EX-99.1 2 d601109dex991.htm EX-99.1 EX-99.1
1
is a global Oilfield Services Technology Company providing industry
leading products and services for Production Enhancement and Environmental Spill
Prevention
Exhibit 99.1
–
Environmental Spill Prevention
and Containment
–
Production Enhancement

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking
statements.
Any
written
or
oral
statements
made
by
the
Company
or
on
behalf
of
the
Company
in
conjunction
with this presentation may include forward-looking statements which reflect the Company's current views
with respect to future events and financial performance. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ materially from such statements. This
document contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995 concerning, among other things, the Company's prospects, developments and business strategies
for its operations, all of which are subject to certain risks, uncertainties and assumptions. These risks and
uncertainties
include,
but
are
not
limited
to,
changes
in
overall
economic
conditions,
changes
in
the
cost
of
raw materials and natural gas used in manufacturing our products, changes in demand and prices charged for
our products, changes in the demand for, or price of, oil and natural gas, risks of increased competition,
technological, manufacturing, distribution and product development risks, loss of key customers, changes in
government regulations, foreign and domestic political and legislative risks, the risks of war and international
and
domestic
terrorism,
risks
associated
with
foreign
operations
and
foreign
currency
exchange
rates
and
controls,
weather-related
risks
and
other
risks
and
uncertainties
described
in
our
publicly
available
filings
with
the
Securities
and
Exchange
Commission.
The
words
"believe,”
"expect,”
"anticipate,”
"project"
and
similar
expressions
identify
forward-looking
statements.
Participants are cautioned not to place undue reliance on these forward-looking statements, each of which
speaks
only
as
of
the
date
the
statement
was
made.
The
Company
undertakes
no
obligation
to
publicly
update
or revise any forward-looking statements, whether as a result of new information, future events or otherwise,
except as required by law.
Forward Looking Statements
2

•
Frac Conductivity &
Durability
•
Production Assurance
•
Production Intelligence
•
Flow Enhancement
•
Well Site Supervision
•
Frac Diagnostics & Optimization
•
Field Development Optimization
•
Reservoir & Formation Analysis
•
Frac Design
•
Economic Optimization 
•
Reservoir Performance 
•
Post Job Analysis
….a leading production enhancement company

4
•
Is the industry’s most widely used hydraulic fracturing design software,
clients include E&P Operators, Service Companies, Universities
•
Provides Frac Design, Economic Optimization, Reservoir Performance and
Post
Job
Analysis.
Ties
all
the
information
together
during
the
frac
process.

1979
CARBOHSP®
CARBOPROP®
CARBOECONOPROP®
CARBOLITE®
CARBOHYDROPROP®
CARBONRT®
CARBOBOND® LITE
SCALEGUARD™
2013
Technology to “Build a Frac”
that lasts the Life-of-the-Well
New Proppant
Developed in 2013
5

Office Consulting
and Production
Improvement
A-07 K-25U
7850
7900
7950
8000
8050
8100
8150
8200
8250
25
175
GR
0
75
IDPH
K-20/22 sand
K-25U sand
Mudstone
K-25L Upper
K-25L Upper
K-25L sand
Rocktype
50
100
150
200
250
300
7850
7900
7950
8000
8050
8100
8150
8200
8250
0
0.50
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Proppant Concentration (lb/ft²)
Field Consulting
Services
Completion & Hydraulic Fracturing
Geology & Reservoir
Production
© 2011 HALLIBURTON. ALL RIGHTS RESERVED.
5
DANA
Field Optimization
Consulting Services
“Client Interaction”
6

Production
Enhancement
Technology
7

Proppant Technology Platforms
Proppant
Delivered
Flow
Enhancement
Proppant
Delivered
Production
Intelligence
“More Space to Flow”
Higher
EUR
Production
IRR
Ceramics
Resin Coated Products
Proppant
Delivered
Production
Assurance
8

New Ultra Strength Proppant –
KRYPTOSPHERE
TM
Breakthrough innovation.  We have developed the strongest,
highest conductivity proppant ever made.
The original development request made by a Major E&P:
It is the only proppant that can withstand the pressures of
these very high impact wells, and provide effective Production
and EURs
9
•
“CARBO please develop a durable proppant that has twice
the conductivity of bauxite at 20,000 psi closure stress. 
We need that to effectively frac the lower tertiary wells in
the GOM that are at depths greater than 30,000’. ”
•
We have achieved that!

