Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — J.P. Morgan 2022 Energy, Power & Renewables Conference
36 slides from Patterson-uti Energy's conference presentation, Jun 23, 2022
Slide 1: Patterson-UTI Energy, Inc.
Patterson-UTI Energy, Inc. J.P. Morgan 2022 Energy, Power & Renewables Conference June 23, 2022
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: Market Update
Market Update Strong fundamentals in U.S. drilling and completions markets with tight capacity for premium equipment Drilling rig dayrates have never moved up as fast as over the past six-to-nine months Leading edge dayrates for Tier-1 rigs including ancillary technologies and equipment are now over
Slide 4: Patterson-UTI Segments
Patterson-UTI Segments DRILLING PUMPING DIRECTIONAL DATA ANALYTICS POWER RENTALS RELIABILITY Onshore contract Full-service pressure Comprehensive Space flight Electrical Large selection of API-certified drilling drilling in U.S. and pumping focused on suite of directional navigation engineering, equ
Slide 5: Leading Provider of Critical Path Services
Leading Provider of Critical Path Services ~50% of E&P total well spend includes services provided by Patterson-UTI Drilling Services Completion Services 35% of total shale well cost1 60% of total shale well cost1 1. Estimated well cost data provided by Rystad Energy 5
Slide 6: Patterson-UTI Segment Synergies
Patterson-UTI Segment Synergies Breadth of our service offerings provides us with Deeper customer relationships Greater market intelligence Technical collaborations across businesses Shared infrastructure for data analytics 6
Slide 7: Patterson-UTI Marketing Synergies
Patterson-UTI Marketing Synergies Increasing Customer Alignment Between Contract Drilling and Pressure Pumping Percentage of Pressure Pumping Revenues from Contract Drilling Customers 80% 76% 68% 58% 2019 2020 2021 1Q22 7
Slide 8: Contract Drilling
Contract Drilling PATTERSON-UTI DRILLING COMPANY LLC
Slide 9: Patterson-UTI Drilling
Patterson-UTI Drilling WHERE WE ARE NOW OUR HISTORY 1978 2001 2006 2015 2017 2018 2019 2021 TODAY Patterson Patterson eae © PTEN acquires © PTEN acquires = PTEN acquires (gies PTEN acquires Drilling formed (gee Ngele) Rig Warrior Rig Seventy Current Power JMzaueclWatnias Pioneer Energy UTI Energy Te
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 Mast rated for at least 750,000 pound hookload 1,500 hp elevated drawworks for more room under rig floor High pressure circulating system (7,500 psi) Third mud pump for greater hydraulic horsepower Multi-well pad capab
Slide 11: Patterson-UTI Drilling
Patterson-UTI Drilling The market is tight! Total U.S. Rig Fleet Active U.S. Rigs1 Utilization Tier-1, Super-Spec 115 109 95% Super-Spec 56 9 16% Total Super-Spec 171 118 69% AC-Powered APEX® Rigs 13 6 46% Total U.S. Land Rig Fleet 184 124 67% • Industry utilization of Tier-1, Super-Spec rigs is ver
Slide 12: U.S. Drilling Margins per Operating Day
U.S. Drilling Margins per Operating Day Upside remains to prior peak margins U.S. Drilling Average Adjusted Gross Margin per Operating Day1 $12,820 $8,760 $7,170 $6,260 $6,310 $5,450 2014 AC rigs only 1Q21 2Q21 3Q21 4Q21 1Q22 (Estimated) 2 1. Adjusted gross margin is defined as revenues less direct
Slide 13: Pressure Pumping
Pressure Pumping MUNIVERSAL
Slide 14: Universal Pressure Pumping
Universal Pressure Pumping WHERE WE ARE NOW OUR HISTORY 1980 2004 2006 2010 2014 2017 2019 2020 TODAY First frac job FgeIa Industry first PTEN acquires Acquisitions Acquisition Completed Celebrating first vertical horizontal Key Energy of Torqued Up _of Seventy longest 40 Years Marcellus Marcellus S
Slide 15: Full-Service Pumping
Full-Service Pumping Engineering Hydraulic Fracturing Cementing Lab Services Logistics 15
Slide 16: Directional Drilling and Data Analytics
Directional Drilling and Data Analytics
Slide 17: 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 17
Slide 18: Superior QC
Superior QC Space flight navigation algorithms Improved well placement Better steering to target zones Better wellbore quality 18
