Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Jefferies 2013 Global Energy Conference
38 slides from Patterson-uti Energy's conference presentation, Nov 13, 2013
Slide 1: Jefferies 2013 Global Energy Conference
Jefferies 2013 Global Energy Conference Exhibit 99.1 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Jefferies 2013 Global Energy Conference November 2013 November 2013
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 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 well site execution Financially flexible Strong
Slide 4: Why
©\PATTERSON-UTI why
Slide 5: Contract Drilling
High quality fleet of land drilling rigs including 123 APEX ® rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets 5 Pressure Pumping 36% Contract Drilling 62% Oil & Natural Gas 2% Components of Revenue Patterson-UTI reported resu
Slide 6: 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 Patterson-UTI reported results for the nine months ended September 30, 2013 6 Components of Revenue Pressure Pumping 36% Oil & Natural Gas 2% Contrac
Slide 7: Contract Drilling
Contract Drilling Contract Drilling
Slide 8: Continued Demand for APEX Rigs
8 Percentage of Horizontal Wells Continues to Increase 0% 80% 70% 60% 50% 40% 30% 20% 10% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 % Horizontal % Vertical Baker Hughes U.S. Rig Count % by Drilling Type Continued Demand for APEX Continued Demand for APEX ® ® Rigs Rigs Percentage of Hori
Slide 9: APEX Rig Fleet
…and Expected as of December 31, 2014 9 APEX ® Rigs as of November 13, 2013 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® 16 4 48 44 11 36 4 49 44 11 …and Expected as of December 31, 2014 APEX ® Rigs as of November 13, 2013 A leader in high specification drilling rigs A leader
Slide 10: Contract Drilling EBITDA Contribution by Rig Class
Contract Drilling EBITDA Contribution by Rig Class Nine Months Ended September 30, 2013 10 APEX ® & Other Electric Mechanical Preferred rigs account for approximately Preferred rigs account for approximately 87% of Contract Drilling EBITDA 87% of Contract Drilling EBITDA Contribution from High Speci
Slide 11: 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 11 http://patenergy.com/drilling/technology/apexwalk APEX WALKING APEX WALKING ® ® Rigs Rigs • • Capable of walking with drill pipe a
Slide 12: Strong Demand for Pad Drilling
12 Pad drilling is contributing to increasing rig efficiency Pad drilling capable rigs are highly utilized All new APEX ® rigs delivered in 2013 will have walking systems suitable for pad drilling http://patenergy.com/drilling/technology Strong Demand for Pad Drilling Strong Demand for Pad Drilling
Slide 13: APEX-XK Rig Walking on Pad
13 http://patenergy.com/drilling/technology/apexwalk/ APEX-XK™ APEX-XK™ Rig Walking on Pad Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/ Video of APEX-XK ™ Ri g
Slide 14: 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 14 http://patenergy.com
Slide 15: Enhancing our Position in Pad Drilling
15 Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drilling Capabilities 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 Drillin
Slide 16: Enhancing our Position in Pad Drilling
16 http://patenergy.com/drilling/technology 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
17 http://patenergy.com/drilling/technology Early Adopter of Natural Gas Engines Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology
Slide 18: Using Natural Gas as a Fuel Source
18 First contract driller to use GE’s Waukesha natural gas engines on a modern land rig 23 rigs currently configured to use natural gas as the primary fuel source including 5 natural gas powered rigs and 18 bi-fuel capable rigs. 34 rigs expected to be equipped with natural gas or bi-fuel engines by
Slide 19: Pressure Pumping
Pressure Pumping Pressure Pumping
Slide 20: 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 20 http://patenergy.com/pressurepumping/services A Leader in Bi-Fuel Technology A Leader in Bi-
Slide 21: A Leader in Bi-Fuel Technology
21 http://patenergy.com/pressurepumping/services A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services
Slide 22: A Leader in Bi-Fuel Technology
