US Shale Solutions -...

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US Shale Solutions Reinvented. Reliable. Real-Time.

Transcript of US Shale Solutions -...

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US Shale SolutionsReinvented. Reliable. Real-Time.

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Who We Are

Comprised of four well-know businesses with diverse and strategic product and service offerings

More than 1,600 employees

A diversified fleet of more than 3,000 pieces of equipment

11 equipment yards serving Texas, New Mexico, Oklahoma, Louisiana and Canada

An exemplary safety record

Experienced management team with extensive operational expertise

From Well To Sell

US Shale Solutions is a premier, technology-enabled strategic solutions

provider to the oil and gas industry.

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Why USSS?

We deliver integrated services based on technology and lean principles to address our customer’s need for efficiency, innovation and predictable outcomes.

Our comprehensive and flexible product and service line allows us to adapt to customer needs and market environment.

We are a service company. Your problem is our problem. Customer service is the cornerstone of our business.

We want to change what

SOLUTIONS

means to our customers…

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The USSS Difference

Consolidate

Services

Reduce

Cycle Time

Increase

Efficiencies

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How We Do It

Safety

Safety is the driving force behind our

business

Partnerships

Building trust with our

customers and turning

problems into opportunities

Our Word is Our Contract

Honesty, reliability and

integrity aren’t just words –they are our commitment

Our Team

We are touch on problems. Our team is

your solution

Performance

We are driven by our

customers’ success

Customer Value

Deliver value through

efficiency, productivity and safety

Innovation

Continually seeking better

solutions to assist our customers

US Shale Solutions’ Leadership Principles

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A Strong Legacy

Culberson Construction (CCI)

Founded in 2005

Full-service pipeline construction company with a focus on flow back, gathering lines, salt water disposal facilities, maintenance and reclamation as well natural gas processing plant facility construction. CCI also provides lease operations service.

Operates in Eagle Ford, Permian and Barnett

J4 Fluid Services

Founded in 2008

Integrated well-completion fluids oilfield services company with an emphasis on data acquisition and computer-controlled chemical blenders associated with coiled tubing circulating fluids and hydraulic fracturing.

Operates in the Eagle Ford and Permian

Ritter Construction Company

Founded in 2004

Full service pipeline construction company providing a range of midstream infrastructure and production equipment installation services to natural gas gathering, processing and transmission, and E&P companies.

Operates in Eagle Ford, Permian and Haynesville

WPW Ltd

Founded in 1983

Full service pipeline and facilities construction company that provides pipeline installation and fabrication services in challenging conditions that involve difficult climate and terrain.

Operates in the Western Canada Sedimentary Basin

The four divisions of US Shale Solutions were deliberately selected based on their

comprehensive and cohesive service offerings, exemplary safety record and strong

legacy of reliability and success.

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Leadership Team

Jerrit Coward,

CEO

Years of Experience: 22 years

Most Recently With: Willbros Group

Executive Vice President, Business Development

Education: B.S in Engineering from Texas A&M Galveston

Mike Stophlet,

EVP of Operations

Years of Experience: 32 years

Most Recently With: ASRC Energy Services and Schlumberger

ASRC, President and CEOSchlumberger, Geomarket General Manager

Education: B.S. in Geology from University of Arkansas

Continuing education at Darden and Thunderbird and Schlumberger Industry Training

Patrick Schneider,

CFO

Years of Experience: 16 years

Most Recently With: Willbros Group

Senior VP Finance and Accounting

Education: Master’s degree in Accounting from Texas A&M University

USSS retained the leadership and employee teams of all four portfolio companies to ensure

institutional knowledge and customer continuity.

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Safety Vision

The best way to convey our vision for high performance safety is to share with our stakeholders what WE BELIEVE to be true about safety, what WE PROMISE to ourselves and each other, and what EVERYONE SHOULD SEE on our projects.

WE BELIEVE…

… that great safety is good business.… that workplace injuries and illnesses are simply unacceptable.… relentless continuous improvement leads to a zero harm culture.

WE PROMISE…

… to make people first and statistics last.… that unsafe productivity won’t be valued by our leaders. No exceptions.… to always make safety performance a key element of our broader vision and

purpose.

EVERYONE SHOULD SEE…

… an environment where everyone is comfortable and active in stopping unsafe acts and conditions.

… great planning as a key contributor to high performance safety.… active and passionate safety leadership

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Safety Performance

Our safety vision is directly translated into an exemplary

safety record.

1.8

1.1 1.1

0.42

0

0.5

1

1.5

2

2011 2012 2013 2014

Total Recordable Injury Rate, USSS

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Our Footprint

Our comprehensive management systems and processes ensure that the quality of our

services is consistent across the board.

