Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Barclays CEO Energy-Power Conference 2015
29 slides from Patterson-uti Energy's conference presentation, Sep 8, 2015
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 8-10, 2015 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: Contract Drilling
Pressure Pumping 38% Contract Drilling 61% Contract Drilling • High quality fleet of land drilling rigs including 159 APEX ® rigs • Leader in walking rig technology for pad drilling applications • Large footprint across North American drilling markets Oil & Natural Gas 1% Components of Revenue Patte
Slide 4: Pressure Pumping
Pressure Pumping 38% Contract Drilling 61% Pressure Pumping • High quality fleet of modern pressure pumping equipment • Strong reputation for regional knowledge and efficient operations • Concentrated footprint provides economies of scale Oil & Natural Gas 1% Components of Revenue Patterson-UTI repo
Slide 5: Scaling The Business
Scaling The Business Scaling our business effectively is key to our success… …both in upturns and downturns Patterson-UTI U.S. rig count and U.S. drilling staff size through August 21, 2015
Slide 6: Managing Supply Chain
Managing Supply Chain • Sourcing and Supply Security – Negotiated critical cost elements for both Drilling and Pressure Pumping – Solidified availability of strategic commodities • Reduced Costs in 2015 – Sand costs down 25% - 35% – Sand hauling costs down 25% - 35% – Pump parts costs down 15% - 20%
Slide 7: Patterson-UTI Drilling Company LLC
@© PATTERSON. UTI DRILLING COMPANY LLC @S PATTERSON. UTI ENERGY INC.
Slide 8: High Quality Drilling Rigs
126 30 3 High Quality Drilling Rigs APEX ® Rig Fleet by Drawworks Horsepower 1500hp 1000hp 2000hp APEX ® Rigs
Slide 9: Majority of Adjusted EBITDA from APEX Rigs
APEX ® Other Electric Mechanical Majority of Adjusted EBITDA from APEX ® Rigs Adjusted EBITDA Contribution by Rig Class *Adjusted EBITDA contribution by rig class excluding early termination revenues for the six months ended June 30, 2015.
Slide 10: The APEX-XK
The APEX-XK ® • Enhanced X-Y mobility – Walk with full set-back of pipe in mast – More efficient rig up / rig down – Walking times average 45 minutes for 10’ – 15’ well spacing • Advanced environmental spill control integrated into drilling floor • Reduced number of truck loads for rig moves • 51 AP
Slide 11: APEX-XK Integrated Walking System
APEX-XK ® Integrated Walking System
Slide 12: Video of APEX-XK Rig
12 Video of APEX-XK ® Rig APEX-XK ® Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/
Slide 13: Large Geographic Footprint
West Texas 23 Rigs Large Geographic Footprint PTEN’s Active Rig Count by Region as of August 31, 2015 Appalachia 17 Rigs East Texas 15 Rigs Mid-Continent 9 Rigs Mid-Continent 9 Rigs Rockies 9 Rigs South Texas 16 Rigs North Dakota 13 Rigs Canada 4 Rigs http://patenergy.com/
Slide 14: Patterson-UTI Energy Inc.
@PATTERSON-UTI . 2 ENERGY INC.
Slide 15: Modern Pumping Equipment: Frac Horsepower by Age
< 5 Years 71% 5 - 10 Years 25% >10 Years 4% Modern Pumping Equipment Frac Horsepower by Age Years Average Age
Slide 16: Modern Pumping Equipment: Frac Horsepower by Pump Type
Quintuplex 80% Modern Triplex 16% Legacy Triplex 4% Modern Pumping Equipment Frac Horsepower by Pump Type 1 Million Horsepower Modern triplex pumps defined as being placed in service within the last seven years.
Slide 17: Market Concentration Provides Economies of Scale
34% 66% Southwest Region: Northeast Region: Frac Horsepower Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 343,800 Other horsepower: 55,400 Market Concentration Provides Economies of Scale Pressure Pumping Areas Horsepower distribution as of June 30, 2015
Slide 18: Technology Focused: PropLogic Sand Management System
Technology Focused PropLogic™ Sand Management System • Fully enclosed well-site sand management system • More accurate than conventional sand trailers/bins • More efficient use of proppant as less sand is wasted
Slide 19: Technology Focused: PowderStim Dry Friction Reducer
Technology Focused PowderStim ® Dry Friction Reducer • System hydrates powder form of friction reducer directly into the fluid stream • Logistically safer and more efficient compared to liquefied friction reducers • Successful with both fresh water and heavy brines • More cost effective by utilizing
Slide 20: Technology Focused: Comprehensive Lab Services
Technology Focused Comprehensive Lab Services • Ability to test vendors’ chemicals enhances quality controls • Unique in-house friction flow loop test assembly for faster test results • In-house lab services are faster and more cost efficient than outsourcing
Slide 21: Patterson-UTI Energy Inc.
@PATTERSON-UTI ENERGY INC.
Slide 22: Investing in Our Company
Investing in Our Company $598 $637 $445 $453 $976 $1,012 $974 $662 $1,229 $710 2015E Year End Capital Expenditures and Acquisitions ($ in millions) 2015 Capital expenditure forecast as of July 23, 2015
Slide 23: Strong Financial Position
$300 $300 $273 $2,868 Strong Financial Position Capital Structure ($ in Millions) 23% Debt/ Total Cap Stockholder’s Equity 4.97% Series A notes Due October 5, 2020 4.27% Series B notes Due June 14, 2022 Bank Term Loans Maturing September 27, 2017 * Debt and equity balances as of June 30, 2015. $272.
Slide 24: Total Liquidity
$500 $77 Total Liquidity $ in Millions Line of Credit Availability Cash * Cash and debt balances as of June 30, 2015. $272.5 million of bank term loan includes quarterly payments totaling $17.5 million for the remainder of 2015 and $63.8 million in total for 2016. • $76.5 million cash • $500 million
Slide 25: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? • High Quality Assets – 159 APEX ® rigs comprised primarily of 1500 horsepower and pad capable rigs – Creating value through focus on well site execution • Technology leader – Leader in walking rigs for pad drilling – Innovator in deploying latest technologies for
Slide 26: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 8-10, 2015
Slide 27: Patterson-UTI Energy Inc.
@PATTERSON-UTI ENERGY INC.
Slide 28: Adjusted EBITDA Reconciliation
Three Months Ended June 30, Six Months Ended June 30, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ (18,975) $ 54,283 $ (9,850) $ 89,105 Income tax expense (benefit) (14,720) 25,905 (8,000) 42,847 Net interest expense 8,931 7,041 17
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ 162,664 $ 188,009 $ 299,477 $ 322,413 $ 116,942 Income tax expense (benefit) 91,619 108,432 176,196 187,938 72,856 Net interest expense (income) 28,846 27,441
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