One of the largest bi-fuel frac fleets in the Marcellus More than 400 stages completed using natural gas as a fuel source Replaced more than 112,000 gallons of diesel with cleaner burning natural gas Eliminated 800,000 pounds of transportation loads on local roads 22 http://patenergy.com/pressurepum
Slide 23: Comprehensive Lab Services
23 http://patenergy.com/pressurepumping/services Comprehensive Lab Services Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 24: Financial Flexibility
Financial Financial Flexibility Flexibility
Slide 25: Investing in Our Company
25 Capital Expenditures and Acquisitions ($ in millions) 2006 2007 2008 2009 2010 2011 2012 2013E $598 $637 $445 $453 $976 $1,012 $974 $750 Capital Expenditures and Acquisitions ($ in millions) Investing in Our Company Investing in Our Company
Slide 26: Strong Financial Returns: History of returning capital
26 History of returning capital to investors Stock Buyback 2Q12 and 3Q13 at an average price of $17.33 September 30, 2013 Cash Dividend Returned approximately $1.2 billion to shareholders since 2005 • • History of returning capital to investors – – Stock Buyback • Repurchased $256 million of our com
Slide 27: Strong Financial Position
Total liquidity of approximately $665 million $205 million of cash at September 30, 2013 $460 million revolver availability at September 30, 2013 $490 million net debt at September 30, 2013 15% Net Debt/Total Capitalization $300 million of 4.97% Series A notes due October 5, 2020 $300 million of 4.2
Slide 28: Jefferies 2013 Global Energy Conference
Jefferies 2013 Global Energy Conference Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Jefferies 2013 Global Energy Conference November 2013 November 2013
Slide 29: Additional References
Additional References Additional References
Slide 30: Active in Unconventional Plays
30 PTEN’s Active Rigs in Unconventional Areas as of November 2013 Bakken Piceance Haynesville Marcellus Barnett 16 Rigs Eagle Ford 4 Rigs 23 Rigs 1 Rig 30 Rigs 8 Rigs Utica 9 Rigs Woodford 1 Rig PTEN’s Active Rigs in Unconventional Areas as of November 2013 Active in Unconventional Plays Active in U
Slide 31: Large Geographic Footprint
31 PTEN’s Active U.S. Land Drilling Rigs as of November 2013 East Texas Appalachia & Midwest North Texas Mid-Continent Rockies South Texas 29 Rigs 32 Rigs 21 Rigs 36 Rigs 3 Rigs 12 Rigs Permian Basin 52 Rigs PTEN’s Active U.S. Land Drilling Rigs as of November 2013 Large Geographic Footprint Large G
Slide 32: Term Contract Coverage
Based on term contracts in place as of October 24, 2013 An average of 116 rigs expected under term contract in the fourth quarter of 2013 An average of 58 rigs expected under term contract for 2014 PTEN expects to continue signing term contracts 32 Drilling term contract revenue backlog of $967 mill
Slide 33: Mechanical Rigs
Mechanical Rigs 147 mechanical rigs in fleet Most are 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 act
Slide 34: Growing Pressure Pumping Business
34 Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality 2006 2007 2008 2009 2010* 2011 2012 2013E Year End Other Horsepower Fracturing Horsepower 0 200 400 600 800 * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010 Recent Investments
Slide 35: Pressure Pumping Areas of Operation
35 Fracturing horsepower: 343,000 Other horsepower: 26,000 Fracturing horsepower: 332,000 Other horsepower: 61,500 A Significant Player in Regional Markets 49% 51% Fracturing Horsepower Fracturing horsepower: 343,000 Other horsepower: 26,000 Fracturing horsepower: 332,000 Other horsepower: 61,500 A
Slide 36: Modern Pressure Pumping Fleet
36 PTEN Fracturing Horsepower by Age As of September 30, 2013 >10 Years 6% 5 - 10 Years 23% < 5 Years 71% Average age of only three years Average age of only three years PTEN Fracturing Horsepower by Age As of September 30, 2013 Modern Pressure Pumping Fleet
Slide 37: Strong Financial Returns: Growth in Per-Share Book Value
Growth in Per-Share Book Value The Warren Buffett Standard 37 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Strong Financial Returns Strong Financial Returns Growth in Per-Share Book Value The Warren Buffett Standard
Slide 38: Non-GAAP Financial Measures
38 PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2013 2012 2013 2012 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income $ 74,420 $ 50,806 $ 171,418 $ 240,6
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