5381 West 42nd Street Odessa, TX 79764

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1 INVESTMENT OVERVIEW 5381 West 42nd Street Odessa, TX ,660 SF 4.0 Acres 9.2% CAP EXECUTIVE SUMMARY 1

2 INVESTMENT OVERVIEW PERFORMANCE WELLHEAD & FRAC COMPONENTS It is Jackson Cooksey s pleasure to present the following investment opportunity to purchase a two-building portfolio consisting of recently constructed, state of the art industrial facilities currently owned by Performance Wellhead. Founded in 2006, Performance Wellhead & Frac Components, Inc. is a leading oil and gas service company specializing in surface well-control equipment and related field services utilized in all phases of drilling, well-stimulation, production, and intervention operations. We have earned a stellar reputation for providing quality, dependable, safe equipment, as well as exceptional field service and support functions. Performance Wellhead & Frac Components, Inc. is well represented by an exceptional, experienced management team of oil and gas professionals who together bring a combined total of 200+ years of industry experience. Performance Wellhead and Frac Components, Inc. is totally committed to preventing the accidental loss of any of its resources, including employees and physical assets. In fulfilling this commitment to protect both people and property, management will provide and maintain a safe and healthy work environment, in accordance with industry standards and in compliance with legislative requirements, and will strive to eliminate any foreseeable hazards which may result in property damage, accidents, or personal injury/illness. Performance Wellhead & Frac Components, Inc. supports our safety initiatives through active participation with IS Networld, PEC and Disa. SLINGSHOT SUPPLY MERGER In February 2017, Pelican Energy Partners announced the recapitalization and combination of Performance Wellhead & Frac Components, Inc. ( Performance ) and Slingshot Supply, Inc. ( Slingshot ). Performance and Slingshot have combined to provide a larger asset base and broader geographic reach to support their customers across the oilfield. Since the two companies have minimal geographic overlap, they will both continue to operate under their legacy names in their respective markets. Slingshot, based in Odessa, was founded by Jeff Helmcamp in Slingshot is focused on the Permian market and has become a provider of choice for major operators in the basin. In addition to the services and equipment that Performance provides, Slingshot provides BOP rental and repair, and is the exclusive licensed provider of the Power Feed-Thru Systems & Connectors product line ( PFT ) for use in artificial lift systems in the Permian. The PFT product line consists of patented wellhead products used to facilitate a seamless power connection with electric submersible pumps. Jeff Helmcamp, who will continue as COO of the combined business, said, This partnership takes us to the next level extending our product lines and services to exceed our customers expectations as their needs continue to grow. Jeff and the team at Slingshot have built an excellent company that is well regarded across the Permian. He and his team are excited to bring these like-minded organizations together so that they can better serve customers in more basins with a set of products and services that span drilling, completion and production. 2

3 FINANCIAL SUMMARY INVESTMENT SUMMARY OVERVIEW PROPERTY OVERVIEW ADDRESS 5381 West 42nd Street Odessa, Texas BUILDING A 8,030 SF RENTABLE BUILDING AREA 31,660 SF BUILDING B 6,000 SF YEAR BUILT 1982, 2002, 2015 NO. OF TENANTS 1 PERCENT OCCUPIED 100% REMAINING LEASE TERM 4 Years BUILDING C BUILDING D SHOP (Total) OFFICE (Total) 5,750 SF 11,880 SF +/- 27,660 SF +/- 4,000 SF ACERAGE 4.0 FINANCIAL SUMMARY Year 1 NOI (projected) $258,000 Year 2 NOI (projected) $276,000 4 Year Avg. NOI (projected) $271,500 3

4 LOCAL ECONOMY ECONOMIC GROWTH MANUFACTURING AND LOGISTICS The Combined Midland-Odessa general economy has seen double-digit percentage year-over-year increases in general spending, auto spending, hotel/motel spending, construction, home building, and existing homes sales activity. General real (inflation-adjusted) spending per September sales tax receipts was up by over 40% compared to September of a year ago, and was up 34% for the third quarter. With over 20 large oil and gas corporations headquartered in the region, and numerous major companies such as Chevron, Conoco and Exxon Mobil with an established presence in the Permian Basin, economists project continued growth throughout the region. The surge in interest in the Permian Basin continues to drive up land prices. Investors and occupiers are now paying more than $60,000 per acre, nearly double the average price paid in With oil production increasing in the area, the price for real estate is expected to rise over the next 5 years. The Midland-Odessa Regional Economic Index posted another strong monthly increase in September rising to for the month, up from in August, and up 8.9% from the September 2016 MOREI of The improvement in September is the 11th consecutive monthly increase, over which time the Midland-Odessa Regional Economic Index has expanded by 9.4%. Third quarter growth was stout as well with annualized growth in the MOREI of 17% over the course of the quarter. The expansion and recovery in the regional oil and gas economy reached the yearlong mark in September with the 12th consecutive monthly increase in the Texas Permian Basin Petroleum Index, a tracking device for the Texas portion of the Permian Basin utilizing data primarily from Texas Railroad Commission districts 7C, 8, and 8A. Since the early days of petroleum exploration in Texas, the Permian Basin has established itself as the leader in crude oil production and associated energy revenues that have provided for substantial investment in the West Texas region. Occupancy in this market is driven by the unique strength of the oil and gas industry, and with Midland-Odessa s key location at the intersection of Interstate 20, the La Entrada al Pacifico Trade Corridor, and the Ports to the Plains Corridor connecting Mexico and Canada, the Midland Odessa industrial market provides the link between West Texas crude and the greater energy marketplace. The critical role of Midland Odessa and the high demand by oil field service companies in this immediate area makes it a hotspot for industrial space. In addition to the critical role Midland-Odessa plays in crude oil exports, it is also the gateway to West Texas, serving as the logistics, distribution, and warehousing hub that brings in supplies from across the country. While the oil and gas industry is key to the local economy, the aerospace, ranching and agriculture, health care, retirement, and transportation all play a major part as well; spurring increasingly more demand for industrial properties. The Midland International Airport along with its Foreign Trade Zone 165 and service by Union Pacific Railroad provide additional demand for logistics, distribution, and warehousing as well. As the demand for West Texas crude oil increases and outside investment in the area rises, so too will the demand for industrial space in this market. 4

