Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Raymond James Annual Institutional Investors Conference 2015
48 slides from Patterson-uti Energy's conference presentation, Mar 3, 2015
Slide 1: Raymond James Annual Institutional Investors Conference
Raymond James th Annual Institutional Investors Conference March 3-4, 2015 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: Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Slide 4: Contract Drilling
Pressure Pumping 41% Contract Drilling 58% Contract Drilling • High quality fleet of land drilling rigs including 149 APEX ® rigs • Leader in walking rig technology for pad drilling applications • Large footprint across North American drilling markets Patterson-UTI reported results for the year ende
Slide 5: Pressure Pumping
Pressure Pumping 41% Contract Drilling 58% Pressure Pumping • High quality fleet of modern pressure pumping equipment • A leader in natural gas bi-fuel technology • Strong reputation for regional knowledge and efficient operations Patterson-UTI reported results for the year ended December 31, 2014 O
Slide 6: Contract Drilling
Contract Drilling
Slide 7: Improved Performance
Improved Performance 2008 - Total Baker Hughes U.S. Land Rig Count: -23% Total PTEN U.S. Rig Count: - 46% 2014 - Total PTEN U.S. Rig Count: -28% Total Baker Hughes U.S. Land Rig Count: -35% Baker Hughes and Patterson-UTI U.S. Land Rig Counts as of February 27, 2015 0% 20% 40% 60% 80% 100% 120% U.S.
Slide 8: A Rig Fleet Transformation
Other Electric APEX® Other Electric APEX® A Rig Fleet Transformation Mechanical Patterson-UTI Energy Total Rig Fleet Mechanical December 2009 Projected December 2015
Slide 9: A leader in high specification drilling rigs
Class 12/31/2015 A leader in high specification drilling rigs 3/3/2015 …and Expected as of December 31, 2015 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® Total APEX ® Rigs APEX ® Rigs as of March 3, 2015 APEX ® Rig Fleet
Slide 10: Large Geographic Footprint
Permian Basin 32 Rigs Large Geographic Footprint PTEN’s Active U.S. Land Drilling Rigs as of February 27, 2015 Appalachia 35 Rigs East Texas 14 Rigs Mid-Continent 16 Rigs South Texas 32 Rigs Rockies 26 Rigs
Slide 11: The impact of APEX rigs has been transformative
Patterson-UTI Energy …the impact of APEX® rigs has been transformative!
Slide 12: Increasing APEX Drilling Activity
Increasing APEX ® Drilling Activity Active APEX ® Rig Count
Slide 13: PTEN Relative Active Rig Count by Rig Class
PTEN Relative Active Rig Count by Rig Class 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% APEX® Other Electric Mechanical
Slide 14: Greater Stability of Utilization
Greater Stability of Utilization APEX ® Rig Utilization 0% 20% 40% 60% 80% 100% 120%
Slide 15: Improving Average Rig Revenue Per Day
Improving Average Rig Revenue Per Day Patterson-UTI Total Average Rig Revenue Per Day Excludes early-termination revenues during the third and fourth quarter of of $3,600 per day and $130 per day, respectively. 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000
Slide 16: Preferred rigs account for approximately 89% of Adjusted EBITDA in Contract Drilling
Preferred rigs account for approximately 89% of Adjusted EBITDA in Contract Drilling Adjusted EBITDA Contribution from High Specification Rigs APEX® & Other Electric Mechanical Excludes early-termination revenues during the third and fourth quarter of 2013 of $62.8 million and $2.4 million, respecti
Slide 17: The APEX rig outlook remains strong
Patterson-UTI Energy …the APEX® rig outlook remains strong!
Slide 18: U.S. Rig Count % by Drilling Type
U.S. Rig Count % by Drilling Type Continued Demand for APEX ® Rigs Source: Baker Hughes North America Rotary Rig Count 0% 10% 20% 30% 40% 50% 60% 70% 80% % Horizontal % Vertical
Slide 19: AC-powered rigs have increased as a percentage of the horizontal rig count
AC-powered rigs have increased as a percentage of the horizontal rig count SCR AC Total U.S. Horizontal Rig Count by Power Type Continued Demand for APEX ® Rigs Analysis from Patterson-UTI Energy based on data from RigData and company filings. Mechanical
Slide 20: Patterson-UTI is a technology leader
Patterson-UTI Energy …Patterson-UTI is a technology leader!
