Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Barclays CEO Energy-Power Conference 2019
38 slides from Patterson-uti Energy's conference presentation, Sep 3, 2019
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 3-4, 2019 Patterson-UTI Energy, Inc.
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: NUT
NUT = dD PatTERsO we OF iO 4 uw. 4 rt O.. a it)
Slide 4: Financial Focus
Financial Focus Focused on generating positive cash flow after capex Focused on maintaining a strong balance sheet Focused on returning cash to shareholders through a stable dividend, augmented by opportunistic share repurchases To enhance future cash flow and profitability, we are making certain st
Slide 5: Technology Development
< TECH NOLOGY J DEVELOPMENT _ ENERGYING:
Slide 6: Automation and Remote Operations
RIG AUTOMATION Consistent, automated processes at the wellsite limit safety risks, reduce well costs, streamline logistics and increase margins Automation and Remote Operations REMOTE OPERATIONS Remote operations allow a specialist to manage multiple wells at one time DIRECTIONAL DRILLING AUTOMATION
Slide 7: Automation and Remote Operations
Automation and Remote Operations REMOTE OPERATIONS RIG AUTOMATION a DIRECTIONAL DRILLING AUTOMATION ™ ™ ™ ™ ™ ™
Slide 8: Rig Automation
RIG. vy. AUTOMATION ENERGY INC.
Slide 9: Super-Spec Rigs as a Technology Platform
Super-Spec Rigs as a Technology Platform Super-spec rigs will be the platform from which advancements in automation and remote operations are deployed PTEN is well positioned as a leader in the super-spec rig market Advancements in rig technology are expected to be more software driven than hardware
Slide 10: PTEN's Proprietary Operating System for APEX Rigs
PTEN’s Proprietary Operating System for APEX® Rigs ™
Slide 11: Applications
Applications Adaptive Auto-Driller: Adaptive control loops maximize rate of penetration (ROP) through changing formations and minimize dysfunction. Optimized to consistently replicate expert driller performance. Easy to use interface that accelerates driller learning and development. Automated Toolf
Slide 12: Superior QC
Superior QC Superior QC services increase the accuracy of wellbore placement to improve well-to-well spacing More accurate well spacing provides for: Fewer frac hits Less parent-child communication between wells Generally better production economics Superior QC is a leader in terms of speed, automat
Slide 13: Bit Guidance Superior QC
Bit Guidance Superior QC Bit Guidance Superior QC’s directional drilling control combined with Superior QC’s Fault Detection, Isolation, and Recovery (FDIR) software provides for real-time corrections and accurate well placement, reducing tortuosity and maximizing exposure to targeted production zon
Slide 14: New Directional Drilling Mud Motor Design
New Directional Drilling Mud Motor Design Next generation bearing assembly maintains full support of critical driveline components – even in the harshest of environments A new generation transmission offers increased reliability with simplicity of design. Fewer moving parts results in fewer opportun
Slide 15: Enhanced Measurement While Drilling (MWD) Platform
Enhanced Measurement While Drilling (MWD) Platform Increased data transmission rates to support remote operations and directional drilling automation Improved durability to better withstand increasing drilling intensity Longer battery life to allow for longer tool runs to increase efficiency ™
Slide 16: Environmental Sustainability
Environmental Sustainability
Slide 17: GenAssist energy management software
powered by GenAssist™ is an energy management software system that leverages EcoCell’s™ stored energy to optimize fuel efficiency and emissions. Automatically starts/stops engines and sets optimal load to achieve best possible fuel economy and emissions levels. Alternative solution to 4th generator
Slide 18: Natural Gas Powered Drilling Rigs
Natural Gas Powered Drilling Rigs Utilize lower cost natural gas to help reduce fuel costs Lower emissions than diesel powered rigs PTEN was the first contract driller to use GE’s Waukesha natural gas engines on a modern land rig 65 rigs currently configured to use natural gas as the primary fuel so
Slide 19: e-Frac
