HH Technical Services, LLC

Company Overview & Value Presentation

Company Summary

• Formed LLC in June 2014 - Principal Partners Timothy D. Higgins William H. Higgins Jr.

• Corporate Headquarters 9829 Whithorn Dr. Suite A Houston, Texas 77095

• Operate Anywhere Within the Continental US & Internationally Mechanics Electronic Technicians Equipment Operators/Drivers Field Supervisors

• Corporate & Field Operations Executive Management & Office Support Operations Managers Electronic Technician & Mechanic Services Field Managers Electronic Technician & Mechanic Services Electronic Technicians Mechanics Equipment Operators/Drivers Field Supervisors Training Manager Global Electronic Technician Manager/Training

Geographical Coverage Areas

Corporate HeadquartersHouston, TexasOdessa, TX

Farmington, NM

Hobbs, NM

Brighton, CO

Rocksprings, WY Clarksburg,

WV

Mill Hall, PA

Bakersfield, CA

San Antonio, TXElectronic Technician &

Training Dubai, UAE

Dickinson, ND

Artesia, NM

Hennessey, OK

Electronic Technician Angola

Service-Lines

Electronic Technician ServicesField Technician Services Shop Technician Services

Stimulation Vessel Technician Drill-Ship Technician ServicesInternational Technician Services(Available in any country allowed by US)

Mechanic ServicesField Mechanic Services Shop Mechanic Services

Stimulation Vessel Mechanic Drill-Ship MechanicInternational Mechanic Services(Available in any country allowed by US)

Electronic Technician Training & Commissioning ServicesRegion Facility Training District Facility TrainingInternational Training Services(Available in any country allowed by US)

Equipment Operators/Drivers ServicesSenior Equipment Operators/Drivers Hydraulic Fracturing Pumping Equipment Blenders Sand Conveyers DOT Certifications Gel Transports Current CDL’s Safe Land - PEC

Electronic Technician Services• Perform diagnostics and repairs on all pumping service equipment

• Perform diagnostics and repairs on oil field production equipment including all PLC installations and maintenance on field automation systems

• Equipped with all field certifications to perform anywhere within the continental US and internationally

• Perform “Preventative Maintenance” on equipment in any shop or field environments

• Flexibility to move from area to area with little notice

• Operate with their own tools

Mechanic Services• Perform maintenance on all pumping service equipment in the field or

shop facilities

• Perform “Preventative Maintenance” on equipment in any shop or field environments

• Perform maintenance on all oil field production equipment including gas compression and automation systems

• Certifications include CAT ET, Cummins IN-SITE, Mack VCAD and Allison Transmission Programs and all required field certifications

• Work with their own tools required to perform all maintenance including pre-loaded computer diagnostic software

• Set up to perform pump packing tasks including plunger changes in the shop or field environments

• Experience levels with a combined 100 years

E-Tech Training and Commissioning Services

• Instruction for troubleshooting and repairs on all cementing, blending, pumping, and sand delivery equipment instrumentation

• Instruction for “preventative maintenance” on instrumentation equipment

• Installation, commissioning and training on all types of electronic software including all types of PLC systems

• Installation, commissioning and training on all types of offshore vessel system software

• Individual training for service and production companies on all mechanical and instrumentation software utilized

• Training for various electronic measurement components• Isoplex• Microplex• Micro Motion Flow Devices• Level Probe Devices

• Perform contract “Non-Bias” audits on all instrumentation equipment

Equipment Operation/Driver Services

• CDL Certified driver/operators

• Experienced Senior Equipment Operators

• Experienced Field Supervision

• Current with all certifications including, H2S, Driver Safety Training, DOT Certification, Safe Land - PEC

• Will send employee to any third-party training necessary for job at hand

• Available anywhere within the lower 48

Cost of Quality“COQ”

Cost of Quality (COQ)

I want my money back!

PreventionAppraisalInternal Failure

ExternalFailure

$

Total Quality Cost

Examples of External Failure Costs

• Product Recall • Lawsuits• Handling Complaints • Reports• Products Returned → Sales and Service

• Analysis of Returns → Returns and Allowances

• Evaluation of Field Stock → Failure Costs Analysis

• Late Payments and Bad Debts• Customer Service Caused by Errors• Audits

“LOST FUTURE SALES DOLLARS DUE TO CUSTOMER DISSATIFICATION !!”

