Nuverra Reports Second-Quarter And Year-To-Date 2015 Results

SCOTTSDALE, Ariz., Aug. 10, 2015

SUMMARY OF QUARTERLY RESULTS

• Revenue from continuing operations for the second quarter of $92.4 million, a decrease of $26.7 million, or 22.4%, sequentially from the first quarter of 2015, and down $34.4 million, or 27.1%, from the second quarter of 2014.
• Second-quarter net loss from continuing operations of $20.6 million, or a loss of $0.75 per diluted share, compared with a net loss of $24.7 million, or a loss of $0.97 per diluted share, in the second quarter of 2014.
• Adjusted net loss from continuing operations, excluding special items, of $18.5 million, or a loss of $0.67 per diluted share, compared with adjusted net loss of $11.6 million, or a loss of $0.45 per diluted share, in the second quarter of 2014.
• EBITDA from continuing operations of $10.1 million, an increase of $194,000, or 2.0%, from the second quarter of 2014.   
• Adjusted EBITDA from continuing operations of $12.3 million, a decrease of $10.6 million, or 46.3% from the second quarter of 2014.
• Total costs and expenses in the second quarter down $38.8 million, or 28%, compared with the second quarter of 2014. On a year-to-date basis, total costs and expenses down by $53.0 million, or 19.5%, compared with the first half of 2014.
• Year-to-date net cash provided by operating activities from continuing operations of $42.3 million; year-to-date free cash flow of $35.0 million.

Mark D. Johnsrud, Chairman of the Board and Chief Executive Officer, commented, "As expected, the industry environment proved to be challenging throughout the second quarter, with a further decline in overall drilling and completion activities coupled with pricing concessions that impacted the full quarter. The effect of the energy market downturn was more pronounced in the Bakken, where we have most recently seen a 62% drop in rig count from a year ago, compared with the overall decline in North American land rigs of 53%.

"In view of the current industry conditions, our expectation is for lower levels of drilling and completion activities to continue into the second half of the year," Mr. Johnsrud said. "As such, we will remain consistent in our strategy to further proactively manage costs, drive operating efficiencies, preserve capital, optimize asset utilization and deliver the best services to our customers so that we can emerge a stronger company positioned for growth in the recovery."

SECOND QUARTER 2015 RESULTS

Second-quarter 2015 revenue from continuing operations was $92.4 million, a decrease of approximately $34.4 million or 27.1%, compared with revenue from continuing operations of $126.9 million in the second quarter of 2014. Revenue was down 22.4% sequentially when compared to the 2015 first quarter. The decline was primarily due to the substantial quarterly decrease in overall water logistics, solids management and rental activities in the Rocky Mountain Division, as well as a decrease in water logistics and fresh water transfer services in the Southern Division. These decreases were partly offset by increases in water logistics and salt water recycling activities in the Northeast Division.

Proactive cost-management initiatives across the organization contributed to a 28% reduction in total costs and expenses in the second quarter when compared with the second quarter of 2014.  During the second quarter, total costs and expenses decreased by $38.8 million, primarily attributable to $11.5 million in lower payroll and related expenses with an associated 14.9% reduction in total personnel, $6.2 million in fuel savings, $12.4 million in lower legal and environmental costs and $8.7 million in all other savings. On a year-to-date basis, the Company's cost-management efforts have contributed to a 19.5% reduction in total costs and expenses, including a 21.6% reduction in personnel.