Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Raymond James 35th Annual Institutional Investors Conference 2014
38 slides from Patterson-uti Energy's conference presentation, Mar 4, 2014
Slide 1: Patterson-UTI Energy, Inc. – Raymond James 35th Annual Institutional Investors Conference
Patterson -UTI Energy, Inc. Raymond James 35th Annual Institutional Investors Conference March 4-5, 2014
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: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson -UTI Energy? 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 wel
Slide 4: Who We Are
Who We Are © PATTERSON-UTI wa
Slide 5: Contract Drilling
Contract Drilling High quality fleet of land drilling rigs including 125 APEX® rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets Components of Revenue Pressure Pumping 36% Contract Drilling 62% Oil & Natural Gas 2% Patterson -U
Slide 6: Pressure Pumping
Pressure Pumping High quality fleet of modern pressure pumping equipment A leader in natural gas bi-fuel technology Strong reputation for safe and efficient operations Components of Revenue Pressure Pumping 36% Contract Drilling 62% Oil & Natural Gas 2% Patterson -UTI reported results for the year e
Slide 7: Contract Drilling
Contract Drilling © PATTERSON-UTI a
Slide 8: Continued Demand for APEX Rigs
Continued Demand for APEX® Rigs Percentage of Horizontal Wells Continues to Increase Baker Hughes U.S. Rig Count 80% % by Drilling Type 70% 60% 50% 40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Horizontal % Vertical
Slide 9: APEX Rig Fleet
APEX® Rig Fleet APEX® Rigs as of March 4, 2014 …and Expected as of December 31, 2014 Class 3/4/2014 12/31/2014 APEX XK 1500™ 17 36 APEX-XK 1000™ 4 4 APEX WALKING® 49 49 APEX 1500® 44 44 APEX 1000® 11 11 Total APEX® Rigs 125 144 A leader in high specification drilling rigs
Slide 10: Contribution from High Specification Rigs
Contribution from High Specification Rigs Contract Drilling EBITDA Contribution by Rig Class Year Ended December 31, 2013 Mechanical APEX® & Other Electric Preferred rigs account for approximately 87% of Contract Drilling EBITDA
Slide 11: APEX WALKING Rigs
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 http://patenergy.com/drilling/technology/apexwalk
Slide 12: Strong Demand for Pad Drilling
Strong Demand for Pad Drilling Pad drilling is contributing to increasing rig efficiency Pad drilling capable rigs are highly utilized All new APEX® rigs completed in 2014 are expected to have walking systems http://patenergy.com/drilling/technology
Slide 13: APEX-XK Rig Walking on Pad
APEX-XK™ Rig Walking on Pad Video of APEX-XK™ Rig http://patenergy.com/drilling/technology/apexwalk/ 13
Slide 14: The APEX-XK
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 http://pat
Slide 15: 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 Drilling Capabilities
Slide 16: Enhancing our Position in Pad Drilling
Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology
Slide 17: Early Adopter of Natural Gas Engines
Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology 17
Slide 18: Using Natural Gas as a Fuel Source
Using Natural Gas as a Fuel Source First contract driller to use GE’s Waukesha natural gas engines on a modern land rig 28 rigs currently configured to use natural gas as the primary fuel source including 7 natural gas powered rigs and 21 bi-fuel capable rigs We plan to add GE Waukesha engines to tw
Slide 19: Large Geographic Footprint
Large Geographic Footprint PTEN’s Active U.S. Land Drilling Rigs as of March 2014 Rockies 32 Rigs Appalachia & Midwest Mid-Continent 32 Rigs North Texas 25 Rigs 5 Rigs East Texas Permian Basin 13 Rigs 53 Rigs South Texas 36 Rigs
Slide 20: Pressure Pumping
Pressure Pumping © PATTERSON-UTI wa
Slide 21: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology 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 http://patenergy.com/pressurepumping/services
Slide 22: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services 22
Slide 23: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology One of the largest bi-fuel frac fleets in the Marcellus More than 600 stages completed using natural gas as a fuel source Replaced more than 332,000 gallons of diesel with cleaner burning natural gas Eliminated 2.4 million pounds of transportation loads on local roads
Slide 24: Comprehensive Lab Services
Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 25: Financial Flexibility
Financial Flexibility ©) PATTERSON-UTI =
Slide 26: Investing in Our Company
Investing in Our Company Capital Expenditures and Acquisitions ($ in millions) $1,012 $976 $974 $950 $637 $662 $598 $445 $453 2006 2007 2008 2009 2010 2011 2012 2013 2014E
Slide 27: A Different Size Company
A Different Size Company Average 2008-2010 Average 2011-2013 +86% 3,000 2,500 ) 2,000 Millions 1,500 +81% ( $ 1,000 Revenue EBITDA
Slide 28: Strong Financial Position
Strong Financial Position History of returning capital to investors Cash Dividend Initiated cash dividend in 2004 Recently announced doubling of quarterly cash dividend to $0.10 per share Stock Buyback Total of $843 million repurchased since 2005 Repurchased $85.8 million of stock in 2013 at an aver
Slide 29: Strong Financial Position
Strong Financial Position Total liquidity of approximately $710 million $250 million of cash at December 31, 2013 $460 million revolver availability at December 31, 2013 $443 million net debt at September 30, 2013 13.8% Net Debt/Total Capitalization $300 million of 4.97% Series A notes due October 5
Slide 30: Patterson-UTI Energy, Inc. – Raymond James 35th Annual Institutional Investors Conference
Patterson -UTI Energy, Inc. Raymond James 35th Annual Institutional Investors Conference March 4-5, 2014
Slide 31: Additional References
Additional References © PATTERSON-UTI wa
Slide 32: Active in Unconventional Plays
Active in Unconventional Plays PTEN’s Active Rigs in Unconventional Areas as of March 2014 Bakken 20 Rigs Marcellus 21 Rigs Utica 11 Rigs Piceance 2 Rigs Woodford 2 Rigs Barnett 2 Rigs Haynesville 5 Rigs Eagle Ford 33 Rigs
Slide 33: Term Contract Coverage
Term Contract Coverage Based on term contracts in place as of February 6, 2014 An average of 124 rigs expected under term contract in the first quarter of 2014 An average of 93 rigs expected under term contract for 2014 Drilling term contract revenue backlog of $946 million at December 31, 2013 PTEN
Slide 34: Growing Pressure Pumping Business
Growing Pressure Pumping Business Recent Investments in Pressure Pumping … …Have Increased Fleet Size and Quality 800 rsepower 600 Ho 400 65 Pumping (000s) 200 0 Pressure 2006 2007 2008 2009 2010* 2011 2012 2013 Year End Fracturing Horsepower Other Horsepower * Includes acquisition of approximately
Slide 35: Pressure Pumping Areas of Operation
Pressure Pumping Areas of Operation A Significant Player in Regional Markets Fracturing Horsepower 51% 49% Northeast Region: Fracturing horsepower: 332,000 Southwest Region: Other horsepower: 60,600 Fracturing horsepower: 343,000 Other horsepower: 28,000
Slide 36: Strong Financial Returns
Strong Financial Returns Growth in Per-Share Book Value CAGR 16.3% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures PATTERSON -UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) Three Months Ended Twelve Months Ended (dollars in thousands) December 31, December 31, 2013 2012 2013 2012 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income $ 16,591
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures PATTERSON -UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) 2013 2012 2011 2010 2009 2008 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income (loss) $ 188,009 $ 299,477 $ 322,413 $ 116,942 $ (38,290) $ 347,
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