Slide 19: EcoVerse™
= 4 z 7 4 Wi E = EcoVerse™
Slide 20: PTEN Sustainability Firsts
PTEN Sustainability Firsts 2018 2020 2006 2012 — — 2022 = = Acquired Controls and Deployed EcoCell” = Introduced Developed and Fielded Automation Specialists, Lithium Hybrid Power Real-Time Fuel and Hi-Line Power First Dual Fuel Frac Spread Current Power Management System Emissions Monitoring 2010 2
Slide 21: 100% Natural Gas Generators on Drilling Rigs
100% Natural Gas Dual Fuel Frac Lithium Batteries on Generators on Spreads and Drilling Drilling Rigs Drilling Rigs Rigs Hi-Line Power Automated Engine Management Software 21
Slide 22: Natural Gas Powered Engines on Drilling Rigs
Natural Gas Powered Engines on Drilling Rigs Offering fuel flexibility and utilizing local infrastructure Substituting natural gas for higher-priced diesel helps to reduce fuel costs Cleaner burning natural gas helps to reduce emissions PTEN is a leader in rigs capable of using natural gas as a fuel
Slide 23: 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. 23
Slide 24: Hi-Line Electrical Power
Hi-Line Electrical Power Current Power designed and manufactured utility substation • 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 o
Slide 25: 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 overa
Slide 26: 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 27: Natural Gas Powered Frac Spreads
Natural Gas Powered Frac Spreads Lowers emissions for environmental sustainability Dual fuel spreads can substitute up to 85% natural gas Lowers emissions for environmental sustainability PTEN has completed more than 17,000 dual fuel fracturing stages, saving customers more than 13 million gallons o
Slide 28: EcoStart™
EcoStart™ Automated idle-reduction system Eliminates engine idle time during frac operations by controlling starting and stopping of all pump engines on location Improves wellsite ESG performance and reduces cost by reducing equipment maintenance Compatible with all manufacturer variants of 2500- HP
Slide 29: Financials
Financials @\PATTERSON-UTI 4
Slide 30: Focused on Shareholder Returns
Focused on Shareholder Returns PTEN has returned more than $1 billion to shareholders in the last 10 years Cash Returned to Shareholders ($ in millions) Dividends Buybacks $287.9 $200.6 $192.3 $102.6 $71.8 $66.8 $57.8 $40.0 $27.2 $23.1 $21.9 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 30
Slide 31: Capital Allocation
Capital Allocation MAINTAIN STRONG CAPITAL SPENDING SHAREHOLDER RETURNS BALANCE SHEET • Primarily focused on • Focused on maintaining • While no near-term maintenance, which a stable dividend with debt maturities, increases with activity increases when opportunistically build levels economics allow
Slide 32: Strong Financial Position
Strong Financial Position ~1.5x Net Debt to Adjusted EBITDA forecast by end of 2022 • Net debt of $810 million at March 31, 2022 No near-term debt maturities at March 31, 2022 • $510 million 3.95% senior notes due 2028 • $349 million 5.15% senior notes due 2029 Favorable credit ratings • Moody’s – B
Slide 33: No Near-Term Debt Maturities
No Near-Term Debt Maturities Debt Maturity Distribution ($ in Millions) 600 $510 500 400 $349 300 200 100 0 2022 2023 2024 2025 2026 2027 2028 2029 At March 31, 2022, $600 million available under revolving line of credit that matures in 2025 ($550 million available after 2024) 33
Slide 34: Patterson-UTI
@ PATTERSON-UTI 4 ree, Qepartenson-u) = QUNIVERSAL —_B$GSpiectional suerorgc = -<LcuRRENT § ——great plains
Slide 35: Appendix
Appendix PATTERSON-UTI
Slide 36: Non-U.S. GAAP Financial Measures
Non-U.S. GAAP Financial Measures U.S. Drilling Average Adjusted Gross Margin (unaudited, dollars in thousands) 1Q 2022 4Q 2021 3Q 2021 2Q 2021 1Q 2021 Revenues $ 239,683 $ 215,121 $ 157,925 $ 141,732 $ 133,501 Less cost of sales $ (165,339) $(161,870) $(111,500) $(100,070) $ (79,339) Less depreciati
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