Covenant Brochure 2018

A HIGHER FLOW OF PERFORMANCE

SINGULARLY FOCUSED ON ELEVATING PRODUCTION INDUSTRY-LEADING WELL FLOW MANAGEMENT •

L argest US Fleet of High Capacity Vessels

•

Hydraulic Pressure Control

•

Frac Stacks up to 7" 15K

•

Flowback Services

•

Production Optimization

•

Rental Production Equipment

OUR PEOPLE DELIVER Covenant is a high-performance culture whose greatest value is its people.

Through our high performance culture, fit for purpose assets and advanced technology, Covenant Testing Technologies has established a new breed of purpose-driven company that has quickly become a leader in well flow management throughout North America.

As a singularly focused, pure play well flow management business, we bring together one of the largest, specialized, high volume well testing and flowback fleets in the world with some of the most skilled and knowledgeable operators in the business.

From sunup to sundown, we provide best-inclass flowback and well testing services in the key US Shale Plays with a special focus on horizontal and pad drilling for the upstream oil and gas services industry.

Covenant strives to foster an environment where people are first. Every decision is a reflection of maintaining the balance between our team, our customers and our shareholders.

Covenant Testing Technologies, LLC

1

SINGULARLY FOCUSED ON ELEVATING PRODUCTION INDUSTRY-LEADING WELL FLOW MANAGEMENT •

L argest US Fleet of High Capacity Vessels

•

Hydraulic Pressure Control

•

Frac Stacks up to 7" 15K

•

Flowback Services

•

Production Optimization

•

Rental Production Equipment

OUR PEOPLE DELIVER Covenant is a high-performance culture whose greatest value is its people.

Through our high performance culture, fit for purpose assets and advanced technology, Covenant Testing Technologies has established a new breed of purpose-driven company that has quickly become a leader in well flow management throughout North America.

As a singularly focused, pure play well flow management business, we bring together one of the largest, specialized, high volume well testing and flowback fleets in the world with some of the most skilled and knowledgeable operators in the business.

From sunup to sundown, we provide best-inclass flowback and well testing services in the key US Shale Plays with a special focus on horizontal and pad drilling for the upstream oil and gas services industry.

Covenant strives to foster an environment where people are first. Every decision is a reflection of maintaining the balance between our team, our customers and our shareholders.

Covenant Testing Technologies, LLC

1

MARKET OVERVIEW

EVERY DAY EXPERTISE

A NEW GENERATION OF

OILFIELD CHALLENGES In the drive to increase production in US shale plays, well completions have become more complex. As a result, companies have extended laterals, increased sand density and are using higher volumes of water during completions. Total fluid management has risen from 5K barrels of total fluid per well per day up to 20K barrels of total fluid per well per day along with the associated gas production. Furthermore, the number of completion stages has increased, causing a dramatic increase in the drill-out component of completion. More stages mean more opportunity for errors.

Together, these factors have heightened the need for higher capacity flowback, leading technology and better-trained people to maximize initial production and minimize risk.

The answer is a well-capitalized well flow management company focused on a culture of high performance: Covenant Testing Technologies.

Our Standards

Through the strengths of our people, assets, systems and processes, Covenant meets the demands of a new generation of oilfield challenges safely and reliably. We employ right-sized equipment that is designed and maintained with an exacting safety and quality focus backed by people with a deep understanding of the latest science of well production.

72"

LARGEST FLEET OF HIGH CAPACITY, HIGH SPEC EQUIPMENT IN THE U.S.

48"

Our industry-leading fleet of large size vessels are ASME coded with cradle to grave traceability and offer higher liquid volume capacity than the industry average fleet.

In the oilfield, total fluid management has risen from

barrels of total fluid per day per well up to

5,000

20,000

barrels of total fluid per well per day along with the associated gas production. This has created a need for a singular-focused well flow management company with the right people, equipment and technology to get the job done right.

36" Industry Standard

2

In test separators, equipment has gone form an average of 36” in diameter to now seeing a need for 48” and 72” in diameter. Our test separators are significantly larger than the nearest competitor. This difference is critical because of the increased scrutiny that has been placed on payback during the initial 30 days of production. As a result, the job has to be done right from the start to support critical decisions that can affect your reservoir for its active life.

