Commodity Price Uplift and Demand
Normalization Impact Demand driver via “demand normalization”, i.e. a return to historical average activity level Implied Rig Demand increases from ~1,500 rigs at $45 oil to ~1,800 rigs at $55 oil and to ~2,200 rigs at $75 oil Implied
Rig Demand increases ~700 rigs, or ~50%, from $45 to $75 oil 94% historical average at today’s oil price could yield a ~42% increase in total working rigs, or 503 incremental well service rigs Source: AESC, DrillingInfo, Bloomberg. Note:
Implied rig demand generated under same methodology as discussed on slides 21 & 23 of this presentation for historical periods based on average monthly WTI oil prices to derive the universe of Economic oil wells and the associated Implied Rig
Demand. Working rigs per AESC rig count data as of December 2017. 2012 – 2014 Average AESC Working Rigs as a % of Rig Demand standard deviation of 3.25%.