Quintana Energy Services Provides Preliminary Fourth Quarter 2018 Results

HOUSTON–(BUSINESS WIRE)–Quintana Energy Services Inc. (NYSE: QES) (“QES” or the
“Company”) today announced preliminary fourth quarter 2018 results.

Fourth quarter 2018 revenue is expected to range between $158.1 million
to $161.3 million, fourth quarter 2018 net loss is expected to range
between $(1.8) million to $(1.5) million1 and fourth quarter
2018 Adjusted EBITDA(1) is expected to range between $13.2
million to $14.5 million. In the fourth quarter, QES weathered a tough
macro environment and is expecting to record a 6% sequential increase in
revenue, a 31% sequential decrease in net loss and an 8% sequential
increase in Adjusted EBITDA(2).

Rogers Herndon, QES President and Chief Executive Officer, stated, “I’m
pleased to report that revenue increased sequentially at three of our
four segments despite the market headwinds experienced in the fourth
quarter. The sequential increase in revenue was largely driven by
increased utilization in our Directional Drilling segment, and increased
utilization and stages pumped in our Pressure Pumping segment, offset by
reduced pricing driven by market dynamics. The sequential decrease in
net loss and increase in Adjusted EBITDA was largely driven by improved
results in our Directional Drilling segment.

Additionally, we deployed two incremental large diameter coiled tubing
units and executed on our previously announced Wireline segment
reorganization late in the fourth quarter and believe the benefits of
this reorganization will prove out in the first quarter of 2019. We will
discuss our results and market outlook in more detail when we release
earnings on March 6, 2019.”

QES will release actual fourth quarter 2018 and full year financial
results on March 6, 2019, after the market closes. The Company has
scheduled a conference call to discuss its financial results on
Thursday, March 7, 2019, at 9:00 a.m. Central Time (10:00 a.m. Eastern

About Quintana Energy Services

QES is a growth-oriented provider of diversified oilfield services to
leading onshore oil and natural gas exploration and production companies
operating in both conventional and unconventional plays in all of the
active major basins throughout the U.S. The Company’s primary services
include: directional drilling, pressure pumping, pressure control and
wireline services. The Company offers a complementary suite of products
and services to a broad customer base that is supported by in-house
manufacturing, repair and maintenance capabilities. More information is
available at www.quintanaenergyservices.com.

Forward-Looking Statements and Cautionary Statements

This news release (and any oral statements made regarding the subjects
of this release, including on the conference call announced herein)
contains certain statements and information that may constitute
“forward-looking statements.” All statements, other than statements of
historical fact, which address activities, events or developments that
we expect, believe or anticipate will or may occur in the future are
forward-looking statements. The words “anticipate,” “believe,” “expect,”
“plan,” “forecasts,” “will,” “could,” “may,” and similar expressions
that convey the uncertainty of future events or outcomes, and the
negative thereof, are intended to identify forward-looking statements.
Forward-looking statements contained in this news release, which are not
generally historical in nature, include those that express a belief,
expectation or intention regarding our future activities, plans and
goals and our current expectations with respect to, among other things:
our fourth quarter 2018 financial results; our operating cash flows, the
availability of capital and our liquidity; our future revenue, income
and operating performance; our ability to sustain and improve our
utilization, revenue and margins; our ability to maintain acceptable
pricing for our services; future capital expenditures; our ability to
finance equipment, working capital and capital expenditures; our ability
to execute our long-term growth strategy; our ability to successfully
develop our research and technology capabilities and implement
technological developments and enhancements; and the timing and success
of strategic initiatives and special projects.

Forward-looking statements are not assurances of future performance and
actual results could differ materially from our historical experience
and our present expectations or projections. These forward-looking
statements are based on management’s current expectations and beliefs,
forecasts for our existing operations, experience, expectations and
perception of historical trends, current conditions, anticipated future
developments and their effect on us, and other factors believed to be
appropriate. Although management believes the expectations and
assumptions reflected in these forward-looking statements are reasonable
as and when made, no assurance can be given that these assumptions are
accurate or that any of these expectations will be achieved (in full or
at all). Our forward-looking statements involve significant risks,
contingencies and uncertainties, most of which are difficult to predict
and many of which are beyond our control. Known material factors that
could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, risks
associated with the following: a decline in demand for our services,
including due to declining commodity prices, overcapacity and other
competitive factors affecting our industry; the cyclical nature and
volatility of the oil and gas industry, which impacts the level of
exploration, production and development activity and spending patterns
by E&P companies; a decline in, or substantial volatility of, crude oil
and gas commodity prices, which generally leads to decreased spending by
our customers and negatively impacts drilling, completion and production
activity; and other risks and uncertainties listed in our filings with
the U.S. Securities and Exchange Commission, including our Current
Reports on Form 8-K that we file from time to time, Quarterly Reports on
Form 10-Q and Annual Report on Form 10-K. 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,
except as required by law.

