 C&J Energy Services, Inc. JP Morgan Oil and Gas Corporate Access Day November 2012 Exhibit 99.2 |
 C&J Energy Services, Inc. Disclaimer Forward-Looking Statements Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward- looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause our actual results to differ from our projected results are described in our filings with the Securities and Exchange Commission (“SEC”), including but not limited to our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and subsequent Quarterly Reports on Form 10-Q and the Current Reports on Form 8-K. All readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures We use both GAAP and certain non-GAAP financial measures to assess performance. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. C&J management believes that these non-GAAP measures provide useful supplemental information to investors in order that they may evaluate our financial performance using the same measures as management. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. Reconciliation of non-GAAP results to GAAP results for historical periods can be found on slide 23 of this presentation and in our filings with the SEC, as applicable. |
  PAGE 3 Focus on the most complex projects in the most challenging basins C&J Energy Services Profile Demonstrated efficiencies allow for premium pricing Engineering staff offers extensive front-end technical evaluation Hydraulic Fracturing Ability to handle heavy-duty jobs across a wide spectrum of environments Leverage to expand into additional fracturing opportunities Coiled Tubing Wireline and related services Casedhole provides wireline perforation, logging, pressure pumping, and pipe recovery services as well as wellsite makeup and pressure testing in most of the major US basins Diversified provider of premium, technologically-advanced completion services |
 PAGE 4 Efficiencies Provide Cost Savings for Customers, Favorable Margins for C&J In-house Manufacturing Enhances product development and R&D activities Mitigates supply constraints, reduces manufacturing and repair costs Operational Model Drives Best-In-Class Performance Experience & Expertise Maintenance Logistics Management with in-depth, basin-level expertise gained through decades of field experience Empowering employees and promoting best practices produces a proud and highly motivated workforce Extensive front-end technical planning and active management of raw materials, equipment and spare parts drives efficiency Dedicated logistics team for each fracturing fleet Regimented fleet maintenance program Real-time monitoring of critical equipment components, on-site pump unit maintenance and proactive replacement of wear items New, high performance equipment enables us to perform the most demanding, technically complex completions Focus on long lateral segments and multiple fracturing stages Modern, High-Spec Fleet |
  PAGE 5 Equipment Overview Our 7 premium hydraulic fracturing fleets have a total capacity of over 240,000 HP We will take delivery of 2 new fleets with combined capacity of 64,000 HP by first quarter 2013 18 coiled tubing units, majority with 2-inch dimension. Additional six new coiled tubing units scheduled for deployment to new basins by first quarter 2013 33 pressure pumping units, primarily double pump Casedhole acquisition added 58 wireline units and 15 pumpdown units with 7 additional wireline units scheduled to be deployed by first quarter 2013 Almost all equipment built within the past 5 years Vertical integration of Total’s manufacturing capabilities Invested in Modern, High-Spec Equipment to Grow |
 PAGE 6 Strategy for Continued Growth Broaden geographic presence • Focus on emerging domestic developments and building customer relationships • Evaluate opportunities to expand internationally and build infrastructure to capitalize on growth in Middle East • Leverage reputation for excellence • Demonstrate superior execution with new customers in the spot market Emphasize R&D across service lines and in manufacturing Grow completion service offerings Generate cost efficiencies through further vertical integration and supply chain extension • Significant manufacturing savings (~20%) from Total • Expansion into drilling, completion and production fluids Expand customer base |
