0Keane Group – Investor Presentation September 2017
Investor Presentation
Barclays Global CEO-Energy Power Conference
September 2017
1Keane Group – Investor Presentation September 2017
Forward Looking Statements
Cautionary Statement Regarding Forward-Looking Statements
The statements contained in this presentation and any oral statements made in connection with this presentation that are not historical facts are forward-
looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions are intended to identify
such forward-looking statements. The statements in this presentation that are not historical statements, including statements regarding the Company’s
plans, objectives, future opportunities for the Company’s services, future financial performance and operating results and any other statements regarding
Keane's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are
forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of
which are beyond Keane's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These
risks and uncertainties include, but are not limited to the operations of Keane; the effects of the business combination of Keane and RockPile, including
the combined Company’s future financial condition, results of operations, strategy and plans; potential adverse reactions or changes to business
relationships resulting from the completion of the RockPile transaction; expected synergies and other benefits from the transaction and the ability of
Keane to realize such synergies and other benefits; results of litigation, settlements and investigations; actions by third parties, including governmental
agencies; volatility in customer spending and in oil and natural gas prices, which could adversely affect demand for Keane's services and their associated
effect on rates, utilization, margins and planned capital expenditures; global economic conditions; excess availability of pressure pumping equipment,
including as a result of low commodity prices, reactivation or construction; liabilities from operations; weather; decline in, and ability to realize, backlog;
equipment specialization and new technologies; shortages, delays in delivery and interruptions of supply of equipment and materials; ability to hire and
retain personnel; loss of, or reduction in business with, key customers; difficulty with growth and in integrating acquisitions; product liability; political,
economic and social instability risk; ability to effectively identify and enter new markets; cybersecurity risk; dependence on our subsidiaries to meet our
long-term debt obligations; variable rate indebtedness risk; and anti-takeover measures in our charter documents.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from
time to time in Keane's Securities and Exchange Commission (“SEC”) filings, including the most recently filed Forms 10-Q and 10-K. Keane's filings may
be obtained by contacting Keane or the SEC or through Keane's website at http://www.keanegrp.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System (EDGAR) at http://www.sec.gov. Keane undertakes no obligation to publicly update or revise any forward-looking statement.
Statements made in this presentation include non-U.S. GAAP financial measures. The required reconciliation to U.S. GAAP financial measures areincluded at the end of this presentation.
Nothing in this presentation shall constitute a solicitation to buy or an offer to sell shares of Keane's common stock. In addition, certain information withrespect to RockPile has been included in this presentation for illustrative purposes only.
2Keane Group – Investor Presentation September 2017
Keane Overview
~1,200,000Hydraulic Horsepower
31Wireline Trucks
7Coiled Tubing Units
Pure-play U.S. completion services company
Significant scale with fleet totaling ~1.2 million HHP
Leading position in Permian, Marcellus / Utica and Bakken
Dedicated agreements with highly-efficient, quality customers
Diversified and scalable operations with strong logistics footprint
High quality fleet of modern completions equipment
Value-add applied engineering & proprietary product capabilities
24Cementing Units
12Workover Rigs
Market leading, integrated provider of value-added completion services
Completions Services
Other Services
3Keane Group – Investor Presentation September 2017
Execution on Public Platform
Significant achievements in less than 8 months
Utilization
Recommissioning
Profitability
M&A
Balance Sheet
Deployed all idle fleets; achieved full utilization
Commissioned 7 legacy Keane fleets since January 2017
Deployed idle fleets at industry-leading cost
Realized avg. per fleet re-commissioning costs of ~$2mm
On target to more than triple adjusted GP per fleet1
2017 exit-rate of mid-to-high teens; vs. 4Q16 avg. of $4.4mm
Executed strategic RockPile acquisition
Added 245k HHP2 and scale in key basins; seamless integration
Maintained conservative balance sheet & liquidityPro-forma leverage of <2x3; liquidity of ~$200mm
1 Based on guidance provided August 2017. 2 245,000 HHP consisted of 215,000 HHP added immediately with 30,000 HHP fleet on order for dedicated customer, to be delivered and
deployed in Q4 2017. 3 Debt balance as of 6/30/2017 plus additional term loan associated with RockPile transaction vs. annualized Q2 2017 adjusted EBITDA.
4Keane Group – Investor Presentation September 2017
Keane’s Evolution
Customers
Suppliers
Services
Management
Employees
Facilities
BasinsPermian, Marcellus / Utica, Bakken, SCOOP / STACK
2011 2017
Marcellus
Single major Top-tier, diversified customer base
Multiple contracts, diversified supply base and established infrastructure
Integrated provider of completion services with engineering & technology
Best-in-class management team with extensive industry experience
~3,000 employees
11 field offices, 1 engineering solution center
Spot vendors
Top hole drilling, horizontal frac
Family run business
~80 employees
Lewis Run, PA
Transformation into one of the largest completion services providers in the U.S.