Covenant Testing Technologies, LLC

3

MARKET OVERVIEW

EVERY DAY EXPERTISE

A NEW GENERATION OF

OILFIELD CHALLENGES In the drive to increase production in US shale plays, well completions have become more complex. As a result, companies have extended laterals, increased sand density and are using higher volumes of water during completions. Total fluid management has risen from 5K barrels of total fluid per well per day up to 20K barrels of total fluid per well per day along with the associated gas production. Furthermore, the number of completion stages has increased, causing a dramatic increase in the drill-out component of completion. More stages mean more opportunity for errors.

Together, these factors have heightened the need for higher capacity flowback, leading technology and better-trained people to maximize initial production and minimize risk.

The answer is a well-capitalized well flow management company focused on a culture of high performance: Covenant Testing Technologies.

Our Standards

Through the strengths of our people, assets, systems and processes, Covenant meets the demands of a new generation of oilfield challenges safely and reliably. We employ right-sized equipment that is designed and maintained with an exacting safety and quality focus backed by people with a deep understanding of the latest science of well production.

72"

LARGEST FLEET OF HIGH CAPACITY, HIGH SPEC EQUIPMENT IN THE U.S.

48"

Our industry-leading fleet of large size vessels are ASME coded with cradle to grave traceability and offer higher liquid volume capacity than the industry average fleet.

In the oilfield, total fluid management has risen from

barrels of total fluid per day per well up to

5,000

20,000

barrels of total fluid per well per day along with the associated gas production. This has created a need for a singular-focused well flow management company with the right people, equipment and technology to get the job done right.

36" Industry Standard

2

In test separators, equipment has gone form an average of 36” in diameter to now seeing a need for 48” and 72” in diameter. Our test separators are significantly larger than the nearest competitor. This difference is critical because of the increased scrutiny that has been placed on payback during the initial 30 days of production. As a result, the job has to be done right from the start to support critical decisions that can affect your reservoir for its active life.

Covenant Testing Technologies, LLC

3

E V E R Y D AY E X P E R T I S E

WELL FLOW MANAGEMENT FROM FRAC TO PRODUCTION

PERSONNEL: For any stage of flow, we can provide either specially-trained or general personnel to meet your staffing needs. This includes production facility management, pumpers, roustabouts, LDAR technicians and other needs.

4

FRAC STACK: For pressure pumping operations, we supply and service temporary frac stacks in place of the production well head. We provide a range of sizing and pressure ratings as well as trained personnel to meet your specific needs to ensure quality and reliability.

HALF KITS: To meet the needs of different well configurations, we can provide a “half kit” which typically consists of trained personnel, manifold and pipe package with the option of a sand knockout or other equipment needed.

HYDRAULICS: We provide chokes, valves and plug catchers for hydraulic pressure control operators, and we support our products with command centers operated by highly experienced personnel to ensure consistent and safe high pressure flow.

FULL KITS: We provide a “full Kit” to ensure compliance with regulatory guidelines and environmental concerns. This consists of trained personnel, manifold, sand knockout, pipe package, separator and flare.

Optional low-pressure secondary separation, line heaters and other equipment are available as needed.

Covenant Testing Technologies, LLC

DRILL OUT: Throughout this phase of flow, our personnel monitor and clear debris. In addition to the standard pipe and manifold package, we provide plug catchers and sand knockouts based on the configuration and need of the frac.

RENTALS: We can rent any individual piece of equipment to augment and protect your capital investment.

5

E V E R Y D AY E X P E R T I S E

WELL FLOW MANAGEMENT FROM FRAC TO PRODUCTION

PERSONNEL: For any stage of flow, we can provide either specially-trained or general personnel to meet your staffing needs. This includes production facility management, pumpers, roustabouts, LDAR technicians and other needs.

4

FRAC STACK: For pressure pumping operations, we supply and service temporary frac stacks in place of the production well head. We provide a range of sizing and pressure ratings as well as trained personnel to meet your specific needs to ensure quality and reliability.

HALF KITS: To meet the needs of different well configurations, we can provide a “half kit” which typically consists of trained personnel, manifold and pipe package with the option of a sand knockout or other equipment needed.

HYDRAULICS: We provide chokes, valves and plug catchers for hydraulic pressure control operators, and we support our products with command centers operated by highly experienced personnel to ensure consistent and safe high pressure flow.

FULL KITS: We provide a “full Kit” to ensure compliance with regulatory guidelines and environmental concerns. This consists of trained personnel, manifold, sand knockout, pipe package, separator and flare.

Optional low-pressure secondary separation, line heaters and other equipment are available as needed.

