Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Piper Sandler 23rd Annual Energy Conference 2023
42 slides from Patterson-uti Energy's conference presentation, Mar 21, 2023
Slide 1: Piper Sandler 23rd Annual Energy Conference
Patterson-UTI Energy, Inc. Piper | Sandler 23rd Annual Energy Conference March 21-22, 2023 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 Update
Contract Drilling Update Leading edge pricing on Tier-1, Super-Spec rigs remains stable. Super-Spec rig utilization remains high; the market remains tight. Industry Super-Spec rig count remains relatively stable. Public operators have added to their Super-Spec rig count, offsetting declines among sm
Slide 4: Solid execution and returning cash to shareholders
Company Update Solid execution and returning cash to shareholders Robust pricing growth in 2022 provides solid foundation for earnings growth in 2023 2022 was a great year for pricing growth in contract drilling and pressure pumping 2023 earnings growth supported by the repricing of drilling rig con
Slide 5: Patterson-UTI Segments
Patterson-UTI Segments 2 DRILLING PUMPING Onshore contract drilling in U.S. and Colombia, primarily focused on Tier-1, Super-Spec rigs and rigs capable of using alternative fuel sources such as natural gas, hi-line electrical power, and lithium batteries Full-service pressure pumping focused on engi
Slide 6: Leading Provider of Critical Path Services
35% of total shale well cost1 Drilling Services 60% of total shale well cost1 Completion Services Estimated well cost data provided by Rystad Energy Leading Provider of Critical Path Services ~50% of E&P total well spend includes services provided by Patterson-UTI
Slide 7: Patterson-UTI Segment Synergies
Patterson-UTI Segment Synergies Deeper customer relationships Breadth of our service offerings provides us with Greater market intelligence Technical collaborations across businesses Shared infrastructure for data analytics
Slide 8: Contract Drilling
Contract Drilling PATTERSON-UTI DRILLING COMPANY LLC
Slide 9: Patterson-UTI Drilling: Our History
Patterson-UTI Drilling OUR HISTORY 1978 2001 Patterson Patterson Drilling formed (GaeeNgene) UTI Energy merge WHERE WE ARE NOW 2006 2015 2017 2018 019 2021 First Walking (gee) Rig Warrior Rig Technologies PTEN acquires PTEN acquires Seventy Current Power Seven Energy First EcoCell™ battery hybrid en
Slide 10: What is a Tier-1, Super-Spec Rig?
What is a Tier-1, Super-Spec Rig? Patterson-UTI is a market and technology leader 1,500 hp elevated drawworks for more room under rig floor Mast rated for at least 750,000 pound hookload High pressure circulating system (7,500 psi) Third mud pump for greater hydraulic horsepower Multi-well pad capab
Slide 11: U.S. Drilling Margins per Operating Day
U.S. Drilling Margins per Operating Day The repricing of rig contracts to current leading-edge rates expected to drive margins higher Adjusted gross margin is defined as revenue less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Average adjusted gro
Slide 12: Pressure Pumping
Pressure Pumping MUNIVERSAL
Slide 13: Universal Pressure Pumping: Our History
Universal Pressure Pumping 1980 First frac job 2004 Industry first Marcellus slick water frac OUR HISTORY 2006 Industry first horizontal Marcellus slick water frac vertical 2010 2014 2017 PTEN acquires Key Eneray Services’ pressure pumping assets Acquisitions of Torqued Up and Platinum Energy Servic
Slide 14: Digital Transformation
Digital Transformation Remote operations, enhanced analytics Operational data aggregation and equipment health monitoring Condition-based decision-making coupled with predictive analytics Edge automation Automated pump controls and fuel optimization provide safer, more reliable and consistently repe
Slide 15: Technical Expertise and Collaboration: Engineered solutions
Technical Expertise and Collaboration Engineered solutions Changes to completion design increased frac intensity and improved stimulated reservoir volume while lowering costs Remote simul-frac operation cut completion time by 38% for Permian customer >30% reduction in treatment schedule deviations I
Slide 16: Technical Expertise and Collaboration: Intelligent fluid chemistry
Technical Expertise and Collaboration Intelligent fluid chemistry Domain experts formulate frac chemistry Real-time water rheology with friction reducing performance Environmentally friendly formulations Customer value Optimizing frac fluid chemistry has lowered well completion costs and improved co
Slide 17: Directional Drilling and Data Analytics
Directional Drilling and Data Analytics
Slide 18: MS Directional
MS Directional A leading provider of directional drilling services Strong reputation for the reliability and durability of downhole performance motors and measurement-while-drilling (MWD) tools Remote MWD operations with reduced personnel are standard on all directional drilling jobs
Slide 19: Superior QC
Superior QC Space flight navigation algorithms Improved well placement Better steering to target zones Better wellbore quality ™ ™
Slide 20: EcoVerse
EcoVerse™ = ? z ra) a 4 Wu Ec &
Slide 21: PTEN Sustainability Firsts
PTEN Sustainability Firsts 21
Slide 22: Sustainability Firsts: Natural gas, dual fuel, batteries, hi-line power
100% Natural Gas Generators on Drilling Rigs Dual Fuel Frac Spreads and Drilling Rigs Lithium Batteries on Drilling Rigs Hi-Line Power Automated Engine Management Software
Slide 23: Natural Gas Powered Engines on Drilling Rigs
Natural Gas Powered Engines on Drilling Rigs Offering fuel flexibility and utilizing local infrastructure Able to utilize local natural gas infrastructure already available thereby reducing the need for diesel fuel transportation and consumption Cleaner burning natural gas helps to reduce emissions
Slide 24: EcoCell
EcoCell™ Optimizing efficiency and reducing the carbon footprint of our rig Leveraging stored energy helps to optimize fuel efficiency and reduce fuel costs. Reduced fuel consumption helps to reduce emissions. Patterson-UTI is a leader in the use of lithium batteries on drilling rigs.
