Artificial+Lift+Market+by+Spears+Q1+15.pptx

Artificial Lift Market
8908 South Yale, Suite 440
Tulsa, Oklahoma 74137 USA
1(918)496-3434
Principal Author: Richard Spears
rspears@spearsresearch.com
Q1 2015
Spears & Associates: Artificial Lift Market
1

Table of Contents
2
Artificial Lift Overview 3
Artificial Lift Details 14
Market Drivers 40
Artificial Lift CAPEX v OPEX 50
Discussion 54
Company Descriptions 60
Authors 78

Artificial Lift Overview
3

Overview: Global Oilfield
Artificial Lift
Casing & Tubing Services
Cementing
Coiled Tubing Services
Completion Equipment & Services
Contract Compression Services
Directional Drilling Services
Downhole Drilling Tools
Drill Bits
Drilling & Completion Fluids
Floating Production Services
Geophysical Equipment & Services
Hydraulic Fracturing
Inspection & Coating
Land Contract Drilling
Logging-While-Drilling
Offshore Construction Services
Offshore Contract Drilling
Oil Country Tubular Goods
Petroleum Aviation
Production Testing
Rental & Fishing Services
Rig Equipment
Solids Control & Waste Management
Specialty Chemicals
Subsea Equipment
Supply Vessels
Surface Data Logging
Surface Equipment
Unit Manufacturing
Well Servicing
Wireline Logging
The global oilfield
equipment & service
industry will fall to $355
billion in 2015, down 21%
from a record $451 billion
in 2014.
Artificial lift reached a
record $15.3 billion in
2014, but should fall 10%
to $13.7 billion in 2015.
4

Overview: Global Oilfield
The global oilfield
equipment & service
industry has grown from
just $75 billion in 1999 to
~$170 billion in 2005 to a
record $451 billion in
2014.
Global economic
challenges in 2008-2009
caused oil and gas prices
to fall, which slowed
drilling in 2009. In 2015,
an oversupply of oil and
gas is depressing prices,
dragging down the oilfield
equipment & service
sector.
Spears’ outlook for the
broader oilfield is
negative in 2015.
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Billion
5

Production Products & Services
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Billions
$13.7
$7.5
$3.8
$3.2
Artificial Lift
Chemicals
Well Servicing
Compression
FASTEST GROWTH: Artificial lift, compression
SLOWEST GROWTH: Well servicing, chemicals
TRENDS: Strong secular trend upward, but challenged by
low oil and gas prices in 2015

Artificial Lift … $/new well
$0
$50
$100
$150
$200
$250
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Thousands of Dollars Spent on Artificial Lift Each Year
Per New Well Drilled in the World

Overview: Global Artificial Lift
The global artificial lift
market has grown from
$2 billion in 1999 to $4.5
billion in 2005 to 2014’s
$15.3 billion.
The drilling slowdown in
2015 will drag down
spending on artificial lift
by about 10%.
But this sector recovers
quickly (see 2010).
Therefore we are
projecting a return to
growth in 2016.
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Billion
8

Overview: Annual Market Change
-30%
-20%
-10%
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Annual
Change
Total Oilfield Equipment & Service Market Annual Change
-30%
-20%
-10%
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Annual
Change
Artificial Lift Market Annual Change
The total oilfield equipment & service
market grows erratically, surging >30% some
years, growing 5% some years… The artificial lift market tends to grow ~20%
per year during up years, while down years
are less harsh than the total oilfield market.
9

$2,850
$2,810
$2,200
$2,100
$945
$800
$340
$260
$230
$215
$190
$190
$175
$40
$16
$5
$1,900
Weatherford
Schlumberger
Baker Hughes
GE Oil & Gas
Dover Corp.
BORETS
Novomet
Cameron
NOV
Halliburton
Summit ESP
John Crane
Tenaris
SPOC Auto
Flotek
Zilift
Others
The 2014 artificial lift
market has dozens of
suppliers. Spears tracks
16 of the largest
companies, led by $2.9
billion Weatherford and
$2.8 billion Schlumberger.
The top 4 companies have
about two-thirds of the
global artificial lift market.
10

11
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Weatherford $760 $950 $995 $1,235 $1,065 $1,240 $1,950 $2,500 $2,600 $2,850
Schlumberger $850 $1,022 $1,150 $1,330 $1,145 $1,290 $1,575 $1,930 $2,405 $2,810
Baker Hughes $741 $853 $1,013 $1,288 $1,170 $1,330 $1,450 $1,600 $1,850 $2,200
GE Oil & Gas $614 $801 $867 $1,117 $814 $1,068 $1,396 $1,661 $1,900 $2,100
Dover Corp. $320 $395 $457 $560 $375 $475 $630 $765 $875 $945
BORETS $325 $450 $550 $665 $535 $615 $695 $743 $765 $800
Novomet $105 $125 $155 $187 $173 $207 $243 $290 $320 $340
Cameron $50 $60 $70 $80 $80 $100 $130 $200 $232 $260
NOV $48 $74 $83 $96 $81 $90 $130 $175 $190 $230
Halliburton $0 $0 $10 $13 $35 $60 $100 $150 $175 $215
Summit ESP $0 $0 $0 $0 $0 $0 $0 $10 $70 $190
John Crane $0 $0 $0 $95 $85 $100 $125 $150 $175 $190
Tenaris $26 $30 $33 $35 $30 $40 $60 $100 $140 $175
SPOC Automation $4 $5 $7 $9 $6 $8 $15 $25 $34 $40
Flotek $2 $10 $10 $10 $7 $10 $10 $10 $15 $16
Zilift $0 $0 $0 $0 $0 $0 $1 $1 $1 $5
Others $650 $725 $850 $975 $885 $1,050 $1,200 $1,500 $1,700 $1,900
Total Market $4,495 $5,500 $6,250 $7,695 $6,486 $7,683 $9,710 $11,810 $13,447 $15,266 $13,739
Annual Market Change 22% 14% 23% -16% 18% 26% 22% 14% 14% -10%
Million

Downturn Analysis
12
The chart below plots the impact of declining demand on sales for artificial lift during the period 2008-2009. Each
“bucket” shows the number of companies in artificial lift equipment category whose sales fell by that percentage.
From this we see that many lift companies fell by 20-40% during the last down cycle. These tended to be the
smaller, US/Canadian firms without a significant presence outside North America.
It is reasonable to assume that the pattern will repeat in 2015, with global artificial lift companies faring well and
small domestic companies struggling.
0
1
2
3
4
5
6
7
8
-10% -20% -30% -40% -50% -60% -70%
#
of
Companies
in
Category
Percent Downturn 2008-2009
Artificial Lift

Overview: Quarterly Revenues
Here are the estimated quarterly
artificial lift revenues for
Weatherford, Schlumberger and
Baker Hughes. The period starts
in the 2009 slump and extends
through year end 2013.
The market shows strong
growth, with Q4 surging each
year due to year-end purchasing
by customers.
Note: These are Spears’ own
estimates. The companies do
not report product line sales.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2009
2010
2011
2012
2013
Millions
WFT
SLB
BHI
13

Artificial Lift Details
14

Description: What is it?
DESCRIPTION
Artificial lift is installed in wells that need to supplement the natural reservoir drive in boosting fluids out of the
wellbore. 90 percent of the existing producing oil wells and gas wells requiring water removal utilize some type of
artificial lift. Many oil wells that are initially free-flowing will require artificial lift as they mature, particularly since
most begin to produce water.
The main types of artificial lift used are rod-lift systems, gas lift systems, electric submersible pumps (ESPs) and
progressing cavity pumps. Other lift systems include plunger lift and hydraulic lift.
Depth of the well, volume of fluid to be pumped, and the properties of those fluids (e.g. whether they are
corrosive) are the primary factors in choosing the type of artificial lift to be installed. Other factors are the amount
of gas produced, the pressure at the wellbore, and the presence of sand. Deep, deviated wells with harsh
downhole conditions in environmentally sensitive areas lean toward the use of hydraulic lift.
DRIVERS
Well count
New oil and gas well drilling
Volume of produced water
15

Description: Where is it?
16
In 2011 Spears was
credited for developing
this graphic for Lufkin.
We don’t have any
memory of building it,
but it seems like a
reasonable analysis
regarding where artificial
lift is deployed.
Artificial Lift is Required in 94% of Producing Oil Wells
© 2012 Lufkin Industries, Inc. 2
94% of the world’s ~1 million producing oil wells are assisted by some form of artificial lift (1)
Artificially Lifted vs. Naturally Flowing Producing Oil Wells (1)
By Region By Percentage
Naturally Flowing
Artificially Lifted
1) World Oil Magazine.
2) Spears & Associates Inc. as of December 2011. Oil & Gas Journal.
Artificial Lift Oil Well Population (Units) (2)
North Latin Middle Far
America America Europe Africa East Russia East China Total
Flowing 23,591 3,740 2,907 7,070 7,348 4,212 3,520 1,472 53,860
Rod Lift 485,811 51,564 20,707 3,390 4,013 39,035 6,760 65,021 676,302
ESP 17,946 2,518 553 1,577 1,922 56,631 6,087 4,208 91,442
PCP 23,058 3,522 171 56 123 3,135 297 70 30,433
Gas Lift 20,708 293 323 56 1,642 2,022 2,130 70 27,244
Other 17,403 660 450 56 26 304 375 772 20,046
Total 588,517 62,297 25,111 12,205 15,074 105,339 19,171 71,613 899,327
Artificially Lifted:
North America
South America
Middle East
Western Europe
Eastern Europe
Far East
Africa
South Pacific
Naturally Flowing:
Global
6%
5%
1%
1%
0% 0%
2%
68%
17%