5 LOCAL ECONOMY DOMESTIC OIL PRODUCTION Research shows that while total U.S. oil production may lag behind 2015 peaks, West Texas production is on the rise. Nationwide projections show that Texas will continue to account for approximately half of the total continental U.S. oil production. Over the past few years, oil production from the Eagle Ford Basin has been rapidly declining; research suggests this trend is likely to continue. The continued growth in oil production from Texas is expected to come from the Permian Basin. The oil and gas industry invested more than $28 billion in land grabs around the Permian Basin in 2016, three times more than what was spent in this region the prior year. The major shift towards the Permian Basin accounted for 39% of all invested capital on land acquisitions in the U.S. oil and gas industry last year. In comparison, the Marcellus Shale attracted 10%, and the Bakken 3%, respectively. PERMIAN BASIN OIL PRODUCTION The Permian Basin is currently responsible for 60% of the Texas crude production and is home to 50% of the active rigs in the state. The Permian Basin is the second largest basin in the world and is home to 12 of the 17 top producing oil and gas companies in the state. The Drilling Productivity Report (DPR), a computer driven model that estimates recent and future oil and gas production in specific regions, shows massive increases in the production of oil from the Permian Basin. Charts showing current production have also shown the same upward trends that the DPR models have predicted. The massive increases in oil production from the region and expected growth suggest that demand for industrial and manufacturing space will continue to rise throughout the Midland-Odessa market. 5

LOCAL ECONOMY PERMIAN BASIN OIL PRODUCTION LABOR STATISTICS 60% of Texas crude production 16% of U.S. crude production 17% of Texas and U.S. gas production 50% of active rigs in Texas 25% of active rigs in the U.

6 LOCAL ECONOMY PERMIAN BASIN OIL PRODUCTION LABOR STATISTICS 60% of Texas crude production 16% of U.S. crude production 17% of Texas and U.S. gas production 50% of active rigs in Texas 25% of active rigs in the U.S. Home to 12 of the 17 top producing oil and gas counties in the state. A well-educated workforce is essential in a competitive global environment and workers must be able to update and expand their knowledge as new technology and operational procedures continue to evolve. The Permian Basin has more than 220,000 professionals in the regional labor pool that have the educational expertise and technical aptitude to serve the industry. Midland County has added over 23,000 jobs since January 2010 (Texas Workforce Commission). Post-secondary and higher education resources are readily available within the Midland area to serve area residents and businesses. Midland-Odessa is the logistics, distribution, and warehousing hub for West Texas. The area s retail service sector is regionally based with but led by national-chain stores and restaurants. The West Texas can-do work ethic and attitude provides a favorable business climate for both existing and new businesses. 6