Information Regarding Preliminary Results:

The preliminary estimated financial information contained in this news
release reflects management’s estimates based solely upon information
available to it as of the date of this news release and is not a
comprehensive statement of the Company’s financial results for the three
months ended December 31, 2018. The information presented herein should
not be considered a substitute for full unaudited financial statements
for the three months ended December 31, 2018 once they become available
and should not be regarded as a representation by the Company or its
management as to its actual financial results for the three months ended
December 31, 2018. The ranges for the preliminary estimated financial
results described above constitute forward-looking statements. The
preliminary estimated financial information presented herein is subject
to change, and the Company’s actual financial results may differ from
such preliminary estimates and such differences could be material.
Accordingly, you should not place undue reliance upon these preliminary

Non-GAAP Financial Measures

Adjusted EBITDA is a supplemental non-GAAP financial measure that is
used by management and external users of our financial statements, such
as industry analysts, investors, lenders and rating agencies.

Adjusted EBITDA is not a measure of net income or cash flows as
determined in accordance with GAAP. We define Adjusted EBITDA as net
income or (loss) plus income taxes, net interest expense, depreciation
and amortization, impairment charges, net (gain) or loss on disposition
of assets, stock based compensation, transaction expenses, rebranding
expenses, settlement expenses, severance expenses and equipment standup

We believe Adjusted EBITDA is useful because it allows us to more
effectively evaluate our operating performance and compare the results
of our operations from period to period without regard to our financing
methods or capital structure. We exclude the items listed above in
arriving at Adjusted EBITDA because these amounts can vary substantially
from company to company within our industry depending upon accounting
methods and book values of assets, capital structures and the method by
which the assets were acquired. Adjusted EBITDA should not be considered
as an alternative to, or more meaningful than, net income as determined
in accordance with GAAP, or as an indicator of our operating performance
or liquidity. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company’s
financial performance, such as a company’s cost of capital and tax
structure, as well as the historic costs of depreciable assets, none of
which are components of Adjusted EBITDA. Our computations of Adjusted
EBITDA may not be comparable to other similarly titled measures of other

(1) See “Non-GAAP Financial Measures” below for a discussion of Adjusted
EBITDA and its reconciliation to the most directly comparable financial
measure calculated and presented in accordance with U.S. generally
accepted accounting principles (“GAAP”).
(2) Assuming midpoint of

The following tables present reconciliations of Adjusted EBITDA to the
most directly comparable GAAP financial measure for the fourth quarter
of 2018:

Quintana Energy Services Inc.

Fourth Quarter 2018 Estimated Reconciliation of Net Income
(Loss) to adjusted EBITDA

(In millions of dollars)


Low High
Net (loss) income $(1.8) $(1.5)
Income tax expense 0.0 0.0
Interest expense 0.6 0.7
Depreciation and amortization expense 12.0 12.8
Gain on disposition of assets, net (1.0) (1.1)
Non-cash stock based compensation 2.4 2.6
Rebranding expense (1) 0.1 0.1
Settlement and other expense (2) 0.3 0.3
Severance expense (3) 0.1 0.1
Equipment and standup expense (4) 0.5 0.5
Adjusted EBITDA $13.2 $14.5

(1) Relates to expenses incurred in connection with rebranding our
business segments.
(2) Represents lease buyouts, legal fees and
settlement costs for FLSA claims, facility closures and other
non-recurring expenses that were recorded in general and administrative
(3) Relates to severance expenses incurred in connection
with a program implemented to reduce headcount. 70% of the expenses were
recorded in general and administrative expenses, and 30% of the expenses
were recorded in direct operating expenses
(4) Relates to a
inventory write down recorded in direct operating expenses.


Quintana Energy Services
Keefer M.
Lehner, EVP & CFO

Dennard Lascar Investor Relations
Dennard / Natalie Hairston

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