Seventy Seven Energy Inc. Announces Preliminary 2015 Full Year and Fourth Quarter Operational and Financial Results

Seventy Seven Energy Inc. (NYSE: SSE) today reported preliminary
estimated and unaudited financial and operational results for the 2015
full year and fourth quarter. Key information related to the 2015 full
year and fourth quarter results is as follows:

• Full-year Total Revenues of $1.131 billion
• Full-year Adjusted EBITDA between $235.0 - $233.0 million
• Fourth quarter Total Revenues of $192.8 million, including $11.8
  million in lump sum drilling contract termination fees
• Fourth quarter Adjusted EBITDA between $57.0 - $55.0 million
• Year-end cash balance of $130.6 million

“Despite a very challenging market we are pleased with our fourth
quarter execution,” Chief Executive Officer Jerry Winchester said. “We
continue to diversify our customer base while tightly managing costs
throughout our business. Our fourth quarter results reflect our
commitment to this strategy.”

“Although we are anticipating continued market headwinds with little
visibility into the plans of operators, our operational execution and
quality asset base continue to bolster our reputation amongst our
growing customer list.”

Selected Preliminary 2015 Segment Highlights

• Full-year Drilling Total Revenues of $436.4 million and Adjusted
  EBITDA between $185.0-$183.0 million
• Fourth quarter Drilling Total Revenues of $89.6 million, including
  $11.8 million in lump sum termination fees, and Adjusted EBITDA
  between $49.0-$47.0 million
• Full-year Hydraulic Fracturing Total Revenues of $575.5 million and
  Adjusted EBITDA between $61.0-$60.0 million
• Fourth quarter Hydraulic Fracturing Total Revenues of $91.9 million
  and Adjusted EBITDA between $8.2-$7.8 million

The Company is providing this preliminary estimated and unaudited
information in advance of upcoming corporate presentations. The
information is based on management's preliminary review of the Company’s
results of operations for the 2015 fourth quarter and full year, and is
subject to revision. Final adjustments and other material developments
may arise between the date of this press release and the date the
Company announces fourth quarter and audited full year 2015 results and
files the Company's Annual Report on Form 10-K for the year ended
December 31, 2015 with the U.S. Securities and Exchange Commission.

About Seventy Seven Energy Inc.

SSE is a diversified oilfield services company that provides a wide
range of wellsite services to U.S. land-based E&P customers. SSE offers
services and equipment that are strategic to our customers' oil and
natural gas operations. Our services include drilling, hydraulic
fracturing, and oilfield rentals. Our operations are geographically
diversified across many of the most active oil and natural gas plays in
the onshore United States, including the Anadarko and Permian Basins and
the Eagle Ford, Haynesville, Marcellus, Niobrara and Utica Shales. For
additional information about SSE, please visit our website at www.77nrg.com,
where we routinely post announcements, updates, events, investor
information and presentations and recent news releases.

Forward-Looking Statements and Cautionary Statements

This news release (and any oral statements made regarding the
subjects of this release contains certain statements and information
that may constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical facts that address activities,
events or developments that we expect, believe or anticipate will or may
occur in the future are forward-looking statements. The words
“anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “plan,”
“estimate,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,”
“could,” “should,” “potential,” “would,” “may,” “probable,” “likely,”
and similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the generality of
the foregoing, forward-looking statements contained in this press
release specifically include statements, estimates and projections
regarding our 2015 fourth quarter and full year revenues and adjusted
EBITDA, liquidity and capital resources, performance, and other guidance
regarding future developments. Forward-looking statements are not
assurances of future performance. These forward-looking statements are
based on management’s current expectations and beliefs, forecasts for
our existing operations, experience, and perception of historical
trends, current conditions, anticipated future developments and their
effect on us, and other factors believed to be appropriate. Although
management believes that the expectations and assumptions reflected in
these forward-looking statements are reasonable as and when made, no
assurance can be given that these assumptions are accurate or that any
of these expectations will be achieved (in full or at all). Moreover,
our forward-looking statements are subject to significant risks and
uncertainties, many of which are beyond our control, which may cause
actual results to differ materially from our historical experience and
our present expectations or projections which are implied or expressed
by the forward-looking statements.

For additional information regarding known material factors that
could cause our actual results to differ from our present expectations
and projected results, please see our filings with the U.S. Securities
and Exchange Commission (“SEC”), including our Current Reports on Form
8-K that we file from time to time, Quarterly Reports on Form 10-Q, and
Annual Report on Form 10-K.

Readers are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which such
statement is made. We undertake no obligation to correct, revise or
update any forward-looking statement after the date such statement is
made, whether as a result of new information, future events or
otherwise, except as required by applicable law.

Non-GAAP Financial Information

"Adjusted EBITDA" is a non-GAAP financial measure and may not be
comparable to similarly titled measures employed by other companies and
is not a measure of performance calculated in accordance with GAAP. The
Company defines Adjusted EBITDA as net income before interest expense,
income tax expense, depreciation and amortization, as further adjusted
to add back gains on early extinguishment of debt, impairment of
goodwill, impairments and other, loss on sale of a business and exit
costs, gain or loss on sale of property and equipment, non-cash stock
compensation, severance-related costs, impairment of equity method
investment, interest income and certain other non-recurring items, such
as the sale of our drilling rig relocation and logistics business.
Adjusted EBITDA should not be considered in isolation or as a substitute
for operating income, net income or loss, cash flows provided by
operating, investing and financing activities, or other income or cash
flow statement data prepared in accordance with GAAP. However, our
management uses Adjusted EBITDA to evaluate our performance and believes
Adjusted EBITDA may be useful to an investor in evaluating our operating
performance because this measure:

• is widely used by investors in the oilfield services industry to
  measure a company's operating performance without regard to items
  excluded from the calculation of such measure, which can vary
  substantially from company to company depending upon accounting
  methods, book value of assets, capital structure and the method by
  which assets were acquired, among other factors;
• is a financial measurement that is used by rating agencies, lenders
  and other parties to evaluate our creditworthiness; and
• is used by our management for various purposes, including as a measure
  of performance of our operating entities and as a basis for strategic
  planning and forecasting.

There are significant limitations to using Adjusted EBITDA as a measure
of performance, including the inability to analyze the effect of certain
recurring and non-recurring items that materially affect our net income
or loss. Additionally, because Adjusted EBITDA excludes some, but not
all, items that affect net income and is defined differently by
different companies in our industry, our definition of Adjusted EBITDA
may not be comparable to similarly titled measures of other companies.

The Company intends to provide a reconciliation of adjusted EBITDA to
net loss, the most directly comparable GAAP measure, when audited
financial information is available and released in connection with its
quarterly earnings press release and in its Annual Report on Form 10-K
for the year ended December 31, 2015.

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