Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Barclays CEO Energy Conference 2013
39 slides from Patterson-uti Energy's conference presentation, Sep 11, 2013
Slide 1: Barclays CEO Energy Conference
Barclays CEO Energy Conference Exhibit 99.1 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Barclays CEO Energy Conference September 11-12, 2013 September 11-12, 2013
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 Patterson-UTI Energy?
3 Technology leader Leader in walking rigs for pad drilling Innovator in use of natural gas as a fuel source for both drilling and pressure pumping Customer focused Solid relationships with broad and diverse customer base Creating value through focus on well site execution Financially flexible Stron
Slide 4: Who We Are
Who We Are Who We Are
Slide 5: Contract Drilling
High quality fleet of land drilling rigs including 120 APEX ® rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets Patterson-UTI reported results for the six months ended June 30, 2013 5 Contract Drilling 61% Pressure Pumping 37%
Slide 6: Pressure Pumping
Patterson-UTI reported results for the six months ended June 30, 2013 6 Components of Revenue Pressure Pumping 37% Contract Drilling 61% Oil & Natural Gas 2% High quality fleet of modern pressure pumping equipment A leader in natural gas bi-fuel technology Strong reputation for safe and efficient op
Slide 7: Contract Drilling
Contract Drilling Contract Drilling
Slide 8: Continued Demand for APEX Rigs
8 Percentage of Horizontal Wells Continues to Increase Baker Hughes U.S. Rig Count % by Drilling Type 0% 80% 70% 60% 50% 40% 30% 20% 10% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 % Horizontal % Vertical Continued Demand for APEX Continued Demand for APEX ® ® Rigs Rigs Percentage of Hori
Slide 9: APEX Rig Fleet
…and Expected as of December 31, 2013 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® 9 APEX ® Rigs as of June 30, 2013 13 4 48 44 11 19 4 48 44 11 …and Expected as of December 31, 2013 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® Total APEX Total APEX ®
Slide 10: Contribution from High Specification Rigs
Contract Drilling EBITDA Contribution by Rig Class Six Months Ended June 30, 2013 10 Mechanical APEX ® & Other Electric Preferred rigs account for approximately Preferred rigs account for approximately 85% of Contract Drilling EBITDA 85% of Contract Drilling EBITDA Contribution from High Specificati
Slide 11: Strong Demand for Pad Drilling
11 Pad drilling is contributing to increasing rig efficiency Pad drilling capable rigs are highly utilized All new APEX ® rigs delivered in 2013 will have walking systems suitable for pad drilling http://patenergy.com/drilling/technology Strong Demand for Pad Drilling Strong Demand for Pad Drilling
Slide 12: APEX-XK Rig Walking on Pad
12 http://patenergy.com/drilling/technology/apexwalk/ http://patenergy.com/drilling/technology/apexwalk/ Video of APEX-XK ™ Ri g APEX-XK™ APEX-XK™ Rig Walking on Pad Rig Walking on Pad
Slide 13: Slide 13
Slide 14: The APEX-XK
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 13 http://patenergy.com
Slide 15: APEX Walking Rigs
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 14 http://patenergy.com/drilling/technology/apexwalk APEX WALKING APEX WALKING ® ® Rigs Rigs • • Capable of walking with drill pipe a
Slide 16: Enhancing our Position in Pad Drilling
15 Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drilling Capabilities Enhancing our Position in Pad Drilling Enhancing our Position in Pad Drilling Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drillin
Slide 17: Enhancing our Position in Pad Drilling
16 http://patenergy.com/drilling/technology Enhancing our Position in Pad Drilling Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology
Slide 18: Early Adopter of Natural Gas Engines
17 http://patenergy.com/drilling/technology Early Adopter of Natural Gas Engines Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology
Slide 19: Using Natural Gas as a Fuel Source
18 http://patenergy.com/drilling/technology First contract driller to use GE’s Waukesha natural gas engines on a modern land rig 21 rigs currently configured to use natural gas as the primary fuel source including 4 natural gas powered rigs and 17 bi-fuel capable rigs. 30 rigs expected to be equippe
Slide 20: Pressure Pumping
Pressure Pumping Pressure Pumping
Slide 21: A Leader in Bi-Fuel Technology
20 http://patenergy.com/pressurepumping/services 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 A Leader in Bi-Fuel Technology A Leader in Bi-
Slide 22: A Leader in Bi-Fuel Technology
21 http://patenergy.com/pressurepumping/services A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services
