Target Hospitality : Investor Presentation June 2021

Investor Presentation

June 2021

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 its first quarter 2021 Form 10-Q and 2020 Form 10-K/A filed on May 24, 2021 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 historical non-GAAP financial measures including EBITDA, Adjusted EBITDA and Discretionary Cash Flow ("DCF"). Reconciliations of these historical measures to the most directly comparable GAAP financial measures are contained herein. This presentation also contains forward-lookingnon-GAAP financial measures including Adjusted EBITDA and DCF. Reconciliations of these forward-looking measures to their most directly comparable GAAP financial measures are unavailable to Target Hospitality without unreasonable effort. We cannot provide reconciliations of forward-looking Adjusted EBITDA or DCF to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort. Although we provide a range of Adjusted EBITDA and DCF that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA and DCF calculation. 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 2021, which is available on our website free of charge at www.TargetHospitality.com.

Investor Presentation | 2

Target Hospitality (NASDAQ: TH)

Largest Provider of Comprehensive Hospitality Solutions

Key Differentiating Attributes

• TH owns an extensive network of geographically relocatable assets with 13,577 average available beds across 26 locations
• TH leverages a large network with increased revenue visibility from committed payment contracts and exclusivity provisions
• Servicing a diversified customer base including Government and Non-profits in support of humanitarian aid efforts

• Largest Network
• Premier Customers
• Premium Service Offerings
• Exceeding Analyst Expectation
  LTM Total Revenue(1)

Strategically located network creates scale and flexibility that continues to drive profitability

Long-standing and exclusive customer relationships;

• 4 years wtd. avg. contract duration drives visibility
• 90% contract renewal rates; customer pull drives favorable pricing and long-term trusting partnerships

Executing against expectations, with four consecutive quarterly "Beats" versus analyst estimates

Average Available Beds(2)

Government	Government
33%	22%
$198.9	13,577
Workforce	Workforce
Accomodations	Accomodations
67%	78%

1. $ in millions, Total consolidated revenue for the twelve months ended March 31, 2021
2. Average available beds as of March 31, 2021

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Differentiated Value-Enhancing Business Model

Strategically Focused on Enhancing Value through Diversification

Premier Network

Executing on Diversification

Network size and scale provide efficient operating structure and promote meaningful strategic advantages in servicing a diversified customer base

Distinct Core Competencies

Best in Class Customers find increasing value in Target's distinctive set of core competencies which provide the basis for comprehensive hospitality solutions including:

• Food Management - Workforce Accommodations
• Lodging Infrastructure - Logistics - Facilities Maintenance
• Premium Catering

Unique Capabilities

Target's premium service offerings provide the basis for expanding its commercial reach beyond its core accommodations platform while unlocking value within its existing core competencies. Target's suite of comprehensive hospitality service offerings and unique capabilities translate across a variety of end markets, creating multiple growth vectors to further enhance value.

LTM Total Revenue(1)

Government

33%

$198.9

Workforce

Accomodations

67%

Average Available Beds(2)

Government

22%

13,577

Workforce

Accomodations

78%

Estimated Full Year 2021 Total Revenue(3)

Government	Workforce
Accomodations
53%	47%

$265.0

Estimated 2021 Average

Available Beds(4)

Government	Workforce
43%	Accomodations
	57%

14,879

1. $ in millions, Total consolidated revenue for the twelve months ended March 31, 2021
2. Average available beds as of March 31, 2021
3. Represents mid-point of 2021 financial outlook, as announced on May 24, 2021
4. Represents anticipated average available beds as of December 31, 2021. Comprised of 6,400 available Government beds and 8,479 available Workforce beds

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Long-Standing Relationships with Blue-Chip Customers

Strength of Diverse Customer Base Drives Continued Success

Reliable

Mutually

Beneficial

Partnership

• Strong, well capitalized, credit worthy, customer base
• Top 6 non-government customers avg. enterprise value ~$78Bn
• • Representing ~47% of LTM revenue (1)
• ~79% of LTM revenue (1) is supported by top 6 customers and the U.S. Government
• New contract with leading nonprofit demonstrates Target's reputational strength and value of premium service offerings
• Partnership provides a suite of comprehensive service offerings supporting humanitarian aid efforts and local communities
• Recent contract additions, renewals and extensions illustrate strong customer relationships and provide ~$443 million in minimum revenue commitments through 2026
• Customer's value TH's scale, network and first-class offerings
• Best-in-Classreputation supports strong brand equity
• Multi-yearhistory of +90% renewal rates illustrates trusting long-term partnerships
• Existing facilities and service capabilities position Target for additional growth opportunities

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(1) Total consolidated revenue for the twelve months ended March 31, 2021, of $198.9 million