 PAGE 7 Hydraulic Fracturing: Expanding our Customer Base Contracted Spot Over 120,000 HP currently on “take-or-pay” contracts with high minimum hours Enhances visibility, margins and revenue Currently working in the Eagle Ford and Permian Contracts with leading providers: Demonstrates our significant efficiencies to new customers History of successfully converting spot customers to contracted customers Generates opportunities to expand our customer base Currently operating in the Eagle Ford and Permian New fleets to be to deployed to the Bakken and to Western Oklahoma |
  PAGE 8 A leading multi-regional provider of a broad range of high quality casedhole wireline services with superior track record for efficiency New, custom-built equipment, including 58 wireline units and 15 pumpdown units Industry leading EBITDA margins and will be accretive to C&J’s year- end 2012 earnings and cash flow Generated third quarter of 2012 revenue of $61.6 million Acquisition closed June 7, 2012 for a total consideration of ~$273 million Complementary services, similar operating model and growth strategy make Casedhole an excellent fit for C&J Expansion into Wireline Services with Casedhole Acquisition |
  PAGE 9 Operational Overview Casedhole Provides Significant Geographic Expansion C&J leveraging Casedhole’s foothold in the most active U.S. shale plays and basins |
 PAGE 10 Capitalizing on Casedhole Acquisition In addition to providing entry into key target plays (Bakken, Utica) and strengthening C&J’s position in current operating areas, the acquisition has had a number of other positive impacts: • Wireline services are an important addition for competing with larger firms • Casedhole sales team has extensive domestic and international experience • Bundled completion services have been well-received across our combined customer base Enhances product bundling, cross-selling and geographic expansion opportunities |
  PAGE 11 Relationships with Industry Leaders Service Offerings Customer Stand Alone Pressure Pumping Coiled Tubing Hydraulic Fracturing Wireline Large operators have embraced C&J’s technical capabilities |
  PAGE 12 Demonstrated shorter time per completion permits negotiation of premium rates with customers Complex projects with demanding wells drive higher hourly rates and increased revenues from fluids and proppants More frac stages per well keep fleets onsite longer, allowing more pumping hours per month Less redundant pumping capacity boosts utilization ROCE of 42% in 2010, 57% in 2011 and 48% TTM Q3 2012 (1) Operating efficiencies generate higher revenues per unit of horsepower Operational Strategy Drives Strong Financial Performance (1) TTM Q3 2012 ROCE does not include Casedhole |
  PAGE 13 Advances in Completion Techniques Driving Demand Source: Goldman Sachs Equity Research Approximate Horsepower Per Job (000s of HP) Typical Number of Fracturing Stages Per Well 24 16 16 16 12 6 Bakken Eagle Ford Granite Wash Permian Other Unconvent. Conventional 45 45 35 30 25 16 Eagle Ford Granite Wash Bakken Permian Other Unconvent. Conventional Longer laterals More frac stages Higher pressure wells |
  PAGE 14 Margins driven by superior execution & utilization, not price Leading Margin Profile Adjusted EBITDA Margin 31% 19% 34% 38% 32% 2008 2009 2010 2011 YTD 9/30/12 Adjusted EBITDA Frac Utilization Frac Pricing (2) (1) (1) Average utilization figures indexed for presentation purposes; 2008 reflects Q4 annualized (2) Reflects an index of selected jobs that management believes are representative of historical market contract pricing |
 PAGE 15 $12.1 $44.7 $171.7 $207.9 2009 2010 2011 TTM Q3 34,000 58,000 178,000 274,000 2009 2010 2011 2012E $67.0 $244.2 $758.5 $1,045.3 2009 2010 2011 TTM Q3 Significant Historical Growth Growth in HHP Operating Cash Flow ($MM) Adjusted EBITDA ($MM) Revenue ($MM) $12.6 $82.3 $285.4 $352.0 2009 2010 2011 TTM Q3 |
 PAGE 16 Strong Cash Flow Generation, Flexible Balance Sheet $400 million revolving credit facility recently expanded from $200 million with $100 million accordion $220 million drawn to partially fund Casedhole acquisition % Growth Revenue $758,454 $1,045,288 38% Adjusted EBITDA 285,388 352,028 23% Operating Cash Flow $171,702 $207,863 21% 12/31/2011 6/30/2012 9/30/2012 Cash and Cash Equivalents $ 46,780 $ 8,278 $ 14,102 Long Term Debt and Capital Lease Obligations - 224,765 204,225 Shareholder Equity 395,055 505,623 561,059 Total Capitalization $ 395,055 $ 730,388 $ 765,284 Conservative Balance Sheet ($ in thousands) Cash Flow Generation ($ in thousands) Q3 TTM 12/31/2011 |