5Keane Group – Investor Presentation September 2017
~1.2 million hydraulic horsepower creates scale and competitive advantage
Diversification across oil and gas activity; extensive logistics & supply chain
Leading provider in major growth basins, including Permian, Marcellus / Utica, Bakken
Robust liquidity to support continued growth & maintenance of active equipment
Flexibility to opportunistically execute on growth opportunities
Strong defensive tool in the event of weakened market conditions
Ability to harvest profitability of existing, fully-utilized fleet
Prudently execute strategic M&A and organic growth to add scale, services and density
Evaluating expansion of ancillary service lines including cementing
Successfully deployed 7 idle fleets in 2017; fully utilized at 25 hydraulic fracturing fleets
Partner with high-quality, efficient customers under dedicated agreements
Integrated model with engineered solutions enhances efficiency and engagement
Strategic
Footprint
Strong
Balance Sheet
Positioned
for Growth
Operational
Excellence
Investment Drivers & Value Proposition
Positioned for leading profitability & growth; well-positioned in upcycle
6Keane Group – Investor Presentation September 2017
Strategic Footprint Across Growth Basins
SCOOP / STACK
~45,000 HHP
Marcellus / Utica
~350,000 HHPBakken
~165,000 HHP
Permian
~600,000 HHP
52%
14%
30%
4%
Permian
~1.2mm HHP
SCOOP / STACK
Bakken Marcellus / Utica
~1.2mm HHP in leading growth basins including Permian, Marcellus / Utica and Bakken
Diverse footprint across geographies and commodities
Leading position in most prolific oil and gas basins, including hard-to-operate areas
Positioned across prolific U.S. basins
Note: Basin capacity includes base plus maintenance capacity.
7Keane Group – Investor Presentation September 2017
Proven Execution in Fleet Deployment
Speed-to-market; successfully commissioned all idle fleets at avg. of ~$2mm/fleet
Cost consistency & speed of commissioning enables through-cycle maintenance
RockPile acquisition added ~215k HHP, transaction completed July 2017
RockPile newbuild fleet on order to be delivered under dedicated agreement in Q4 20171
Speed-to-market driven by quality assets, balance sheet & execution
Source: Company. Utilization based on average of 40,000 HHP per fleet prior to Q3 2017, 45,000 HHP per fleet in Q3 2017 onwards. Q3 2017 includes ~215,000 HHP from RockPile acquisition
completed July 3, 2017. 1 Represents 30,000 HHP newbuild fleet ordered by RockPile to be delivered and deployed under dedicated agreement in Q4 2017.
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Period End % Active HHP
Active IdleOn Order & Contracted1
55%
72%
80%
Effectively Fully
Deployed
45%
28%
20%
944
944
944
1,159
1,189
2017 HHP Deployment Schedule
Q4 2017 Fully Deployed
13
17
19
25
26
Active Fleets
8Keane Group – Investor Presentation September 2017
Integrated Completions Model
Scale: ~1.2mm total HHP
Fit-for-purpose fleet: Well-
maintained fleet capable of
meeting modern well designs
Rail transport: ~1,200 leased
rail cars; access to network of
8 unit train facilities and 50+
transloads
Last mile solutions: 120+
owned and third party
pneumatic sand hauling
trucks, 5 crews utilizing
containers, piloting other last-
mile solutions
Units: 31 trucks
Quality assets: Operate well-
maintained, fit-for-purpose
wireline units
Plug & perf focus: primary
focus on Pumpdown Plug and
Perforating to enhance
efficiency
Ancillary equipment: provide
full wireline solution including
pressure control and crane
Technical capabilities:
Woodlands Engineering
Center & Technical team
enhances customer
engagement on frac design
efficiency and optimization
Customized solutions:
Portfolio of fluid systems,
including frac diverting
agents, proppant suspension,
dust control, friction reducers
and produced water
Hydraulic
Fracturing
Engineered
Solutions
Wireline
Technologies
Integration enhances efficiency and customer engagement
9Keane Group – Investor Presentation September 2017
Engineered Solutions Capabilities
Proprietary products provide solutions and deliver value
Products Value Proposition Benefit
ReLeaseFluid Systems
Complementary and customized fluid systems including friction reducer and produced water fluid systems
ReDirect Diverter Technology
Temporary bridging technology, seals off fractures and redirects the fluid
DustProof Air Quality Enhancer
Proppant coating that controls the release of airborne crystalline silica
AirRideBuoyancy Additive
Buoyancy additive improves proppant transportinto reservoir and conductivity
Increases
Efficiency
Lowers
Costs
Enhances
Sustainability
10Keane Group – Investor Presentation September 2017
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0
1
2
3
4
5
6
7
Headcount ‘000sTRIR
Headcount
Rolling 12 Month TRIR
Industry Average TRIR (5 year)
Rolling 12 Month TRIR / Head Count
Source: Company, Bureau of Labor Statistics.
