Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Investor Presentation (November 2012)
30 slides from Patterson-uti Energy's investor presentation, Nov 28, 2012
Slide 1: Meetings with Investors
Meetings with Investors Exhibit 99.1 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Meetings with Investors November 2012 November 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 in U.S. Oil Services?
3 “The global energy map is changing, with potentially far-reaching consequences for energy markets and trade. It is being redrawn by the resurgence in oil and gas production in the United States…” - International Energy Agency, “World Energy Outlook 2012” “The recent rebound in US oil and gas produ
Slide 4: Why Invest Now in U.S. Oil Services?
4 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 5: Why Invest Now in U.S. Oil Services?
5 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 the previously feared full inventory level 13 years Why Invest Now in U.S. Oil Services? • • Th
Slide 6: Why Invest in U.S. Oil Services?
6 “By around 2020, the United States is projected to become the largest global oil producer…” - International Energy Agency, “World Energy Outlook 2012” Why Invest in U.S. Oil Services? “By around 2020, the United States is projected to become the largest global oil producer…” - International Energy
Slide 7: 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 8: Contract Drilling
One of the “Big 3” U.S. Land drillers High quality fleet including 107 APEX™ rigs Strong term contract coverage Who We Are >> Operational Strength >> Financial Flexibility Patterson-UTI reported results for the nine months ended September 30, 2012 8 Components of Revenue Oil & Natural Gas 2% Pressur
Slide 9: 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 nine mo
Slide 10: Operational Strength – Contract Drilling
Operational Strength – Operational Strength – Contract Drilling Contract Drilling
Slide 11: PTEN's Active U.S. Land Drilling Rigs: Large Geographic Footprint
11 PTEN’s Active U.S. Land Drilling Rigs as of November 2012 East Texas Appalachia & Midwest North Texas Mid-Continent Rockies South Texas 31 Rigs 29 Rigs 23 Rigs 39 Rigs 11 Rigs 13 Rigs Permian Basin 51 Rigs PTEN’s Active U.S. Land Drilling Rigs as of November 2012 Large Geographic Footprint Who We
Slide 12: PTEN's Active Rigs in Unconventional Areas
12 PTEN’s Active Rigs in Unconventional Areas as of November 2012 Bakken Piceance Haynesville Marcellus Barnett Pinedale 17 Rigs Eagle Ford 2 Rigs 4 Rigs 22 Rigs 7 Rigs 27 Rigs 5 Rigs Utica 6 Rigs Niobrara 1 Rig Woodford 3 Rigs PTEN’s Active Rigs in Unconventional Areas as of November 2012 Active in
Slide 13: Innovative Rig Designs
13 • 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 • Walking system is an optional feature APEX 1500™ • Able to move in all directions • Able to “walk” w
Slide 14: Increasing Fleet Quality
14 New APEX™ Rigs Have Significantly Increased Fleet Quality. 0 20 40 60 80 100 120 2008 2009 2010 2011 2012E 23 new APEX™ 23 new APEX™ rigs expected to have been added during 2012 rigs expected to have been added during 2012 Increasing Fleet Quality Who We Are >> Operational Strength >> Financial F
Slide 15: Increasing Fleet Quality
…and Expected as of June 30, 2013 APEX 1500 ™ APEX 1000 ™ APEX Walking ™ Other Electric Rigs 15 Preferred Rigs as of September 30, 2012 61 15 50 54 48 13 46 54 …and Expected as of June 30, 2013 Total New Rigs Class Preferred Rigs as of September 30, 2012 6/30/2013 PTEN has approximately 160 of these
Slide 16: Contribution from High Quality Rigs
Contract Drilling EBITDA Contribution by Rig Class Nine Months Ended September 30, 2012 16 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 Contributio
Slide 17: Mechanical Rigs
Mechanical Rigs 147 mechanical rigs in fleet Most are 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 17 Improved mud systems Iron roughnecks and other automati
Slide 18: Term Contract Coverage
Based on term contracts in place* An average of 132 rigs expected under term contract in the fourth quarter An average of 79 rigs expected under term contract during 2013 PTEN expects to continue signing term contracts * Term contracts in place as of October 25, 2012 18 Drilling term contract revenu
Slide 19: PTEN's U.S. Rig Count
19 PTEN’s U.S. Rig Count Remains Firm 0 50 100 150 200 250 2009 2010 2011 2012 Who We Are >> Operational Strength >> Financial Flexibility PTEN’s U.S. Rig Count
Slide 20: Operational Strength – Pressure Pumping
Operational Strength – Operational Strength – Pressure Pumping Pressure Pumping
Slide 21: Growing Pressure Pumping Business
21 Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010 0 200 400 600 800 2006 2007 2008 2009 2010* 2011 2012E Year End Fracturing Horsepower Other Horsepower Who We Are >> Operation
Slide 22: Pressure Pumping Areas of Operation
22 Fracturing horsepower: 350,000 Other horsepower: 18,000 Frac Crews under contract : 3 Fracturing horsepower: 293,000 Other horsepower: 58,000 Frac Crews under contract: 2 A Significant Player in Regional Markets Approximately 155,000 HP under term contract 46% 54% Fracturing Horsepower Southwest
Slide 23: Modern Pressure Pumping Fleet
23 PTEN Fracturing Horsepower by Age Estimated for December 2012 >10 Years 6% 5 - 10 Years 21% < 5 Years 73% Average age of only three years Average age of only three years Who We Are >> Operational Strength >> Financial Flexibility Modern Pressure Pumping Fleet
Slide 24: Financial Flexibility
Financial Financial Flexibility Flexibility
Slide 25: Investing in Our Company
25 Capital Expenditures and Acquisitions ($ in thousands) 2006 2007 2008 2009 2010 2011 2012E $598 $637 $445 $453 $976 $1,012 $1,000 Investing in Our Company Who We Are >> Operational Strength >> Financial Flexibility
Slide 26: Strong Financial Position
26 History of returning capital to investors Stock Buyback million through September 30, 2012 September 30, 2012 Cash Dividend Returned more than $1 billion to shareholders since 2005 • • History of returning capital to investors – – Stock Buyback • Bought approximately 5% of outstanding stock for $
Slide 27: Strong Financial Position
Total liquidity of approximately $643 million $83 million of cash at September 30, 2012 $460 million revolver availability at September 30, 2012 $100 million term loan to be drawn in December 2012 $517 million net debt at September 30, 2012 16.4% Net Debt/Total Capitalization $300 million of 4.97% S
Slide 28: Strong Financial Returns
0 500 1,000 1,500 2,000 2,500 3,000 Thousands 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Growth in Shareholder Equity The Warren Buffett Standard 28 Strong Financial Returns 1,000 1,500 2,000 2,500 3,000 Thousands 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 29: Meetings with Investors
Meetings with Investors Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Meetings with Investors November 2012 November 2012
Slide 30: Non-GAAP Financial Measures (Unaudited)
30 PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2012 2011 2012 2011 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income $ 50,806 $ 81,928 $ 240,618 $ 234,8
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