Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Johnson Rice Energy Conference 2012
28 slides from Patterson-uti Energy's conference presentation, Oct 2, 2012
Slide 1: Johnson Rice Energy Conference
Johnson Rice Energy Conference Exhibit 99.1 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Johnson Rice Energy Conference October 2, 2012 October 2, 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% Oil & Natural
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: PTEN's Active U.S. Land Drilling Rigs
9 PTEN’s Active U.S. Land Drilling Rigs as of October 2012 East Texas Appalachia & Midwest North Texas Mid-Continent Rockies South Texas 35 Rigs 28 Rigs 22 Rigs 41 Rigs 14 Rigs 11 Rigs Permian Basin 52 Rigs Rigs PTEN’s Active U.S. Land Drilling Rigs as of October 2012 East Texas Appalachia & Midwest
Slide 10: PTEN's Active Rigs in Unconventional Areas
10 PTEN’s Active Rigs in Unconventional Areas as of October 2012 Bakken Piceance Haynesville Marcellus Barnett Pinedale 17 Rigs Eagle Ford 2 Rigs 7 Rigs 21 Rigs 8 Rigs 27 Rigs 5 Rigs Utica 6 Rigs Operational Strength Niobrara 1 Rig Woodford 3 Rigs PTEN’s Active Rigs in Unconventional Areas as of Oct
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 Bakken • Walking system is an optional feature APEX 1500™ • Able
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 APEX 1000 APEX Walking 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 TM TM TM …and Expected as of December 31, 2012 APEX 1500 APEX 1000 APEX Walking Total New Rigs Total New Rigs Other Electri
Slide 14: Contribution From High Quality Rigs
PTEN Contract Drilling EBITDA by Rig Class Six Months Ended June 30, 2012 14 Mechanical APEX & Other Electric ™ Who We Are >> Operational Strength >> Financial Flexibility Contribution From High Quality Rigs Preferred rigs account for more than Preferred rigs account for more than 75% of Contract Dr
Slide 15: Mechanical Rigs
Mechanical Rigs More than 180 in fleet 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 activity accelerat
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 * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010 Who We Are >> Operational Strength >> Financial Flexibility Growing Pressure Pumping Business
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 Operational Strength 43% 57% Fracturing H
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% More than two-thirds of fracturing horsepower is less than five years old Who We Are >> Operational Strength >> Financial Flexibility Modern Pressure Pumping Fleet
Slide 22: Financial Flexibility
Financial Flexibility
Slide 23: Investing in Our Company
23 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 24: Strong Financial Position
24 History of returning capital to investors Stock Buyback 2012 Cash Dividend Returned nearly $1 billion to shareholders since 2005 • – • $70 million during second quarter of 2012 • Increased authorization to $150 million in July 2012 • Total of $671 million repurchased between 2006 and – • Initiate
Slide 25: Strong Financial Position
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 The Warren Buffett Standard 26 2007 0 500 1,000 1,500 2,000 2,500 3,000 Thousands 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 Strong Financial Returns
Slide 27: Johnson Rice Energy Conference
Johnson Rice Energy Conference Patterson-UTI Energy, Inc. October 2, 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) 109,257 187,938 72,856 (17,5
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