Last Year s First Slide

The Boom of 2017

Last Year s First Slide

This Year s First Slide

US Drilling Rigs Oil Price Last Year s Forecast 2,500 2,000 Rigs Oil Price $125 $100 1,500 $75 1,000 $50 500 $25 - H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 $0 $52

Thank You, OPEC

US Drilling Rigs Oil Price Actual 2,500 2,000 Rigs Oil Price $125 $100 1,500 $75 1,000 $50 500 $25 - H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 $0

Lateral Feet Drilled (millions) Oil Price Reservoir-Feet of Hole 125 $125 100 Lateral Feet Oil Price $100 75 $75 50 $50 25 $25 - H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 $0

2016 Niobrara Laterals 16,000 TD Date vs Lateral Length (Extraction Oil & Gas) 14,000 12,000 10,000 8,000 6,000 4,000 2,000-12/12/2015 1/31/2016 3/21/2016 5/10/2016 6/29/2016 8/18/2016 10/7/2016 11/26/2016 Here we see drilling on multi well pads. Laterals tend to be uniform on each pad.

20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2016 Bakken Laterals TD Date vs Lateral Length (Continental Resources) - 12/12/2015 1/31/2016 3/21/2016 5/10/2016 6/29/2016 8/18/2016 10/7/2016 11/26/2016 Here we see Continental drill extremely long laterals due to geography

2016 Permian Laterals 16,000 TD Date vs Lateral Length (Concho) 14,000 12,000 10,000 8,000 6,000 4,000 2,000-12/12/2015 1/31/2016 3/21/2016 5/10/2016 6/29/2016 8/18/2016 10/7/2016 11/26/2016 Here we see Concho increasing its use of 11,000 laterals while not abandoning 5,000.

2016 Permian Laterals 16,000 TD Date vs Lateral Length 14,000 12,000 10,000 8,000 6,000 4,000 2,000-12/12/2015 1/31/2016 3/21/2016 5/10/2016 6/29/2016 8/18/2016 10/7/2016 11/26/2016 This is a graph of all Permian horizontal wells. 3 clusters emerge: 5k, 8k and 11k drilling.

2016 US Laterals 16,000 TD Date vs Lateral Length 14,000 12,000 10,000 8,000 6,000 4,000 2,000-12/12/2015 1/31/2016 3/21/2016 5/10/2016 6/29/2016 8/18/2016 10/7/2016 11/26/2016 This is a graph of all US horizontal wells. 3 clusters emerge: 5k, 8k and 11k drilling.

Frac Stages Pumped 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Permian 2013 2014 2015 2016 2017 2018

Frac Stages Pumped 120000 Bakken 100000 80000 60000 40000 20000 0 2013 2014 2015 2016 2017 2018

Frac Stages Pumped 600000 Total US 500000 400000 300000 200000 100000 0 2013 2014 2015 2016 2017 2018

Millions Land Quarterly Revenues $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Various OFS Company Land-Focused Product Lines Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 This is a graph of the product line sales of several NoAm-land focused firms. Stability at the bottom finally.

Millions Offshore Quarterly Revenues $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Various OFS Company Offshore-Focused Product Lines This is a graph of the product line sales of several offshore focused firms. Decline is accelerating. $0 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

Oilfield E/S Markets $500,000 Global Revenues of All OFS Companies (Millions) $450,000 $400,000 $350,000 $300,000 Global OFS sales bottom in 2016, down >50% from the 2014 peak. 2017 is up 8%. $250,000 $200,000 $150,000 $100,000 $50,000 $0 2013 2014 2015 2016 2017

Oilfield E/S Markets - Land $250,000 Global Revenues of Land-Focused OFS Companies (Millions) $200,000 $150,000 Global OFS sales of land-focused products/services. 2016 is the bottom and 2017 is up 20%. $100,000 $50,000 $0 2013 2014 2015 2016 2017

Oilfield E/S Markets - Offshore $300,000 $250,000 $200,000 Global Revenues of Offshore-Focused OFS Companies (Millions) Global OFS sales of offshore-focused products/services. 2016 is down and 2017 continues down. $150,000 $100,000 $50,000 $0 2013 2014 2015 2016 2017

Oilfield E/S Markets $500,000 Global Revenues of All OFS Companies (Millions) $450,000 $400,000 $350,000 $300,000 Global OFS sales bottom in 2016, down >50% from the 2014 peak. 2017 is up 8%. $250,000 $200,000 $150,000 $100,000 $50,000 $0 2013 2014 2015 2016 2017

Land Drilling Markets $40,000 Global Revenues of Land Contract Drillers (Millions) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2013 2014 2015 2016 2017

Frac Markets $50,000 Global Revenues of All Frac Companies (Millions) $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2013 2014 2015 2016 2017

Offshore Drilling Markets $70,000 Global Revenues of Offshore Contract Drillers (Millions) $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2013 2014 2015 2016 2017