Covenant Testing Technologies, LLC

DRILL OUT: Throughout this phase of flow, our personnel monitor and clear debris. In addition to the standard pipe and manifold package, we provide plug catchers and sand knockouts based on the configuration and need of the frac.

RENTALS: We can rent any individual piece of equipment to augment and protect your capital investment.

5

Our operations are strategically located in the the nation’s most important basins—the Permian Basin, Eagle Ford, Haynesville, and Niobrara Shale Play.

E V E R Y D AY E X P E R T I S E

OUR REDUCED EMISSIONS COMPLETIONS SOLUTION

Niobrara

Permian Basin Haynesville

Covenant’s FlareZero technology allows for capture and management of potential atmospheric releases to help significantly reduce emissions.

Customers can compress low pressure flowback gas into the sales stream, scrub and use produced gas to operate equipment onsite, reinject boosted gas into a low reservoir pressure well to increase production, or simply incinerate emissions to eliminate hazardous air pollutants.

Eagle Ford

• Running 250 miles wide and 300 miles long across West Texas and southeastern New Mexico, the PERMIAN BASIN is one of the most prolific oil and natural gas geologic basins in the United States.

SELL, REUSE, BURN, OR INCINERATE

COMPRESS TO SALES

ONSITE USE THROUGH COMPATIBLE EQUIPMENT

REINJECT TO WELL

INCINERATION

Use of a compressor to boost low pressure flowback gas into the sales line

Scrubbing and using produced gas to operate equipment, such as compressors or other compatible equipment, to reduce emissions and satisfy onsite energy needs

Using boosted gas to reinject into a low reservoir pressure well to increase the fluid production

Incineration is usually the first method used to eliminate hazardous air pollutants

6

IN THE NATION’S MOST PROLIFIC FIELDS • The EAGLE FORD ranks as one of the most active shale plays in the US. By applying current drilling and completions technologies to its distinct areas for gas and oil production, the Eagle Ford has the potential to become one of the largest producing shale basins in the US. • The HAYNESVILLE shale has come into prominence as a major producer of shale gas in East Texas and Louisiana and experts are predicting the potential to compete with Rockies and Appalachian gas.

• The NIOBRARA shale formation, which is situated in northeastern Colorado and parts of adjacent Wyoming, Nebraska, and Kansas, has been compared by some to the Bakken shale, one of the largest oil developments in the US in the past 40 years.

Covenant Testing Technologies, LLC

7

Our operations are strategically located in the the nation’s most important basins—the Permian Basin, Eagle Ford, Haynesville, and Niobrara Shale Play.

E V E R Y D AY E X P E R T I S E

OUR REDUCED EMISSIONS COMPLETIONS SOLUTION

Niobrara

Permian Basin Haynesville

Covenant’s FlareZero technology allows for capture and management of potential atmospheric releases to help significantly reduce emissions.

Customers can compress low pressure flowback gas into the sales stream, scrub and use produced gas to operate equipment onsite, reinject boosted gas into a low reservoir pressure well to increase production, or simply incinerate emissions to eliminate hazardous air pollutants.

Eagle Ford

• Running 250 miles wide and 300 miles long across West Texas and southeastern New Mexico, the PERMIAN BASIN is one of the most prolific oil and natural gas geologic basins in the United States.

SELL, REUSE, BURN, OR INCINERATE

COMPRESS TO SALES

ONSITE USE THROUGH COMPATIBLE EQUIPMENT

REINJECT TO WELL

INCINERATION

Use of a compressor to boost low pressure flowback gas into the sales line

Scrubbing and using produced gas to operate equipment, such as compressors or other compatible equipment, to reduce emissions and satisfy onsite energy needs

Using boosted gas to reinject into a low reservoir pressure well to increase the fluid production

Incineration is usually the first method used to eliminate hazardous air pollutants

6

IN THE NATION’S MOST PROLIFIC FIELDS • The EAGLE FORD ranks as one of the most active shale plays in the US. By applying current drilling and completions technologies to its distinct areas for gas and oil production, the Eagle Ford has the potential to become one of the largest producing shale basins in the US. • The HAYNESVILLE shale has come into prominence as a major producer of shale gas in East Texas and Louisiana and experts are predicting the potential to compete with Rockies and Appalachian gas.

• The NIOBRARA shale formation, which is situated in northeastern Colorado and parts of adjacent Wyoming, Nebraska, and Kansas, has been compared by some to the Bakken shale, one of the largest oil developments in the US in the past 40 years.

