Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Investor Presentation (June 2025)
31 slides from Patterson-uti Energy's investor presentation, Jun 2, 2025
Slide 1: Investor Presentation June 2025
Investor Presentation June 2025
Slide 2: Forward Looking Statements & Disclosures
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 or
Slide 3: Business Activity Update
Business Activity Update For purposes of the shareholder return target, the Company defines adjusted free cash flow as net cash provided by operating activities less capital expenditures plus proceeds from asset sales. The shareholder return target, including the amount and timing of any dividend pa
Slide 4: Executive Summary
Differentiated operating capability with premier Drilling and Completions franchise Integrated service offerings improve well delivery for customers and create value for investors Predictable capital allocation strategy Capital expenditures can be scaled with activity; Expect to return at least 50%
Slide 5: Who We Are
Who We Are
Slide 6: Company Overview: Building an Integrated OFS Company
Hydraulic Fracturing Wireline Operations Natural Gas Fueling Oilfield Logistics Cementing 2.9 Million Hydraulic Horsepower1 Other business includes Patterson Petroleum. 1Reflects deployed and idle equipment capacity during the second quarter of 2025. 2Drilling Products revenue from reported non-U.S.
Slide 7: Market Leading Presence Among the Largest E&Ps
Market Leading Presence Among the Largest E&Ps Roughly 60% of Patterson-UTI's revenue is generated from the 15 most active E&Ps 1Rig count is based on U.S. onshore activity as of 5/16/2025. Source: Enverus 2Based on LTM 3/31/2025 total company revenue 15 Most Active E&Ps 0% 20% 40% 60% 15 Most Activ
Slide 8: Patterson-UTI Business Overview
Patterson-UTI Business Overview
Slide 9: Diversified Cash Flow Across Drilling and Completions Markets
Diversified Cash Flow Across Drilling and Completions Markets 1Other business includes Patterson Petroleum and legacy Great Plains Oilfield Rental which was divested in April 2025. Cash flow driven by drilling services and products and completions services Patterson-UTI Company Profile Adjusted Gros
Slide 10: Drilling Services: Delivering Operating Outperformance
Drilling Products & Services: DRIVING DRILL ING EFFICIENCY TO DEL IVER RESULTS Annualized Lateral Footage Drilled by Rig Type3 Company Estimates for a Representative Delaware Basin Drilling Scenario Market Outperformance 1Q25 vs. 1Q23 Actual for Active Rigs and Adjusted Gross Profit per Day 0 150,00
Slide 11: Drilling Services: Reliable cash generation
Drilling Services | Reliable cash generation Adjusted EBITDA1 minus Capital Expenditures per Active U.S. Rig Patterson-UTI Drilling Services Segment, ($, millions) Cash generation at our Drilling Services segment serves as a foundation for PTEN's Free Cash Flow 1Adjusted earnings before interest, ta
Slide 12: Completion Services: Industry premium asset utilization is high
Industry HHP Utilization Rate by Engine Type1 Active Industry HHP, U.S. Land, 2Q 2025 Estimate 0% 50% 100% Electric and Natural Gas Direct-Drive Tier 4 Dual Fuel High Utilization for Premium Natural Gas-Powered Assets Premium natural gas-powered assets are in high demand, and about 80% of our active
Slide 13: Completion Services: Cost advantage drives asset differentiation
Completion Services | Cost advantage drives asset differentiation Estimated U.S. Shale Industry Frac Fleet Market Bifurcation1 Fleet type vs. cost of fueling for a representative U.S. Land fleet 1Patterson-UTI Estimates. Annual cost of fueling assumes $2.75 per gallon of diesel fuel and $3.25 per mm
Slide 14: Drilling Products: Outpacing industry activity
Drilling Products | Outpacing industry activity Rapid deployment of incremental design improvements create a demonstrable & sustainable advantage 1On August 14, 2023, we formed our drilling products segment through the acquisition of Ulterra Drilling Technologies. The table includes revenue and acti
Slide 15: Patterson-UTI Enterprise: Strong and Consistent FCF Generation
9% 10% 9% 38% 44% 40% 0% $- 2019-2023 2024 LTM 1Q25 Adjusted EBITDA minus Capex as a % of Revenue Adjusted FCF Conversion Patterson-UTI Enterprise | Strong and Consistent FCF Generation Patterson-UTI has benefited in the era of improving U.S. shale capital efficiency ▪ A key contributor to improved
Slide 16: Operational Excellence: Efficiency Amplified by Integration
Operational Excellence Efficiency Amplified by Integration
Slide 17: Harnessing Data to Enable Higher Impact Drilling & Completion Operations