KRYPTOSPHERE Technology Details
How we achieve more space to flow:
•
Superior strength and microstructure
•
Uniform Sizing
•
Uniform Shape
•
Smooth Surface
10

100%
Conductivity Test Results …
Superior Strength

KRYPTOSPHERE H25
KRYPTOSPHERE H25 Cross Section
HSP 20/40
Competitor Bauxite 20/40
HSP 20/40 Cross Section
Competitor
Bauxite 20/40 Cross Section
Superior Microstructure
12

Uniform Sizing
13

Proppant Technology Platforms
Proppant
Delivered
Flow
Enhancement
Proppant
Delivered
Production
Intelligence
“More Space to Flow”
Higher
EUR
Production
IRR
Ceramics
Resin Coated Products
Proppant
Delivered
Production
Assurance
14

Platform focus:
Production Assurance Platform
15
•
Use proppants to maintain base
production by preventing
precipitates/solids from forming in the
frac, wellbore, or surface equipment
•
Examples:  Scale, paraffin, etc.

16
•
Provides Production Assurance by
preventing scale from building up
during the life of the well
•
Placed throughout the frac, as part
of standard fracturing process
•
Scale inhibitor is efficiently released
into the production stream from our
infused Porous Proppant   (patented)
Production Assurance -
SCALEGUARD

Platform Focus:
•
Utilizing proppants to
define propped fracture
geometry
•
Long term production
determination and
granularity by zone/frac
17
Production Intelligence

Production Intelligence -
CARBONRT
CARBONRT
is a Non-Radioactive Traceable
Proppant  (patented)
18
•
Identifies the proppant coverage of the
stimulated interval, as well as propped
frac height
•
Identifies proppant coverage in gravel pack
applications (offshore wells)
•
Saves time and money –
no special permits or
equipment to place
•
Safe and environmentally responsible –
no
special handling or disposal

Platform Focus:
•
Enhance the production of gas
and liquids which flow from
the reservoir into the frac and
up the wellbore
•
Reduce effects caused by
relative permeability, capillary
pressures, interfacial tensions
and damage from foreign
substances
•
Products in development
19
Flow Enhancement

…differentiating through technology
for the life of the well
*********************************
***************

21

Falcon Technologies Overview
Business
Falcon Liner
®
Products
22

23
Falcon Technologies
We Design
spill prevention and
containment  products that reduce
E&P Operators environmental risks.
We Build
products with proprietary
polyurea material to last the life of
the well site, and lower L.O.E. costs.
•
Containments
•
Water Impoundments
•
Tank Lining, Tank Bases
•
Location Liners

24
Expanding Geographic Footprint

26
Clients are Changing from High Risk Containments like this
26
Un-lined,
permeable
dirt berm
Tanks sitting
on pea
gravel &
corroding
Un-lined
tanks
corroding
inside &
outside

After Recent Rain Storms in Colorado
27
Falcon “Contained”
HDPE “Not Contained”

Liner Choices
Falcon Liner
HDPE
Dirt
Protects from a spill for
the life of the well
•
Minimal containment
capabilities
•
No containment of spill
Minimal maintenance
•
Replace every 2 to 3
years
•
Regular maintenance
required
Resistant to punctures,
UV, and temperature
extremes
•
Easily cut and
punctured
Resistant to most oilfield
chemicals
•
Significant
degradation from UV
exposure
28

Falcon Differentiators
Engineered to Protect
Commitment to Quality
and Customer Service
Training Program
Track Record
29

Solid Engineering, R&D and Construction

Track Record
Installations through  June 2013
Secondary Containments
–
Over 5,800 installed
Tank Bases
–
Over 8,700 installed
Tank Liners
–
Over 8,700 installed
100% Environmental Success
31

Falcon Secondary Containments
All walls have been developed and tested through FEA then
deflection testing
Seamless Falcon Liner applied on flooring and walls
Over 5,800 installations
32