Description: By Company By Type
17
Rod Lift ESP PCP Hydraulic Gas Lift Plunger Other TOTAL
Schlumberger P P P P P $2,190
Baker Hughes P P P P P $1,860
Weatherford P P P P P P P $1,770
GE Oil & Gas P P P P P P P $1,590
Dover Corp. P P P P P $880
BORETS P $615
Novomet P $310
Cameron P P $221
Summit ESP P $200
John Crane P $175
NOV P $160
Halliburton P P P $195
Tenaris P $100
SPOC Automation P $50
Flotek P $12
Zilift P $4
Others P P P P P P P $1,275
TOTAL $3,800 $5,000 $950 $325 $600 $400 $532 $11,607
Millions
Estimated 2015 Artificial Lift Product Line Sales

Description: By Region
18
$500
$2,000
$1,500
$1,000
$750
$750
$750
$750
$250
$2,000
$2,800
Artificial Lift 2013 (millions)
US: SoTex
US: Permian
US: MidCon
US: Rockies
US: E Texas
US: Coast
US: NoEast
US: West
US: Gulf
Canada
International

Description: Types of Lift
Spears’ research suggests that
the market breaks down into the
following major lift types: Rod
Lift, ESP, PCP, Hydraulic Lift, Gas
Lift, Plunger Lift and Other.
Other includes software,
continuous rods, and automation
systems.
All lift types were showing
growth through 2014, largely
due to the pursuit of $100 oil
around the world.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Artificial Lift Market by Type of Lift
Other
Plunger
Gas Lift
Hydraulic
PCP
ESP
Rod Lift
19

Description: Types of Lift
Spears’ research suggests that
the market breaks down into the
following major lift types: Rod
Lift, ESP, PCP, Hydraulic Lift, Gas
Lift, Plunger Lift and Other.
Other includes software,
continuous rods, and automation
systems.
Rod lift’s share of the market has
been growing strongly as US
producers choose to use that
technology most frequently. ESP
is losing share at the fastest
pace.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Share
of
the
Market
Artificial Lift Market by Type of Lift
Other
Plunger
Gas Lift
Hydraulic
PCP
ESP
Rod Lift
20

Description: Rod Lift
This 100 year old technology has
not changed materially for
generations. The principal
components are the beam pump
at the surface, the sucker rods
and the bottom hole
reciprocating pump.
Ancillary equipment can include
pony rods, sinker bars, polished
rods, rod guides and alternative
types of surface pumps.
Multiple well pad drilling may be
driving the market toward a new
type of surface pump with a
smaller footprint.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Rod Lift
21

Description: Sucker Rods
This chart and table separates
the sucker rod market into three
macro regions: US, Canada and
International. Sucker rods are a
subset of ROD LIFT.
We believe the US market for
rods was $490M in 2012, with
growth to $650M in 2014.
This also suggests that the
Canadian market was $115M by
2014.
The international market is
relatively small – just $75M in
2012, growing to $100M in 2015.
22
2010 2011 2012 2013 2014 2015
Intl $55 $65 $75 $85 $95 $100
Canada $70 $80 $95 $105 $115 $100
US $300 $400 $490 $575 $650 $565
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Millions

Description: ESP
The electric submersible pump
commands the largest share of
the artificial lift market largely
because it is the most expensive
system. These units are
generally attached to the
production tubing and lowered
into the well, with power cables
strapped to the outside of the
production tubing.
ESPs have very large electric
power appetites, but have the
highest output of fluid versus all
other lift types.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
ESP
23

Description: Progressive Cavity Pumps
PCPs tend to be associated with
heavy oil provinces like Canada
and Venezuela, but are found all
over the world in wells with
abrasive materials in the fluid.
The market is growing, but
slowly due largely to civil unrest
in Venezuela that is hampering
the ongoing operators of that
country’s oil and gas industry.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
PCP
24

Description: Hydraulic Lift
Hydraulic lift is well suited for
high angle and horizontal wells.
These units have no moving
parts, relying on a stream of oil
to be pumped down a well and
jetted up the tubing, drawing
with it the well bore’s fluids.
Prior to the boom in horizontal
drilling, hydraulic lift was a dying
technology with few
applications. The largest single
market was in Latin America.
But the US now represents by far
the largest market.
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
Hydraulic
25

Description: Gas Lift
Gas lift is used offshore where
excess natural gas is compressed
and reinjected to energize fluids
coming from the reservoir. The
market generally shows the
steadiest growth of any artificial
lift technology and depends
largely on offshore and
international projects.
In recent years, however, small
gas lift systems have been used
on US horizontal oil wells since it
has no moving parts downhole
and gas has been cheap.
$0
$100
$200
$300
$400
$500
$600
$700
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
Gas Lift
26

Description: Plunger Lift
Plunger lift is used late in the life
of a gas well. These are suited
for older, low pressure gas wells
that produce a small amount of
fluid, generally water or
condensate. Plunger lift, which
uses the low energy available in
these wells, is a very practical
and wide spread tool for
production managers around the
world, but particularly in the US.
The gas well population is aging
today as a result of very low
natural gas prices.
$0
$100
$200
$300
$400
$500
$600
$700
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
Plunger
27

Production Equipment Cost Trends
Production equipment accounts for 9% of
the total cost of a well in the US. In Q4
2013 Spears’ research suggested that
related costs were 3.3% less the prior
quarter. As a result, overall production
equipment costs were 2.1% lower in Q4
2013 than in Q4 2012.
Production equipment includes wellheads,
artificial lift, compression, gas processing,
and measurement gear.
An oil well requires more production gear
than a gas well. The shift to oil drilling has
greatly increased demand for production
equipment (the number of oil wells
drilled increased at a 30% CAGR from
2009 through 2012).
With US oil well drilling dropping in 2015,
all prices in the oilfield are declining,
therefore, production equipment prices
are expected to be down 5-10% going
forward.
28

Artificial Lift by Type
This is a table provided by
Weatherford to describe the
various downhole conditions that
are best suited for each of the
major lift types.
For example, the progressing
cavity pump works to ~6,000’
vertical depth, can pump 4,500
barrels of fluid per day, operates
in temperatures up to 325 F, does
great when solids are produced,
but is only fair at dealing with
corrosive fluids. Light oils won’t
pump through this system, so API
gravity has to remain below 35
degrees. PCPs are the most
efficient lift system available.
29
Rod Lift
Progressing
Cavity Gas Lift Plunger Lift Hydraulic Piston Hydraulic Jet ESP
Operating
Depth To 16,000' TVD To 6,000' TVD To 15,000' TVD To 19,000' TVD To 17,000' TVD To 15,000' TVD To 15,000' TVD
Operating
Volume To 6,000 BFPD To 4,500 BFPD To 30,000 BFPD To 200 BFPD To 8,000 BFPD To 15,000 BFPD To 40,000 BFPD
Operating
Temperature To 550*F To 325*F N/A To 550*F To 550*F To 550*F To 400*F
Corrosion
Handling
Good to
Excellent Fair
Good to
Excellent Excellent Good Excellent Good
Gas Handling Fair to Good Good Excellent Excellent Fair Good Fair
Solids
Handling Fair to Good Excellent Good Fair Fair Good Fair
Fluid Gravity >8*API <35*API >15*API >15*API >8*API >8*API >10*API
Servicing
Workover or
Pulling Rig
Workover or
Pulling Rig
Wireline or
Workover Rig
Wellhead
Catcher or
Wireline
Hydraulic or
Wireline
Hydraulic or
Wireline
Workover or
Pulling Rig
Prime Mover Gas or Electric Gas or Electric Compressor
Wells' Natural
Energy
Multicylinder or
Electric
Multicylinder or
Electric Electric Motor
Offshore
Application Limited Good Excellent N/A Good Excellent Excellent
Overall System
Efficiency 45% - 60% 40% - 70% 10% - 30% N/A 45% - 55% 10% - 30% 35% - 60%
BFPD: Barrels of fluid per day
TVD: True vertical depth
API: American Petroleum Institute standard of oil characteristics, mainly viscosity
N/A: Not available

Cause of ESP Failures
30
The artificial lift industry does not generally
publish its failures – or much detail about the
industry. But several years ago a pump company
provided Spears with the accompanying table to
show the various causes of ESP failure by region.
For example, in Alaska, cables were the cause of
25% of all pump failures while on land in North
America, cables represented on 10% of all
failures. Over in Africa, cables were the cause of
half the failures.
ESP System Failure Causes
Region Cable Pump Tubing
North America
Alaska 25% 75%
THUMS 30% 35% 35%
Canada 10% 90%
Land 10% 90%
Europe 30% 70%
Middle East 20% 80%
Africa 50% 50%
Asia Pacific 30% 70%

ESP … $/new well
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thousands of Dollars Spent on ESPs Each Year

US ESP Market vs. US Oil Well Drilling
32
y = 0.0694x + 89.713
R² = 0.9751
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
0 5000 10000 15000 20000 25000 30000 35000 40000
ESP
Mkt
(Millions)
US New Oil Wells
2005-2014
In 2005, ~$67k in ESP spending
happened per new US oil well drilled.
By 2014, the ratio was ~$72k. Of
course, not every new oilwell was
outfitted with an ESP. This includes
replacement ESPs, service charges,
cable, etc. on existing well installations.

US ESP Market vs. US Oil Well Drilling
33
y = 0.0598x + 419.84
R² = 0.9881
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
0 5000 10000 15000 20000 25000 30000 35000 40000
ESP
Mkt
(Millions)
US New Oil Wells
2014-2020
For 2015, Spears is forecasting a
DECLINING new oilwell drilling number
due to sufficiently high quantities of oil
being delivered from within the US
market. This assumes also that the US
during the period is NOT allowed to
export material amounts of crude oil.
After 2015, drilling should again rise.
Meanwhile, ESP$/new oilwell continues
to rise, helping the ESP market remain
relatively stable while drilling drops.

