Patterson-UTI Energy, Inc. · NASDAQ:PTEN
Patterson-UTI Energy — Barclays CEO Energy-Power Conference 2012
28 slides from Patterson-UTI Energy's conference presentation, Sep 4, 2012
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference Exhibit 99.1 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Barclays CEO Energy-Power Conference September 4, 2012 September 4, 2012
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 now in U.S. Oil Services?
3 Shale gas and oil fundamentally changed the North American production outlook for natural gas and oil Horizontal drilling and completion techniques Major new investments over the past five years in North American land projects by many of the largest U.S. and International Oil Companies Major oppor
Slide 4: Why Invest now in U.S. Oil Services?
4 The timing looks good: Attractive oil prices have kept oil directed activity high capacity from the more than 50% decrease in natural gas drilling Natural gas market looks poised for a “modest” recovery weekly injections averaging approximately 65% of prior year levels 13 years Why Invest now in U
Slide 5: Key Takeaways – PTEN Advantages
Operational Strength High quality equipment Term contract backlog / customer relationships Strong operational and financial flexibility Flexible operating model Maximizes earnings growth during periods of increased activity Minimizes costs during periods of low activity Strong cash flow generation H
Slide 6: Contract Drilling
One of the “Big 3” U.S. Land drillers High quality fleet including 100 APEX™ rigs Strong term contract coverage Who We Are >> Operational Strength >> Financial Flexibility Patterson-UTI reported results for the six months ended June 30, 2012 6 Components of Revenue Pressure Pumping 31% Contract Dril
Slide 7: 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 six mon
Slide 8: Operational Strength – Contract Drilling
Operational Strength – Operational Strength – Contract Drilling Contract Drilling
Slide 9: Large Geographic Footprint
9 PTEN’s Active U.S. Land Drilling Rigs as of August 2012 Appalachia & Midwest Rockies 28 Rigs 23 Rigs 44 Rigs 14 Rigs 11 Rigs 52 Rigs Mid-Continent North Texas East Texas South Texas 36 Rigs Permian Basin Large Geographic Footprint Who We Are >> Operational Strength >> Financial Flexibility
Slide 10: Active in Unconventional Plays
10 PTEN’s Active Rigs in Unconventional Areas as of August 2012 18 Rigs 2 Rigs 7 Rigs 9 Rigs 30 Rigs 6 Rigs 6 Rigs 1 Rig 3 Rigs Bakken Pinedale Piceance Barnett Eagle Ford Niobrara Woodford Utica Haynesville Marcellus 21 Rigs Active in Unconventional Plays Who We Are >> Operational Strength >> Finan
Slide 11: Innovative Rig Designs
11 • 1000 HP drawworks • Small footprint, big rig capability • Fast move & rig-up • Walking system is an optional feature APEX 1000™ • 1500 HP drawworks • Great all purpose rig • Fast move & rig-up • Ideal for Eagle Ford, Barnett, and Haynesville APEX 1500™ • Able to move in all directions • Able to
Slide 12: Increasing Fleet Quality
12 New APEX™ Rigs Have Significantly Increased Fleet Quality. 0 20 40 60 80 100 120 2008 2009 2010 2011 2012E 24 new APEX™ 24 new APEX™ rigs expected to be added in 2012 rigs expected to be added in 2012 Increasing Fleet Quality Who We Are >> Operational Strength >> Financial Flexibility
Slide 13: Increasing Fleet Quality
…and Expected as of December 31, 2012 APEX 1500 TM APEX 1000 TM APEX Walking TM Other Electric Rigs 13 Preferred Rigs as of June 30, 2012 54 15 46 54 ~170 by the end of 2012 42 13 45 54 …and Expected as of December 31, 2012 APEX APEX APEX Total New Rigs Total New Rigs Other Electric Rigs Class Class
Slide 14: Contribution From High Quality Rigs
PTEN Contract Drilling EBITDA by Rig Class Six Months Ended June 30, 2012 14 Who We Are >> Operational Strength >> Financial Flexibility 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 Qu
Slide 15: Mechanical Rigs
Mechanical Rigs More than 180 in fleet 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 15 roughnecks and other automation mobility Iron Enhanced systems Improve
Slide 16: Term Contract Coverage
Based on term contracts in place* An average of 141 rigs expected under term contract in the third quarter An average of 131 rigs expected under term contract during the second half of 2012 PTEN expects to continue signing term contracts * Term contracts in place as of July 26, 2012 16 Drilling term
Slide 17: PTEN's U.S. Rig Count Remains Firm
17 PTEN’s U.S. Rig Count Remains Firm Who We Are >> Operational Strength >> Financial Flexibility PTEN’s U.S. Rig Count
Slide 18: Operational Strength – Pressure Pumping
Operational Strength – Operational Strength – Pressure Pumping Pressure Pumping
Slide 19: Growing Pressure Pumping Business
19 Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality 0 200 400 600 800 2006 2007 2008 2009 2010* 2011 2012E Year End Fracturing Horsepower Other Horsepower * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010 Who We Are >> Operation
Slide 20: Pressure Pumping Areas of Operation
20 Fracturing horsepower: 377,650 Other horsepower: 20,270 Frac Crews under contract : 3 Fracturing horsepower: 290,750 Other horsepower: 61,000 Frac Crews under contract: 2 A Significant Player in Growing Markets Approximately 155,000 HP under term contract 43% 57% Fracturing Horsepower Northeast R
Slide 21: Modern Pressure Pumping Fleet
21 PTEN Pressure Pumping Fleet by Age as of December 2011 >10 Years 14% 5 - 10 Years 19% < 5 Years 67% Who We Are >> Operational Strength >> Financial Flexibility Modern Pressure Pumping Fleet More than two-thirds of fracturing horsepower is less than five years old
Slide 22: Financial Flexibility
Financial Flexibility
Slide 23: Capital Expenditures and Acquisitions
23 Capital Expenditures and Acquisitions ($ in thousands) Investing in Our Company Who We Are >> Operational Strength >> Financial Flexibility
Slide 24: Strong Financial Position
24 History of returning capital to investors Stock Buyback 2012 Cash Dividend Returned nearly $1 billion to shareholders since 2005 • • History of returning capital to investors – – Stock Buyback • $70 million during second quarter of 2012 • $70 million during second quarter of 2012 • Increased auth
Slide 25: Total liquidity of approximately $435 million
Total liquidity of approximately $435 million $75 million of cash at June 30, 2012 $360 million revolver availability at June 30, 2012 No principal payments required until 2020 $300 million Series A notes due October 5, 2020 $300 million Series B notes due June 14, 2022 $525 million net debt at June
Slide 26: Strong Financial Returns: Growth in Shareholder Equity
Growth in Shareholder Equity The Warren Buffett Standard 26 Strong Financial Returns Growth in Shareholder Equity The Warren Buffett Standard
Slide 27: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Barclays CEO Energy-Power Conference September 4, 2012 September 4, 2012
Slide 28: EBITDA Reconciliation
28 Patterson-UTI Energy, Inc. EBITDA Reconciliation (dollars in thousands) 2012 2011 2010 2009 2008 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Net income (loss) $ 189,812 $ 322,413 $ 116,942 $ (38,290) $ 347,069 Income tax expense (benefit) 53,340 187,938 72,856 (17,595
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