Wyoming
33

Oklahoma
34

Colorado
35

Falcon Tank Bases
Foam core
encapsulated in
polyurea
Over 8,700 in the field
Lightweight
2-man installation
No remediation in case
of spill
36

Location Liners
Falcon
Liner with a temporary berm used during completions
Multi-well package
37

ePads
38
Falcon Liner
Durable
Multiple use
Enhanced
environmental
protection
6”
enclosed foam
berm

Water Impoundments
39
Falcon Liner
–
Water treatment
–
Produced water storage
–
Multi-year installation for
fresh water
Four installations completed in
West Texas

Marketing and Sales
40

Fracpro and StrataGen

•
Frac Conductivity &
Durability
•
Production Assurance
•
Production Intelligence
•
Flow Enhancement
•
Well Site Supervision
•
Frac Diagnostics & Optimization
•
Field Development Optimization
•
Reservoir & Formation Analysis
•
Frac Design
•
Economic Optimization 
•
Reservoir Performance 
•
Post Job Analysis
….a leading production enhancement company

Office Consulting
and Production
Improvement
Field Consulting
Services
DANA Field Optimization
Consulting Services
“Client Interaction”

Field Consulting
•
Execution of current design and
optimization during and after the
stimulation
•
Frac design, on location quality
assurance & control, diagnostic testing,
RT data transmission, post treatment
evaluation and optimization
•
Primary goal is to increase Production
and EUR
•
All Degreed Engineers
•
Face of Fracpro and proppant platform
44
Service Offering:
Differentiators:

Office Consulting & DANA
45
•
Office based consulting to design frac
treatments from all data available
•
Apply best technology to optimize IRR by
improvement in Production and EUR
•
Unique workflows developed which
incorporate reservoir, geology,
production, completion and frac, drilling
•
Experience in most North American
Basins
DANA Consulting Models
BakkenWORX
®
EF WORX
®
Net WORX
®
Service Offering:
Differentiators:

DANA®
Workflow

**************
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**************
**************
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****
**************
**************
**************
**************
**************
**************
****

Fracpro
Fracpro is a software program used for hydraulic fracture
design.  Give it information on what is being pumped and
the wellbore and reservoir parameters and it tells you the
estimated fracture geometry and production rate.
It runs quickly on any PC, is used all over the world and
comes in 3 languages.  It is the most popular fracture
simulator in the industry.

Customers Use of Fracpro
•
Estimate Value Created by Completion
•
Detailed Completion Procedure
•
Monitor and Record During Completion
•
Learn from Analysis of the Completion
•
Optimize the Future Completions
•
Record the Different Completions in a Well
•
Facilitate Reporting and Data Storage

Our Customers
•
Oil and Gas Companies
•
Pumping Companies
•
Consulting Companies
•
Vendors of Completion Products

Software Suite
•
Products
–
Fracpro
–
FracproXCHANGE
–
FracproREMOTE
–
Stimpro

Software Suite
•
Products
–
Fracpro
•
Full Fracture Simulator
–
Before, During and After Job
–
Strong Analytical Tool
–
Multi-Treatment Horizontal Wells
–
Built in Reservoir Simulator
–
Connection to Eclipse, IMEX, QL
–
Diagnostic Utilities
–
Reports; Database Tools; Plots; XL
•
Languages
–
English
–
Chinese
–
Russian

Software Suite
•
Products
–
Fracpro
–
FracproXCHANGE
•
Reduced Feature Fracpro
–
Used in Frac Van for Display
–
Multi-Treatment Horizontal Wells
–
Uses Same Input and Database
Files as Fracpro
–
Real-Time Emphasis
–
Has Diagnostic and Data Utilities
•
Languages
–
English
–
Chinese
–
Russian

Software Suite
•
Products
–
Fracpro
–
FracproXCHANGE
–
FracproREMOTE
•
iPAD Application
–
Connects to PC Using Fracpro
–
Allows Real-Time Monitoring
–
Direct TCP-IP Connection
–
Introduced 1 Year Ago
•
Languages
–
English