Impact of Temperature on Lift
34
Temperature can play a key role in the performance of tools and materials
used to drill, complete and produce wells. Surface temperatures can range
from -40 degrees F to +130 degrees F. Bottom hole temperatures can range
from 100 degrees F to 450 degrees F. In one of the most extreme conditions
on land in the US – North Louisiana – drilling a well on a cold winter day can
find a tool being delivered to the wellsite on a truck driving through 20 degree
F weather and the tool being run into the wellbore two hours later, hitting 350
degrees F when it reaches the bottom of the well. Or in North Dakota, surface
temperatures can be -40 and bottom hole temperatures 315. Electronics,
mechanical devices and fluid systems must be designed and built such that
they can survive the trip to the wellsite and the trip in the hole, performing
reliably and repeatedly day after day after day.
There is a correlation between high temperature/high pressure (HTHP) and
well depth. This principal is difficult to prove since bottom hole temperatures
and pressures are not consistently collected, however, gradients for both
temperature and pressure show a relationship to depth. Gradients that are
available show temperatures increase with depth, although at different rates
for different regions. Furthermore, these gradients change with the presence
of certain minerals or strata such as salt domes or subsalt structures.
Spears, in partnership with Oilfield Logix, evaluated ~10,000 wells that have
been drilled in the US during the last few years, reviewing data on downhole
temperatures and correlating those temperatures to vertical depth. We have
also tied those bottom hole temperatures to specific producing zones (where
possible) and to counties within the key states (Texas, Oklahoma, Louisiana,
Colorado and North Dakota). Over the years we will be adding temperature
data to our base of knowledge, expanding (we hope) to all US states with
significant amounts of drilling activity.

Maximum Temperature by County
35

High Temperature Regions
36
Past research by Spears indicates there are more than 200 high temperature reservoirs worldwide of the 31,000 total
reservoirs, but few of these are also high pressure. The most concentrated areas of activity outside the US are the North
Sea (UK, Norway), Asia (Indonesia, Thailand, South China Sea) and Latin America (Mexico, Venezuela). The neighboring
map shows the high temperature areas identified by Spears about ten years ago:

Technologies: Fiberglass Rods
37
Fiberglass sucker rods are a growing part of artificial lift.
In 2013, we met with a relatively new fiberglass sucker rod manufacturer in Midland. This team consists of veterans in the
fiberglass rod industry. Sales are currently $3M per month and growing, with almost all sales in the oil play of West Texas.
Why this is important
Fiberglass rods have been around for 20 years, but have always played second fiddle to carbon steel or alloy sucker rods.
With the advent/resurgence of oil well drilling combined with highly deviated wells, a flexible rod should find a significant
market. And with artificial lift growing as much as 20% per year, fiberglass rod demand is probably growing at an even
higher rate.

Technologies: ESP
38
More confirmation that Mississippi Lime wells are being produced by ESP.
We’re finding more and more evidence that ESPs are a preferred lift method for newly drilled Mississippi Lime horizontal
wells. The problem is, these wells are in areas poorly served by rural electric cooperative power grids, so power demand is
getting way ahead of power supply.
To power these electricity‐hungry ESPs, operators like Sandridge are moving toward renting distributed power generation
capacity…otherwise the wells sit idle or produce at some suboptimal rate. We’ll be looking for power generation companies
to recommend, but GE is certainly in this business.
Sandridge is a heavy user of ESPs in Mississippi Lime horizontal wells.
In order to accelerate production in the early days of its wells, Sandridge is installing ESPs in Mississippi Limestone
horizontal wells. And since power quality is poor, they are also renting temporary power generation to drive the pumps.
Attempts to put gas lift on the wells put too much back pressure on the reservoir, restricting oil flow from the zone. And
natural fluid lift was not high enough to employ rod pumps.
This is creating robust demand for ESPs on land in the US. Rod lift has been getting all the artificial lift attention lately, but
ESPs are better suited for high‐angle wells.

Technologies: Hydraulic Lift
39
Best hydraulic lift applications are those where no other lift technique works.
Each region has a different reason for using hydraulic lift
Western: Severe doglegs with tight surface area restrictions
Rockies: Deep horizontal oil wells
South Louisiana: Harsh downhole environment combined with nearby neighborhoods
Permian: Various oil-related issues
North Texas: Dewatering frac water from gas wells
Operators using hydraulic lift like the system.
Operators not using hydraulic lift have very little understanding of the benefits.
Hydraulic lift is perceived as a high operating cost, low efficiency lift system…even by its most ardent fans.
Customers are looking at ESPs on the surface to power downhole jet pumps.

Market Drivers
40

Drivers: Industry Overview
The upstream sector of the petroleum industry finds and produces crude oil and natural gas. The upstream sector
is sometimes also known as the exploration and production (E&P) sector.
Participants in the upstream sector are oil and gas companies (also called operators or producers) and oilfield
equipment and service firms (also called oil service companies). Oil and gas companies employ geologists and
engineers to explore, develop, and produce oil and gas reserves. Oil and gas companies hire oil service firms to
drill, complete, and equip their wells. Most oil service firms own specialized equipment (trucks, downhole tools,
etc.) which they use in the course of performing their services for the operator.
Oil and gas companies which participate in the upstream, midstream, and downstream sectors of the petroleum
industry are referred to as “integrated” oil companies, or “majors”. Oil and gas companies that do not participate
in the midstream or downstream sectors of the petroleum industry are known as “independents”.
In the North American market the major oil companies include ExxonMobil, Shell, Chevron, BP, and ConocoPhillips.
Large independents include firms such as Devon Energy, Chesapeake, EOG Resources, Talisman, Encana, and
Continental Resources. In the North American market some independents drill more wells and produce more oil
and gas than majors.
~3,000 oil and gas companies are active in the North American market, drilling at least one new well per year.
41

The oil and gas field development life cycle consists of the following steps: Reservoir Information; Contract Drilling;
Drilling Equipment and Services; Completion Equipment and Services; and Production/Maintenance.
In an area where very little drilling has previously been done, an operator may take a year or more to gather and
evaluate reservoir information prior to drilling. Then the operator may drill more than one exploration well (also
known as “wildcats”) to find the reservoir. Once a reservoir has been found other wells (called “appraisal” wells)
are usually drilled to provide more information for planning the full development of the field. Development wells
(also called “production” wells) are then drilled to bring the field online. An operator may take 1-3 years to
conduct exploration and appraisal drilling; development drilling may take another 1-3 years to be completed.
Most operators in North America only drill development wells. The extensive history of drilling in North America
means that there is relatively little unknown acreage. Operators can use information from previously-drilled
nearby wells to evaluate the likelihood of additional reserves for development.
The time required to drill a well ranges widely. Deep (more than 15,000 ft.) offshore exploratory wells in deep
(more than 1,000 ft.) water may take six months to drill and complete. Conversely, a shallow (less than 5,000 ft.
deep) land well might be drilled and completed in less than a week.
Once a well has been put into production it generally continues to produce for 20-50 years. Throughout its life a
well will periodically need repair and maintenance in order to remain productive. This is very important to
demand for artificial lift.
42

There are over 15,000 oil service firms that serve the market. The “big 4” oil service firms are Schlumberger,
Halliburton, Baker Hughes, and Weatherford International, all of which offer diversified services and operate on a
global basis.
Other large oil service firms or oilfield equipment manufacturers include National Oilwell Varco, FMC, and
Cameron. Large drilling contractors include Transocean, Diamond Offshore, Nabors, and Helmerich & Payne.
43

Drivers: Oil Prices & Wells Drilled
44
2012 2013 2014 2015 2016
Oil Price $94.18 $98.12 $92.00 $55.00 $75.00
Gas Price $2.71 $3.65 $4.00 $3.25 $3.75
$0
$1
$2
$3
$4
$5
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Natural
Gas
Spot
West
Texas
Intermediate
Oil
2012 2013 2014 2015 2016
Intl Total Wells 13,600 13,300 13,700 13,100 13,600
Canada Total Wells 10,900 10,900 11,500 10,000 9,600
US Total Wells 46,400 44,900 48,600 40,300 37,800
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000

Drivers: Horizontal Drilling in US
Horizontal wells are preferred over vertical
wells for the development of shale gas and
tight oil reservoirs. While horizontal wells
typically cost 4-6X more than vertical wells
to drill and complete, horizontal wells can
produce at rates 20-30X higher than those
of vertical wells. The higher production is
because in the US a horizontal well typically
has 4,000-10,000 feet of wellbore exposed
to the producing formation - in contrast to
vertical wells which typically have only 50-
250 feet of wellbore located in the
producing zone.
Due to the higher profitability of horizontal
wells US operators have shifted away from
drilling vertical wells toward drilling
horizontal wells over the past decade.
Rigs drilling horizontal wells currently
account for about 60% of all active rigs, up
from less than 15% of all active rigs in
2005. However, the rate of increase in
penetration of the rig market by horizontal
drilling activity has slowed since 2011,
indicating that this shift in the market has
largely matured.
45
2012 2013 2014 2015 2016
Vertical 28,130 24,895 24,587 10,566 8,225
Horizontal/Directional 18,375 20,236 24,041 15,816 14,348
0
10,000
20,000
30,000
40,000
50,000
60,000
New
Wells
Drilled

Driver: Offshore New Well Drilling
46
2012 2013 2014 2015 2016
Intl Offshore 2,500 2,500 2,600 2,600 2,700
US GOM 400 500 500 500 500
0
500
1,000
1,500
2,000
2,500
3,000
3,500