Industry-Leading Safety Record
Among the safest service providers; TRIR consistently less than half industry average (2013-2016)
Maintained world-class safety metrics throughout significant growth in operations and headcount
Focus on safety improves performance through lower downtime and higher efficiency
Establishes license to operate, acquire and retain blue-chip customers and quality employees
Proven safety performance
Safety & performance critical to winning & retaining quality customers
11Keane Group – Investor Presentation September 2017
Customer Strategy & Proven Satisfaction
Note: Not an exhaustive list of customers.
“Shell has had a long and successful relationship with Keane. We appreciate their shared values with respect to the safety of people, stewardship of the environment, and working with people to develop their potential.
Keane has the proven ability to bring innovative solutions to address big problems. We are glad to be working with companies like Keane and plan to maintain our relationship going forward to help us develop energy sources that will fuel the future.”
“Keane’s frac crew has achieved both operational and logistical efficiencies that can only be described as ‘Best of the Best’.
With one crew, they have averaged over 200+ stages per month, eliminating our need for a 2nd fleet.”
Expanding & deepening relationships with top-tier customers
Joint commitment to
industry-leading
safety, efficiency and
reliability
Strong capitalization
drives consistent
through-cycle
programs
Aligned focus on
efficiency; zipper frac
and multi-pad drilling
Proven execution
drives successful
multi-year
partnerships
THE RESULTPartnership model
12Keane Group – Investor Presentation September 2017
Flexible & Scalable Logistics Infrastructure
Supply chain delivers surety and lowest landed cost
~1,200Leased
railcars
Dedicated railcar
fleet provides surety
and flexibility
Access to 8 unit
train facilities
Connectivity to
multiple class-1
rails
Scale
MultipleSand providers
Surety
Flexible agreements
with top-tier
producers
Northern White &
in-basin supply
Covers significant
portion of supply
needs over next
several years
MultipleLast-mile solutions
Efficiency
Using both owned
and 3rd party
pneumatic sand
hauling trucks
5 crews using
containers
Piloting other
solutions
~50Transload
facilities
Flexibility
Access to 3rd party
transloads across
operating basins
Flexible network
ensures proximity to
well site
Partnership model
limits capital
investment
13Keane Group – Investor Presentation September 2017
Proven Execution of Strategic M&A
Disciplined M&A focused on portfolio expansion & market opportunities
Ultra Tech Frac Services
December 2013
Established initial platform in the
Permian
Trican Well Services
March 2016
Platform & balance sheet enabled transformative
acquisition at cycle trough; added 644k HHP; added
service lines, basins, facilities and technology platform
RockPile Energy Services
July 2017
Added scale; deepened position in
Permian & Bakken
Geographic expansion
Complementary deal in up cycle
Transformative deal at attractive value
Calmena Energy Services
April 2013
Acquired wireline assets to expand service
offering and commence bundling
Product line expansion
14Keane Group – Investor Presentation September 2017
Strategic RockPile Acquisition
1 Valuation based on total purchase consideration of $245.2 million at close (subject to final working capital adjustments). 245,000 HHP consisted of 215,000 HHP added immediately with
30,000 HHP fleet on order for dedicated customer to be delivered Q4 2017.
