Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Merger or Acquisition (June 2023)
23 slides from Patterson-uti Energy's merger presentation, Jun 15, 2023
Slide 1: Patterson-UTI Energy & NexTier Oilfield Solutions
Patterson-UTI Energy & NexTier Oilfield Solutions Creating a New Industry Leading Drilling and Completions Services Provider June 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's and NexTi
Slide 3: A Compelling Combination
PTEN TEAM REPLACE IMAGE A Compelling Combination Establishes a premier drilling and completions provider in U.S. land positioned among the leaders in contract drilling, pressure pumping, and directional drilling Attractive investment opportunity with greater size and scale facilitating increased sha
Slide 4: Transaction Overview
Transaction Overview • No-premium all-stock merger of equals • Implies total enterprise value of approximately $5.4 billion Structure • 0.7520 shares of Patterson-UTI common stock issued per outstanding share of NexTier common stock • Share exchange expected to be tax-free to shareholders of both co
Slide 5: Compelling Value Creation Opportunity
Compelling Value Creation Opportunity Cash Returned to Shareholders ($mm) 350 Revenue Adjusted EBITDA ~$6.9B $297 ~$1.9B 300 $288 1Q23 annualized combined 250 1Q23 annualized combined $105 $225 $201 Accretive Synergies 200 To earnings per share and free cash flow per ~$200M expected within 18 $111 $
Slide 6: Operations Across the Most Active U.S. Basins
Operations Across the Most Active U.S. Basins 172 3.3 Million Super-Spec Drilling Rigs Hydraulic Horsepower Nearly 2/3 Leading Provider Drilling & Completions Services Dual Fuel Capable Frac Fleets Using Low Carbon Fuel Sources Colombia PTEN Drilling PTEN Drilling and Pressure Pumping NexTier 6
Slide 7: Creates a New North American Player with Revenue Generation Among the Industry Leaders
Creates a New North American Player with Revenue Generation Among the Industry Leaders… North American Oilfield Services Revenue Comparison (Q1 2023A Annualized) $11.1 $6.9 $6.8 $5.0 $4.0 $3.7 $3.4 $3.3 $3.1 $2.8 $2.3 Combined Source: Company filings. Note: $ in billions. Data as of 31-Mar-2023, rep
Slide 8: …with a Significantly Expanded North American Frac Footprint
…with a Significantly Expanded North American Frac Footprint Current Energy Services Frac Horsepower Landscape (United States Market Only) 60 4950 52 4450 50 46 3300 45 44 42 3950 2898 40 3290 3450 2500 33 2450 2950 30 2100 2450 20 1950 15 12 10 10 9 1450 10 1315 1190 7 728 639 450 2 950 540 490 0 4
Slide 9: Significant Cost Savings and Operational Synergies Opportunity
Significant Cost Savings and Operational Synergies Opportunity Operations Reductions in sales, Supply chain ~$200M integration general and administrative management estimated cost savings and operational synergies within 18 months1 following close and annually thereafter Expected to create significa
Slide 10: Creates a New Industry Leader with Significant Size
Creates a New Industry Leader with Significant Size Enterprise Value $ 5.4 $ 3.9 $ 3.9 $ 3.4 $ 3.1 $ 2.7 $ 2.3 $ 1.6 $ 1.5 $ 1.3 $ 0.9 $ 0.6 $ 0.5 Combined Source: Company filings, Capital IQ, Bloomberg, IBES. Data as of 13-Jun-2023. Note: $ in billions. 10
Slide 11: Leading Provider of Contract Drilling Services
Leading Provider of Contract Drilling Services 172 super-spec drilling rigs in the U.S. of which 120 are Tier-1, super-spec rigs having the capabilities most in demand by customers to drill complex wells Super-spec rigs are the necessary platform through which efficiency enhancing technologies such
Slide 12: Patterson-UTI’s MS Directional
Patterson-UTI’s MS Directional A leading provider of directional drilling services Strong reputation for the reliability and durability of downhole performance motors and measurement-while-drilling (MWD) tools Remote MWD operations with reduced personnel are standard on all directional drilling jobs
