FTS International Announces Preliminary Fourth Quarter 2018 Financial and Operational Results

FTS International, Inc. (NYSE: FTSI) (the “Company” or “FTSI”) today announced preliminary financial and operational results for the fourth quarter of 2018.

Preliminary Fourth Quarter Results

• Revenue of $245 million to $250 million
• Net income of $25 million to $27 million
• Adjusted EBITDA of $62 million to $64 million
• Capital expenditures of approximately $16 million for the fourth quarter and $101 million for the year
• Repaid $57 million of debt, bringing principal amount of debt to approximately $508 million
  • $330 million of net debt, excluding unamortized discount and debt issuance costs

Operational Update

FTSI experienced challenging market conditions in the fourth quarter 2018. Softer demand and pricing on opportunities compelled us to idle one additional fleet in the quarter. The Company exited the fourth quarter 2018 with 19 active fleets.

Average active fleets during the fourth quarter 2018 were 19.3, down from 21.8 in the third quarter 2018.

FTSI completed 6,038 stages during the fourth quarter 2018, or 313 stages per active fleet. This compares to 6,991 stages in the third quarter 2018, or 321 stages per active fleet.

Michael Doss, Chief Executive Officer commented, “I am proud of the performance we accomplished in the fourth quarter despite the challenging environment we faced. We were able to achieve the profitability levels we expected and generated free cash flow that supported further deleveraging.

Looking ahead, the commodity price volatility we witnessed at the end of 2018 has resulted in greater uncertainty for frac demand in the first half of 2019. We also expect E&Ps will prioritize flexibility in their capital spending, providing us with little visibility for the rest of the year until they feel more confident about the market outlook.

Based on discussions with our customers, we currently expect to deploy one or two additional fleets in the first quarter 2019. Pricing pressure, however, has continued in the first quarter 2019, which will lower our annualized adjusted EBITDA per fleet further.

With our in-house manufacturing cost advantage and our disciplined approach, we are well positioned to steadily re-deploy fleets to optimize profitability and cash flow.”

About FTS International, Inc.

Headquartered in Fort Worth, Texas, FTS International is one of the largest providers of hydraulic fracturing services in North America with an operating footprint consisting of five of the most active major unconventional basins in the United States. The Company’s services enhance hydrocarbon flow from oil and natural gas wells drilled by exploration and production, or E&P, companies in shale and other unconventional resource formations. To learn more, visit www.FTSI.com.