Harnessing Data to Enable Higher Impact Drilling & Completion Operations DRILLING COMPLETIONS POWERDIG ITAL INTEGRATION Patterson-UTI creates sustainable value with our end-to-end digital integration and data-driven optimization strategy Simplify workflows to increase scalability of the workforce Ac
Slide 18: Integration Advantage: Drilling Services and Products
Integration Advantage: Drilling Services and Products Contract Drilling | Patterson-UTI Drilling Diverse rig fleet complete with innovative software solutions Natural Gas Fueling, Well Cementing | NexTier Integrated solutions unlocked through merger Drill Bits | Ulterra Leading provider of PDC drill
Slide 19: Integration Advantage: Completions Services
Integration Advantage: Completions Services Patterson-UTI integrates industry- leading equipment and technology at scale to deliver unique completions value to the wellsite and improve performance per fleet for our investors. Digitally enabled by: DRILLING COMPLETIONS POWERDIGITAL INTEGRATION Proppa
Slide 20: Natural Gas Fueling
Natural Gas Fueling Mobile energy is a core competency of the company, positioning PTEN to benefit from the next generation of the oilfield Pos i t ioned for Growth Alongs ide Growing Demand for Natural Gas Fuel ing ▪ Industry-Leading Scale and Reliability: Largest integrated natural gas fueling pro
Slide 21: Capital Allocation Framework
Capital Allocation Framework
Slide 22: Organic Investing Strategy Targets Strong FCF Conversion
Organic Investing Strategy Targets Strong FCF Conversion Invest to protect and extend our operational advantage Strategic Allocation Target strategic high-return investments that drive returns accretion for PTEN shareholders Maximize Long -Term Free Cash F low Winning Foundation Allocation Strategy
Slide 23: Investment Grade Capital Structure
TOTAL LIQUIDITY $723 M Includes cash and revolver as of 3/31/2025 LOW LEVERAGE 1 X Net Debt as of 3/31/2025 to LTM Adjusted EBITDA CASH BALANCE $225 M Cash Position as of 3/31/2025 INTEREST COVERAGE 16 X LTM 3/31/2025 Adjusted EBITDA to Net Interest Expense NEAREST SENIOR NOTE MATURITY 2028 CREDIT R
Slide 24: Deliver a Repeatable Shareholder Return Program
Deliver a Repeatable Shareholder Return Program For purposes of the shareholder return target, the Company defines adjusted free cash flow as net cash provided by operating activities less capital expenditures plus proceeds from asset sales. The shareholder return target, including the amount and ti
Slide 25: Shareholder Returns as a % of Current Market Cap
Shareholder Returns as a % of Current Market Cap Last 12 Months through 3/31/2025. Includes Dividends and Share Repurchases Shareholder Returns as a % of Current Market Cap Includes Dividends and Share Repurchases 1Peer group includes OFS comps ACDC, BKR, HAL, LBRT, NBR, PDS, PUMP, and SLB. Peer dat
Slide 26: Sustainability as a Strategy
Sustainability as a Strategy Our Vision: To safely and responsibly help provide the world with oil and gas for the products that make peoples’ lives better in a sustainable and profitable manner Find out more in our Sustainability Report at: https://esg.patenergy.com/ Patterson-UTI has demonstrated
Slide 27: A PATTERSON-UTI
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Slide 28: Reconciliation of Non-GAAP Financial Measures: Adjusted Gross Profit
Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit Drilling Services Completion Services Drilling Products Other (dollars in thousands) For the Last Twelve Months March 31, 2025 Revenues $ 1,683,097 $ 3,053,868 $ 347,341 $ 63,782 Less direct operating costs (1,005,483) (2,570,257) (
Slide 29: Reconciliation of Non-GAAP Financial Measures: Adjusted EBITDA less Capital Expenditures
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA less Capital Expenditures, Drilling Services (1) Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by accounting principles generally accepted in the United States of America (“GAAP
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (1) Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by accounting principles generally accepted in the United States of America (“GAAP”). We define Adjusted EBITDA as net income (loss) plus incom
Slide 31: Reconciliation of Non-GAAP Financial Measures: Adjusted Free Cash Flow
Reconciliation of Non-GAAP Financial Measures Adjusted Free Cash Flow (1) We define adjusted free cash flow as net cash provided by operating activities less capital expenditures, plus proceeds from disposal of assets. We present adjusted free cash flow as a supplemental disclosure because we believ
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