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USSS Key Customers

• BHP

• Chevron

• Cinco

• ConocoPhillips

• Continental Resources

• Devon

• EOG Resources

• Enable Midstream

• Energen

• Energy Transfer

• EnLink

• Marathon

• Pioneer

• Regency

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Comprehensive Service Offering

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DefineIdentify disruptions in

the process

Identify waste – time materials

Measure

Outline targets and performance

measurements

AnalyzeBrainstorm solutions

– where can we eliminate waste and

save time

ImproveExecute custom,

standardized plan

Record and compare results to targets

ControlDevelop a

standardized, repeatable best

practice

Kaizen – Change for the Better

We use Kaizen Events or Solutions Events to identify waste and develop custom, consistent operations plans to lower costs and cut overall

construction time.

Methodology

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Brewer Facility

Case Study – A Lean Approach to Construction

Situation

With crude prices below $50/bbl, companies are looking for price concessions – in this case, 5%-8%

Opportunity

• Create a standardized process to reduce total cycle time and cost in a repetitive facility build

• Become primary vendor given first choice to perform

Approach

• USSS was given uninterrupted access to the construction site for the duration of the build

• Conducted a postmortem analysis of process steps, delays, and costs

• Facilitated a full-day Kaizen event, documenting the situation and brainstorming solutions

Reinvented. Reliable. Real-time. A premier technology-enabled, strategic solutions provider to the unconventional oil and gas industry

0,50,140

128,0,0

83, 83, 83

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185, 203, 255

US Shale Color Code:

9

POSTMORTEMANALYSISOFEACHFACILITYBUILD

Lyle%Land Keelee Brewer

Resources Consumed And Cost Value Stream Maps – Flow Of The Construction Process

Cycle Times, Work Days, Crewing

Con nentalFacilityBuilds

TankBa eries,FlowLines,ECD,SalesLines

Keelee Brewer

Daysbilled:

trucks 17 17

truckMileage 17 17

Trailer 10 1

Supervisor-Salaried 8 7

SupvTruck 8 7

SupvTruck-mileage 8 7

Backhoe 11 11

Backhoe-Truck/trailer 1 1

Backhoe-Truck/mileage 1 1

HaulTruck 1 -

HaulTruckMileage 1 -

manli 7 8

skytrack 12 9

Subcontractor-crane - -

- -

materials-screenings - -

- -

Hoursworked - -

Pusher 105 181

PusherOT 87 22

Hand 242 373

HandOT 189 59

Welder 54 57

WelderHelper 35 57

TotalHoursWorked 712 749

- -

CostBuildup - -

Tools/Trucks/Equip 9,882 10,319

Supervision 2,783 2,435

Pushers 6,950 6,593

Hands 13,970 11,989

Welders 7,024 8,208

Materials 1,944 2,045

Rentals - 494

Subcontractors - -

Travel/Perdiem 3,895 3,050

Housing 285 576

Accumulatedcost 46,734 - 45,709

Total Days

14 work 47 Wait

61 Cycle Time

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Brewer Facility

Tangible Results

• Developed a standardized, repeatable build plan and schedule

• Developed a standardized operating procedures, aligned with build plan and schedule

• Calculated the impact on total time and cost to customer

• 10 % reduction of total cost and customer invoice

• 44% reduction in total cycle time

• Adequate construction profit margins maintained

Reinvented. Reliable. Real-time. A premier technology-enabled, strategic solutions provider to the unconventional oil and gas industry

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4

FUTURE STATE SCHEDULE AND RESOURCE PLAN

Setup Pad Mob In Pick up

ECD

Setup Eqpt & Prefab fittings

Plumbing for Tanks & Production

Sales Line Flowline &

ECD

Punch list, DeMob, PSSR

Clean Site

Materials Arrive at

Site

Schedule Crew & Vendors

Notice to build

facility

97-863-5210-3-2-1DAY

Manpower*Assume12hourworkdays;9daysstraight

Supervisor 0.5 0.5 0.5 0.5 0.5 0.5

Pusher 1 2 2 2 2 1

Hands/EqptOptr

3 4 4 4 4 4

Welder/HelperD3=0/D4,D5=

22

TotalManpower

4.5 6.5D3=6.5/D4,D5

=8.58.5 6.5 5.5

Assets

Truck/Tools 2 2 2 2 2 2

Trailer 2 D7=0/D8=2 2

SupervisorTruck

0.5 0.5 0.5 0.5 0.5 0.5

Backhoe 1 1 1 1 1 1

ThreadingTrailer

1 1 1 1 1

Manli 1 1 1 1 1

Skytrack 1 1 1 1 1

Standard Facilities Construction Procedures

Step Sub-Step Plan Actual Seq Tasks Time (hrs) Eqpt Crew Welder Notes

A. Mob1. Haul

Equipment1 1 Backhoe Backhoe Day before best. Sometimes day of

1 2 Manlift Manlift will take a day depending on how far is trip

1 3 Skytrack Skytrack

1 4 Haul truck Haul truck Screenings already delivered to site

1 5 Trailer Trailer CCI orders the screenings & bills client

B. Setup Pad

1. Mark Off 1 1 Square pad using the fence as guide 0.25 2

1 2 Mark off with paint 0.75 2

2. Build 1 1 Check level using laser 0.25 Laser level 1

1 2 Find highest point and build pad to that point 0.25 1

1 3 Move screenings from pile to marked area to build pad 6 Backhoe 1Time spent depending on well pad level to

plane

1 4 Check level while spreading screenings 6 Laser level 1 4 in rise. Over that 8 hours when over a foot