Strategic market consolidation delivers value & growth
Acquired 245,000 HHP for
~$1,000 per HHP1
Fully utilized platform with equipment, talent, customers, facilities & positive EBITDA
Increases scale with high-
quality combined fleet of ~1.2mm HHP
Fleet distributed across key basins; adds depth in Permian & Bakken
High-quality customer
base with no overlap
Provides optionality via adjacent services
Similar cultures and values
Accretive value Greater scale Strong fit
15Keane Group – Investor Presentation September 2017
Positioned for Continued Growth
M&A and
Organic Growth
Harvest Profitability
of Existing Fleet
Strong track record of disciplined M&A
with seamless integration
Monitoring newbuild market to weigh
build vs. buy opportunities
Evaluating expansion of ancillary service lines including cementing
Strong balance sheet positions Keane to opportunistically execute on growth
Harvest portfolio of fully-utilized
hydraulic fracturing fleets
Continue to drive pricing and margins to
leading edge through periodic re-
openers on dedicated agreements
Further facilitate operating efficiencies
that result in improving margins
Proactively manage input costs including
sand and chemical procurement
Ability to enhance profitability and execute accretive M&A drives future growth
16Keane Group – Investor Presentation September 2017
$6.1
$13.1
$36.0
4Q16 1Q17 2Q17
$4.4
$6.3
$10.5
0
2
4
6
8
10
12
4Q16 1Q17 2Q17
$49.3
$62.0 $70.6
0
10
20
30
40
50
60
70
80
4Q16 1Q17 2Q17
Growth Across Key Financial Metrics
Average Deployed Fleets Annualized Adj. Gross Profit per Fleet
Adjusted EBITDA
12.3
15.518.3
4Q16 1Q17 2Q17
Annualized Revenue per Fleet
Consistent, meaningful growth quarter-on-quarter since IPO
+26%+18%
+43%
+67%
+115%
+175%+26%
+14%
Note: Percentages shown represent sequential changes.
17Keane Group – Investor Presentation September 2017
Advancing Profitability per Fleet
$4.4
$6.3
$10.5
4Q16 1Q17 2Q17 Exit-2017
Improvement in annualized adjusted GP per
fleet driven by constructive supply and
demand dynamics and strong execution
Leverage periodic re-openers to achieve
market pricing
Expect leading edge to further increase to
mid-to-high teens exiting 20171
Expect fleet to ratably accrue to current
leading edge through 2017 exit
Mid / high teens1
Proven ability to significantly grow our profitability
Annualized Adj. Gross Profit per Fleet
1 Based on guidance provided August 2017.
18Keane Group – Investor Presentation September 2017
Conservative Balance Sheet
Strong balance sheet combined with scalable business model
Q2 2017 cash balance of ~$76mm; total
liquidity of ~$198mm
Provides significant flexibility for:
− Opportunistic execution of growth M&A
− Sustainability during weak market conditions
Balance sheet strength enhances asset quality
and speed-to-market
Additional term loan financing of $131.1mm
− Effective July 3, 2017, Keane entered into in
connection with acquisition of RockPile
Debt to adjusted EBITDA of <2x1; expect further
reduction due to contribution of RockPile assets &
continued cash flow growth
Capital DiscussionIn $ millions
June 30,
2017
RockPile
ProForma
Cash $ 75.6 $ 75.6
2017 Term Loan Facility $ 149.6 $ 149.6
Additional Term Loan - 131.1
Total Term Debt 149.6 280.7
Capital Leases $ 6.9 $ 6.9
Total Debt 156.5 287.6
Net Debt 80.9 212.0
Liquidity
Cash $ 75.6 $ 75.6
Revolver Borrowing Base 122.5 122.5
Total Liquidity 198.1 198.1
1 Debt balance as of 6/30/2017 plus additional term loan associated with RockPile transaction vs. annualized Q2 2017 adjusted EBITDA.
19Keane Group – Investor Presentation September 2017
Key Investment Takeaways
Strategic
Footprint
Strong
Balance
Sheet
Positioned
for Growth
Operational
Excellence
20Keane Group – Investor Presentation September 2017
APPENDIX
21Keane Group – Investor Presentation September 2017
Key Financial Summary
Source: Company.
Three Months Ended
Unaudited, amounts in $mm, except for non-financial statistics June 30, 2017 March 31, 2017 December 31, 2016
Completions Services
Average Deployed Hydraulic Fracturing Fleets 18.3 15.5 12.3
Revenue 323.1 240.2 148.0
Adjusted Gross Profit 47.8 24.3 13.3
Average Annualized Revenue per Fleet 70.6 62.0 49.3
Average Annualized Gross Profit per Fleet 10.5 6.3 4.4
Total Company
Total Revenue 323.1 240.2 151.0
Total Adjusted Gross Profit 47.8 24.3 13.2
Total Adjusted EBITDA 36.0 13.1 6.1
Cash 75.6 85.8 48.9
Revolver Availability 122.5 108.1 40.3
Total Liquidity 198.1 193.9 89.2
Capital Expenditures 32.1 22.2 7.8
22Keane Group – Investor Presentation September 2017
Non-GAAP Reconciliation
Adjusted EBITDA & Adjusted Gross Profit
Note: See footnotes subsequent page.