Connectivity

Software Suite
•
Products
–
Fracpro
–
FracproXCHANGE
–
FracproREMOTE
–
Stimpro
•
Full Matrix Acid Simulator
–
Design, Monitor, Analysis
–
Sandstone and Carbonate
–
Determines Skin Reduction
–
Identifies Acid Compatibility
–
Configurable for New Rock/Fluid
–
Same Reports; Plots; XL
•
Languages
–
English
–
Chinese
–
Russian

•
Fracpro
–
Shale Modeling
–
Finite Difference Fluid Flow
•
Fracpro 3D -
Finite Element Fracture Model
–
Coupled with Finite Difference Fluid Model
57
Future Enhancements

Closing Remarks
58
**
**
**
**
**
**
**
*

CARBO Growth Outlook
•
CARBO is 34 years young
•
We have many growth drivers for the Company
in the years ahead
•
We are focused on continuing to grow cash flow
and build an enduring company

•
Horizontal Wells
have transverse fracs and more stages (high delta velocity,
high delta pressure, and more reservoir contact area)
•
Liquids-rich Wells, make up the majority of wells drilled, and have much
higher drawdown pressure through the frac
•
Deeper Wells
are being drilled which have higher stress and require stronger
proppant
•
Well Results
indicate that a large percentage of wells are under-stimulated
due to the above issues, and need higher conductivity fracs
Industry Technology Needs
Proven higher Production & EUR results with Ceramic Proppant
Proven that more stages & more proppant results in higher Production & EUR
Refracs, Well Tests, Infill Drilling indicate more effective fracs needed
Wells drilled today have higher conductivity needs:

Deeper, Horizontal, Liquids-rich Wells Drive Ceramic Growth
Sources: Spears & BHI for wells in U.S.

•
Production
Enhancement
business
strategy
of
growing
intellectual
capital
and
intellectual property focused on “Design-Build-Optimize Fracs”
•
Developing
Technology
to
increase
Production
and
EUR
in
wells
–
KRYPTOSPHERE solves client deep-water and ultra high stress formations proppant needs
–
Potential to apply the improved ceramic proppant technology to our existing proppant
manufacturing capacity and products
–
3 new technology platforms that will continue to deliver new products
•
Investing
in
proppant
capacity
to
meet
industry
needs
•
Investing in Falcon
to set the technology and business standards for
environmental containment protection, while developing a growing, long
term business
CARBO Business and Technology Growth Drivers

New Products Drive Ceramic Proppant Growth
Lbs M

Capacity Additions Drive Ceramic Proppant Growth
Lbs (Millions)
Millen Line 1 under construction
*Millen Line 2 in planning stage, environmental permit obtained

CARBO Financials
* Cash from operations is equal to net
income plus depreciation and
amortization and non-cash stock
compensation

Dividends Increased -
13 Years
$ Per Share
Shares -
Millions

Thank You!
********
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Cash Flow from Operations Reconciliation
$ in 000s
Cash flow from operations equals net income plus depreciation and amortization plus non-cash stock
based compensation.
Results from Continuing Operations
2005
2006
2007
2008
2009
2010
2011
2012
Net Income
45,463
$    
52,245
$    
49,641
$    
60,405
$    
52,810
$    
78,716
$   
130,136
$ 
105,933
$ 
Plus: depreciation and amortization
10,935
     
15,630
     
19,895
     
24,638
     
24,905
     
27,728
    
36,015
     
44,893
     
Plus: non-cash stock compensation
-
              
2,311
       
1,709
       
2,052
       
2,571
       
3,812
      
4,719
       
5,335
      
Cash Flow from Continuing Operations
56,398
$    
70,186
$    
71,245
$    
87,095
$    
80,286
$    
110,256
$ 
170,870
$ 
156,161
$ 
Weighted Average Shares Oustanding
24,177
     
24,400
     
24,451
     
24,418
     
23,112
     
22,977
    
23,012
     
22,969
     
Cash Flow Per Share
2.33
$       
2.88
$       
2.91
$       
3.57
$       
3.47
$       
4.80
$      
7.43
$       
6.80
$      
For The Years Ended Dec 31
68