OTCQB: HIIT Corporate Presentationcontent.stockpr.com/hiitinc/db/Events/714/... · HII Technologies, Inc. Disclaimer This presentation and related commentary may contain "forward-looking

OTCQB: HIIT Corporate Presentation

Energy Prospectus Group Luncheon,

Houston - June, 2014

HII Technologies, Inc.

Disclaimer This presentation and related commentary may contain "forward-

looking statements" within the meaning of Private Securities

Litigation Reform Act of 1995. Any statements as to matters that

are not of historic fact are forward-looking statements. These

forward-looking statements are based on HIIT's current

expectations, estimates and projections about HIIT, its industry,

its management's beliefs and certain assumptions made by

management, and include statements regarding future

operational and activity expectations, anticipated financial

performance in 2014 and beyond. No assurance can be given

that such expectations, estimates or projections will prove to have

been correct. Whenever possible, these "forward-looking

statements" are identified by, words such as "expects,"

"believes," "anticipates" and similar phrases. Readers and any

audience are cautioned that any such forward-looking statements

are not guarantees of future performance and are subject to

certain risks, uncertainties and assumptions that are difficult to

predict, including, but not limited to:

Risks that HIIT will be unable to achieve its financial, capital

expenditure and operational projections, including quarterly

projections of revenue and risks that HIIT's expectations

regarding future activity levels, customer demand, and pricing

stability may not materialize (whether for HIIT as a whole or for

geographic regions and/or business segments individually); risks

that fundamentals in the U. S. oil and gas markets may not yield

anticipated future growth in HIIT's businesses, worsen from the

recent market declines, and/or that HIIT could experience further

unexpected declines in activity and demand for its rental

equipment service, risks relating to HIIT's ability to implement

technological developments and enhancements; risks relating to

1

compliance with environmental, health and safety laws and

regulations, as well as actions by governmental and regulatory

authorities; may not be able to reduce, and could even experience

increases in, the costs of labor, fuel, equipment and supplies

employed and used in HIIT's businesses; risks relating to changes in

the demand for or the price of oil and natural gas; risks that HIIT

may not be able to execute its capital expenditure program and/or

that any such capital expenditure investments, if made, will not

generate adequate returns; and other risks affecting HIIT's ability to

maintain or improve operations, including its ability to maintain

prices for services under market pricing pressures, weather risks,

and the impact of potential increases in general and administrative

expenses.

Because such statements involve risks and uncertainties, many of

which are outside of HIIT's control, HIIT's actual results and

performance may differ materially from the results expressed or

implied by such forward-looking statements. Given these risks and

uncertainties, readers are cautioned not to place undue reliance on

such forward-looking statements. Other important risk factors that

may affect HIIT's business, results of operations and financial

position are discussed in its most recently filed Annual Report on

Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current

Reports on Form 8-K and in other Securities and Exchange

Commission filings. Unless otherwise required by law, HIIT also

disclaims any obligation to update its view of any such risks or

uncertainties or to announce publicly the result of any revisions to

the forward-looking statements made here. However, readers should

review carefully reports and documents that HIIT files periodically

with the Securities and Exchange Commission.


HII TECHNOLOGIES

2

HII Technologies (HIIT) in Houston, Texas is a

frac water management services company

focused on providing total water management

for oilfield companies. HIIT also has supporting

service solutions with Safety and Power.

Services for horizontal drilling and

hydraulic fracing in the domestic U.S.


$33 million

Market Cap

HII Technologies Inc. is publicly traded and quoted on

the OTCQB under the symbol HIIT

Market Cap, Price, Shares Outstanding and Average Volume: as of 6/16/14 Assets, Liabilities, and Equity numbers: as of 3/31/14

Current Price

In thousands

Balance Sheet

$.69

Approximately 48.5 million

shares outstanding

Average volume (3m): 84,617

Management & Board own

approximately 23% of shares

3

Current Financial Snapshot

Stock Performance

Total Assets $13,675

Total Liabilities $12,747

Total Equity $928

Cash Position $57

Accounts Receivable $6,494

$0.0

$10.0

$20.0

$30.0

$40.0

2013A 2014E

Revenue $MM

$14.6

Recently added

guidance

$32.3


4

AES Water Solutions (AES) and AquaTex support hydro-fracturing

through complete water management services including water

transfer, flow back and well testing, frac water recycling,

evaporation, and tank storage.

South Texas Power (STP) efficiently manages changing power

needs in the field by supplying portable generated power and

lighting on a rental basis.

AES Safety Services (AES-SS) maintains compliance with

safety regulations by providing certified safety contractors.

HIIT has aggressively built a full suite of services, which are

essential to the activity of domestic E&P companies.

