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U.S. Well Services

U.S. Well Services Finalizes Third Electric Frac Fleet Contract with Apache Corporation

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U.S. Well Services Inc. (NASDAQ: USWS) today announced that it has signed an electric frac fleet contract with Apache Corporation. Under the terms of the contract, USWS will begin operations for Apache in the second quarter of 2019 in the Permian basin utilizing USWS’ next generation, rapid deploy new build electric frac fleet. The signing of this agreement marks the third customer to commit to utilize USWS’ patented, next generation, electric frac technology.

Clean frac Fleet

Our patented Clean Fleet® technology is proven to successfully reduce emissions by 99%, dramatically decrease sound pollution and generate operational cost savings upwards of 90% of fuel costs. This technology is the first fully electric, fully mobile well stimulation system powered by natural gas in the industry.

 

100% Natural Gas Powered Hydraulic Fracturing Solution

As previously announced, USWS is building three new electric fleets, all of which are now under contracts that begin in the first half of 2019. USWS continues to advance commercial contract discussions with numerous additional customers for further new electric fleets and plans to build these fleets as contracts are signed. USWS has secured the long-lead lead items required to successfully deploy additional new build electric frac fleets in 2019, beyond the three currently under construction.

Electric hydraulic fracturing is significantly quieter

Electric hydraulic fracturing is significantly quieter

Max Easley, Operations Vice President for Apache Permian commented, “We look forward to working with USWS in 2019 and through a combination of their operations and safety excellence, and the utilization of their 2nd generation electric fleet, we can further expand our established track record of continual capital efficiency improvements and cycle time reduction.”

“We are proud to announce the electric frac fleet contract signing with Apache, a highly respected oil and gas producer with efficient operations and a deep commitment to responsible environmental stewardship,” said Joel Broussard, President and Chief Executive Officer of USWS. “This contract is yet another validation of USWS’ proprietary electric frac fleet technology, which continues to gain momentum in the market given its significant benefits for customers. We look forward to working closely with the Apache team to provide safe operations with lower emissions, reduced noise, and improved operational efficiencies, along with substantial customer fuel savings through the use of natural gas sourced directly from the field,” Mr. Broussard concluded.

About U.S. Well Services

U.S. Well Services Inc. (USWS) is a leading provider of hydraulic fracturing services and a market leader in electric fracture stimulation. USWS’ patented electric frac technology provides one of the first fully electric, mobile well stimulation systems powered by locally supplied natural gas including field gas sourced directly from the wellhead. USWS’ electric frac technology dramatically decreases emissions and sound pollution while generating exceptional operational efficiencies including significant customer fuel cost savings versus conventional diesel fleets. For more information visit: www.uswellservices.com.

About Apache Corporation

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. The Permian Region is one of Apache’s core growth areas with over 2.8 million gross acres with exposure to numerous plays across the basin. Estimated proved reserves in the Permian of 681 MMboe at year-end 2017, representing 58 percent of the Company’s worldwide reserves. For more information on Apache visit: www.apachecorp.com To view Apache’s 2018 Sustainability Report visit: www.apachecorp.com/Sustainability. Information on Apache’s website is not part of this press release.

Contact

U.S. Well Services Inc.
Kyle O’Neill, T: 832-562-3730
Chief Financial Officer
IR@uswellservices.com

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U.S. Well Services

The USWS Holdings LLC and Matlin & Partners Acquisition Corp are is set for Nasdaq

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USWS Holdings LLC, the parent of U.S. Well Services (“USWS”), and Matlin & Partners Acquisition
Corp. (“MPAC”) have signed a definitive merger and contribution agreement that will create a
public next-generation pressure pumping company
Up to $460MM total cash proceeds, including $325MM cash from MPAC SPAC and $135MM of committed
PIPE financing at $10.00 per share, are expected to be used to de-lever (net cash at closing) and build 5
additional Clean Fleets® and 1 conventional fleet, expanding the total fleet size to 17 with ~800,000 HHP

All USWS shareholders are rolling 100% of their equity stake of $274MM into the transaction

In addition to PIPE financing, successfully secured up to $90MM commitment to backstop potential SPAC
redemptions

  • Customer contracts mitigate risk to financial forecasts
  • Transaction expected to close in early Q4 2018
  • USWS’ proprietary electric frac Clean Fleet® is set to transform the hydraulic fracturing industry
    through substantial cost and environmental efficiencies
  • Reduces completion costs — 90% to 95% fuel cost savings versus diesel-powered fleets
  • Improves operational efficiencies — eliminates maintenance-intensive diesel engines and transmissions
  • Reduces environmental impact — ~99% reduction in CO and NOx emissions
  • Reduces safety hazards — eliminates diesel delivery trucks from roads and well-sites; mitigates risk of fires
  • Clean Fleet® has a longer useful life – 15-20 years vs. 6 years for diesel-powered fleets

1# Pricing as of July 12, 2018; peer group includes C&J Energy Services (NYSE: CJ), FTS International (NYSE: FTSI), Keane Group Inc. (NYSE: FRAC), Liberty Oilfield Services (NYSE: LBRT), ProPetro Holding Corp. (NYSE: PUMP) and RPC, Inc. (NYSE: RES).

“This combination with USWS represents a significant opportunity in a provider of electric-powered hydraulic fracturing services with disruptive technology and significant growth potential,” said David Matlin, Chairman and Chief Executive Officer of MPAC. “The capital being provided through this business combination will support USWS’ efforts to build on the advantages of its Clean Fleet®

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