Investor Presentation June 2020 Disclaimer Cautionary Statement - PowerPoint PPT Presentation

Investor Presentation June 2020

Disclaimer Cautionary Statement Regarding Forward-Looking Statements This presentation contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as “forward -looking statements. ” You can identify these statements by the fact that they do not relate strictly to historical or current facts. Management cautions that any or all of Target Hospitality’s forward-looking statements may turn out to be wrong. Please read Target Hospitality’s annual, quarterly and current reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including first quarter 2020 Form 10-Q and 2019 Form 10-K filed on March 13, 2020 for additional information about the risks, uncertainties and other factors affecting these forward-looking statements and Target Hospitality generally. Target Hospitality’s actual future results may vary materially from those expressed or implied in any forward-looking statements. All of Target Hospitality’s forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward- looking statements. In addition, Target Hospitality disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures including EBITDA and Adjusted EBITDA. Reconciliations of these historical measures to the most directly comparable GAAP financial measures are contained herein. To the extent required, statements disclosing the definitions, utility and purposes of these measures are set forth in our earnings press release for the first quarter 2020, which is available on our website free of charge at www.TargetHospitality.com. Investor Presentation | 2

Target Hospitality (NASDAQ: TH) Largest provider of full turnkey accommodations Key differentiating attributes ▪ TH owns an extensive network of geographically relocatable assets with 12,978 average available beds across 25 locations Strategically located network creates scale and Largest network 1 flexibility that continues to drive profitability ▪ TH leverages a large network with increased visibility from committed payment contracts and exclusivity provisions Long-standing and exclusive customer relationships; Premier customers with 2 > 3 years wtd. avg. contract duration drives visibility exclusive long-termrelationships Premium in-house catering + > 90% contract renewal rates; customer pull drives 3 value-added hospitality services favorable pricing and long-term trusting partnerships LTM Total Revenue (1) Average Available Beds Other Other(2) 345 4% Bakken Bakken 1,025 6% Gov't Gov't 2,400 22% 12,978 $310.8 Permian Permian 68% 9,208 Investor Presentation | 3 (1) $ in millions, Total consolidated revenue for the twelve months ended March 31, 2020 (2) “Other” segment operations consist primarily of revenue from the construction phase of the contract with TransCanada Pipelines as well as specialty rental and vertically integrated hospitality services revenue from customers in the oil and gas industry located outside of the Permian and Bakken basins

Differentiated, Value-Added Business Model 1 2 3 … premier customers through … premium in-house catering + Largest network serving … exclusive LT relationships with … value-added hospitality services TARGET 12 WHAT WE PROVIDE ENHANCES THEIR YOUR WORKERS PERFORMANCE OFF THE CLOCK ON THE CLOCK 01 FOOD ENGAGEMENT 07 02 REST PERFORMANCE 08 03 CONNECTION SAFETY 09 04 WELLNESS LOYALTY 10 05 COMMUNITY PRODUCTIVITY 11 06 HOSPITALITY PREPAREDNESS 12 Investor Presentation | 4

Significant Growth Milestones January 31, 2019 June 19, 2019 July 1, 2019 March 15, 2019 Renews and expands Acquires 3 communitiesfrom Acquires Midland community Target Hospitality several multi-year contracts Superior Lodging (575 beds) from ProPetro (168 beds) goes public September 7, 2018 February 26, 2019 May 7, 2019 June 25, 2019 Acquires Signor Announces a new 400-bed Announces a new 200-bed Expands capacity by 200 beds Lodging community in Carlsbad, NM community for a major, at two new Delaware Basin anchored by a major producer integrated E&P customer communities (Delaware Basin) (Delaware Basin) A vailable 6,770 11,825 11,560 11,930 12,505 12,705 12,873 Beds: Organic M&A Investor Presentation | 5

Long-Standing Relationships with Blue-Chip Customers Strength of Customer Base Drives Continued Success ✔ Strong, well capitalized, credit worthy, customer base ✔ Reliable Top 5 energy customers avg. enterprise value ~$24Bn ✔ Representing +45% of LTM energy revenue LTM Total Revenue (1) ✔ Contract modifications demonstrate strength in customer Energy 78% relationships Mutually ✔ Term extensions provide TH with greater visibility on $310.8 Beneficial long-term revenue ✔ Maintained contract integrity Government 22% ✔ Multi-year Investment horizons ✔ Value TH’s scale, network and first -class offerings Partnership ✔ Multi-year history of +90% contract renewal rates Investor Presentation | 6 (1) $ in millions, Total consolidated revenue for the twelve months ended March 31, 2020