Three Months Ended June 30, 2017
Completions Other Corporate Total
Net Income (loss) $ 16,218 $ (1,254) $ (26,862) $ (11,898)
Interest expense, net 4,349 4,349
Income tax (benefits) expense 931 931
Depreciation and amortization 28,534 1,254 2,951 32,739
EBITDA $ 44,752 $ - $ (18,631) $ 26,121
Plus Management Adjustments:
Acquisition, integration, expansion and IPO costs (1), (2)
- - 2,535 2,535
Fleet commissioning costs 3,055 - - 3,055
Impairment of assets - - - -
Unit based compensation (3) - - 2,933 2,933
Change in value of financial instruments - - - -
Trican indemnity settlement (4) (3,620) (3,620)
Others (5) 4,970 4,970
Adjusted EBITDA $ 47,807 $ - $ (11,813) $ 35,994
Other income (expense) - - (3,701) (3,701)
Selling, general and administrative - - 22,332 22,332
Less Management Adjustments not associated
with Cost of Services:(6,818) (6,818)
Adjusted gross profit $ 47,807 $ - $ - $ 47,807
23Keane Group – Investor Presentation September 2017
Non-GAAP Reconciliation
Adjusted EBITDA & Adjusted Gross Profit
Note: See footnotes subsequent page.
Three Months Ended March 31, 2017
Completions Other Corporate Total
Net Income (loss) $ (10,437) $ (1,483) $ (60,335) $ (72,255)
Interest expense, net 40,361 40,361
Income tax (benefits) expense 134 134
Depreciation and amortization 26,598 1,483 2,292 30,373
EBITDA $ 16,161 $ - $ (17,548) $ (1,387)
Plus Management Adjustments:
Acquisition, integration, expansion and IPO costs (1), (2)
1,266 - 4,979 6,245
Fleet commissioning costs 6,899 - 197 7,096
Impairment of assets - - - -
Unit based compensation (3) - - 1,138 1,138
Change in value of financial instruments - - - -
Others (5) - - - -
Adjusted EBITDA $ 24,326 $ - $ (11,234) $ 13,092
Other income (expense) - - (4) (4)
Selling, general and administrative - - 17,552 17,552
Less Management Adjustments not associated
with Cost of Services:(6,314) (6,314)
Adjusted gross profit $ 24,326 $ - $ - $ 24,326
24Keane Group – Investor Presentation September 2017
Non-GAAP Reconciliation
Adjusted EBITDA & Adjusted Gross Profit
Three Months Ended December 31, 2016
Completions Other Corporate Total
Net Income (loss) $ (15,610) $ (3,574) $ (19,348) $ (38,532)
Interest expense, net 9,891 9,891
Income tax (benefits) expense - (114) (114)
Depreciation and amortization 23,956 3,098 1,978 29,032
EBITDA $ 8,346 $ (476) $ (7,593) $ 277
Plus Management Adjustments:
Acquisition, integration, expansion and IPO costs (1), (2)
77 141 336 554
Fleet commissioning costs 4,951 9 - 4,960
Impairment of assets - 185 - 185
Unit based compensation (3) - - 159 159
Change in value of financial instruments - - - -
Others (5) - - - -
Adjusted EBITDA $ 13,374 $ (141) $ (7,098) $ 6,135
Other income (expense) - - (379) (379)
Selling, general and administrative (65) - 8,037 7,972
Less Management Adjustments not associated
with Cost of Services:(495) (495)
Adjusted gross profit $ 13,309 $ (141) $ 65 $ 13,233
(1) Represents professional fees, integration costs, lease termination costs, severance, start-up and other costs associated with our acquisition and integration of assets and liabilities
relating to Trican Well Service L.P.'s ("Trican") oilfield services business, our acquisition of RockPile Energy Services, LLC and our organic growth initiatives. These costs were
recorded in Selling, general and administrative expense.
(2) Represents fees and other miscellaneous expenses required to carry out the reporting, prior years' audits and organizational (legal entities) restructuring to ready the Company for its
initial public offering and the eventual consummation of the offering. These expenses were recorded in selling, general and administrative expense. Also represents one-time IPO
bonuses paid out to key operational and corporate employees; recorded $1.3 million as cost of services for operations employees, while the remaining was recorded in Selling, general
and administration expense. The bonuses were paid out during first quarter 2017.
(3) Represents non-cash amortization of equity awards issued under Keane Group, Inc.'s Equity and Incentive Award Plan. Consistent with prior policy, amortization of awards is
recognized on a straight-line basis over the vesting periods, beginning with the grant date, based on the total fair value determined on grant date and recorded in Selling, general and
administrative expenses.
(4) For quarter ended June 30, 2017, these costs were recorded in Other income (expense).
(5) For quarter ended June 30, 2017, represents contingency accruals related to certain litigation claims. These costs were recorded in Selling, general and administrative expense.