Slide 23: A Leader in Bi-Fuel Technology
One of the largest bi-fuel frac fleets in the Marcellus More than 400 stages completed using natural gas as a fuel source Replaced more than 94,000 gallons of diesel with cleaner burning natural gas Eliminated 700,000 pounds of transportation loads on local roads 22 http://patenergy.com/pressurepump
Slide 24: Comprehensive Lab Services
23 http://patenergy.com/pressurepumping/services Comprehensive Lab Services Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 25: Financial Flexibility
Financial Financial Flexibility Flexibility
Slide 26: Investing in Our Company
25 Capital Expenditures and Acquisitions ($ in millions) $598 $637 $445 $453 $976 $1,012 $974 $800 2006 2007 2008 2009 2010 2011 2012 2013E Capital Expenditures and Acquisitions ($ in millions) Investing in Our Company Investing in Our Company
Slide 27: History of returning capital to investors
26 History of returning capital to investors Stock Buyback approximately $50.9 million of shares during the third quarter of 2013 on September 6, 2013 Cash Dividend Returned more than $1.1 billion to shareholders since 2005 • • History of returning capital to investors – – Stock Buyback • Repurchase
Slide 28: Total liquidity of approximately $609 million
Total liquidity of approximately $609 million $149 million of cash at June 30, 2013 $460 million revolver availability at June 30, 2013 $547 million net debt at June 30, 2013 <17% Net Debt/Total Capitalization $300 million of 4.97% Series A notes due October 5, 2020 $300 million of 4.27% Series B no
Slide 29: Barclays CEO Energy Conference
Barclays CEO Energy Conference Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Barclays CEO Energy Conference September 11-12, 2013 September 11-12, 2013
Slide 30: Additional References
Additional References Additional References
Slide 31: Active in Unconventional Plays
PTEN’s Active Rigs in Unconventional Areas as of September 2013 Bakken Marcellus 17 Rigs 23 Rigs Utica 7 Rigs Woodford 1 Rig Piceance 5 Rigs Barnett 2 Rigs Eagle Ford 31 Rigs Haynesville 7 Rigs 30 PTEN’s Active Rigs in Unconventional Areas as of September 2013 Active in Unconventional Plays Active i
Slide 32: Large Geographic Footprint
31 PTEN’s Active U.S. Land Drilling Rigs as of September 2013 East Texas Appalachia & Midwest North Texas Mid-Continent Rockies South Texas 29 Rigs 30 Rigs 20 Rigs 35 Rigs 5 Rigs 12 Rigs Permian Basin 52 Rigs PTEN’s Active U.S. Land Drilling Rigs as of September 2013 Large Geographic Footprint Large
Slide 33: Term Contract Coverage
Based on term contracts in place as of July 25, 2013 An average of 121 rigs expected under term contract in the third quarter of 2013 An average of 113 rigs expected under term contract for the second half of 2013 PTEN expects to continue signing term contracts 32 Drilling term contract revenue back
Slide 34: Mechanical Rigs
Mechanical Rigs 147 mechanical rigs in fleet Most are upgraded to meet customers’ diverse needs Improved mud systems Iron roughnecks and other automation Enhanced mobility Ideally suited for certain markets and wells Favorable return profiles given low book values Even better returns if drilling act
Slide 35: Growing Pressure Pumping Business
34 Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010 800 600 400 200 0 2006 2007 2008 2009 2010* 2011 2012 2013E Fracturing Horsepower Other Horsepower Year End Recent Investments
Slide 36: Pressure Pumping Areas of Operation
35 Fracturing horsepower: 343,000 Other horsepower: 24,500 Fracturing horsepower: 333,000 Other horsepower: 61,500 A Significant Player in Regional Markets Fracturing Horsepower 51% 49% Fracturing horsepower: 343,000 Other horsepower: 24,500 Fracturing horsepower: 333,000 Other horsepower: 61,500 A
Slide 37: Modern Pressure Pumping Fleet
5 - 10 Years 36 PTEN Fracturing Horsepower by Age As of June 30, 2013 21% 73% < 5 Years Years 6% >10 5 - Years Average age of only three years Average age of only three years PTEN Fracturing Horsepower by Age As of June 30, 2013 Modern Pressure Pumping Fleet 21% 73% < 5 Years Years 6% >10
Slide 38: Strong Financial Returns
Growth in Per-Share Book Value The Warren Buffett Standard 37 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Strong Financial Returns Strong Financial Returns Growth in Per-Share Book Value The Warren Buffett Standard
Slide 39: Non-GAAP Financial Measures
38 PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) (1) EBITDA is not defined by generally accepted accounting principles (“GAAP”). We present EBITDA (a non-GAAP measure) because we believe it provides additional information with respect to both the performan
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