CJ 2017 Annual Report

The following table shows our active owned and leased properties, categorized by geographic region as of December 31, 2017. Region Administrative and Sales Offices; Research and Technology Facilities Operational Field Services Facilities West Texas Owned 1 38 Leased 4 25 South Texas / South East Owned 2 21 Leased 9 7 Rockies / Bakken Owned — 8 Leased 2 18 California Owned — 9 Leased 1 15 Mid-Con Owned — 16 Leased 9 13 North East Owned — — Leased 1 11 Canada Owned — — Leased 1 — Total 30 181 32 Item 3. Legal Proceedings We are subject to various legal proceedings and claims incidental to or arising in the ordinary course of our business. Our management does not expect the outcome in any of these known legal proceedings, individually or collectively, to have a material adverse effect on our consolidated financial condition or results of operations. U.S. Department of Justice Criminal Investigation into Pre-Nabors Merger Incident There is a pending criminal investigation led by the Department of Justice in connection with a fatality that occurred at a C&P Business facility in Williston, North Dakota on October 3, 2014 prior to the Predecessor’s acquisition of the C&P Business in the Nabors Merger. We are cooperating fully with the investigation and expect to continue to do so. At this time, we cannot predict the outcome of the investigation. Shareholder Litigation In July 2014, following the announcement that Old C&J, Nabors, and the Predecessor had entered into the Nabors merger agreement (the “Nabors Merger Agreement”), a putative class action lawsuit was filed by a purported shareholder of Old C&J challenging the Nabors Merger. The lawsuit is styled City of Miami General Employees’ and Sanitation Employees’ Retirement Trust, et al. v. Comstock, et al.; C.A. No. 9980-CB, in the Court of Chancery of the State of Delaware, filed on July 30, 2014 (the “Shareholder Litigation”). The plaintiff in the Shareholder Litigation generally alleged that the Old C&J board of directors breached their fiduciary duties of loyalty and care by approving the Nabors Merger at an allegedly unfair price and through an allegedly unfair process. On November 24, 2014, the Court of Chancery preliminarily enjoined Old C&J from holding its stockholder meeting to approve the Nabors Merger Agreement for a period of 30 days (the “Injunction Order”), but the Delaware Supreme Court reversed the Injunction Order on December 17, 2014. After the Nabors Merger closed, the