Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Investor Presentation (January 2024)
28 slides from Patterson-uti Energy's investor presentation, Jan 3, 2024
Slide 1: January 3, 2024 Investor Presentation
January 3, 2024 Investor Presentation
Slide 2: Forward Looking Statements & Disclosures
Forward Looking Statements & Disclosures 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 managemen
Slide 3: Who We Are
Who We Are ae PATTERSON-UTI
Slide 4: Building a North American Oilfield Services Leader
Building a North American Oilfield Services Leader Total Company Revenue ($) 1978 1980 2001 2010 2017 2021 Pro Forma 2023E Patterson Drilling formed First frac job for Universal Pressure Pumping Patterson Energy and UTI Energy merge PTEN acquires Key Energy Services’ pressure pumping assets PTEN acq
Slide 5: Active Markets
Active Markets International markets primarily represented by drilling product sales over 30 countries A firm foundation established in U.S. Shale… With a diverse international footprint… Founded Average Daily Trading Volume1,2 1978 $86 M Market Cap1 $4.5 B Employees 10,600 Enterprise Value1 $5.8 B
Slide 6: Patterson-UTI Service and Product Lines
Hydraulic Fracturing Wireline Operations Natural Gas Fueling Oilfield Logistics Cementing 3.3 Million Hydraulic Horsepower1 Completion Services Patterson-UTI | Service and Product Lines Integrated to Build a Sustained Operating Advantage Other businesses includes Patterson Petroleum and Great Plains
Slide 7: Financial Summary
Financial Summary a PATTERSON-UTI
Slide 8: Business Update: Drilling and Completion Services Segments
Drilling Services Segment Averaged 118 rigs in Q4; we exited the year with 121 active rigs, slightly exceeding prior guidance Recent Tier 1 rig term contract dayrates have held steady in the mid-to-low $30k range; rates for drilling services with the latest technologies continue to reflect the value
Slide 9: Key Takeaways
Key Takeaways Strong Fundamentals for Our Differentiated Service Equipment Utilization remains high for equipment that improves efficiency and/or lowers costs at the wellsite Strong Capital Structure Investment Grade credit rating at all 3 major rating agencies Predictable Capital Allocation Strateg
Slide 10: Operational Excellence
Operational Excellence Efficiency amplified by Integration
Slide 11: Drilling & Completions Industry Fundamentals
Drilling & Completions | Industry Fundamentals OFS consolidation has improved industry fundamentals Industry Bifurcation: Top drilling contractors now make up a substantial portion of the active super-spec rigs Equipment Differentiation: Walking-capable super-spec rigs enable maximum pad site effici
Slide 12: Greater Lateral Footage | Drilling Services and Products
Greater Lateral Footage | Drilling Services and Products Drilling Products & Services: OUR STRATEGY IS DELIVERING ULTIMATE OPERATING OUTPERFORMANCE Annualized Lateral Footage Drilled by Rig Type2 Company Estimates for a Representative Midland Basin Drilling Scenario 1Peer Group Includes: H&P North A
Slide 13: Creating Value at the Wellsite: Integrated Completions
Power Solutions NexHub Digital Operations Innovative Engineering Integrated Wireline $7M/Fleet Potential Annual Incremental Adjusted EBITDA & Reduced Maintenance Capex per Fleet with fully realized Integrated Solutions Last-Mile Logistics Completions Capex will continue to target growth in our succe
Slide 14: Wellsite Efficiency Delivered WITH Capital Efficiency
Wellsite Efficiency Delivered WITH Capital Efficiency Patterson-UTI has benefited in the era of increased efficiency PTEN has significantly improved drilling and completion efficiency, helping keep US shale competitive in the global oil and natural gas cost curve Operators benefit from lower cost an
Slide 15: Capital Allocation Framework
Capital Allocation Framework
Slide 16: Capital Allocation Framework
Capital Allocation Framework Maximize Shareholder Value And Financial Returns Organic Investing Strategy Targeting High FCF Conversion Invest to protect and extend our operational advantage, Capex can be scaled in proportion to match opportunity set Strategic Allocation Target maximum return on capi
Slide 17: Investment Grade Capital Structure
Investment Grade Capital Structure Financially Positioned for Through-Cycle Resilience TOTAL LIQUIDITY $665 M Includes cash and revolver as of 9/30/2023 LOW LEVERAGE <1 X Net Debt to Consensus1 Q4 Annualized EBITDA CASH BALANCE $67 M Cash Position as of 09/30/2023 INTEREST COVERAGE >20 X Q4 Consensu
Slide 18: Deliver a Repeatable Shareholder Return Program
Deliver a Repeatable Shareholder Return Program $206 million REMAINING SHARE BUYBACK AUTHORIZATION1 Authorization represents 5% of market cap as of 12/31/2023 Could accelerate shareholder returns beyond commitment Board of Directors has approved an $0.08 per share quarterly dividend for past five co
Slide 19: Track-Record of Shareholder Returns
Track-Record of Shareholder Returns PTEN has returned more than $1.1 billion to shareholders in the last 10 years Outperforming the peer average through the cycle Peer group includes HP, BKR, SLB, HAL, LBRT Cash Returned to Shareholders ($) millions Average Annual Shareholder Return as a % of Year-E
Slide 20: Delivering Value
Delivering Value a PATTERSON-UTI
Slide 21: Sustainability as a Strategy
Sustainability as a Strategy Patterson-UTI has demonstrated a resilient commitment to long-term sustainability Our Timeline of Innovation in Sustainability Our Vision: To safely and responsibly help provide the world with oil and gas for the products that make peoples’ lives better in a sustainable
Slide 22: The bottom line… Why invest in Patterson-UTI?
The bottom line… Why invest in Patterson-UTI? Improving cycle dynamics for US onshore More disciplined and mature shale environment should result in shallower cycles and a more predictable operating environment relative to prior cycles Strong demand for our differentiated equipment Large OFS compani
Slide 23: Patterson-UTI
@ PATTERSON-UTI ~wyy
Slide 24: Capital Discipline for E&P and OFS Sectors Lessens Cycle Volatility
Capital Discipline for E&P and OFS Sectors Lessens Cycle Volatility U.S. Onshore E&P Drilling and Completion Capex ($) Billions Capital discipline era should lead to less volatility in Drilling and Completions spending U.S. E&Ps and our OFS peers are less focused on growth relative to prior cycles –
Slide 25: Enabled for Efficiency | Drilling Services and Products
Enabled for Efficiency | Drilling Services and Products Real-time collection, aggregation, visualization and analysis of data delivered seamlessly from active drilling rigs Digital Operations, in Real-Time. Hi-line power-capable wellsite energy storage solution to optimize fuel efficiency, reducing
Slide 26: Enabled for Efficiency | Drilling Services and Products
Enabled for Efficiency | Drilling Services and Products Real-time collection, aggregation, visualization and analysis of data delivered seamlessly from active drilling rigs Digital Operations, in Real-Time. Hi-line power-capable wellsite energy storage solution to optimize fuel efficiency, reducing
Slide 27: Macro Outlook: Improved OFS Cycle Dynamics
Macro Outlook Improved OFS Cycle Dynamics
Slide 28: Greater Lateral Footage | Drilling Services and Products
Greater Lateral Footage | Drilling Services and Products Drilling Products & Services: OUR STRATEGY IS DELIVERING ULTIMATE OPERATING OUTPERFORMANCE Horizontal Drilling Rig Cost Curve2 Cost per Lateral Foot vs. Annualized Lateral Footage Drilled for Rig Types3 1Peer Group Includes: H&P North America
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