• Supplier Certification• Employee Surveys• Security Checks• Safety Checks• Reviews:

Operating Expenditures

Product Costs Financial Reports Capital Expenditures

• Test• Inspection• Process Controls• Train QA Personnel• Product Audits• Quality Systems Audits• Customer Satisfaction• Surveys and Audits• Prototype Inspection• Accumulating Cost Data

Examples of Appraisal Expense

Examples of Internal Failure Costs

• Supplier Problems– Scrap and rework– Late deliveries– Excess inventory

• Equipment Downtime • Accidents, Injuries• Absenteeism• Unused Reports• Missed Schedule Cost• Lost Sales (any cause)

• Substandard Product• Scrap or Rework• Re-inspection• Redesign/Engineering

Change• Process Modifications• Payroll Errors• All Expediting Costs• Off-Spec/Waiver• Abandoned Programs

• Quality Planning• Training and Education• Process Definition• Customer Surveys• Preproduction Reviews• Technical Manuals• Detailed Product

Engineering• Early Approval of

Product • Specifications

• Purchase Cost Targets• Process Capability • Studies• Preventive

Maintenance • Supplier Qualification• Job Descriptions• Housekeeping• Zero-Defect Program• Contract Services

Examples of Prevention Expense

• All activities and processes that do not meet agreed performance and/or expected outcomes

• Costs that would disappear if every task were always performed without deficiency

“Cost Of Poor Quality” Definition

(4-5% of Total Sales)

When Quality Costs Are Initially Determined, The Categories Included Are The Visible Ones As Depicted In The Iceberg Below.

Waste

Testing Costs

Rework

Customer Returns

Inspection CostsRejects

Recalls

As An Organization Gains A Broader Definition Of Poor Quality,The Hidden Portion Of The Iceberg Becomes Apparent.

Late PaperworkHigh Costs

Pricing or Billing Errors

Excessive Field Services Expenses Incorrectly Completed

Sales Order

Lack of Follow-up

Excessive Employee Turnover

Planning DelaysExcess Inventory

Excessive System CostsOverdue Receivables

Complaint Handling

Unused CapacityTime with Dissatisfied Customer

Excessive Overtime

Waste

Testing Costs

Rework

Customer Returns

Inspection CostsRejects

Recalls

Development Cost of Failed Product Hidden COPQ: The costs incurred to deal with these chronic problems

Premium Freight Costs

Customer Allowances

Real COPQ rangesfrom 15-25% of Total Sales

(4-5% of Sales)

What is One Answer To Cost of Poor Quality?

HH Technical Services Experience

Electronic Technicians Equipment Operators/DriversMechanics

Master Electronic Technicians Senior Equipment Operators

Master Mechanics 9 - 10 Years Experience 15-30 Years Experience10 + Years Experience

Electronic Technicians III Field Supervisors Mechanic III 5 - 8 Years Experience 20-35 Years Experience 5-9 Years Experience

Global ET Manager/Training Field Manager

30 Years Experience 25 Years Experience

Training Manager Operations Manager 35 Years Experience 20 Years Experience

Field Manager10 + Years Experience

Operations Manager10 Years Experience“INCREASE IN SALES DOLLARS DUE TO

CUSTOMER SATIFICATION !!”

Key Advantages

Contracted Services• Pay wages, health benefits, worker compensation,

liability insurance and bonuses

• Pay all payroll taxes

• Supply vehicles and insurance

• Complete any training needs

• Supply all required certifications, passports and visas

• Supply all tools required for tasks

• Keeps all business records on file

Company Supplied Employees

• Company pays wages, health benefits, retirement benefits, worker compensation, liability insurance and bonuses

• Company supplies vehicles and insurance

• Company pays 15.3% payroll taxes including OT

• Company pays all training costs

• Company pays severance pay at employee termination

Benefits

Labor Cost Saving To Company• Allows businesses freedom to utilize services at will• No overtime payments to employees• Contractor charges single hourly rate• Estimated employer costs for employee compensation

averages $29.71/hr.• Estimated employer costs for employee overtime averages

$44.57/hr.• Wages account for 69.6% • Benefits account for 30.4%

• $2.62/hr. Life, Health and Disability Insurance

• $2.30/hr. Social Security, Medicare, Unemployment and Workers Compensation

• $2.06/hr. Paid Leave, Vacation, Holiday Pay, Sick Days, and Personal Leave

• $.73/hr. Supplemental Pay

Third-Party Contractor Expenses

• Higher hourly wage usually between $28-$35/hr.

• Pays overtime wages usually between $42-$53/hr.

• Contractor charges one single hourly wage

• Contractor pays and supplies the following

• Payroll Taxes, Unemployment Insurance, Workers Compensation

• Disability, Health Insurance

• Vehicles & Labiality Insurance

• Tools

• Housing

• Meals

• 15.3% For Payroll Taxes including OT

• State and Local Taxes

Overview

• Labor Cost Saving• One Hourly Rate Charge (No Overtime

Charges)• $0 Training Charges• $0 Vacation Time • Reduced Liability

• Contractor charges one hourly fee• Contractor hires only experienced personnel• Contractor pays all insurance and taxes• Contractor pays all overtime charges• Contractor supplies tools, uniforms, vehicles• REDUCED JOB QUALITY ISSUES RESULTS IN

INCREASED $$$$$• Flexibility in Hiring and

Firing• $0 in severance packages• Free to hire contract during employee

hiring freeze• 24 Hour Service for any area you are

involved

Questions?