C. Set Equipment

1. Prep 2 1 String line mark out where all tanks and equipment will be set 1 3Tank pads are ordered by Continental and

are on site

2. Tanks 2 1 Assemble tank pads in marked place 0.5 3

2 2 Set back row of tanks first (two water tanks and oil tank). Bolt on A legs2 Knuckleboom 4 Knuckleboom provided by tank company

2 3 Bolt Catwalk 1 2 On the ground work (putting together)

2 4 Bolt Stairs 1 2 On the ground work (putting together)

2 5 Set Catwalk and bolt to A legs 1 Knuckleboom 4 Knuckleboom provided by tank company

2 6 Set Stairway and bolt to Catwalk 1 Knuckleboom 4 Knuckleboom provided by tank company

2 7 Set front row of tanks 2 Knuckleboom 4 Knuckleboom provided by tank company

3. Production

2 1 Set concrete blocks for heater 0.5 Skytrack 3

2 2 Bolt ladder on to heater 0.5 Skytrack 3

2 3 Bolt on crows nest 0.5 Knuckleboom 3 Sometimes it's already assembled

2 4 Set Heater on to concrete block 0.5 Knuckleboom 4

2 5 Set concrete blocks for separators (2) 0.5 Skytrack 3

2 6 Set separators (using skytrack) 1 Skytrack 4

D. Plumbing - Tanks

1. Prefab fittings

2 1 Load lines: bottom of tanks (6 pieces) 2 2

2 2 Equalizer lines (10 pieces) 2 2

2 3 Dump lines (8 pieces) 3 2

2 4 Vent line (6 pieces) 2 2

2 5 Re-circulation line (6 pieces) 2 2

2. Install Prefab

fittings and Tie-in

3 1 Install load line parts (pre-fab parts) 0.5 2

3 2 Cut and thread pipe (5 pieces, 3" pipe) 1 Thread trailer 2

3 3 Tie in load lines (5) 2 3

3 4 Install PCC pot. Install valve in PCC pot 0.5 2

3 5 Install equalizer parts (pre-fab parts) 1 2

3 6 Cut and thread pipe for equalizer line (5 pieces, 3" pipe) 1 Thread trailer 2

3 7 Tie in equalizer lines (5) 2 2

3 8 Install Dump line parts (pre-fab parts) 1 2

4 9 Cut and thread pipe for equalizer line (8 pieces, 3" pipe) 2 Thread trailer 2

4 10 Tie in dump lines (8) 2 Skytrack 3

4 11 Install vent line parts (pre-fab parts) 2 2

4 12 Cut and thread pipe (6 pieces, 3" pipe) 1 Thread trailer 2

4 13 Tie in vent lines (6) 2 Skytrack 3

4 14 Install re-circulation line parts 1 2

5 15 Cut and thread pipe (9 pieces, 2" pipe) 1 Thread trailer 2

5 16 Tie in re-circulation lines (9) 3 2

TotalCycleTimeinDays

ActualWorkDays

Keelee 61 14

Brewer 16 10

KaizenResults 9 9

Reduc onInCycleTime:

ComparedtoKeelee 85%

ComparedtoBrewer 44%

Comparison – Invoice Amount Days To Complete Total Cycle Time Compared to Actual Work Days

DiscountAvailableUsingtheKaizenModel

ComparedtoKeelee 10.4%

ComparedtoBrewer 8.4%

$46,734

$45,709

$41,882

$39,000

$40,000

$41,000

$42,000

$43,000

$44,000

$45,000

$46,000

$47,000

$48,000

Keelee Brewer Kaizen Results

To

tal B

ill

Ou

t

61

16

9

14 10 9

0

10

20

30

40

50

60

Keelee Brewer Kaizen Results

Da

ys -

To

tal

Cy

cle

T

ime a

nd

Wo

rk D

ay

s

Reduc onInWorkDays:

ComparedtoKeelee 36%

ComparedtoBrewer 10%

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US Shale Solutions

Corporate Office

7670 Woodway Drive

Suite 250

Houston, TX 77063

832-742-7492

www.usshalesolutions.com