CJ 2017 Annual Report

services, among other factors, operating margins can fluctuate widely depending on supply and demand at a given point in the cycle. For additional information about factors impacting our business and results of operations, please see “Industry Trends and Outlook” in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report. Completion Services The core services provided through our Completion Services segment are fracturing and cased-hole wireline and pumping services. We utilize our in-house manufacturing capabilities, including our R&T department and data control instruments business, to offer a technologically advanced and efficiency focused range of completion techniques. The majority of revenue for this segment is generated by our fracturing business. Fracturing . With a fleet of approximately 900,000 hydraulic horsepower (“HHP”) we are capable of handling the most technically demanding well completions in conventional and unconventional high-pressure formations. We leverage our R&T capabilities to provide customers with engineered frac designs, refracturing and other reservoir stimulation services that help regain production and increase well recovery. We also can provide our services using smaller frac fleets in response to customer demand for vertical fracs and restimulation services. Casedhole Wireline and Pumping . Through our cased-hole wireline and pumping services business, we are one of the leading providers of perforating, pumpdown, pipe recovery, pressure pumping, and wellsite make-up and pressure testing services with a fleet of 124 wireline trucks and 68 pumpdown units. We are highly experienced in safely servicing deep, high- pressure, high-temperature wells in some of the most active onshore basins in the United States and provide premium perforating services for both wireline and tubing-conveyed applications. Our in-house manufacturing capabilities through our R&T department allow us to manage costs and lead times with regard to hardware and perforating charges, providing us with a competitive advantage and enabling higher returns. Cementing . Following the closing of the O-Tex Transaction, we are one of the largest providers of specialty cementing services in the United States, with 117 units. Our operations are supported by eight full-service laboratory facilities with advanced capabilities. Coiled Tubing. With a fleet of 44 coiled tubing units, we offer a complete range of coiled tubing services to help customers accomplish a wide variety of goals in their horizontal completion, workover and well maintenance projects. Approximately 70 percent of our coiled tubing fleet consists of large diameter coil, meaning two inches or larger in diameter, which allows us to service wells with longer lateral lengths. Our coiled tubing services allow customers to complete projects quickly and safely across a wide spectrum of pressures, without having to shut in their wells. During 2017, we steadily refurbished and redeployed previously stacked equipment, and due to the continued strong near-term outlook, we are currently planning to deploy additional refurbished equipment over the course of 2018. Additionally, at any given time, our deployed assets may not be utilized fully or at all, due to, among other things, routine scheduled maintenance and downtime. For the year ended December 31, 2017, revenue from our Completion Services segment was $1.3 billion, representing approximately 76.7% of our total revenue, with net income of $161.1 million and Adjusted EBITDA of $221.9 million. Well Support Services Our Well Support Services segment focuses on post-completion activities at the well site, and includes rig services, such as workover, fluids management, and special services, including plug and abandonment, artificial lift applications and other specialty well site services. The majority of revenue for this segment is generated by our rig services business, and we consider our rig services and fluids management businesses to be our core service lines within this reportable business segment. Rig Services. As part of our services that help prolong the productive life of an oil or gas well, we operate the third largest fleet in the United States, consisting of 384 workover and well servicing rigs. These rigs range from 150 to 900 horsepower and are involved in the routine repair and maintenance of oil and gas wells, re-drilling operations and plug and abandonment operations. Workover services can include deepening or extending wellbores into new formations by drilling horizontal or lateral wellbores, sealing off depleted production zones and accessing previously bypassed production zones, converting former production wells into injection wells for enhanced recovery operations and conducting major subsurface repairs due to equipment failures. Workover services may last from a few days to several weeks, depending on the complexity 6