Drivers: Lift vs Oil Price
47
Although it seems reasonable that demand for
artificial lift products would be highly correlated
to the price of oil, this is not true.
The scatter graph to the right plots average
annual oil price against that year’s global
artificial lift market for the period 1999-2014.
Although several of the lower left hand data
points suggest a correlation, the 5 highest data
points indicate a completely different
relationship…and these are the data from the
most recent 5 years.
There is no question that high oil prices
positively influence demand for oil lifting
products, but the correlation is not linear.
$0
$20
$40
$60
$80
$100
$120
$0 $10,000 $20,000
Oil
Price
Artificial Lift Market (millions)
Oil Price vs. Lift Market 1999-2014

Drivers: Lift vs Drilling Rigs
48
Spears has identified several market segments where demand for services is growing in intensity each year. In other words, each
active drilling rig is creating an increasing demand for these particular services each year. While some are downhole drilling
technologies, a few are production-related and a few are tied to offshore activity.
As the chart below shows, artificial lift is one of these high growth segments. In the year 2003, each active drilling rig
generated about $1.5 million in annual demand for artificial lift. By 2008, each rig was on average creating $2.8 million in annual
demand for artificial lift. In 2013, the number is $3.8 million per active rig.
What explains the bump in 2009? The artificial lift market measured in dollars fell, but the active rig count fell farther and faster.
As a result, the “average” temporarily rose. Rigs went back to work in 2010, the annual average fell slightly, but the secular
growth trend continued.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions of Dollars Spent on Artificial Lift Each Year
Per Active Rig in the World

Drivers: Lift vs New Wells
49
Whereas the prior page compared artificial lift global sales to active drilling rig count, this analysis compares artificial lift global
sales to new well count each year. The math is “artificial lift global sales” divided by “global new well count.”
In 2005, about $50,000 was spent on artificial lift relative to each new well drilled. This year the number will be over $200,000
per new well.
Please note, the artificial lift market is highly dependent upon sales of replacement pumps to wells that were drilled over the
last 50 years and are still producing – this chart does NOT mean that each new well sees $200,000 of artificial lift spending.
However, the industry’s surge toward oil well drilling in the US has been a big driver of this increasing intensity of artificial lift
spending per well.
It is reasonable to believe that this trend will continue for a very long time.
$0
$50
$100
$150
$200
$250
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thousands of Dollars Spent on Artificial Lift Each Year

Artificial Lift CAPEX vs. OPEX
50

Oil/Gas Field Life Expenditures
51
• Spears ran through a simple exercise to determine when spending occurs during a field’s development and how much
spending continues as the field is produced over its lifetime.
• The objective of the exercise was to evaluate if an oilfield service company should include in its growth plans the operation
and maintenance of fields, if it should include the building of midstream assets and if end of life plug and abandonment
work represented a big opportunity.
• Spears made certain cost assumptions about developing and operating a 400 well field on land somewhere in North
America.
• ~70% of the capital cost is represented in drilling and completing the 400 wells, which happens over a 4-5 year period.
• ~10% of the capital cost comes from building the midstream assets.
• ~15% of the capital cost comes from operating the 400 wells over its lifetime.
• ~5% of the capital cost comes from abandoning the field at the end of the period.
• From this we conclude that field development represents a huge, short-term opportunity and that operations is probably a
low return business. However, if a service company could operate several fields in one region, a business case might be
made to pursue the work.

Per Well Cost of Land Field Development
52
Explore
$0.2
Develop
$4.0
Midstream
$0.4
Produce
$0.7
Abandon
$0.2
Millions of Dollars per Drilled Well
Although every field development is unique, understanding when and how much spending occurs instructs the service
company about where to focus. This is one possible scenario involving a 400 well field development with a 20 year life.
In this example US land field, CAPEX for up front exploration was $80M, or $0.2M per eventually drilled well. CAPEX for
drilling & completion was $4M per well. Midstream assets required $160M. CAPEX required to produce each well was
$0.7M over the life of the well. Abandonment required $0.2M per well.

Per Year Cost of Land Development
53
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Millions
Year
Abandon
Produce
Midstream
Develop
Explore
Assume 400 wells
drilled in 4 years and
total field life of 20
years.

Discussion
54

Impact of Multi-Well Pads on Lift
55
For the first 100 years of the development of oil & gas fields in North America, the vast majority of wells drilled on land were on
a unique, dedicated pad; one pad, one well. These pads were 1 acre to 3 acres in size and were scattered throughout a
developing oilfield. Offshore, big platforms had several wells drilled from the structure, but directionally steered to tap the
reservoir miles from the platform. So while the land industry geared itself to drill one unique well per facility, the offshore
industry geared itself to drill 4 or 8 or 16 wells from a single facility.
As the success of horizontally drilled wells with multiple stage frac jobs surged through the US oil & gas industry, and as the cost
of directional drilling fell with the steady improvement of productivity, drilling engineers sought ways to bring lean
manufacturing to the drilling and completion process. Multiple well pads provided the best solution to this need and is now in
the process of being embraced in every major horizontal play in the US.
But here is the problem: On a multiple well pad, one drilling rig can drill all the wells and one frac crew can frac all the wells and
one coiled tubing unit can clean out all the wells, but each well still requires a unique, dedicated lift system. One well, one lift
system.
In the Soviet Union, Western Siberia’s oilfields were developed from multi-well “Sputniks”, which, translated, means satellite.
These Sputniks had 4-12 wells each and used either ESPs or beam pumps. ESPs had a cleaner look and were better suited for
highly deviated wells. Beam pumps crammed a lot of moving equipment into a very small space…but it was still quite workable.
In the US we have similar well pad configurations now and we see US operators adopting the procedures used for decades in the
Soviet oilfield. But two conditions may be driving demand for linear lift system: Proximity to urban living and technical need for
a long-stroke rod lift system.
With a linear system, the look of the technology is less intimidating to a home owner since large pieces of steel are not
whirling around and moving up and down. It has the appearance of safety.
But we think that customers may be adopting the linear system primarily for its ability to reciprocate the downhole pump
more smoothly and with a longer stroke, doing less damage the production tubing and improving the efficiency of the
pumping operation. We would require more time to investigate the reasons for the linear system’s purchase.

Use of Field Service People
56
Although the artificial lift industry is primarily a PRODUCTS industry, these products are all installed by PEOPLE. Here are all the
ways people are involved in the process:
Identification of need
Determination of solution via specific lift type recommendation
Sale of lift system
Delivery of lift system
Installation of lift system, including optimization of operation
Maintenance of lift system
Even those artificial lift products that seem the simplest – sucker rods – are supported by teams of people who are expert in
their field. Tenaris, for example, relies on a team of about 7 former Norris Rod veterans to represent their sucker rod product
line. These veterans have accelerated Tenaris into the market such that Tenaris went from 0 feet per month to about 3 million
feet per month into the US market within 5 years.
The team Tenaris relies on are actually distributors of rods and are not employees of Tenaris. This is a valid way to approach the
market in the US. Bell Supply, for example, presents itself as an artificial lift company, representing several different types of lift
system and several different brands. But Bell Supply is not a manufacturer of lift systems. The company will provide all 6 of the
people services listed above and for that will receive compensation either through the mark-up of lift products they have
purchased or through consulting revenues.

Lead Times
57
The oil & gas industry frequently deals with long delivery times, but delayed delivery of artificial lift equipment directly impacts
the net income of these operators since it delays the production of oil and gas. Therefore, the artificial lift industry has typically
geared itself for immediate, off-the-shelf delivery of products and services for the North American market. International
markets are a bit more forgiving given the longer planning cycle of most field development projects.
Here is the impact of delayed delivery of lift equipment:
A well in the Bakken will often come on stream flowing 1,000 barrels of oil per day (BOPD). This daily production will fall rapidly
as reservoirs flush out the initial production, dropping to, say, 300 BOPD, then 200… The oil producer will typically install some
form of artificial lift within 3-6 months of the well being brought on stream in order to improve its level of oil output. By
installing artificial lift, the operator may be able to improve his daily oil output by 100-200 BOPD. If the desired lift system is
delayed by one month, the cost to the operator is the loss of that incremental production (100-200 BOPD) for 30 days. At $100
per barrel, the cost of that delay is 150 BOPD x 30 days x $100/bbl = $450,000.
The oil & gas industry can more easily tolerate a delay in the drilling and completion process, but once the well is ready for
production, delays are painful.
Most conventional artificial lift systems are available within days of an order coming in. The rod lift industry in particular has
service and supply depots in all major basins stocked with all standard parts and sizes – beam pumps, sucker rods, downhole
pumps, rod guides, polished rods…
The successful oilfield service company providing products and services to the rod lift market in the US will have immediate
availability of all standard sizes stationed within a few hundred miles of the various addressable markets.

Electrical Power
58
Spears & Associates has done very little analysis on demand for electric power to drive artificial lift systems. We do, however,
conduct interviews daily with field operations people on a variety of topics. Here is a short blurb from Spears’ internal library
from conversations in Q1 2013 regarding new field developments in Oklahoma’s Mississippi Limestone horizontal play and its
demand on electric power:
More confirmation that Mississippi Lime wells are being produced by ESP.
We’re finding more and more evidence that ESPs are a preferred lift method for newly drilled Mississippi Lime horizontal wells.
The problem is, these wells are in areas poorly served by rural electric cooperative power grids, so power demand is getting way
ahead of power supply.
To power these electricity-hungry ESPs, operators like Sandridge are moving toward renting distributed power generation
capacity…otherwise the wells sit idle or produce at some sub-optimal rate. We’ll be looking for power generation companies to
recommend, but GE is certainly in this business.

