Marty Kunz, Vice President of Human Resources at C&J Energy Services, provided tips about how organizations can manage HR and culture integration during transition periods in his presentation at the 2014 Human Capital Leadership Forum in Dallas on Nov. 20. During his presentation, “Managing HR and Culture Integration During Mergers and Acquisitions,” Kunz noted it is nearly impossible to plan for everything during a merger or acquisition, but preparing for myriad scenarios and remaining flexible can help an organization avoid pitfalls. According to Kunz, an organization could alienate employees if it fails to adapt its HR and culture to their needs following a merger or acquisition. Kunz also pointed out that an inflexible organization risks losing money after a merger or acquisition takes place too: “If you come in headstrong with a game plan and it’s my way or the highway, you’re going to ruin probably what it was that made the acquisition attractive to begin with … You’ll be left with an entity that is much less valuable than your company probably paid big dollars for to buy them to begin with.” In addition, Kunz noted an organization’s culture will find a way to develop itself, regardless of planning. An organization should expect some change following a merger or acquisition, Kunz said, but an organization also should understand that integrating new employees into its culture typically is a slow, gradual process: “In any acquisition, you’ve always got to plan on some attrition and change just for the sake of change is going to cause you to lose people … You try to minimize that impact and hopefully it’s not too large a number, but you’ve got to plan on that.” - See more at: http://www.argylejournal.com/chief-human-resources-officer/managing-hr-and-culture-integration-during-mergers-and-acquisitions-marty-kunz-vice-president-human-resources-cj-energy-services/#sthash.M9MxScy8.dpuf

1. C&J Energy Services
Presenter: Marty J. Kunz, SPHR
Vice President-Human Resources
2014 Human Capital Leadership Forum
Cityplace Conference & Events Center
Dallas, Texas
“Managing HR and Culture
Integration in an Active M&A
Environment”
November 20, 2014

2. C&J Overview
C&J Energy Services is an independent provider of premium
hydraulic fracturing, coiled tubing, wireline and other
complementary 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.

3. 1997
1999
2002
2007
2011
2012
2013
2014
Josh Comstock
Founded C&J in
Robstown, TX
Introduced Stand
Alone Pumping
Services
Introduced Coiled
Tubing Services
Robstown, TX
Introduced
Fracturing
Services:
Robstown, TX
Initial Public
Offering on NYSE;
Acquired Total
Equipment Services;
Corporate Office
moved to Houston
Introduced Wireline
With Acquisition of
Casedhole
Solutions
Opening of new
Corporate office and
New R&T Center;
Acquired Tiger
Casedhole; Acquisition
of Nabors NCPS
Acquired
Tellus

4. $244.2
$758.5
$1,111.5 $1,070.3
2010 2011 2012 2013
Revenue ($MM)
Financial Growth - Revenues

5. Areas of Operation
We are geographically focused where there is the most opportunity, with
service centers near the majority of prominent domestic shale basins.

6. The C&J Family
Our top-tier
manufacturer of
hydraulic fracturing,
coiled tubing,
pressure pumping and
other equipment used
in the energy services
industry.
Our global supplier of
oilfield chemicals and
technology. They
supply, engineer,
manufacture and apply
specialty chemicals.
Tellus delivers innovative
Directional Drilling, MWD
and LWD products and
technologies to the oil
and gas industry through
contract engineering and
in-house developments.

7. Oil & Gas Awards
 2012 Gulf Coast Oil & Gas Awards, Winner
Drilling & Well Services Company of the Year
 2013 MidCon Oil & Gas Awards, Winner
Well Completion Company of the Year
 2013 Gulf Coast Oil & Gas Awards, Winner
The Preferred Technology Award for
Excellence in Well Completion

8. M&A Activity at C&J
• 2011- C&J acquires Total Equipment
• 2012- C&J acquires Casedhole Solutions
• 2013- C&J acquires Tellus Oilfield
• 2014- C&J acquires Tiger Casedhole
• 2014- C&J and Nabors Drilling announce C&J’s acquisition of Nabors
Completion and Production Services

9. Total Equipment Acquisition
• Was a main supplier of Coiled Tubing and Fracturing equipment for C&J
• Vertical integration of supply chain
• Approximately 150 employees
• Stand alone operation

10. Casedhole Solutions Acquisition
• Added a new line of business
• Strong management team
• Approximately 600 employees
• Strong company culture
• “Slow burn” on integrating
• Systems
• Policies
• Procedures
• Pay practices
• Payroll
• Just “completed” in 2014

11. Tellus Acquisition
• Very small company (less than 20 employees)
• Intellectual capital added to newly established Research & Technology group
• Tellus needed capital to implement products and ideas
• Integration effort minimal
• Owner(s) stayed with C&J

12. Tiger Casedhole Acquisition
• Tiger also small, but STRONG culture
• Approximately 37 employees
• Owner is now manager of that division
• Strong resistance to becoming part of a “big company”
• Unlike Tellus, Tiger had a “history” and long-tenured employees
• Much softer integration approach
• Lots of hand holding and reassurance
• Slower burn on changes
• The magical world of “California”

13. Nabors and C&J
• Scheduled to close in Q4-2014 or early 2015 (Fast track)
• Smaller company acquires larger one
• (3,100 employees versus 7,000- 8,000 employees)
• Complicated
• Inverse acquisition
• “Mother ship” remains
• Cultures are very different
• NCPS is not their “core” business
• Must remain competitors until close
• Systems (IT, HR, Accounting) work is intense

14. Thank You
Visit www.cjenergy.com to learn more about
what we can accomplish for you