Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Howard Weil 42nd Annual Energy Conference 2014
50 slides from Patterson-uti Energy's conference presentation, Mar 25, 2014
Slide 1: Howard Weil 42nd Annual Energy Conference March 25-26, 2014
Howard Weil 42nd Annual Energy Conference March 25-26, 2014
Slide 2: Forward Looking Statements
Forward Looking Statements 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 intentio
Slide 3: Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Slide 4: Contract Drilling
Contract Drilling High quality fleet of land drilling rigs including 127 APEX(r) rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets American drilling markets American drilling markets American drilling markets American drilling
Slide 5: Pressure Pumping
Pressure Pumping High quality fleet of modern pressure pumping equipment A leader in natural gas bi-fuel technology Strong reputation for regional knowledge and efficient operations Patterson-UTI reported results for the year ended December 31, 2013 5 (CHART) Pressure Pumping 36%
Slide 6: Contract Drilling
mr ww Contract Drilling
Slide 7: Contract Drilling Capital Expenditures and Acquisitions
7 Contract Drilling Capital Expenditures and Acquisitions ($ in millions) Investing in Our Drilling Rig Fleet (CHART) More than $4.5 billion invested since 2005
Slide 8: APEX Rig Fleet
...and Expected as of December 31, 2014 APEX-XK 1500(tm) APEX-XK 1000(tm) APEX WALKING(r) APEX 1500(r) APEX 1000(r) Total APEX(r) Rigs Class APEX(r) Rigs as of March 25, 2014 36 4 49 44 11 144 12/31/2014 A leader in high specification drilling rigs 19 4 49 44 11 127 3/25/2014 APEX(r) Rig Fleet 8
Slide 9: Large Geographic Footprint
Permian Basin 53 Rigs Large Geographic Footprint 9 PTEN's Active U.S. Land Drilling Rigs as of March 2014 East Texas Appalachia & Midwest North Texas Mid-Continent Rockies South Texas 31 Rigs 33 Rigs 25 Rigs 37 Rigs 5 Rigs 13 Rigs
Slide 10: Why invest in APEX rigs? ...the impact has been transformative!
Why invest in APEX(r) rigs? ...the impact has been transformative!
Slide 11: Greater Consistency in Rig Activity
Greater Consistency in Rig Activity 11 11 Active APEX(r) Rig Count
Slide 12: Rig Count by Rig Class
@ Rig Count by Rig Class @APEX® wm Other Electric ®™ Mechanical 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% s Pe & SPS e SOS te Se Fe @PATTERSON-UTI A un
Slide 13: Greater Stability of Utilization
Greater Stability of Utilization 13 13 APEX(r) Rig Utilization
Slide 14: Improving Average Revenue Per Day
Improving Average Revenue Per Day 14 14 Patterson-UTI Total Average Revenue Per Day Excludes early-termination revenues during the third and fourth quarter of 2013 of $3,600 per day and $130 per day, respectively.
Slide 15: Contribution from High Specification Rigs
Contribution from High Specification Rigs 15 15 Preferred rigs account for approximately 87% of Contract Drilling EBITDA Excludes early-termination revenues during the third and fourth quarter of 2013 of $62.8 million and $2.4 million, respectively.
Slide 16: Why invest in APEX rigs? ...the outlook remains strong!
Why invest in APEX(r) rigs? ...the outlook remains strong!
Slide 17: Continued Demand for APEX Rigs
(CHART) 17 U.S. Rig Count % by Drilling Type High-Spec rigs account for less than half of the total horizontal rig count Continued Demand for APEX(r) Rigs
Slide 18: High-Specification Rigs by Owner Type
18 High-Specification Rigs by Owner Type Consolidated Segment of Industry Big 3 U.S. land drillers control almost 70% of the high specification rigs in the U.S. (CHART)
Slide 19: Why invest in APEX rigs? ...Patterson-UTI is a technology leader!
Why invest in APEX(r) rigs? ...Patterson-UTI is a technology leader!