The Lifecycle of Artificial Lift
59
Most wells in the US and Canada have a single type of lift system installed for the life of the well. The most common single lift
system is rod lift. Most wells on land have a rod lift system installed when the well is first drilled and that lift system remains in
place for the life of the well (perhaps 50 years or longer). Over time the size of rod lift pump might be reduced as the well’s
production declines, but the type of lift system remains the same.
But there are other wells and fields where the lift system required on the first day is not the lift system still in place 3 years later
due to the well’s declining output. These tend to be the highest fluid output wells where an ESP is required that can deliver
1,000 barrels of fluid per day or greater from a highly angled wellbore. As time does by, a lower cost, lower volume lift system
may be installed – hydraulic lift or rod lift or plunger lift.
There is no analysis available that quantifies that trend. So much depends on a well’s specific performance and on an operator’s
philosophy of production. Two clusters of wells side by side, but owned by different oil companies, can have dramatically
different lift techniques employed. As long as there exists overlapping applications for multiple lift technologies, it will be hard
to predict where and when a product will be used.

Company Descriptions
60

Baker Hughes
61
Baker Hughes has been a leading ESP manufacturer for decades through its Centrilift division. Centrilift has
manufacturing in Oklahoma, Argentina and Asia. The company is the largest ESP company in the world.
But as large as ESP is, the company has very little presence in any other lift type. Other than a small PCP line, BHI
does not provide other lift products, nor has the company shown any interest in acquiring or organically developing
other lift options.
Baker Hughes is currently being acquired by Halliburton, which has only a limited presence in artificial lift.
Baker Hughes Millions
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Category
Baker Fluids $676 $866 $931 $1,089 $837 $930 $1,030 $1,125 $1,250 $1,380 Drilling & Completion Fluids
Baker Fluids $70 $75 $82 $95 $65 $80 $90 $100 $110 $125 Solids Control & Waste Management
Directional Drilling $1,019 $1,349 $1,623 $1,824 $1,470 $1,675 $2,000 $2,275 $2,500 $2,815 Directional Drilling Services
LWD $167 $238 $304 $371 $313 $385 $475 $550 $650 $725 Logging-While-Drilling
Mud Logging $115 $125 $135 $145 $118 $125 $135 $150 $165 $180 Surface Data Logging
Hughes Christensen $741 $980 $1,056 $1,233 $942 $1,075 $1,150 $1,200 $1,280 $1,400 Drill Bits
Centrilift $741 $853 $1,013 $1,288 $1,170 $1,330 $1,450 $1,600 $1,850 $2,200 Artificial Lift
Baker Oil Tools $1,356 $1,765 $2,116 $2,195 $1,780 $1,985 $2,410 $2,825 $3,100 $3,380 Completion Equipment & Services
Baker Oil Tools $239 $308 $367 $417 $350 $400 $450 $500 $530 $550 Rental & Fishing Services
Baker Petrolite $1,118 $1,320 $1,513 $1,778 $1,590 $1,725 $2,000 $2,190 $2,250 $2,350 Specialty Chemicals
Baker Atlas $973 $1,118 $1,271 $1,458 $937 $1,200 $1,400 $1,500 $1,500 $1,600 Wireline Logging
Stimulation $1,800 $2,447 $2,480 $2,723 $1,492 $2,850 $4,600 $4,500 $4,300 $4,750 Hydraulic Fracturing
Cementing $800 $1,050 $1,125 $1,350 $1,000 $1,050 $1,450 $1,550 $1,600 $1,750 Cementing
Coiled Tubing $360 $450 $480 $555 $470 $600 $670 $700 $725 $775 Coiled Tubing Services
BH Tubular Services $149 $190 $236 $266 $205 $215 $220 $235 $250 $275 Casing & Tubing Services
Process & Pipeline $210 $270 $315 $375 $315 $300 $300 $300 $300 $300
Pipeline Services (WFT 2014) $75 $100 $165 $232 $210 $205 $165 $225 $225 $75
TOTAL $10,609 $13,504 $15,212 $17,394 $13,264 $16,130 $19,995 $21,525 $22,585 $24,630

Baker Hughes
62
$0
$500
$1,000
$1,500
$2,000
$2,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Company Artificial Lift Sales
Baker Hughes is almost a pure manufacturer of ESPs.
The company has a small PCP product that it tends to
put on the ESP motors it produces, but we’ve
identified no other products in the pipeline.
BHI is not a highly acquisitive company. It is probably
the least acquisitive of the major service companies.
We do not see BHI expanding its product offering in
the foreseeable future.
Of the major service companies, Baker Hughes is the
slowest to adopt non‐home‐grown ideas. BHI is
difficult to work with as an outside vendor. They are
the slowest of the major service companies about
testing, approving and adopting new ideas and
products that “were not invented here”.
Assuming that technology adoption is a significant
driver of growth of an oilfield service company, how
much have the 4 major companies grown since 2005?
BHI – 102%, SLB – 113%,
WFT – 163% and HAL – 173%.

BORETS
63
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Manufacturer of ESPs…largest in Russia.
Headquarters: Moscow, Russia
The acquisition of ~62% of the ESP division of
Weatherford International in 2008, allowed Borets to
expand globally. In 2013, Borets bought the final 38%
interest.
Ownership: Tangent Fund Limited
~9,000 employees
O Pumps
O Motors
O Intakes
O Gas Handling Units
O Motor Seals

Cameron
64
Cameron has been working around the edges of artificial lift for several years, but has not made this a focus of the
corporation. In 2014, Mark Burress and business partner Dave Murfin bought Precision Pump, the downhole rod
pump business, from Cameron, a business Burress had sold to CAM several years prior. During CAM’s ownership,
16 distributors had been reduced to 8.
Cameron Millions
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Category
Drilling & Production Systems
Drilling $332 $510 $754 $1,067 $967 $1,029 $1,244 $1,807 $2,327 $3,049 Rig Equipment
LeTourneau $46 $68 $119 $163 $212 $427 $141 Rig Equipment
Subsea Production Systems $800 $1,100 $1,530 $1,750 $1,600 $2,300 $2,000 $2,700 $2,813 $3,067 Subsea Equipment
Schlumberger Subsea
Surface Trees $495 $607 $720 $1,197 $883 $880 $1,329 $1,380 $1,405 $1,625 Surface Equipment
CamLift $50 $60 $70 $80 $80 $100 $130 $200 $232 $260 Artificial Lift
Other $100 $100 $180 $195 $280 $440 $526
Valves & Measurement
Oil & Gas Production Eqpt $175 $223 $274 $325 $175 $263 $363 $502 $505 $525 Surface Equipment
Refining & Transmission Eqpt $450 $955 $1,000 $1,150 $1,000 $1,050 $1,300 $1,665 $1,600 $1,600
Intersegment Revenue -$100 -$184 -$271
TOTAL $2,348 $3,523 $4,467 $5,832 $5,017 $6,229 $6,702 $8,434 $9,138 $10,381

Dover Corporation
65
Dover is a very large, publicly traded industrial company with an energy group that includes market leading artificial
lift products and services. In fact, the original Dover company is Norris Sucker Rods, the largest manufacturer of
rods in the world.
The table below shows Spears’ estimates of the division that holds the oilfield’s product lines. Some of these
product lines are artificial lift, including the brand names Norris, Harbisson-Fischer, Ferguson Beauregard, PCS and
AOT. These rod-based lift products generate almost $1 billion in sales for Dover each year.
Millions
Energy Products Group 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Category
Production
Rods & Plunger Lift $235 $290 $335 $400 $230 $310 $425 $525 $600 $650 Artificial Lift
Harbisson-Fischer $65 $80 $90 $105 $85 $100 $125 $150 $175 $185 Artificial Lift
PCS $20 $25 $32 $55 $60 $65 $80 $90 $100 $110 Artificial Lift
Valves & Controls $40 $75 $100 $115 $125 $135
Cook Compress/TWG $150 $250 $320 $350 $375 $400
Drilling
US Synthetic $140 $160 $185 $250 $175 $250 $325 $375 $390 $425
Quartzdyne $50 $60 $75 $90 $100 $115
Downstream
Other $425 $425 $425 $425 $300 $425 $530 $575 $625 $665
TOTAL $885 $980 $1,067 $1,235 $1,090 $1,535 $1,980 $2,270 $2,490 $2,685

Dover Corporation
66
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Dover has been in the artificial lift market for over 50
years. The company has some of the most widely
recognized names in the rod lift and plunger lift
segments. The company has been aggressive in the
last three years acquiring downhole rod pumps and
additional sucker rod manufacturing.
We expect Dover to continue its acquisition surge,
expanding into all types of lift as the opportunities
present themselves.
The chat to the right does not include Dover’s
acquisition at the end of 2014 (Accelerated Production
Systems) from White Deer Energy LP.

