Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Raymond James 34th Annual Institutional Investors Conference (March 2013)
37 slides from Patterson-uti Energy's conference presentation, Mar 5, 2013
Slide 1: Raymond James Annual Institutional Investors Conference
Exhibit 99.1 Raymond James 34 Annual Institutional Investors Conference th Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. March 5-6, 2013 March 5-6, 2013
Slide 2: Forward Looking Statements
2 2 This material and any oral statements made in connection with this material include "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Statements made which provide the Company’s or management’s intentions, beliefs, expectations
Slide 3: Why Invest in U.S. Oil Services?
3 “By around 2020, the United States is projected to become the largest global oil producer…” - International Energy Agency, “World Energy Outlook 2012” Why Invest in U.S. Oil Services? “By around 2020, the United States is projected to become the largest global oil producer…” - International Energy
Slide 4: Why Invest in U.S. Oil Services? Shale changed production outlook
4 Shale gas and oil fundamentally changed the North American production outlook for natural gas and oil Horizontal drilling and completion techniques Source: US Energy Information Administration, Short-Term Energy Outlook, February 12, 2013 Why Invest in U.S. Oil Services? • • Shale gas and oil fund
Slide 5: Why Invest in U.S. Oil Services? Timing
5 The timing looks good: The rig count looks poised for a modest recovery Pressure pumping outlook has improved Why Invest in U.S. Oil Services? • • The timing looks good: – – The rig count looks poised for a modest recovery – – Pressure pumping outlook has improved
Slide 6: Why Invest in Patterson-UTI Energy?
Operational Strength High quality equipment Customer relationships Operational flexibility Flexible operating model Maximizes earnings growth during periods of increased activity Minimizes costs during periods of low activity Strong cash flow generation History of returning capital to shareholders S
Slide 7: © \\PATTERSON-UTI wy
© \\PATTERSON-UTI wy
Slide 8: Contract Drilling
One of the “Big 3” U.S. Land drillers High quality fleet including 113 APEX ® rigs Strong term contract coverage Who We Are >> Operational Strength >> Financial Flexibility Patterson-UTI reported results for the twelve months ended December 31, 2012 8 Contract Drilling • • One of the “Big 3” U.S. La
Slide 9: Pressure Pumping
Industry expertise needed for sophisticated customers and substantial local knowledge High quality fleet of modern pressure pumping equipment Strong reputation for safe and efficient operations Who We Are >> Operational Strength >> Financial Flexibility Patterson-UTI reported results for the twelve
Slide 10: Operational Strength – Contract Drilling
Operational Strength – Operational Strength – Contract Drilling Contract Drilling
Slide 11: PTEN's Active U.S. Land Drilling Rigs
11 PTEN’s Active U.S. Land Drilling Rigs as of March 2013 East Texas Appalachia & Midwest North Texas Rockies South Texas 33 Rigs 29 Rigs 24 Rigs 39 Rigs 6 Rigs 13 Rigs Permian Basin 48 Rigs PTEN’s Active U.S. Land Drilling Rigs as of March 2013 East Texas Appalachia & Midwest North Texas Rockies So
Slide 12: Innovative Rig Designs
12 Innovative Rig Designs Who We Are >> Operational Strength >> Financial Flexibility
Slide 13: Introducing the APEX-XK
Enhanced mobility including more efficient rig up and rig down Greater clearance under rig floor for optional walking system Advanced environmental spill control integrated into drilling floor Enhanced solids handling Available in both 1500 horsepower and 1000 horsepower 13 http://patenergy.com/dril
Slide 14: Enhancing our Position in Pad Drilling
14 Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drilling Capabilities Enhancing our Position in Pad Drilling Who We Are >> Operational Strength >> Financial Flexibility Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Di
Slide 15: Enhancing our Position in Pad Drilling
15 Adding Walking Systems to APEX ® Rigs Allows: A rig to both walk on a pad while still mobilizing quickly between pads Greater flexibility in location of the wells on a pad Reduces well construction time and cost in pad drilling Enhancing our Position in Pad Drilling Who We Are >> Operational Stre
Slide 16: APEX WALKING Rigs
Optimized for more than four wells on a pad Capable of walking with drill pipe and collars racked in derrick Full multi-directional walking capability Walking times average 45 minutes for 10’ – 15’ well spacing 16 http://patenergy.com/drilling/technology APEX WALKING ® Rigs • • Optimized for more th
Slide 17: APEX WALKING Rigs Video
17 http://patenergy.com/drilling/technology APEX WALKING ® Rigs Who We Are >> Operational Strength >> Financial Flexibility Video of APEX WALKING ® Rig
Slide 18: APEX Rig Fleet
