellu

sP

erm

ian

2008 2009 2010 2011 2012 2013 2014 292,500 16

U.S. Land

Pumpco Built for Resource Plays – Execution Focus

75

People Supply Chain Equipment

Performance − High Utilization

− Service Intensive Fracs

− Complex Fluid Systems

− Minimal Downtime

− Well Factory (Multi-well pads)

− More Proppant “Placed”

U.S. Land

Execution Perspective Eagle Ford Example - March 2013

76

(4) Eagle Ford Spreads

221,355,871 lbs sand pumped in March 2013

1,824,562 lbs/day/fleet

38 tractor trailor loads/day/fleet

152 tractor trailor loads/day

36.9 Railcars/day

1,118.0 Railcars/month

9.5 miles of train cars

Assumptions:

198,000 lbs/railcar

48,000 lbs/tractor trailer load

45 feet average length for sand rail car

U.S. Land

• Resource Play Driven

• Align with most efficient E&P operators

• Execution

– Equipment Configuration Matters

– Well Factory Mindset

• Long Term Relationships

• Sustainable Business Model

• Proven Record

Summary

77

U.S. Land

QUESTIONS

78

Wrap Up

Global Perspective of Superior Energy Services

Introduction

Objectives

• Access to broad range of management

• Overview of business strategy

– International expansion

– Operational execution

– Generate stable/consistent cash flows

• Progress on achieving business strategy through presentations/discussion on a geographic basis

Wrap Up

80

Wrap Up

Questions

81

Date post:	19-Feb-2022
Category:	Documents
Upload:	others
View:	6 times
Download:	0 times

SPN Investor Day

Documents