Flotek
67
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Flotek's Artificial Lift division provides pumping system
components including electric submersible pumps or
ESPs, gas separators, production valves.
Markets and Services Electrical Submersible and
Sucker Rod Pumps to the Oil and Gas and Coal Bed
Methane Industries

GE Oil & Gas
68
GE supplies a wide range of artificial lift products, including ESPs (acquired from Wood Group) and rod lift and PCP
(by acquiring Lufkin).
GE’s acquisition of Lufkin in 2013 surprised investors because GE is known for the deployment of technology and
Lufkin still works with 100 year-old technology. But GE’s investment shows an acknowledgement that, as good as
ESP might be, currently rod lift is better. Plus, Lufkin brings to GE all the rest of the lift technologies GE didn’t
already own.
GE is clearly showing the oil and gas industry that it intends to be a dominant player in lifting hydrocarbons around
the world.
Millions
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Category
HYD Capital Equipment $130 $206 $275 $400 $375 $350 $400 $450 $500 $550 Rig Equipment
Vetco Rig Equipment $190 $250 $350 $425 $350 $275 $300 $350 $400 $450
Vetco Subsea Equipment $370 $500 $650 $700 $650 $650 $750 $900 $1,125 $1,275 Subsea Equipment
Vetco Surface Equipment $225 $300 $325 $350 $300 $325 $375 $400 $450 $500 Surface Equipment
Parts & Services $190 $250 $350 $425 $350 $350 $400 $450 $500 $550
Wellstream $165 $275 $535 $692 $655 $400 $425 $500 $600 $675 Subsea Equipment
Sondex $85 $117 $131 $142 $95 $150 $275 $250 $200 $250 Downhole Drilling Tools
Wood Group Well Support
Pressure Control $150 $150 $170 $195 $140 $170 $200 $225 $250 $275 Surface Equipment
Valves $150 $150 $170 $190 $150 $170 $190 $225 $250 $275 Surface Equipment
Wireline Logging $75 $100 $125 $125 $90 $120 $140 $130 $130 $145 Wireline Logging
Electric Submersible Pumps $252 $330 $400 $475 $405 $490 $535 $585 $650 $700 Artificial Lift
Lufkin $307 $401 $397 $552 $349 $478 $736 $1,076 $1,250 $1,400 Artificial Lift
Quinn $55 $70 $70 $90 $60 $100 $125 Artificial Lift
LUFK Transmissions $107 $125 $159 $189 $172 $168 $196 $206 $215 $225
TOTAL $2,451 $3,224 $4,107 $4,950 $4,141 $4,196 $5,047 $5,747 $6,520 $7,270

GE Oil & Gas
69
$0
$500
$1,000
$1,500
$2,000
$2,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
GE Oil & Gas acquired Wood Group’s oilfield division
5 years ago, gaining the #3 ESP company “ESP, Inc.”
with a base of operations in Oklahoma.
In 2013, GE acquired Lufkin, which had itself recently
acquired Quinn in Canada. Lufkin brought to GE a
market leading ROD LIFT company, PCP company,
AUTOMATION division, and several other bits and
pieces that serve the oilfield’s production needs.
The significant gaps in GE’s artificial lift portfolio
include SUCKER RODS, GAS LIFT, HYDRAULIC LIFT AND
PLUNGER LIFT. Although the company has a small
toe-hold in some of these, GE is not well represented
and will probably move to acquire these products and
services. Of all these gaps, SUCKER RODS are the
biggest gap.
This chart shows pro forma artificial lift sales that
account for all acquisitions.

Halliburton
70
Halliburton acquired Global Energy Services a few years ago, which was the company’s first entrance into the
artificial lift industry. Global provides ESP repair and maintenance services. We expect HAL to continue expanding
into artificial lift products and services through acquisition. For example, Halliburton acquired Europump Systems
Inc., an industry leader in the design, fabrication, distribution, and service of progressive cavity pump systems,
progressive cavity wellhead drives, and surface drive units in Q2 2014. If HAL’s proposed acquisition of Baker
Hughes is successful, this will position HAL as the 3rd largest artificial lift service company.
Halliburton Millions
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Category
Drilling & Formation Evaluation
Halliburton Sperry $800 $1,000 $1,400 $1,600 $1,450 $1,600 $1,900 $2,100 $2,250 $2,450 Directional Drilling Services
Halliburton Sperry $450 $550 $620 $800 $725 $825 $950 $1,100 $1,200 $1,300 Logging-While-Drilling
Halliburton Sperry $85 $100 $115 $145 $130 $145 $165 $185 $200 $215 Surface Data Logging
Halliburton Sperry $70 $80 $90 $100 $100 $110 $125 $150 $165 $175 Completion Equipment & Services
Halliburton Sperry MPD $29 $34 $50 $70 $80 $90 $80 $100 $115 $120
Security DBS $300 $395 $465 $560 $430 $515 $625 $760 $825 $860 Drill Bits
Halliburton Baroid $1,305 $1,625 $1,865 $2,151 $1,775 $1,950 $2,350 $2,650 $2,900 $3,100 Drilling & Completion Fluids
Halliburton Baroid $80 $120 $175 $235 $215 $242 $300 $350 $385 $410 Solids Control & Waste Management
Landmark $500 $550 $600 $700 $550 $550 $625 $715 $725 $700 Geophysical Equipment & Services
Production Testing $100 $125 $150 $180 $235 $250 $350 $400 $435 $450 Production Testing
Project Management $0 $0 $15 $170 $302 $295 $440 $500 $525 $525
Wireline Logging $975 $1,150 $1,300 $1,600 $1,250 $1,500 $1,800 $2,125 $2,225 $2,325 Wireline Logging
Completion & Production
Pressure Pumping - Stimulation $2,810 $3,725 $4,180 $4,950 $3,625 $5,230 $8,600 $9,200 $9,100 $10,325 Hydraulic Fracturing
Pressure Pumping - Cementing $1,385 $1,775 $2,100 $2,420 $1,685 $2,140 $3,000 $3,400 $3,500 $3,950 Cementing
Coiled Tubing Services $400 $510 $590 $645 $440 $575 $720 $855 $850 $925 Coiled Tubing Services
Completion Equipment & Services $775 $1,130 $1,360 $1,600 $1,415 $1,640 $2,050 $2,500 $2,700 $3,100 Completion Equipment & Services
Casing Hardware $100 $125 $150 $200 $150 $200 $250 $300 $325 $375 Completion Equipment & Services
Pipeline & Pressure Testing Services $15 $25 $40 $50 $35 $50 $100 $125 $125 $150
Boots and Coots $95 $120 $145 $175 $130 $150 $230 $225 $225 $450
Wellhead Equipment/Frac Trees $25 $35 $55 $75 $60 $80 $100 $120 $125 $150 Surface Equipment
Multi-Chem $60 $100 $200 $300 $200 $275 $375 $450 $465 $500 Specialty Chemicals
Artificial Lift (ESP + PCP + Others_ $10 $13 $35 $60 $100 $150 $175 $215 Artificial Lift
Other $100 $100 $100 $125 $100 $100 $75 $100 $75 $115
TOTAL $10,459 $13,374 $15,775 $18,864 $15,117 $18,572 $25,310 $28,560 $29,615 $32,885

Halliburton
71
0
50
100
150
200
250
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Halliburton acquired Global Energy Services about 3
years ago and entered the artificial lift space for the
first time. GES provided ESP repair and maintenance
in parts of the US land.
Since the acquisition, HAL has invested in organic
growth of the company, such that it now provides
artificial lift services extended into the other lift types.
We believe the company has limited manufacturing at
this point.
We believe that HAL will seek to grow its lift business
by investment in its existing company and through
tactical acquisitions. The board appears to be keen to
expand its presence in artificial lift, which analysts
have pointed out is a hole in their product offering.

Schlumberger
72
Schlumberger is the world’s largest oilfield service and equipment company. Their $2.8 billion artificial lift division
has several components: ESP, gas lift, progressive cavity pumps and rod lift. In the last year SLB has acquired
several artificial lift companies, including KUDU, Don-Nan and Shores Lift Systems, which consist primarily of a US
distributor of Chinese-manufactured beam pumps.
Schlumberger Millions
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Category
Reservoir Characterization
Western GECO $1,661 $2,475 $2,963 $2,838 $2,122 $2,300 $2,500 $2,850 $3,050 $2,700 Geophysical Equipment & Services
SIS+GeoQuest+Consulting $617 $775 $885 $900 $900 $950 $1,000 $1,100 $1,200 $1,150 Geophysical Equipment & Services
Framo Engineering $70 $80 $90 $110 $125 $100 $100 $110 $150 $175
Wireline Logging $3,200 $3,900 $4,725 $5,650 $4,500 $4,700 $5,045 $5,550 $6,200 $6,500 Wireline Logging
Production Testing $900 $1,100 $1,300 $1,400 $1,300 $1,200 $1,300 $1,400 $1,700 $1,700 Production Testing
Reservoir Production
Completion Equipment & Services $650 $800 $925 $1,050 $900 $970 $1,150 $1,425 $1,700 $1,975 Completion Equipment & Services
Stimulation $2,300 $2,800 $3,200 $3,950 $3,050 $4,200 $6,525 $6,725 $6,800 $7,750 Hydraulic Fracturing
Cementing $1,100 $1,400 $1,700 $2,050 $1,500 $1,580 $2,175 $2,500 $2,800 $3,100 Cementing
Coiled Tubing Services $555 $675 $700 $850 $650 $720 $960 $1,075 $1,200 $1,325 Coiled Tubing Services
Inspection $61 $85 $105 $100 $45 $50 $60 $70 $80 $90 Inspection & Coating
Artificial Lift (REDA/Gas Lift) $750 $900 $1,000 $1,150 $1,000 $1,120 $1,375 $1,700 $2,100 $2,500 Artificial Lift
Artificial Lift (KUDU) $40 $52 $70 $90 $65 $70 $80 $90 $140 $110 Artificial Lift
Artificial Lift (Don-Nan) $60 $70 $80 $90 $80 $100 $120 $140 $165 $200 Artificial Lift
Production Chemicals $143 $212 $288 $365 $283 $325 $385 $475 $550 $625 Specialty Chemicals
IPM Production $120 $155 $190 $205 $185 $180 $200 $400 $550 $625
Drilling
Drill Bits $622 $816 $936 $1,065 $772 $960 $1,170 $1,355 $1,515 $1,675 Drill Bits
Solids Control $520 $705 $870 $1,061 $835 $920 $1,035 $1,175 $1,325 $1,500 Solids Control & Waste Management
Drilling & Completion Fluids $2,019 $2,584 $3,102 $3,510 $2,910 $3,000 $3,500 $3,950 $4,600 $5,100 Drilling & Completion Fluids
Directional Drilling $1,486 $2,196 $2,871 $3,500 $3,250 $3,280 $3,600 $4,000 $4,600 $5,100 Directional Drilling Services
LWD $671 $893 $1,145 $1,375 $1,125 $1,250 $1,475 $1,600 $1,900 $2,100 Logging-While-Drilling
Mud Logging $184 $235 $275 $335 $325 $285 $310 $350 $425 $475 Surface Data Logging
Rental & Fishing Services $411 $554 $667 $750 $450 $480 $600 $675 $700 $735 Rental & Fishing Services
Heviwate, Collars, Kellys, Drill Pipe $104 $185 $179 $242 $91 $140 $145 $165 $170 $180 Oil Country Tubular Goods
Downhole tool sales $6 $27 $85 $63 $27 $85 $135 $165 $200 $235 Downhole Drilling Tools
Tubular Technology Inc. $13 $28 $44 $40 $20 $25 $40 $50 $60 $75 Casing & Tubing Services
IPM & 3rd Party Sales $200 $200 $200 $200 $200 $200 $200 $200 $200 $250
Saxon Rigs $45 $157 $235 $295 $215 $250 $285 $300 $1,200 $1,300 Land Contract Drilling
SLB Drilling Rigs $285 $460 $615 $750 $700 $750 $775 $790 Land Contract Drilling
TOTAL $18,793 $24,519 $29,445 $33,984 $27,625 $30,190 $36,245 $40,385 $45,280 $49,250

