CJ 2017 Annual Report

We are C&J. C&J’s success is driven by our people – and our people are committed to doing the right thing. We value a diverse workforce, empower our employees and help them reach their full potential. Only through a culture focused on the well-being of our employees can we achieve the highest standards of quality and integrity, perform with excellence, provide unsurpassed customer service and deliver the best return to our shareholders. Our people are committed to all of our stakeholders, and we are committed to them. Building Careers Our employees showed steadfast dedication and resilience when cost cuts and severe measures, driven by market conditions, affected them. As our business recovered, we reinstated and enhanced benefits to provide total compensation to our C&J family. We were able to rehire hundreds of employees during the year, which demonstrated our employees’ dedication to the C&J family and reflects well on C&J as their employer of choice. At the same time, we recognize that compensation is just part of the equation, and to many of today's workers, it's not the most important part. We strive to offer the job satisfaction and opportunity that talented and motivated people seek when building a career. We value diversity and honesty, and we encourage people to voice their thoughts and find better ways of doing things. We promote from within, when possible, and give our people the tools, training and encouragement to pursue any position in the company that fits their abilities and interests. Great People are Good Business Investing in people is not only the right thing to do. It’s good business. C&J's focus on attracting and developing career employees not only fosters productivity and morale, it also reduces recruiting and training costs and enhances our performance. Our commitment to employee well-being also strengthens our ability to attract the best talent in a tightening labor market. C&J people are a clear differentiator with customers. They help us win and keep business. With highly involved, customer-facing experts at the head of all our businesses and divisions, we offer an unsurpassed level of engagement and reassurance. Customers value the superior training, unwavering commitment to service and exceptional safety record of our employees at all levels. A Culture of Safety Our commitment to employee well-being begins with a culture of safety and good corporate citizenship. We are a recognized leader in quality, health, safety and environmental (QHSE) performance because of our commitment to protecting our employees, our communities and our planet. Thanks to our award-winning safety record and ongoing QHSE initiatives, our customers can feel confident in the integrity of our operations. At C&J, safety starts with leadership accountability, and it is driven through local teams across all of our operating areas. Assisted by a team of QHSE professionals, our managers and supervisors are accountable for developing and sustaining a workforce that is competent, aware of hazards and always thinking about safety. Our safety culture helps to improve worksite efficiency and profitability for C&J and our customers alike. C&J’s total recordable incident rate (TRIR) remains lower than recently reported industry averages, and we’re working diligently to continue pushing it downward. "Your competitors can come in and mimic or buy all the equipment you have. They can copy all the processes you have. The one thing they can’t replicate is the people you have. And that’s what sets us apart.” George Lusk Operations Superintendent, Well Services Bakersfield, California “I like the people. I like the culture. I like the guidance we get from upper management. We really take care of our people in the C&J family, and that’s a great foundation for success.” Linda Torrez Accounting Manager Robstown, Texas “The core values that C&J stands for are the same values I stand for, so it’s a really good fit. This is a great place to discover your potential and actually reach it.” Chris Cook District Manager, O-Tex Cementing Norton, Virginia 2017 ANNUAL REPORT 5