Slide 13: Patterson-UTI’s Superior QC
Patterson-UTI’s Superior QC Space flight navigation algorithms ™ Improved well placement allowing for better frac designs Better steering to target zones Better wellbore quality 13
Slide 14: A Leader in U.S. Land Completions Services
A Leader in U.S. Land Completions Services Combined company will be the second largest pressure pumping company in the U.S., owning 3.3 million horsepower with 45 active frac spreads Nearly 2/3 of the combined company’s fleet will be dual-fuel capable reducing fuel costs and lowering emissions and m
Slide 15: Leveraging NexTier’s Wellsite Integration Model
Leveraging NexTier’s Wellsite Integration Model NexMile Logistics Innovative Reservoir NexHub Digital Power Solutions Engineering Operations CNG Fueling $7M/Fleet Potential Annual Incremental Adjusted EBITDA & CapEx Natural Gas-Powered Reduction Value per Fleet with Fleet fully realized Integrated E
Slide 16: Integrated Wireline Plug & Perforation
Integrated Wireline Plug & Perforation Spare Wireline Capacity Has Potential to Add Profitability with Minimal Incremental Capital Pumping Hour Comparison 2022 Results, NexTier Frac with Integrated P&P vs. 3rd Party The Winning P&P Formula… Increase in Daily Frac 18% Operating Efficiency1 Digitally
Slide 17: Proppant Logistics and Storage
Proppant Logistics and Storage NexMile™ Scalability Offers Further Upside Through Integration Truckloads per Well Logistics NPT per Fleet Estimated for a 12,500 ton well NexMile Logistics vs. 3rd Party Logistics 581 35 w/ Lowest 30 Carbon Avg. 3rd Party Logistics NPT 510 Footprint 25 Hours per Month
Slide 18: Power Solutions Natural Gas Fueling
Power Solutions Natural Gas Fueling Elevating the Value of Natural Gas-Powered Frac Fleets Diesel Displacement Comparison Long-Term Trial Results with NexTier Integrated Permian Client The Power Solutions Bottom Line… 80% 71% 73% 70% Power Solutions consistently 60% increases natural gas consumption
Slide 19: NexHub Equipment Health Management
NexHub™ Equipment Health Management drives higher equipment performance at Lifecycle Improvement: lower operating costs Engine Lifecycle +110% NexHub Implementation Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 Nov-21 Power End Lifecycle +125% Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 Nov-21 Transmission Lifecycle +6
Slide 20: Unlocking Value and Enhancing Efficiency Through Data Analytics
Unlocking Value and Enhancing Efficiency Through Data Analytics Patterson-UTI’s portal for the real time collection, The NexHub Digital Center is a cutting edge platform aggregation, analysis, and visualization of data that enables highly efficient field operations and from drilling rigs and frac sp
Slide 21: Sustainability Leadership Position in Low Carbon Solutions
Sustainability Leadership Position in Low Carbon Solutions 50%+ Combined Company Will Lead the Industry in Next Generation Equipment combined company fleet Sustainability leadership position in low-carbon emissions NexTier has deployed its first electric frac fleet in capable of being powered utiliz
Slide 22: Combined Company Focused on Human Capital Management
Combined Company Focused on Human Capital Management Shared commitment to investing in and developing employees to create employer of choice in the energy industry Commitment to safety Promoting diversity and inclusion initiatives Formalized leadership Focus on recruitment in training local communit
Slide 23: A Compelling Investment Opportunity
A Compelling Investment Opportunity Expands customer base Drives improved free Supports low-carbon and service capabilities cash flow outlook strategy Delivers meaningful cross-selling Accelerates capital returns to opportunities and cost synergies shareholders and selectively invest in value accret
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