Key Products and Services

WATER

SAFETY

POWER


8

9

10

11

12

13

14

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15

5

As oil and gas activity continues to expand,

the demand for water used for drilling and fracing is also growing. Growth in completions in Texas – where water usage

and services are generated:

Market Demand

U.S. Crude Oil and Liquid Fuels Production million barrels per day (MMBBL/D)

EIA Data as of May 6, 2014

Total Production

Production Forecast

Market Research firm Lux Research expects the frac water clean-up market

to grow to $9 Billion in 2020

By 2015, the Energy Information Administration

expects U.S. annual crude oil production to

exceed 2013 levels by 24%.

The 2015 forecast represents the highest annual

average level of production since 1972.


&


7

Water Transfer

The Company's water division is hired by oilfield operators to provide above ground temporary pipe or lay flat hose infrastructure from a water source such as a river or a pond to a frac site – usually into tanks for frac companies to perform frac completion work. The AES Water Solutions and AquaTex high volume pumps, turbo engines, no-leak hose, and connectors typically deliver 5-10 million gallons of water per frac job, and the average job requires 5 miles of hose.

AES Water Solutions and

AquaTex offer clients

significant savings over

the transportation costs

of trucking water

to frac sites. AES/AquaTex

pumps Water Source

Frac

Hydraulic Fracing

Site

AES/AquaTex pipe,poly, flat hose

Revenue is earned by rentals charged by the foot and by the day,

plus ancillary rental fees on pumps, manifolds, and road crossings.


8

› Direct high temperature/high pressure

water into onsite tanks

› Separate gas and sand from the flow

back water

› Use flare stacks until lines and storage

tanks are in place

“Flow back” is water used to fracture

the shale that flows back to the

surface. The volume of recovery

may be between 20 and 40% of the initial volume injected.

AES Water Solutions and AquaTex

provide services to handle the large

volume of water that flows back

after a frac is completed.

AES/AquaTex

manifolds,

sand traps, &

gas separators

Tanks

Flow back

Services

Frac

Hydraulic Fracing

Site

Flow Back

Revenue is earned by equipment rentals charged on a day rate basis.


9

Recycling

› Removes 99% Total Suspended

Solids (TSS) above 5 microns

› Kills ~99% bacteria

Our technology addresses the need for

solids-free water for reuse: Trucking water means significant costs

and issues, plus friction between E&P

companies and the communities in

which they operate.

AES Water Solutions and AquaTex

address these issues by offering

mobile units which can clean up to

20,000 barrels of frac flow back per

day, on site.

The treated water can then be used

for additional hydraulic fracturing:

eliminating costs associated with

disposal and use of additional fresh

water. Revenue is earned by clients paying per barrel of water recycled.


HIIT has an exclusive for

Oklahoma and Texas with

Resource West and its

environmentally friendly

Landshark & Barracuda

wastewater evaporators.

Resource West was

formed in 2006, and has

evaporation equipment in

26 states and 11 countries.

Besides the economic benefits compared

to trucking/disposal, evaporation from

on-site water containment eliminates the

following concerns of local communities:

› Road deterioration

› Noise

› Pollution

› Property devaluation

10

Evaporation:

Innovative Green Technology In Lieu of Expensive Trucking and Disposal

Revenue is earned by a per barrel charge.


Other Water Service Offerings

Above ground on-site water storage tanks

› Can be assembled in under 7 hours

› Capacities of up to 53,000 barrels

of water

› Necessary when time on-site

doesn’t allow for pits

Top-hole solids control systems

and drilling fluids reprocessing

Water well drilling and open pit

design/procurement

11

Revenue is earned based on day rates charged for rental equipment.


On-site rapid accelerated pit evaporation

Solids removal Pit remediation

FRESH

WATER

WATER

TRANSFER

FRAC JOB

FLOW BACK SYSTEM

RECYCLE UNIT

ABOVE GROUND

WATER STORAGE

50+ miles aluminum pipe& lay flat non-

leak flat hose

Low profile road crossings

High performance water transfer pumps

On-site 2x2 manifolds

Gas separators packages

Sand traps

Flare stacks

Well testing equipment

Mobile & on-site

Water storage tanks

Quick set up & demobilization

Up to 53,000 barrel water capacity

Water transfer

Distribution manifolds

Recycle up to 20,000 barrels/day of water

Removes up to 99% total metals & TSS

99% Bacteria removals

EVAPORATION

Total Frac Water Management

12


AES


AES Safety Services Overview

14

AES Safety Services (AES-SS) provides on-site safety personnel on a contract basis to oilfield clients.

AES-SS revenues derived from:

› On-site safety engineers from drilling to completion

› Procedure monitoring and inspection

› Safety Training

› Developing customized HSE programs and safety plans for compliance

› Site remediation

Allows HIIT to cross-pollinate services with water and power divisions

Due to increasing regulatory requirements, many E&P

companies are relying on outsourced safety personnel.


SOUTH TEXAS POWER


16

STP revenues are derived from

the rental of: › Diesel & natural gas generators

› Light towers

› Safety trailers

› Related power equipment

Portable onsite power generation

is critical to oilfield operations.

