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Business Description We are a rapidly growing independent provider of premium hydraulic fracturing and coiled tubing services with a focus on complex, technically demanding well completions. We provide our services in conjunction with both conventional and unconventional well completions as well as workover and stimulation operations for existing wells. We compete with a limited number of service companies for what we believe to be the most complex hydraulic fracturing projects, which are typically characterized by long lateral segments and multiple fracturing stages in high-pressure formations. We believe service providers are selected for these complex projects primarily based on technical expertise, fleet capability and experience rather than solely on price. We also provide pressure pumping services and other related well stimulation services in connection with our well completion and production enhancement operations. We have historically operated in what we believe to be some of the most geologically challenging basins in South Texas, East Texas/North Louisiana and Western Oklahoma. The customers we serve are primarily large exploration and production companies with significant unconventional resource positions, including EOG Resources, EXCO Resources, Anadarko Petroleum, Plains Exploration, Penn Virginia, Petrohawk, El Paso, Apache and Chesapeake. We are in the process of acquiring additional hydraulic fracturing fleets and are evaluating opportunities with existing and new customers to expand our operations into new areas throughout the United States with similarly demanding completion and stimulation requirements. Our revenues increased from $62.4 million for the year ended December 31, 2008 to $244.2 million for the year ended December 31, 2010, primarily as a result of increased demand for our well completion services, improved pricing and continued fleet expansion. This revenue increase represents a compound annual growth rate of approximately 98%. For the year ended December 31, 2010, Adjusted EBITDA was $82.6 million and net income was $32.3 million. For the three months ended March 31, 2011, revenues were $127.2 million, Adjusted EBITDA was $51.9 million and net income was $29.1 million. We operate four modern, 15,000 pounds per square inch, or psi, pressure rated hydraulic fracturing fleets with an aggregate 142,000 horsepower. We took delivery of an additional hydraulic fracturing fleet (with 30,000 horsepower of capacity) in July 2011 that is expected to commence operations in August 2011 and we currently have on order three additional hydraulic fracturing fleets, which, upon delivery, will increase our aggregate horsepower to 270,000 by the end of 2012. Our hydraulic fracturing equipment is specially designed to handle well completions with long lateral segments and multiple fracturing stages in high-pressure formations. We also operate a fleet of 14 coiled tubing units, 16 double-pump pressure pumps and nine single-pump pressure pumps. The unique manner in which we deploy and utilize our equipment has allowed us to control our costs, minimize downtime and deliver services with less redundant pumping capacity. During the three months ended March 31, 2011, our fracturing services generated monthly revenue per unit of horsepower of approximately $383, which we believe to be higher than the comparable performance of our peers. Revenue per horsepower is a metric used by our management team to evaluate how efficiently we are utilizing our assets relative to our peers. Our hydraulic fracturing fleets and coiled tubing units are currently deployed in the Eagle Ford Shale of South Texas, the Haynesville Shale of East Texas/North Louisiana and the Granite Wash of Western Oklahoma. Recent advances in horizontal drilling and hydraulic fracturing technologies have lowered unit recovery costs in these basins and increased the potential for long-term oil and natural gas development. Additionally, the increase in the number of drilling permits awarded in the Eagle Ford, Haynesville and Granite Wash regions, coupled with the increasing complexity and technical completion requirements for many wells in these regions, are expected to drive growth in demand for our well completion services for the foreseeable future. We have and plan to continue to focus on basins with technically demanding hydraulic fracturing requirements. ----------- We are a Delaware corporation. Our principal executive offices are located at 10375 Richmond Avenue, Suite 2000, Houston, Texas 77042 and our main telephone number is (713) 260-9900. Our website is available at www.cjenergy.com.