Schlumberger
73
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Schlumberger acquired Shores Lift Systems in late
2013 from its private equity owner. Shores is a
distributor of Chinese-built surface beam pumps and a
marketer of sucker rods manufactured by Tenaris and
others. In 2014, SLB acquired KUDU and Don-Nan.
Shores was the first artificial lift acquisition by SLB
since the board decided in 2012 that lift was an
under-represented product offering – and a product
offering showing exceedingly good growth prospects
globally.

Summit ESP
74
0
20
40
60
80
100
120
140
160
180
200
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Summit ESP was formed in 2010 by artificial lift
veterans to provide high-touch service to US
consumers of ESPs. The company sourced
components in China (mostly) with complete
assemblies delivered to the company’s Oklahoma and
Texas plants.
Most of the company’s funding comes from George
Kaiser-control entities, which is very patient private
equity. The company is eager to invest in organic
growth. We do not see an appetite for acquisitions.
John Kenner started Summit with 5 people in 2010.
The company moved into its current west Tulsa space
— the former base of bankrupt Arrow Trucking Co. —
to have room for growth. Now, the workforce is
almost up to 500. Summit employs ~175 people at its
Tulsa base and another 300 companywide. Its other
manufacturing plants are in Midland, Texas and
Canada.
As aggressive as Summit ESP has been, the company is
not insulated from the market’s downturn in 2015. In
February 2015 the company laid off about 15 of its
field operations staff due to declining sales.

Weatherford
75
Weatherford Millions
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Category
Well Construction
Collars, Stabilizers, Mills $118 $179 $184 $235 $166 $170 $200 $235 $240 $260 Oil Country Tubular Goods
Downhole Drilling Tools - Mfrg $118 $185 $213 $235 $166 $170 $225 $250 $275 $300 Downhole Drilling Tools
Equipment Sales $24 $31 $36 $41 $24 $35 $40 $45 $50 $50
Rig Equipment $53 $107 $152 $177 $110 $100 $110 $125 $120 $125 Rig Equipment
Rental & Fishing - Rental $205 $267 $301 $345 $269 $312 $330 $365 $375 $400 Rental & Fishing Services
Rental & Fishing - MPD $310 $360 $412 $502 $440 $515 $720 $775 $800 $815 Rental & Fishing Services
Rental & Fishing - Fishing $390 $507 $614 $705 $554 $625 $695 $715 $725 $775 Rental & Fishing Services
Completion Equipment & Svs $165 $219 $282 $335 $365 $425 $425 $460 $525 $575 Completion Equipment & Services
Cementation Products $220 $256 $298 $345 $315 $335 $375 $475 $500 $550 Completion Equipment & Services
Tubular Running Services $450 $591 $704 $865 $790 $785 $820 $920 $1,000 $1,075 Casing & Tubing Services
Directional Drilling - Services $168 $232 $318 $404 $342 $395 $500 $600 $675 $725 Directional Drilling Services
Land Contract Drilling $866 $1,031 $1,190 $1,385 $1,175 $1,000 $1,050 $1,150 $1,250 $500 Land Contract Drilling
Well Servicing - TNK $35 $40 $40 $40 $20 $25 $30 $35 $35 $30
International IPM Contracts $5 $95 $225 $100 $100 $200 $215 $200
Formation Evaluation
Directional Drilling - MWD $168 $232 $318 $404 $342 $395 $500 $600 $675 $735 Directional Drilling Services
Wireline Logging $561 $631 $661 $776 $529 $602 $745 $835 $865 $925 Wireline Logging
International Logging, Inc $65 $95 $125 $135 $120 $130 $140 $155 $165 $175 Surface Data Logging
Laboratory Services $100 $145 $175 $215 $235
FEWD $70 $113 $151 $195 $163 $192 $265 $300 $335 $365 Logging-While-Drilling
Completions
Completion Equipment & Svs $375 $538 $655 $705 $553 $595 $795 $975 $1,000 $1,150 Completion Equipment & Services
Petrowell $7 $9 $15 $20 $30 $35 $45 $25 Completion Equipment & Services
Clearwater Chemicals $70 $89 $120 $148 $120 $200 $225 $210 $200 $200 Specialty Chemicals
Stimulation
Hydraulic Fracturing $180 $260 $345 $480 $380 $790 $1,500 $1,800 $1,275 $1,600 Hydraulic Fracturing
Cementing Services $25 $50 $50 $50 $60 Cementing
Coiled Tubing Services $31 $29 $30 $33 $27 $40 $80 $90 $110 $125 Coiled Tubing Services
Artificial Lift $760 $950 $995 $1,235 $1,065 $1,240 $1,950 $2,500 $2,600 $2,850 Artificial Lift
Weatherford Wellhead $50 $75 $100 $100 $100 $145 $195 $200 $185 $215 Surface Equipment
TOTAL $5,458 $7,026 $8,263 $9,939 $8,390 $9,481 $12,255 $14,265 $14,460 $15,015

Weatherford
76
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions
Weatherford International has been the largest
artificial lift company for over a decade. The
company’s sales grew strongly after 2010 due to
extremely robust oil well drilling in the US and Canada
in well types that fit WFT’s product offering.
Weatherford corporation is divesting assets currently,
but not their artificial lift group. This division has been
a solid cash contributor since it was assembled via
acquisition (~30 acquisitions) in the ‘Nineties.
Lack of management focus in 2013 caused company
sales to be slower than the broader industry, but we
expect 2014 to again be a solidly up year.
WFT is missing only one lift type in its portfolio: ESP.
The company had a minor ownership of BORETS until
2013, but solid the minor position to raise cash.
As a result of its lift strategy, SLB will probably surpass
WFT as the number 1 lift company in 2015.

ZEITECS
77
FROM THE ZEITECS WEBSITE:
ZEiTECS was formed to achieve increased expectations of artificial lift performance. Our vision is to change the way
that all systems are deployed, by applying innovative technologies to the challenges that face operators today and
in the future.
Our first technology platform, the ZEiTECS Shuttle, was designed to increase the runlife of manufacturers’ assets. It
provides the means to retrieve and replace ESPs through unique downhole and wireline technology.
ESP technology is the only viable Artificial Lift option for the increasing number of high production rate, low
gas/ratio wells. ESPs are required to perform in increasingly adverse conditions. As the industry continues to
develop, new wells are developed in harsher conditions around the world. ZEiTECS provides technology that
reduces intervention costs inherent with drilling in these difficult environments.
ZEiTECS is a portfolio company of Shell Technology Ventures. ZEiTECS Inc and the US Corporate Headquarters are
located in Houston, Texas, USA. The Fund, managed by Kenda Capital, is a unique large-scale investment fund
focused on reducing the cost of energy by accelerating the development and deployment of new technologies.
Kenda and the Fund have solid energy sector expertise, fostered through a unique technology relationship with the
Shell Group. Major investors in the Fund are the Royal Dutch Shell Group, Coller Capital and the Abu Dhabi
Investment Authority.