Slide 20: APEX WALKING Rigs
APEX WALKING(r) Rigs 20 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 http://patenergy.com/drilling/technology/apexwalk 20
Slide 21: Strong Demand for Pad Drilling
Strong Demand for Pad Drilling 21 Pad drilling is contributing to increasing rig efficiency Pad drilling capable rigs are highly utilized All new APEX(r) rigs completed in 2014 are expected to have walking systems http://patenergy.com/drilling/technology 21
Slide 22: APEX-XK Rig Walking on Pad
APEX-XK(tm) Rig Walking on Pad 22 http://patenergy.com/drilling/technology/apexwalk/ Video of APEX-XK(tm) Rig 22
Slide 23: The APEX-XK
The APEX-XK(tm) 23 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 Optimized number of truck loads for rig moves Available in both 1500 HP and 1000 HP http
Slide 24: Enhancing our Position in Pad Drilling
Enhancing our Position in Pad Drilling 24 Walking Systems Can be Added to Any Rig in Our Fleet... ...Allowing for True Multi-Directional Pad Drilling Capabilities 24
Slide 25: Enhancing our Position in Pad Drilling
Enhancing our Position in Pad Drilling 25 http://patenergy.com/drilling/technology 25
Slide 26: Early Adopter of Natural Gas Engines
Early Adopter of Natural Gas Engines 26 http://patenergy.com/drilling/technology 26
Slide 27: Using Natural Gas as a Fuel Source
Using Natural Gas as a Fuel Source 27 First contract driller to use GE's Waukesha natural gas engines on a modern land rig 28 rigs currently configured to use natural gas as the primary fuel source including 7 natural gas powered rigs and 21 bi-fuel capable rigs We plan to add GE Waukesha engines to
Slide 28: Pressure Pumping
mr ww Pressure Pumping
Slide 29: Investing in Pressure Pumping
Investing in Pressure Pumping 29 29 Pressure Pumping Capital Expenditures and Acquisitions ($ in millions) Approximately $1 billion invested since 2005
Slide 30: Growing Pressure Pumping Business
Growing Pressure Pumping Business 30 30 Investments in Pressure Pumping... ...Have Increased Fleet Size and Quality 65 760 * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010
Slide 31: A Significant Player in Regional Markets
Southwest Region: Northeast Region: (CHART) Fracturing horsepower: 343,000 Other horsepower: 28,000 Fracturing horsepower: 332,000 Other horsepower: 60,600 A Significant Player in Regional Markets Pressure Pumping Areas 31
Slide 32: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology Engines can burn a fuel mix comprised of up to 70% natural gas Comparable torque and horsepower as an all diesel engine Reduces operating costs by lowering fuel costs Good for environmental sustainability http://patenergy.com/pressurepumping/services 32
Slide 33: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology 33 http://patenergy.com/pressurepumping/services 33
Slide 34: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology 34 One of the largest bi-fuel frac fleets in the Marcellus More than 600 stages completed using natural gas as a fuel source Replaced more than 332,000 gallons of diesel with cleaner burning natural gas Eliminated 2.4 million pounds of transportation loads on local roa
Slide 35: Comprehensive Lab Services
Comprehensive Lab Services http://patenergy.com/pressurepumping/services 35
Slide 36: Financial Flexibility
mr ww Financial Flexibility
Slide 37: Investing in Our Company
Investing in Our Company 37 37 Capital Expenditures and Acquisitions ($ in millions)
Slide 38: Strong Financial Position
Strong Financial Position 38 History of returning capital to investors Cash Dividend Initiated cash dividend in 2004 Recently announced doubling of quarterly cash dividend to $0.10 per share Stock Buyback Total of $843 million repurchased since 2005 Repurchased $85.8 million of stock in 2013 at an a
Slide 39: Strong Financial Position: Total Liquidity
Strong Financial Position 39 39 Total Liquidity ($ in millions) Liquidity defined as end of period cash plus availability under revolving line of credit
Slide 40: Strong Financial Position: Net Debt to Capital Ratio
Strong Financial Position 40 40 Net Debt to Capital Ratio $600 million of debt not due until at least 2020
Slide 41: Strong Financial Returns
Strong Financial Returns 41 41 CAGR 16.3% Growth in Per-Share Book Value
Slide 42: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? Continuing Transformation Committed to high-spec land rigs where demand remains strong Creating value through focus on well site execution Technology leader Leader in walking rigs for pad drilling Innovator in use of natural gas as a fuel source for both drilling
Slide 43: Howard Weil 42nd Annual Energy Conference March 25-26, 2014
Howard Weil 42nd Annual Energy Conference March 25-26, 2014
Slide 44: Additional References
mr ww Additional References @PATTERSON-UTI to un
Slide 45: Active in Unconventional Plays
Active in Unconventional Plays 45 PTEN's Active Rigs in Unconventional Areas as of March 2014 Bakken Piceance Haynesville Marcellus Barnett 19 Rigs Eagle Ford 2 Rigs 21 Rigs 2 Rigs 33 Rigs 5 Rigs Utica 12 Rigs Woodford 2 Rigs
Slide 46: Continued Demand for APEX Rigs
(CHART) AC-powered rigs represent less than half of the horizontal rig count Total U.S. Horizontal Rig Count by Power Type Continued Demand for APEX(r) Rigs Analysis from Patterson-UTI Energy based on IHS drilling data 46
Slide 47: Term Contract Coverage
Term Contract Coverage Based on term contracts in place as of February 6, 2014 An average of 124 rigs expected under term contract in the first quarter of 2014 An average of 93 rigs expected under term contract for 2014 Drilling term contract revenue backlog of $946 million at December 31, 2013 PTEN
Slide 48: Strong Financial Position
Strong Financial Position Total liquidity of approximately $710 million $250 million of cash at December 31, 2013 $460 million revolver availability at December 31, 2013 $443 million net debt at September 30, 2013 13.8% Net Debt/Total Capitalization $300 million of 4.97% Series A notes due October 5
Slide 49: EBITDA Reconciliation by Quarter and Year
Three Months Ended December 31, Three Months Ended December 31, Twelve Months Ended December 31, Twelve Months Ended December 31, 2013 2012 2013 2012 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income $ 16,591 $ 58,859 $ 188,009 $ 299,477 Income tax expense 9,475
Slide 50: Non-GAAP Financial Measures
Non-GAAP Financial Measures 50 2013 2012 2011 2010 2009 2008 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income
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