e-Frac Patterson-UTI’s subsidiary, Current Power, has the ability to provide everything between the turbine and the electric motor for an electric frac spread and has supplied e-frac equipment Drive Systems – Capable of providing both low and medium voltage drive systems Control Systems – Proprietar
Slide 20: Dual-Fuel Frac Spreads
More flexible fuel source as engines can burn a fuel mix comprised of up to 70% natural gas Comparable torque and horsepower to an all diesel engine Reduces operating costs by lowering fuel costs Good for environmental sustainability Dual-Fuel Frac Spreads
Slide 21: Dual-Fuel Frac Spreads
Dual-Fuel Frac Spreads Patterson-UTI began dual fuel operations in 2012 and has expanded to five dual fuel spreads Patterson-UTI has completed more than 10,300 dual fuel fracturing stages saving customers more than 7.3 million gallons of diesel more than 7.3 million gallons of diesel
Slide 22: Data Analytics and Remote Operations
DATA ANALYTICS AND REMOTE OPERATIONS
Slide 23: PTEN+ Advanced Data Analytics and Performance Center
PTEN+ Advanced Data Analytics and Performance Center Able to remotely monitor PTEN’s drilling, directional drilling, and pressure pumping operations Staffed by engineers and data analysts: Drilling optimization engineers who work with the customers to identify both trends in rig performance and the
Slide 24: PTEN+ Real Time Rig Monitoring
PTEN+ Real Time Rig Monitoring ©Patterson-UTI Drilling Company LLC
Slide 25: Offsite Frac
Offsite Frac ©Universal Pressure Pumping, Inc.
Slide 26: Using AI with Digital Twin Technology
Using AI with Digital Twin Technology Predictive analytics utilizing AI and digital twin technology Continuously monitors PTEN’s frac trailers Improves operational performance Reduces operating costs
Slide 27: Blender Remote Control & Automation
Blender Remote Control & Automation Developing new control systems to allow the blender to be remotely operated from the data van Increased data collection capability will improve predictive analytics modeling helping to improve blender up time and reduce maintenance costs Remote operations with aut
Slide 28: Financial Focus
FINANCIAL FOCUS PATTERSON-UTI
Slide 29: Substantial Liquidity
Substantial Liquidity $256 million cash as of June 30, 2019 $600 million revolver through March 2024 21.0% Net Debt/Total Capital at June 30, 2019 $300 million term loan matures October 2020 $300 million term loan matures June 2022 $525 million 3.95% senior notes due 2028 Investment Grade Credit Rat
Slide 30: Patterson-UTI Strong Balance Sheet
Patterson-UTI Strong Balance Sheet New $150 million term loan Three year term due June 2022 Investment grade terms Favorable pricing at Libor + 112.5 basis points Plan to use proceeds from term loan plus cash on hand to repay $300 million debt due October 2020 Reduces total debt by $150 million Exte
Slide 31: A History of Returning Cash to Shareholders
A History of Returning Cash to Shareholders $1.75 billion returned to shareholders since the beginning of 2006
Slide 32: _4_ PATTERSON-UTI
_4_ PATTERSON-UTI ENERGY INC.
Slide 33: Environmental and Social Responsibility
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
Slide 34: Patterson-UTI Core Values
Patterson-UTI Core Values Safety and Environment We believe that the safety of our employees and the protection of our environment is a cornerstone Operational Excellence We deliver high-quality, value-added services and focus on innovative solutions in all aspects of our work Honesty and Integrity
Slide 35: Environmental
Environmental Air Quality We utilize natural gas engines, dual-fuel equipment and other technologies that reduce our air emissions Water Quality We strive to conduct our drilling and completion activities in a manner that protects the quality of ground and surface water Land Use We employ spill prev
Slide 36: Social
Social Our people are our most important asset and our greatest strength Health and Safety Our goal is to provide an incident-free work environment. The safety of our employees and others is our highest priority Diversity and Inclusion We are committed to fostering a work environment where all peopl
Slide 37: Non-U.S. GAAP Financial Measures
Non-U.S. GAAP Financial Measures (1) Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by U.S. GAAP. We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax expense (benefit) and depreciation, depletion, amortizati
Slide 38: @ PATTERSON-UTI
@ PATTERSON-UTI 4
Patterson UTI Energy — Barclays CEO Energy-Power Conference 2019 on 6ix