Authors
78

Authors
79
Spears & Associates has specialized in evaluating oilfield equipment
and service markets and companies worldwide for over 50 years. The
firm has completed ~2500 custom oilfield market research projects
around the world and worked for ~450 clients in 2014.
The firm is headquartered in Tulsa and has consultants in Florida,
Missouri, Texas and the Rockies.
Principals of the firm include:
John Spears President
Author, Drilling & Production Outlook
Richard Spears Vice President
Author, Oilfield Market Report

2014 Clients
80
CONSULTANTS INVESTOR COMMUNITY INVESTOR COMMUNITY EXPLORATION & PRODUCTION SERVICE & EQUIPMENT SERVICE & EQUIPMENT SERVICE & EQUIPMENT SERVICE & EQUIPMENT
Accenture Adage Capital Houston Energy Advisors AERA Energy Absolute Completion Doosan John Crane, Inc. Reservoir Group
AT Kearney Advent International Howard Weil Alkhorayef Petroleum LLC Accudyne Industries Dover Energy Kayden Industries Rolls-Royce Energy Systems
Bain & Co. Amber Capital Investment HSBC Bank plc Anadarko Aker Solutions Dril-Quip, Inc. KCA Deutag Drilling Inc. Roper Pump Company
Boston Consulting Group American Energy Partners Iberia Bank Apache Corporation Akzo Nobel Functional Chemicals Eagle Materials Kennametal Saint-Gobain Crystals
Cleveland Research American Industrial Partners Intervale Capital Aramco Services Alcoa Oil & Gas Eaton Corporation Key Energy Services Saipem
Deloitte American Securities Jefferies & Co. Ashland Oil & Gas Technologies Allied Wireline Edgen Group Kraton Polymers Saxon Energy Services, Inc.
Ernst & Young Apollo Management Johnson Rice & Company Ashland, Inc. Allison Transmission ElectroChem Power Solutions KW International Schlumberger
Gillum Strategy Arkwright JP Morgan BG Group Almansoori Specialized Engy. Element 6 Lafarge Scientific Drilling
IHS Global Insight Audax Kenda Capital BHP Billiton American Gilsonite Company Emerson Process Management LeTourneau Technologies, Inc. Scomi Oiltools, Inc.
LEK Consulting Bain Capital Kohlberg Kravis Roberts & Co. BP America AMOT Enardo LLC Liberty Oilfield Services Shawcor
LEK UK Banc of America Merrill Lynch KPMG Corporate Finanace Cetco Energy Amtex Machine Products, Inc. Energy Alloys Magnablend, Inc. Solazyme
Manning & Napier Advisors Barclays Capital Lazard Chesapeake Energy APS Technologies Ennovation Controls Marubeni Corporation Solvay
McKinsey & Co. Blackstone Lime Rock Partners Chevron Petroleum Technology ARNCO Enteq Upstream Matrix Composites & Engineering STEP Oiltools Pte Ltd
PFC Energy Bloomberg-New York M. J. Herbison & Assoc., L.L.C. China Educational Publication Arrow Engine Company Enventure Global Technologies McCoy Corporation Stewart & Stevenson
RigNet BMO Capital Markets Macquarie Energy Capital China National Petroleum ATK Mission Systems Evonik Corporation Mertz Manufacturing, LLC Sumitomo Corporation
Strategy& BNP Paribas Moodys Investors Services CNPC Drilling Research Institute Atlas Copco Evraz M-I L.L.C. Summit Technologies Co., Ltd.
Unleaded Communications BOLT Corporate Finance AS Morgan Stanley CNPC Research Institute Baker Hughes Exalo Drilling S.A. Mitsubishi Minerals Corporation Superior Energy Services, Inc.
Cadent Energy Partners Mutual of Omaha Bank Cobalt International Energy Basin Holdings ExploreCo Pipe LTD Mitsui & Co. LTD Surefire Industries USA LLC
Calash Limited Newstar Financial, Inc. ConocoPhillips Bench Tree Express Energy Services Momentive Swire Oilfield Services
Calvert Street Capital Partners Nomura International Plc Continental Resources Benteler Tube Expro International Group PLC MRC Global T-3 Energy Services
CANACCORD Adams Orbis Investment Advisory Ltd. Devon Energy Bico Drilling Tools Exterran Nabors Industries, Inc. Tenaris
Capital Group Paragon Advising Dong Energy A/S Blackhawk Specialty Tools Flex Energy Nalco TerraVici Drilling Solutions
Capital One Southcoast Parallel Investment Partners Ecopetrol Boomerang Tube LLC Flexitallic Group National Oilwell Varco Tervita Corporation
Cerberus Operations Parks Paton Hoepfl & Brown ENAP Borets Flexpipe Systems Netzsch Tesco Corporation
Cevian Capital AG Pine Brook Road Partners Encana Bourland & Leverich FlexSteel Newpark Resources TETRA Technologies, Inc.
CIBC World Markets Profile Capital EOG Resources, Inc. Cactus Wellhead Flint Energy Services Nippon Steel Trading America, Inc. TH Hill
Citigroup Prostar Capital EP Energy Caltec Limited Flotek Norris Industries Thales Avionics
Cowen Securities Quantum Energy Partners EQT Corp. Cameron Fluke North American Interpipe The Jordan Company
Credit Suisse LLC Raymond James ExxonMobil Carbo Ceramics Inc. FMC Technologies, Inc Northwest Pipe The Timken Company
CSL Energy RBC Capital Markets (US) Freudenberg-Nok Oil & Gas Carpenter Technology Corp. Forum Oilfield Technologies Novomet Third Point
DE Shaw Red Chalk Group Hess Corporation Caterpillar Gardner Denver, Inc. NPS Energy DMCC ThruBit LLC
Deutsche Bank Riverstone LLC Hunt Oil CDI Energy Products Gates Corporation Oando Energy Services Titan Specialties Limited
Dodge & Cox Robert W Baird & Co Maersk Oil & Gas Centek Group Gazpromtrubinvest Oerlikon Fairfield TMK IPSCO
Duff and Phelps Roundrock Capital Marathon Oil Champion Technologies GE Oil & Gas Oil States Industries Tolteq
Elliott Management RS Platou Markets MOL Plc. Chart Cooler Services Genco Energy Services, Inc Omnova Top-Co Inc.
Encompass Capital Samlyn Capital, LLC Murphy Oil China Oilfield Services Ltd. General Atlantic Service Packers Plus TPCO Enterprise, Inc.
Energy Ventures US, Inc. Sands Capital Management Newfield Exploration Company Cimarron Acid & Frac LLC Global Geophysical Services Parker Drilling Company Trinidad Drilling
Epi-V LLP SCF Partners Nexen Clean Harbors Global Tubing Pason de Mexico Trinity Industries, Inc.
Evercore Partners Sequeira Partners, Inc. Nextera Energy Cobra Downhole Motors GR Energy Services Pason Systems Corp. Tuteedee AS
Farlie Turner & Co. LLC Simmons & Company Noble Energy Compass Well Services Graco Oilfield Services Performance Technologies Ulterra MWD
FBR Capital Societe Generale Occidental Complete Production Services GrafTech Pilot Logistics UNIMIN Corp.
Fidelity Management & Research South Ferry Capital Pan American Energy LLC Continental Disc Gray Wireline Pinnacle Technologies United Metallurgical Company
First Reserve Corporation Sterling Partners Petrobras Cook Compressor Greatwall Drilling Company Pioneer Drilling Company United Rentals
Futuris Asset Mgmt Sterne Agee Petroleos de Venezuela S.A. Cooper Crouse-Hinds Greene, Tweed PMC-Colinet, Inc United Vision Logistics
GE Capital Sun Trust Robinson-Humphrey Pioneer Natural Resources CP International GyroData Praxair Inc Univar USA
Global Hunter Securities, LLC Susquehanna International PlusPetrol International CP Kelco Halliburton Precision Driliing Technology US Silica
Goldman Sachs & Co. TA Associates Prime Natural Reources, Inc. Crescent Directional Drilling Helmerich & Payne Precision Energy Services US Steel
Grant & Eisenhofer TD Securities Quest Offshore Resources, Inc. CRS Reprocessing, LLC Honghua Investment Co Precision Partners US Synthetic
GSO Capital Partners TENEX Capital Management Reliance Holding USA, Inc. Cudd Energy Hunting Energy Services Premier Pipe UTEX Industries, Inc.
Guggenheim Partners The Blackstone Group LP Repsol Cyclonic Valve Company, Inc. Imerys Minerals Premium Valve Services V&M USA Corp
Highbridge TPG Capital Samson Daewoo International IMI plc PT Elnusa TBK Valerus
Highline Capital Management Tudor, Pickering, Holt & Co. Saudi Aramco Danaher Industries Inficon Qmax Solutions Varel International
Highmount Turnbridge Capital Shell Exploration & Production Depthwize Nigeria Limited Institut Francais du Petrole Quality Tubing, Inc. Victaulic
Houlihan Lokey UBS SM Energy Desert NDT IronGate Energy Services Quartzdyne, Inc. Victrex
Valinor Management, LLC Southwestern Energy Company Distant Thunder Safety Systems JAE Electronics, Inc. Raleigh Oilfield Services VisuRay
Wells Fargo Statoil ASA Distribution NOW JGC Energy Ramex, Inc. Weatherford
Wexford Capital Talisman Energy Weir
William Blair Tecpetrol Operating Wellnite Services
TOTAL S.A. Welltec
Wintershall Holding AG Wenzel Downhole Tools
XTO Energy Wild Well Control
Wirtschaftsvereinigung Stahlrohre
W-Technology Inc.

Legal Matters
81
Copyright 2015, Spears and Associates, Inc. All rights reserved.
This communication is confidential and is provided to clients of Spears and Associates, Inc. for their lawful use.
This communication may not be disclosed, copied or disseminated, in whole or in part, without the prior written
permission of Spears and Associates, Inc. The report and its contents are the property of Spears and Associates Inc.
and are protected by applicable copyright, trade secret or other intellectual property laws.
Disclaimer:
This communication is based on information that Spears and Associates, Inc. believes is reliable. However, Spears
and Associates, Inc. does not represent or warrant its accuracy, completeness, or any other aspect of this
information. The viewpoints and opinions expressed in this report represent the views of Spears and Associates,
Inc. as of the date of this report. These viewpoints and opinions may be subject to change without notice. This
message should not be considered as a recommendation to buy or sell any securities. In no event shall Spears and
Associates, Inc. be liable for incidental or consequential damages associated with reliance on any statement or
opinion contained in this report.
Important Disclosures:
The following analysts were involved in creating or supervising the content of this report: Richard Spears, John
Spears, and Lauren Collette. These analysts certify that the views and opinions expressed in this report accurately
reflect their personal views. These analysts have not and will not receive direct or indirect compensation in return
for expressing specific viewpoints in this report.
Spears and Associates, Inc. provides market research services to the petroleum industry, but does not provide
investment banking services. From time to time Spears and Associates, Inc. will provide market research consulting
services to some of the oilfield service companies mentioned in this report for which the firm is compensated.

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