Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Citi 2016 Global Energy & Utilities Conference
28 slides from Patterson-uti Energy's conference presentation, May 10, 2016
Slide 1: Citi 2016 Global Energy & Utilities Conference
Citi 2016 Global Energy & Utilities Conference May 10, 2016 Exhibit 99.1
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: Scaling The Business
Scaling The Business Scaling our business effectively is key to our success… …both in upturns and downturns Patterson-UTI U.S. rig count and U.S. drilling staff size through April 29, 2016
Slide 4: High Quality Drilling Rigs
High Quality Drilling Rigs 161 APEX® Rigs
Slide 5: Modern Pumping Equipment
Modern Pumping Equipment Modern triplex pumps defined as being placed in service within the last seven years.
Slide 6: Strong Financial Position
Strong Financial Position 25% Debt/ Total Cap Stockholder’s Equity 4.97% Series A notes Due October 5, 2020 4.27% Series B notes Due June 14, 2022 Bank Term Loans Maturing September 27, 2017 * Debt and equity balances as of March 31, 2016. Total debt balance of $845 million includes $3.5 million of
Slide 7: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? High Quality Assets 161 APEX® rigs comprised primarily of 1500 horsepower and pad capable rigs Creating value through focus on well site execution Technology leader Leader in walking rigs for pad drilling Innovator in deploying latest technologies for pressure pum
Slide 8: Citi 2016 Global Energy & Utilities Conference
Citi 2016 Global Energy & Utilities Conference May 10, 2016
Slide 9: Additional References
Additional References @\PATTERSON-UTI — NUT!
Slide 10: Contract Drilling
Contract Drilling High quality fleet of land drilling rigs including 161 APEX® rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets Patterson-UTI reported results for the three months ended March 31, 2016
Slide 11: Pressure Pumping
Pressure Pumping High quality fleet of modern pressure pumping equipment Strong reputation for regional knowledge and efficient operations Concentrated footprint provides economies of scale Patterson-UTI reported results for the three months ended March 31, 2016
Slide 12: Managing Supply Chain
Managing Supply Chain Sourcing and Supply Security Negotiated critical cost elements for both Drilling and Pressure Pumping Solidified availability of strategic commodities Reduced Costs in 2015 Sand costs down 25% - 35% Sand hauling costs down 25% - 35% Pump parts costs down 15% - 20% Chemical cost
Slide 13: Contract Drilling
Contract Drilling @ © PATTERSON. UTI DRILLING COMPANY LLC ENERGY NC.
Slide 14: Majority of Adjusted EBITDA from APEX Rigs
Majority of Adjusted EBITDA from APEX® Rigs *Adjusted EBITDA contribution by rig class excluding early termination revenues for the three months ended March 31, 2016.
Slide 15: The APEX-XK
The APEX-XK® Enhanced X-Y mobility Walk with full set-back of pipe in mast More efficient rig up / rig down Walking times average 45 minutes for 10’ – 15’ well spacing Advanced environmental spill control integrated into drilling floor Reduced number of truck loads for rig moves 53 APEX-XK 1500® and
Slide 16: APEX-XK Integrated Walking System
APEX-XK® Integrated Walking System
Slide 17: APEX-XK Rig Walking on Pad
APEX-XK® Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/ Video of APEX-XK® Rig
Slide 18: West Texas Rigs Large Geographic Footprint
West Texas 11 Rigs Large Geographic Footprint PTEN’s Active Rig Count by Region as of May 6, 2016 Appalachia 18 Rigs East Texas 5 Rigs Mid-Continent 5 Rigs Rockies 3 Rigs South Texas 4 Rigs North Dakota 6 Rigs Canada 0 Rigs http://patenergy.com/
Slide 19: Pressure Pumping
Pressure Pumping UNIVERSAL @\PATTERSON-UTI — NUT!
Slide 20: Modern Pumping Equipment
@® Modern Pumping Equipment Frac Horsepower by Age y 10 Years 4 5% 20
Slide 21: Market Concentration Provides Economies of Scale
Southwest Region: Northeast Region: Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 353,800 Other horsepower: 55,400 Market Concentration Provides Economies of Scale Pressure Pumping Areas Horsepower distribution as of March 31, 2016
Slide 22: Technology Focused: PropLogic Sand Management System
Technology Focused PropLogic™ Sand Management System Fully enclosed well-site sand management system More accurate than conventional sand trailers/bins More efficient use of proppant as less sand is wasted
Slide 23: Technology Focused: PowderStim Dry Friction Reducer System
Technology Focused PowderStim® Dry Friction Reducer System hydrates powder form of friction reducer directly into the fluid stream Logistically safer and more efficient compared to liquefied friction reducers Successful with both fresh water and heavy brines More cost effective by utilizing produced
Slide 24: Technology Focused: Comprehensive Lab Services
Technology Focused Comprehensive Lab Services Ability to test vendors’ chemicals enhances quality controls Unique in-house friction flow loop test assembly for faster test results In-house lab services are faster and more cost efficient than outsourcing
Slide 25: Strong Financial Position
Strong Financial Position @\PATTERSON-UTI — NUT
Slide 26: Investing in Our Company
Investing in Our Company Capital Expenditures and Acquisitions ($ in millions) 2016 Capital expenditure forecast as of April 28, 2016
Slide 27: Total Liquidity
Total Liquidity $187 million cash $500 million revolver availability Of $845 million debt $245 million matures September 2017 $300 million matures October 2020 $300 million matures June 2022 * Debt and equity balances as of March 31, 2016. Total debt balance of $845 million includes $3.5 million of
Slide 28: Non-GAAP Financial Measures (Unaudited)
PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) Non-GAAP Financial Measures Three Months Ended March 31, Three Months Ended December 31, 2016 2015 2015 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA )(1 ): Net income
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