…and Expected as of December 31, 2013 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® 18 APEX ® Rigs as of December 31, 2012 19 4 48 44 11 7 4 47 44 11 …and Expected as of December 31, 2013 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® Total APEX Total APE
Slide 19: Continued Demand for APEX Rigs
19 Percentage of Horizontal Wells Continues to Increase Who We Are >> Operational Strength >> Financial Flexibility Continued Demand for APEX ® Rigs Percentage of Horizontal Wells Continues to Increase
Slide 20: Operational Strength – Pressure Pumping
Operational Strength – Operational Strength – Pressure Pumping Pressure Pumping
Slide 21: Focused on Well Site Execution
Diversified provider of pressure pumping services including hydraulic fracturing, cementing, nitrogen services, and acidizing Modern equipment enhances reliability Preventive maintenance program reduces downtime Premium service supports premium pricing 21 http://patenergy.com/pressurepumping Focused
Slide 22: Modern Pressure Pumping Fleet
22 PTEN Fracturing Horsepower by Age As of December 31, 2012 Average age of only three years Average age of only three years Who We Are >> Operational Strength >> Financial Flexibility Modern Pressure Pumping Fleet
Slide 23: Dual Fuel Conversions
Engines can burn a fuel mix comprised of up to 70% natural gas Comparable torque and horsepower as an all diesel engine Reduces operating costs by lowering fuel costs Good for environmental sustainability 23 Dual Fuel Conversions • • Engines can burn a fuel mix comprised of up to 70% natural gas • •
Slide 24: Financial Flexibility
Financial Financial Flexibility Flexibility
Slide 25: Investing in Our Company
25 Capital Expenditures and Acquisitions ($ in millions) Investing in Our Company Who We Are >> Operational Strength >> Financial Flexibility
Slide 26: Strong Financial Position
26 History of returning capital to investors Stock Buyback December 31, 2012 Cash Dividend Returned approximately $1.1 billion to shareholders since 2005 • • History of returning capital to investors – – Stock Buyback • Repurchased 7% of Shares in 2012 • Repurchased 7% of Shares in 2012 • Approximat
Slide 27: Strong Financial Position: Liquidity and Debt
Total liquidity of approximately $571 million $111 million of cash at December 31, 2012 $460 million revolver availability at December 31, 2012 $588 million net debt at December 31, 2012 18% Net Debt/Total Capitalization $300 million of 4.97% Series A notes due October 5, 2020 $300 million of 4.27%
Slide 28: Strong Financial Returns
Growth in Per-Share Book Value The Warren Buffett Standard 28 Strong Financial Returns Growth in Per-Share Book Value The Warren Buffett Standard
Slide 29: Raymond James Annual Institutional Investors Conference
Raymond James 34 Annual Institutional Investors Conference th Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. March 5-6, 2013 March 5-6, 2013
Slide 30: Additional References
Additional References Additional References
Slide 31: PTEN's Active Rigs in Unconventional Areas
31 PTEN’s Active Rigs in Unconventional Areas as of March 2013 Piceance Haynesville Marcellus Barnett 19 Rigs Eagle Ford 5 Rigs 21 Rigs 4 Rigs 28 Rigs 6 Rigs 8 Rigs Niobrara 1 Rig Woodford 3 Rigs PTEN’s Active Rigs in Unconventional Areas as of March 2013 Piceance Haynesville Marcellus Barnett Eagle
Slide 32: Contract Drilling EBITDA Contribution by Rig Class
Contract Drilling EBITDA Contribution by Rig Class Twelve Months Ended December 31, 2012 32 Preferred rigs account for more than Preferred rigs account for more than 75% of Contract Drilling EBITDA 75% of Contract Drilling EBITDA Contribution from High Quality Rigs
Slide 33: Mechanical Rigs
Mechanical Rigs 147 mechanical rigs in fleet Most are upgraded to meet customers’ diverse needs Ideally suited for certain markets and wells Favorable return profiles given low book values Even better returns if drilling activity accelerates 33 Improved mud systems Iron roughnecks and other automati
Slide 34: Term Contract Coverage
Based on term contracts in place* An average of 123 rigs expected under term contract in the first quarter of 2013 An average of 97 rigs expected under term contract for all of 2013 PTEN expects to continue signing term contracts * Term contracts in place as of February 7, 2013 34 Drilling term cont
Slide 35: Growing Pressure Pumping Business
35 Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010 Growing Pressure Pumping Business
Slide 36: Pressure Pumping Areas of Operation
36 Fracturing horsepower: 383,000 Other horsepower: 23,500 Fracturing horsepower: 293,000 Other horsepower: 58,000 A Significant Player in Regional Markets Southwest Region: Northeast Region: Pressure Pumping Areas of Operation
Slide 37: Non-GAAP Financial Measures
a Non-GAAP Financial Measures i i u PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) Three Months Ended YearEnded (dollars in thousands) December 34, December 34, 2012 2014 2012 2014 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(A): Net incame $ 58859 $ 87