JCUBED WORKFORCE HOUSING

JCUBED WORKFORCE HOUSING INVESTOR PRESENTATION DECK Presented by

James Blakemore, James Sparr & Jimmy Young JCubedHousing.com

432.205.1362

THE OVERVIEW JCubed is a workforce housing, hospitality, and logistics company.

It serves the Oil & Gas industry in the Permian and Delaware Basins of West Texas; and other regions throughout the State of Texas.

James Blakemore / Co-Founder, CEO

James Sparr / Co-Founder, COO

Jimmy Young / Partner

Kim Taylor / Construction Manager

THE MARKET There were 17,000+ drill permits issued by the Texas RRC in 2018, that employed between 70 and 100 field / well personnel according to a Halliburton management source.

These numbers are likely to double in the next 5 years according to USEIA.

17,000 In 2018, oil & gas companies spent an average of $100K per/year, per/field worker on housing, which create a total workforce housing market opportunity of $100B.

THE COMPETITION Man Camps are the prime competitor for JCubed. Then again Oil & Gas companies still fly workers in and put them up in hotels.

Apartment demand is still high, and RV’s are a good solution for people who own RVs, however.

A Man Camp is an area developed for field workers. It includes a series of housing trailers placed one next to the other.

THE COMPETITION Man Camps are the prime competitor for JCubed. Then again Oil & Gas companies still fly workers in and put them up in hotels.

Apartment demand is still high, and RV’s are a good solution for people who own RVs, however.

Each unit has a bed, toilet, but no kitchen. Instead, food is served in a mess hall type of environment.

THE PROBLEM Demand for Oil & Gas workforce housing greatly outweighs the supply.

Oil & Gas production typically occurs 2-3 hours away from a large town, leading to long commutes for field workers.

THE PROBLEM When the markets turn, Oil & Gas Companies move their drilling operations to new areas.

Their labor force also moves with them, leaving hotels, apartments, and man camps empty, with little to no value.

THE STATISTICS The Permian Basin Oil & Gas industry will support 93,201 jobs in 2020, according to the latest forecast from Texas Independent Producers & Royalty Owners Association (TIPRO).

93,201 “Permian production and employment are expected to rise in the coming year as additional pipeline capacity comes online.� - TIPRO President Ed Longanecker

THE STATISTICS Based on TIPRO’s analysis, including production, pricing and employment trends, the forecast is an increase of 5,578 new Oil & Natural Gas jobs in The Permian Basin in 2019 – 2020

5,578

5,578 more jobs than the sector supported in the first half of 2019 and 12,209 more jobs than the sector supported last year, TIPRO revealed.

THE SOLUTION JCubed has created the first of its kind mobile workforce housing units.

The company utilizes shipping containers and converts them into durable housing with a bedroom, bathroom, kitchen, and sitting area.

THE SOLUTION Once converted into individual modular units, they are then arrayed in way that creates a workforce community.

This creates a better environment for the workforce, which is managed by JCubed.

Speed & Mobility THE SOLUTION All JCubed units are manufactured in Texas and can be moved by truck or train for rapid deployment.

If a workforce needs to be relocated, our units can be quickly redeployed and reused for another location.

Rapid Deployment

THE SOLUTION The quantity of shipping containers available through JCubed’s supply chain partner, along with its proprietary conversion to housing process, makes our solution the most scalable one in the market.

Highly Scalable Unlimited Supply

THE SOLUTION JCubed’s pricing model is designed to compete favorably with hotels, apartments, RV parks and man camps.

Convenience and flexibility are what the Oil & Gas industry needs to optimize workforce housing logistics.

Hotels

Apartments

JCubed Workforce Housing

Cost Effective Term Flexibility

RV Parks

THE SOLUTION From reusing shipping containers, to building with sustainable materials, and leveraging solar and other energy efficient power sources. JCubed’s goal is to be on the leading edge of environmentally friendly development.

Positive Impact

Environmentally Friendly

Proposed Development Site Mentone, Texas

THE SOLUTION JCubed’s Workforce 1 Camp offers a durable and efficient layout, along with state-ofthe-art design.

With unlimited supply, cost effective rate plans, and rapid deployment capacity, JCubed is the future of workforce housing.

3D Visualization - Workforce 1 Camp

THE INVESTMENT JCubed is raising $2.87m with a 6-year term, in its second Workforce 1 Housing Camp.

JCubed intends to be at 90% occupancy on a per acre basis for its Workforce 1 Camp within 6 months of opening its doors.

THE INVESTMENT The unlevered ROI for the investment is 35%.

The ROI comes with a 2-year term and is based upon the fact that in its current state, JCubed’s current Workforce 1 Camp is fully occupied.

$2.87m

Investment Term of

THE INVESTMENT JCubed has a 6-year horizon for its second Workforce 1 Camp and believes it will be an excellent acquisition target by other workforce hospitality and logistics companies that want to expand their footprint.

6 Years

Payback Term of 2 Years With a Total Return of

$11.9m Includes Repayment of Original Investment by Month 25

BASED ON $2.875m INVESTMENT

BASED ON $2.875m INVESTMENT

BASED ON $2.875m INVESTMENT

BASED ON $2.875m INVESTMENT

BASED ON $2.875m INVESTMENT

BASED ON $2.875m INVESTMENT

BASED ON $2.875m INVESTMENT

Q&A

JCUBED WORKFORCE HOUSING

JCubedHousing.com 432.205.1362