About STP

Portable power management

solutions company

Plus, STP offers 24/7 service contracts


Corporate Summary


0

10

20

30

40

50

60

70

80

APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR

18

2012 2013

Customer Growth

2014

14.1% Compounded Monthly Growth

http://www.google.com/url?sa=i&rct=j&q=&source=images&cd=&cad=rja&docid=CKexzyGnEZCIXM&tbnid=qcXHoSr9ZlcjzM:&ved=0CAUQjRw&url=http://laspalmastrader.com/wp/equities-oryx-petroleum-has-a-quote/&ei=zVO2UePHAobo8wS8x4DIAg&bvm=bv.47534661,d.dmg&psig=AFQjCNG-gwoOW49ggiL38-FTHA599cCmMg&ust=1370989887750406


61% of the U.S. land based

oil & natural gas drilling rigs are located in

Oklahoma and Texas

Source: BHI Rig Count 5/30/14

HIIT participates in the following unconventional tight oil and shale formation plays:

› Eagle Ford Shale › Permian Basin › Eaglebine › Mississippian Lime › Woodford

› Cline Shale › Granite Wash › Utica Shale and others

Activity Concentration

19


Barriers to

Entry

20

Competitive

Advantages

› 50+ MSAs

› Typical range of 3-5 years

› Bundled service providers are preferred over single service companies

Master Service Agreements (MSAs)

› Management team has multiple decades of experience with customer base

› Reputation for quality equipment and service

› Local presence

Long-Term Relationships

› Exclusive relationship with Resource West

› Significant cost savings vs. trucking to disposal wells

Leading Evaporation Technology

› Substantial cost savings relative to sourcing fresh water

› Full spectrum of frac water services

Recycling Commercialization


MATTHEW FLEMMING CEO & President of HII Technologies

› 20+ years industrial, oilfield and manufacturing experience

› Former Director and CFO at Hemiwedge Industries, Inc. (sold 2011)

› Former CEO of Faro – a specialty products company (successfully merged)

› Significant acquisition and capital raise experience

BRENT MULLINIKS President of AES Water Solutions and Director of HIIT

› Petroleum engineer with over 25 years of experience

› Former VP of Engineering at Reichmann Petroleum Corporation

› Former VP of Oil and Gas Operations for

Devonian Resources, Inc.

› Involved with horizontal drilling and fracing in the Barnett Shale since inception

21

BILLY COX Vice President AES Water Solutions

› More than 25 years experience in oilfield services, operations, field crew management, and business

development

› Responsible for all aspects of water transfer used in hydo-fracing and AES field operations.

CHARLES DAVIS President AES Safety Services

› Ten years experience in all aspects of oil and gas safety services with Petrohawk and Talisman companies

› Experienced in managing safety engineering contractors in Ohio and West Virginia

CHAD CRADY President, South Texas Power

› 10+ years experience in oilfield portable power generation, construction and fabrication

› Experienced in servicing E&P, refinery, petrochemical and midstream sectors of the oil and gas industry

Management & Board

CHRIS GEORGE President of AquaTex

› 20 years experience in oilfield services and water management


Incremental revenue growth will largely be driven by AES Water Solutions & AquaTex.

Significant AES capital expenditures are projected for:

› Pipe/lay flat hose

› Wastewater evaporators

› Flowback units

› Recycling units

› Related equipment

$14.6

$32.3

$10.8

$5.5 $1.5

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

2013A

Revenue

AES Water

Solutions &

AquaTex

AES Safety

Services

South Texas

Power

2014E

Revenue

Financial Summary &

Revenue Bridge

Re

ve

nu

e (

$M

M)

22

Recent revenue guidance

released for 2014: $32.3MM


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Actual Revenues

Exceeding

Revenue

Guidance

Revenue

Guidance

7.5

23

Mill

ion

s o

f d

olla

rs

Quarterly Growth: Revenue

Streams Exceeding Estimates


Focus on Critical

Oilfield Services

Investment Highlights

› Relatively inelastic market

› Full suite of frac water services

Leading Position

in Core Oilfield

Markets

› Increased activity forecasted

› Relationships with leading E&Ps

Proven Financial

Platform & Strategy

› Strong organic financial growth

› Successful acquisition integration

Innovative

Technology

› Exclusive relationship

› Economically prudent, ecologically desirable

Highly

Experienced

Management

Team

› CEO Matt Flemming and President Brent Mulliniks (50+ years combined experience)

› Proven track record of delivering shareholder value

24


Contact

25


710 N. Post Oak Road, Suite 400

Houston, Texas 77024

713-821-3157

www.HIITinc.com

Investor Relations

MZ Group

Derek Gradwell - SVP, Natural Resources

512-270-6990

[email protected]

www.mzgroup.us

Documents

OTCQB: HIIT Corporate Presentationcontent.stockpr.com/hiitinc/db/Events/714/... · HII Technologies, Inc. Disclaimer This presentation and related commentary may contain "forward-looking