1. 1 Oil & Gas Market and Core Operations Overview Oil & Gas Market and Core Operations Overview Ram Mistry M (214) 608-9304 Ramniklal.Mistry@VerizonWireless.com

2. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 2 Business Challenges for Oil & Gas Increasing regulatory requirements State-sponsored hacking and associated security risks Increasing data needs Decline in the price of oil - overall market volatility Competitive market cutback strategies Economic impacts

3. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 3 Supply and Demand Supply Demand US Production US Inventories US Shale BE Cost of $40 US 1.1M Wells No OPEC Production Cuts Iraq/Iran Russia Venezuela New discoveries and long lead projects US: Solar and Wind US GDP: 2.3% ave China GDP India GDP Japan Negative GDP Eurozone uncertainty Electric Cars Increasing vehicle mpg Auto share and ride share programs IoT and Workforce optimization

4. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 4 Global Market by the Numbers: Supply & Demand

5. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 5 Global Break-Even Costs

6. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 6 US Oil & Gas Industry by the Numbers 1.1M Oil and Gas Well Heads; 1,880 Drill Rigs Petroleum and Natural Gas Extraction: 11,500 companies(184,000+ Employees) 352 companies with > 50 Employees (108,000 Employees) 200,000 miles of crude oil and refined petroleum product pipelines Pipeline Transport Companies: 5,090 companies(72,000+ Employees) 139 companies with > 50 Employees (32,500 Employees) 38 Jones Act vessels (U.S. flag ships that move products between U.S. ports) 3,300 coastal, Great Lakes and river tank barges 200,000 rail tank cars 144 refineries 1,400 petroleum product retail, 100,000 tanker trucks, and 123,289 Convenience stores selling Gasoline 475,000 storage tanks 1.1M Oil and Gas Well Heads; 1,880 Drill Rigs Petroleum and Natural Gas Extraction: 11,500 companies(184,000+ Employees) 352 companies with > 50 Employees (108,000 Employees) 200,000 miles of crude oil and refined petroleum product pipelines Pipeline Transport Companies: 5,090 companies(72,000+ Employees) 139 companies with > 50 Employees (32,500 Employees) 38 Jones Act vessels (U.S. flag ships that move products between U.S. ports) 3,300 coastal, Great Lakes and river tank barges 200,000 rail tank cars 144 refineries 1,400 petroleum product retail, 100,000 tanker trucks, and 123,289 Convenience stores selling Gasoline 475,000 storage tanks

7. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 7 US Oil & Gas Industry Core Operations Land Management Seismic Drilling/ Completion Production/ Storage Transport Refine Transport Terminal Retail

8. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 8 US Oil & Gas: Drilling and Well Completion Drilling/Completion: Cost to Oil & Gas company: $5M+ per Drill Rig per Well Head(s) Drill Rigs 6-8 weeks per well (mobile asset) Typical deployment in rural areas 25-30 people onsite from different vendors 500MB/month/Rig New development of Multiple Lateral Drills per pad site (2 to 24 drills per pad) 10% to 20% estimated miss rate: miss pocket completely or hit the pocket partially 50+ sensors per Rig collecting data: Power/Generators, Tank Levels, Gas emissions, Toxic compounds from drill site, etc. Data stored locally on Hard Drive and then sent to Petroleum Engineers (90% of Rigs are not connected to the network) Drilling/Completion: Cost to Oil & Gas company: $5M+ per Drill Rig per Well Head(s) Drill Rigs 6-8 weeks per well (mobile asset) Typical deployment in rural areas 25-30 people onsite from different vendors 500MB/month/Rig New development of Multiple Lateral Drills per pad site (2 to 24 drills per pad) 10% to 20% estimated miss rate: miss pocket completely or hit the pocket partially 50+ sensors per Rig collecting data: Power/Generators, Tank Levels, Gas emissions, Toxic compounds from drill site, etc. Data stored locally on Hard Drive and then sent to Petroleum Engineers (90% of Rigs are not connected to the network)

9. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 9 Mobile Communications Solution Dynamic Mesh Cellular Only Cellular Primary + Satellite Secondary Cellular Only Cellular Primary + Satellite Secondary

10. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 10 US Oil & Gas: Transport Green: Oil pipelines Red: Natural Gas pipelines Blue: Refined Petroleum pipelines Characteristics of Crude Oil pipelines: Up to 48 Inches in diameter Flow rate of up to 510K barrels per day for Trans Alaska Pipeline System Oil movement of 1 to 6 meters per second Pinhole size leak at 1.5% of max flow rate for 14 days – 189K barrels of oil leaked (source PHMSA) 160K+ miles of pipeline with an average of 1-2 sensors per mile Source: Theodora

11. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 11 Chevron Pipeline

12. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 12 Requirements Improve efficiency with an end-to-end, integrated platform and solutions. Leverage expertise from consultants/professional services. Increase effectiveness by interpreting data correctly in near real-time. Enhance operational efficiencies with mobile management and workforce optimization Protect all lines of business by managing risk across the board. Maintain compliance with strict security policies. Focus on core business.