Slide 25: Hi-Line Electrical Power
Patterson-UTI provides in-house electrical engineering, hardware packaging, and installation services to power our rigs from electric utility lines This full-service offering enables our customers to utilize an optimal power solution on our drilling rig when it comes to emission impacts at the wells
Slide 26: Engine Automation
Engine Automation Automating efficient engine management to optimize fuel savings and emission reduction Automation to start and stop engines as needed to meet fluctuations in rig power demand Helps to reduce fuel costs and emissions by optimizing the average genset load and decreasing the overall g
Slide 27: Power Management Dashboard
Power Management Dashboard Real time remote monitoring of rig fuel consumption and emissions Monitors real time rig power usage to effectively manage fuel consumption and reduce fuel costs Interactive analytical tools allow monitoring of 40 different engine data fields (pressures, temps, speed, alar
Slide 28: Natural Gas Powered Frac Spreads
Dual-fuel equipment capable of instantaneous substitution up to 85% Natural Gas Powered Frac Spreads Improved fuel emissions, optimized consumption Majority of frac spreads are dual-fuel Saved >35MM gal diesel >32K dual-fuel frac stages
Slide 29: Financials
Financials @\ PATTERSON-UTI . 4
Slide 30: Focused on Shareholder Returns
Focused on Shareholder Returns PTEN has returned more than $1 billion to shareholders in the last 10+ years
Slide 31: Capital Allocation
Capital Allocation CAPITAL SPENDING Primarily focused on maintenance, which increases with activity levels Equipment reactivations on a disciplined basis Major upgrades backed by term contracts SHAREHOLDER RETURNS Focused on maintaining a stable dividend with increases when economics allow Sharehold
Slide 32: Strong Financial Position
Strong Financial Position 1.2x Net Debt to Adjusted EBITDA for 2022 Net debt of $699 million at December 31, 2022 No near-term debt maturities at December 31, 2022 $489 million 3.95% senior notes due 2028 $348 million 5.15% senior notes due 2029 Favorable credit ratings Moody’s – Baa3 S&P – BB+
Slide 33: No Near-Term Debt Maturities
No Near-Term Debt Maturities At December 31, 2022, $600 million available under revolving line of credit that matures in 2026 ($550 million available after March 2024 and $417 million available after March 2025)
Slide 34: Environmental & Social Sustainability
Environmental & Social Sustainability
Slide 35: Patterson-UTI Core Values
Patterson-UTI Core Values Safety and Environment The safety of our employees and the protection of our environment is a cornerstone, and we are committed to providing a safe, incident-free work environment for all. Operational Excellence We partner with our customers to achieve their goals, through
Slide 36: Environmental
Environmental Air Quality We utilize natural gas engines, dual-fuel equipment and other technologies that reduce our air emissions Water Quality We strive to conduct our drilling and completion activities in a manner that protects the quality of ground and surface water Land Use We employ spill prev
Slide 37: Social
Social Our people are our most important asset and our greatest strength Health and Safety Our goal is to provide an incident-free work environment. The safety of our employees and others is our highest priority. We regularly audit and review our HSE performance in all of our businesses. Diversity,
Slide 38: Patterson-UTI
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Slide 39: Appendix
Appendix @\ PATTERSON-UTI . 4
Slide 40: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by accounting principles generally accepted in the United States of America (“GAAP”). We define Adjusted EBITDA as net income (loss) from continuing operations plus
Slide 41: Non-GAAP Financial Measures: U.S. Drilling Average Adjusted Gross Margin
Non-GAAP Financial Measures U.S. Drilling Average Adjusted Gross Margin Adjusted gross margin is defined as revenue less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Average adjusted gross margin per operating day is defined as adjusted gross margi
Slide 42: Non-GAAP Financial Measures
Non-GAAP Financial Measures
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