Attractive Exposure to Government End Market South Texas Family Residential Center (STFRC) ▪ STFRC established in 2015 in Dilley, Texas 85-acre open complex – ✔ Unique, hard to replicate asset Four neighborhood communities – Each consisting of individual family unit accommodations, a playground and recreational facilities, as well as 24-hour • ✔ Best-in-class facility access to snacks and refreshments ✔ Local community support State of the art education facilities – K-12 full service interactive classrooms • ~ 7,000 sq. ft. library with over 26,000 books • ✔ Long-term land lease ▪ Ideal solution meeting government need to house asylumseeking women and ✔ Stable revenue stream children family units – 2,400 average available beds with a multi-year lease through2021 ✔ Expansion opportunity – Opportunity for facility expansion ▪ Provide catering and facility maintenance servicesonly Over 9 million scratch meals served since inception – Approved GSA vendor status; sub-contractor ofCoreCivic ▪ CoreCivic Provides TH Provides ▪ 12 hour catering services ▪ Admission processing ▪ Recreational and medical facilities ▪ 24/7 snacks and refreshments ▪ Healthy and safe accommodations ▪ TV, telephone and email access ▪ Cafeteria maintenance/management ▪ Maintenance of resident facilities ▪ On-site immigration courts ▪ Maintenance of employee facilities ▪ Schooling and educational resources ▪ All other contracted services Investor Presentation | 7

Key Investment Highlights Nation’s Largest Vertically -Integrated Specialty Hospitality and Services Provider ✔ ✔ Generating Significant Operating Cash Flow = ~$78 million (1) ✔ Ability to Quickly React to Changing Market Conditions; ~$48 Million in Liquidity (2) = Preserving Liquidity and Maintaining Operational Flexibility ✔ Strong Capital Structure Provides Financial Flexibility in = 2.8x Net Leverage (2) Current Environment Investor Presentation | 8 (1) Net cash provided by operating activities for the twelve months ended March 31, 2020 (2) As of March 31, 2020

Financial Update Financial Strength Investor Presentation | 9

Strong First Quarter 2020 Performance Continued Strong Cash Generation Creates Significant Flexibility First Quarter Highlights Operating Cash Flow ▪ Generated revenue of ~$72 million and adjusted EBITDA (1) of ~$32 million +62% CAGR ▪ Meaningful operating cash flow of ~$11 million ▪ Implemented significant cost reductions aimed at reducing cash expenses by +30% ▪ Dynamically managed business to remove variable $77.8 $60.5 cost and align with customer demand $26.2 ▪ Proactively modified select commercial contracts to 2018 2019 Q1 2020 LTM ensure continued revenue and cash flow visibility Investor Presentation | 10 (1) Adjusted EBITDA is a non-GAAP measure; see appendix for a reconciliation to GAAP measures

Focused Strategy Promotes Financial Flexibility TH Remains Focused on Preserving Liquidity to Retain Operational and Financial Flexibility in the Current Environment ✔ Reduced 2020 growth capital by 50% to $5 - $10 million Capital ✔ Minimal 2020 maintenance capital of $2 - $4 million Discipline ✔ Preserving robust cash generation , supporting continued financial flexibility ✔ Meaningful variable cost structure provides ability to quickly react to changing demand ~70% of cost of service has variable components , offsetting reduced utilization Cost ✔ Meaningful reduction to cash corporate expenses Reduction Voluntary cash salary reductions, reductions in workforce and discretionary spending ✔ Anticipated +30% reduction in cash expenses over the remainder of 2020 ✔ Maintaining strong capital structure, while adapting to changing market conditions Balance Sheet ✔ No near-term maturities within capital structure provides additional flexibility and Liquidity ✔ Asset based credit facility has no immediate covenant, liquidity or minimum credit rating ✔ Approximately $48 million of liquidity as of March 31, 2020 Investor Presentation | 11