Covenant Testing Technologies, LLC

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C O V E N A N T C U LT U R E

OUR HIGH PERFORMING CULTURE IS CORE TO OUR SUCCESS

THE COVENANT CORE VALUES

Safety Demonstrating commitment into the protection of our employees, the environment, company, and client assets.

Proficiency Subject matter experts with a high degree of competence and skill.

Excellence Possessing a thirst for learning and improvement, along with a willingness to accept feedback.

Efficiency Diligently embrace opportunities which maximize time, effort, and resources.

Dedication Faithfulness to the company, customer and tasks at hand.

Community Engaging in proactive efforts to promote human welfare.

Collaboration Conducting business in manners which encourage teamwork and camaraderie.

8

Covenant’s high performing culture is key to our high standards in operations and quality.

We believe that people are our greatest strength, and we provide every employee with a supportive environment that enables them to achieve their personal best. Every new hire at Covenant is treated with “care” upon entry into the company, which includes state of the art training and an important onboarding process to ensure cultural alignment and scalability.

TO BE THE BEST, WE HIRE THE BEST To ensure new employees are the right fit, we use a collaborative multi-stage interview process where we focus on the attitude of the interviewee. Once onboard, we provide compensation based on value versus experience and education. We also invest in the professional development of our people through our Covenant Core management/leadership training program as well as fully aligned operational training in both virtual and classroom environments.

COVENANT CARES Covenant Cares is a proactive employee assistance initiative to support our employees in the following ways: • We provide an engaged Chaplain to meet emotional needs such as grief, loss, family struggles, sickness and more.

• We recognize both professional and personal achievement through awards.

• We encourage and empower our Covenant Family to serve the communities we work in and to engage in charitable causes.

• We facilitate Mentoring relationships to strengthen our teams.

• We use Social Media and corporate communication to keep our regions unified, to celebrate the success of our company and to distribute important information.

• We encourage servant leadership that provides “One extra act of care” both on and off the job.

Covenant Testing Technologies, LLC

9

C O V E N A N T C U LT U R E

OUR HIGH PERFORMING CULTURE IS CORE TO OUR SUCCESS

THE COVENANT CORE VALUES

Safety Demonstrating commitment into the protection of our employees, the environment, company, and client assets.

Proficiency Subject matter experts with a high degree of competence and skill.

Excellence Possessing a thirst for learning and improvement, along with a willingness to accept feedback.

Efficiency Diligently embrace opportunities which maximize time, effort, and resources.

Dedication Faithfulness to the company, customer and tasks at hand.

Community Engaging in proactive efforts to promote human welfare.

Collaboration Conducting business in manners which encourage teamwork and camaraderie.

8

Covenant’s high performing culture is key to our high standards in operations and quality.

We believe that people are our greatest strength, and we provide every employee with a supportive environment that enables them to achieve their personal best. Every new hire at Covenant is treated with “care” upon entry into the company, which includes state of the art training and an important onboarding process to ensure cultural alignment and scalability.

TO BE THE BEST, WE HIRE THE BEST To ensure new employees are the right fit, we use a collaborative multi-stage interview process where we focus on the attitude of the interviewee. Once onboard, we provide compensation based on value versus experience and education. We also invest in the professional development of our people through our Covenant Core management/leadership training program as well as fully aligned operational training in both virtual and classroom environments.

COVENANT CARES Covenant Cares is a proactive employee assistance initiative to support our employees in the following ways: • We provide an engaged Chaplain to meet emotional needs such as grief, loss, family struggles, sickness and more.

• We recognize both professional and personal achievement through awards.

• We encourage and empower our Covenant Family to serve the communities we work in and to engage in charitable causes.

• We facilitate Mentoring relationships to strengthen our teams.

• We use Social Media and corporate communication to keep our regions unified, to celebrate the success of our company and to distribute important information.

• We encourage servant leadership that provides “One extra act of care” both on and off the job.

Covenant Testing Technologies, LLC

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For information on how Covenant Testing Technologies can help increase your production capacity, please contact us at the location nearest you.

CORPORATE HEADQUARTERS

1600 Highway 6, Suite 360 Sugar Land, TX 77478 855.353.8200 NORTHERN DIVISION HEADQUARTERS

4657 W. 20th St., Suite 1 Greeley, CO 80634 970.347.8101 SOUTHERN DIVISION HEADQUARTERS

2914 N. Co. Road 1140 Midland, Texas 79705 432.214.8040

WWW.CTEST.COM info@ctest.com

@covenanttesting