7 LOCAL BUSINESSES Company Name Product/Service Company Name Product / Service Anadarko Petroleum Oil & Gas Exploration & Production Hy-Bon Engineering *** Oil & Gas Services & Equipment Anthem Oil & Gas, Inc. *** Oil & Gas Operation The Kent Companies *** Oil Distributor Apache Corporation Oil & Gas Exploration & Production Key Energy Services Oil Field Services Baker Hughes Companies Oil Field Service & Equipment Legacy Reserves, LP *** Oil & Gas Exploration & Production Basic Energy Services Oil Field Service Nabors Well Services Oil & Gas Services & Equipment BCCK Engineering *** Oil & Gas Services & Equipment Natural Gas Services Group *** Natural Gas Services & Equipment Big D *** Oil & Gas Field Service Occidental Petroleum Ltd Oil & Gas Exploration & Production Centurion Pipeline Pipeline Transportation Onyx Contractors, LP Construction Chesapeake Energy Natural Gas Exploration & Production Parsley Energy Oil & Gas Exploration & Production Chevron Oil & Gas Production Patterson Drilling UTI Oil Field Service Concho Resources *** Oil & Gas Exploration & Production Pioneer Natural Resources Natural Gas Exploration & Production Conoco Phillips Oil & Gas Exploration & Production Plains All-American Pipeline, LP Petroleum Transportation & Marketing CSI Compressco LP Gas Compression Service Production Lift Companies Oil Field Service Dawson Geophysical *** Oil Field Services Rockwater Energy *** Oil & Gas Services DCP Midstream Natural Gas Processing Schlumberger Oilfield Services Oil & Gas Services Devon Energy Oil & Gas Production Smith Industries *** Oil & Gas Field Supplies & Equipment Diamondback Energy *** Oil & Gas Exploration & Production Susie's South Forty Confections, Inc. *** Manufacturer Don-Nan Pump & Supply *** Oil Field Service Tenaris Pipe Distributor Dura-Line Polyethylene Pipe Teraco Manufacturer En-Link Midstream Oil Field Service Tucker Midstream Oil Field Service & Equipment Endeavor Energy Resources, LP Oil & Gas Exploration & Production Wagner & Brown, Ltd *** Oil & Gas Exploration & Production Energen Resources Corporation Oil & Gas Exploration & Production Warren Equipment Companies *** Equipment Manufacturing & Service Enertia Software, Inc. *** Oil & Gas Software Weatherford International Oil Field Services EOG Resources Oil & Gas Exploration & Production West Texas Gas, Inc. *** Natural Gas Services Fasken Oil & Ranch *** Oil & Gas Exploration & Production Westex/WLP Holdings, LP *** Oil Field Services Halliburton Energy Services Oil Field Service XTO Energy Oil & Gas Exploration & Production *** Midland-Odessa Headquarters 7

8 MARKET OVERVIEW VACANCY & RENTAL RATE TRENDS Market research indicates current Industrial vacancy rates in the Midland-Odessa region have been decreasing since late Overall vacancy rates have dropped from 12% to 3% in the span of one year. Historic vacancy rates for the past 5 years have consistently remained between 9% and 12% until the shift in late Up from $6.50 per SF NNN on average in early 2013, current asking rental rates have increased approximately 75% to $11.37 per SF NNN. Decreasing inventory levels, coupled with increases in leasing absorption across the region suggests asking rental rates will almost certainly continue to climb.. Despite large amounts of new construction over the past five years, the amount of available industrial space is lower now than it has been in any of the previous years in that same period. 8

RECENT DEVELOPMENT NEW CONSTRUCTION vs DEMAND Despite seeing below-average vacancy rates across all asset types and the continual rise in base rental rates, the amount of new square footage under

The majority of new construction consists of build-to-suit projects for occupiers, with very little being speculative development.

9 RECENT DEVELOPMENT NEW CONSTRUCTION vs DEMAND Despite seeing below-average vacancy rates across all asset types and the continual rise in base rental rates, the amount of new square footage under construction has experienced very little change between 2016 and The majority of new construction consists of build-to-suit projects for occupiers, with very little being speculative development. Barring an economic shift or change in West Texas Crude pricing and/or forecasts, the demand for industrial real estate will likely continue to outpace supply over the next months; causing vacancy rates to fall even further. The slight jump in the amount of total square footage currently under construction between 2016 and 2017 indicates that the much of the speculative new construction in the market was started late in 2016 in response to the shift in demand. This indicates that the Midland-Odessa market is more reactionary than preemptive, meaning that it is more likely to maintain the current low vacancy rates and high rental rates in the next 24 months. 9

10 PROPERTY OVERVIEW PROPERTY Improvement Year Built SQ FT Building A ,030 Building B ,000 Building C ,750 Building D ,880 IMPROVEMENTS (SF) 31,660 Total SF +/- 27,660 SF Shop +/- 4,000 SF Office ACERAGE 4.0 acres ELECTRICAL 480V 3 phase BUILDING A (10) Offices (2) Breakrooms Conference room (4) Restrooms (1) 3-ton Overhead Crane Manual lift OH door Evaporative cooling system BUILDING B (1) Office (1) 3-ton OH crane (2) Manual lift OH door BUILDING C (1) Office (1) Breakroom (1) Restroom (1) 5-ton Overhead Crane (2) Manual lift OH door BUILDING D (7) Offices (2) Restrooms (2) 20-ton Overhead Crane (4) Electric oversize OH doors (4) Test Bays 12 x 12 x 12 (1) Wash Bay 12 x 16 x 12 FENCING 6 chain link with barb wire (2) 12 electric gates; (1) with key pad (2) 3 gates; (1) with combination lock door handle 10

11 PROPERTY PHOTOS 11

12 SURVEY 12

13 IABS 13

IABS Garrett Gibbons Vice President ggibbons@jacksoncooksey.

14 IABS Garrett Gibbons Vice President +1 (972) Merit Drive Suite 760 Dallas, Texas NO WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICES, RENTAL OR OTHER CONDITIONS.

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Select Energy Services 4506 I45 SOUTH Gainesville, Texas 76420

NNN INVESTMENT Select Energy Services 4506 I45 SOUTH Gainesville, Texas 76420 IH-35 PREPARED BY: D M Butler Real Estate DAVID M. BUTLER PO Box 130455 713-557-8634 The Woodlands, Texas 77393 david.butler@dmbre.com