 PAGE 17 Strategic Overview Broaden Geographic Presence Expand Customer Base Increase Service Offerings Focus on Research and Technological Developments Vertical Integration around In-house Manufacturing and Fluids Development Generate High Financial Returns for Shareholders |
 C&J Energy Services, Inc. Appendix |
 PAGE 19 Detailed Historical Financials – Income Statement YTD ($ in thousands, except per share amounts) 2008 2009 2010 2011 9/30/2012 Statement of Operations Data (Unaudited) Revenue $62,441 $67,030 $244,157 $758,454 $825,237 Cost of sales 42,401 54,242 154,297 443,556 523,196 Gross profit 20,040 12,788 89,860 314,898 302,041 Selling, general and admin. expenses 8,950 9,533 17,998 52,737 68,467 Loss (gain) on disposal of assets 397 920 1,571 (25) 623 Operating income 10,693 2,335 70,291 262,186 232,951 Other income (expense): Interest expense, net (7,419) (5,099) (17,663) (4,221) (3,191) Loss on early extinguishment of debt – – – (7,605) – Other income (expense) (68) (52) 13 (40) (120) Total other expense (7,487) (5,151) (17,650) (11,866) (3,311) Income (loss) before income tax 3,206 (2,816) 52,641 250,320 229,640 Provision (benefit) for income tax 2,085 (386) 20,369 88,341 77,720 Net income (loss) $1,121 ($2,430) $32,272 $161,979 $151,920 Basic net income (loss) per share $0.02 -$0.05 $0.70 $3.28 $2.92 Diluted net income (loss) per share $0.02 -$0.05 $0.67 $3.19 $2.82 Year Ended December 31, |
  PAGE 20 Detailed Historical Financials – Cash Flow ($ in thousands) 2007 2008 2009 2010 2011 YTD 9/30/12 (Unaudited) Capital expenditures $30,152 $21,526 $4,301 $44,473 $140,723 $135,887 Cash flow provided by (used in) Operating activities 8,377 8,611 12,056 44,723 171,702 177,351 Investing activities (30,054) (20,673) (4,254) (43,818) (165,545) (408,854) Financing activities $21,305 $11,921 ($6,733) $734 $37,806 $198,825 Year Ended December 31, |
 PAGE 21 Detailed Historical Financials – Balance Sheet ($ in thousands) 2007 2008 2009 2010 2011 9/30/12 (Unaudited) Cash and Cash Equivalents $250 $109 $1,178 $2,817 $46,780 $14,102 Accounts Receivable, Net 4,409 13,362 12,668 44,354 122,169 189,284 Inventories, Net 581 861 2,463 8,182 45,440 73,587 Property Plant and Equipment, Net 57,991 71,441 65,404 88,395 213,697 398,884 Total Assets $133,711 $155,212 $150,231 $266,088 $537,849 $1,020,798 Accounts Payable 1,705 6,519 10,598 13,084 57,564 90,604 Long-term Debt and Capital Lease Obligations 56,773 25,041 60,668 44,817 – 204,225 Total Stockholders’ Equity $66,767 $68,099 $65,799 $109,446 $395,055 $561,059 Year Ended December 31, |
  PAGE 22 Adjusted EBITDA Reconciliation Note: EBITDA and Adjusted EBITDA are non-GAAP financial measures, and when analyzing C&J’s operating performance, investors should use EBITDA and Adjusted EBITDA in addition to, and not as an alternative for, operating income and net income (loss)(each as determined in accordance with GAAP). C&J uses EBITDA and Adjusted EBITDA as supplemental financial measures because we believe they are useful indicators of our performance. EBITDA is defined as net income (loss) before interest expense (net), income taxes, depreciation and amortization. Adjusted EBITDA is EBITDA further adjusted for certain other items which are not indicative of future performance or cash flow, including loss on early extinguishment of debt and loss (gain) on sale/disposal of property, plant and equipment. EBITDA and Adjusted EBITDA, as used and defined by C&J, may not be comparable to similarly titled measures employed by other companies and are not measures of performance calculated in accordance with GAAP. ($ in thousands) 2008 2009 2010 2011 (Unaudited) Net income (loss) $1,121 ($2,430) $32,272 $161,979 $151,920 Interest expense, net 6,908 4,708 17,341 4,221 3,191 Provision (benefit) for income tax 2,085 (386) 20,369 88,341 77,720 Depreciation and amortization 8,836 9,828 10,711 22,919 31,517 EBITDA $18,950 $11,720 $80,693 $277,460 $264,348 Adjustment to EBITDA Loss on early extinguishment of debt – – – 7,605 – Loss (gain) on disposal of assets 397 920 1,571 (25) 623 Cost of Acquisitions – – – 348 853 Adjusted EBITDA $19,347 $12,640 $82,264 $285,388 $265,824 Year Ended December 31, YTD 9/30/12 |