Slide 21: APEX Walking Rigs
21 APEX WALKING ® Rigs • Capable of walking with drill pipe and collars racked in the mast • Full multi-directional walking capability • Walking times average 45 minutes for 10’ – 15’ well spacing http://patenergy.com/drilling/technology/apexwalk
Slide 22: Strong Demand for Pad Drilling
22 Strong Demand for Pad Drilling • Pad drilling is contributing to increasing rig efficiency • Pad drilling capable rigs are highly utilized • Most new APEX ® rigs are expected to have walking systems http://patenergy.com/drilling/technology
Slide 23: Video of APEX-XK Rig
23 Video of APEX-XK ™ Rig APEX-XK ™ Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/
Slide 24: The APEX-XK
24 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 • Minimized number of truck loads for rig moves • Available in both 1500 HP and 1000
Slide 25: Enhancing our Position in Pad Drilling
25 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 26: Enhancing our Position in Pad Drilling
26 Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology
Slide 27: Early Adopter of Natural Gas Engines
27 Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology
Slide 28: Using Natural Gas as a Fuel Source
28 Using Natural Gas as a Fuel Source • First contract driller to use GE’s Waukesha natural gas engines on a modern land rig • 54 rigs currently configured to use natural gas as the primary fuel source including 10 natural gas powered rigs and 44 bi-fuel capable rigs • We plan to add bi-fuel systems
Slide 29: Pressure Pumping
Pressure Pumping
Slide 30: Growing Pressure Pumping Business
Growing Pressure Pumping Business Investments in Pressure Pumping… …Have Increased Fleet Size and Quality 1,100 June 2015E Year End Fracturing Horsepower Other Horsepower
Slide 31: A Significant Player in Regional Markets
32% 68% Fracturing horsepower: 638,800 Other horsepower: 32,165 Fracturing horsepower: 303,800 Other horsepower: 54,700 A Significant Player in Regional Markets Pressure Pumping Areas Horsepower distribution as of December 31, 2014 Fracturing Horsepower Southwest Region: Northeast Region:
Slide 32: 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 to an all diesel engine • Reduces operating costs by lowering fuel costs • Good for environmental sustainability http://patenergy.com/pressurepumping/services
Slide 33: A Leader in Bi-Fuel Technology
33 A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services
Slide 34: A Leader in Bi-Fuel Technology
34 A Leader in Bi-Fuel Technology • One of the largest bi-fuel frac fleets in the Marcellus • Approximately 1,800 stages completed using natural gas as a fuel source • Replaced approximately 1.2 million gallons of diesel with cleaner burning natural gas • Eliminated 9.0 million pounds of transportat
Slide 35: Comprehensive Lab Services
Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 36: Financial Flexibility
Financial Flexibility
Slide 37: Investing in Our Company
Investing in Our Company Capital Expenditures and Acquisitions ($ in millions) 2015 Capital expenditure forecast as of February 5, 2015 $598 $637 $445 $453 $976 $1,012 $974 $662 $1,229 $750 2015E
Slide 38: Strong Financial Position
Strong Financial Position • History of returning capital to investors – Cash Dividend • Initiated cash dividend in 2004 • Doubled quarterly cash dividend to $0.10 per share in February 2014 – Stock Buyback • Total of $857 million repurchased since 2005 • Approximately $187 million remaining authoriz
Slide 39: Strong Financial Position: Total Liquidity
Strong Financial Position Total Liquidity ($ in millions) Liquidity defined as end of period cash plus availability under revolving line of credit * Subsequent to December 31, 2014, we received an $82 million federal income tax refund. The refund, along with other cash generated was used to repay $1
Slide 40: $600 million of debt not due until at least 2020
$600 million of debt not due until at least 2020 Strong Financial Position Net Debt to Capital Ratio * Subsequent to December 31, 2014, we received an $82 million federal income tax refund. The refund, along with other cash generated was used to repay $103 million outstanding under our revolving lin
Slide 41: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? • Continuing Transformation – Committed to high-spec land rigs where demand remains strong – Creating value through focus on well site execution • Technology leader – Leader in walking rigs for pad drilling – Innovator in use of natural gas as a fuel source for bo
Slide 42: Raymond James Annual Institutional Investors Conference
Raymond James th Annual Institutional Investors Conference March 3-4, 2015
Slide 43: More than $5 billion invested since 2005
More than $5 billion invested since 2005 Contract Drilling Capital Expenditures and Acquisitions ($ in millions) Investing in Our Drilling Rig Fleet 2015 Capital expenditure forecast as of February 5, 2015 $531 $540 $361 $395 $656 $785 $745 $505 $772 $525 2015E
Slide 44: More Than $1.4 billion invested since 2005
More Than $1.4 billion invested since 2005 Investing in Pressure Pumping Pressure Pumping Capital Expenditures and Acquisitions ($ in millions) 2015 Capital expenditure forecast as of February 5, 2015 $41 $48 $61 $43 $289 $198 $194 $123 $418 $200 2015E
Slide 45: Term Contract Coverage
Term Contract Coverage Based on term contracts in place as of February 5, 2015 An average of 138 rigs expected under term contract in the first quarter of 2015 An average of 104 rigs expected under term contract during Drilling term contract revenue backlog of $1.5 billion at December 31, 2014 Due t
Slide 46: Strong Financial Position
Strong Financial Position • Total liquidity of approximately $200 million* – $43.0 million of cash at December 31, 2014 – $157 million revolver availability at December 31, 2014* • $942.5 million net debt at December 31, 2014* – 24.5% Net Debt/Total Capitalization* – $300 million of 4.97% Series A n
Slide 47: Non-GAAP Financial Measures (Unaudited)
PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) Non-GAAP Financial Measures Three Months Ended December 31, Twelve Months Ended December 31, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income $ 57,583 $ 1
Slide 48: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ 162,664 $ 188,009 $ 299,477 $ 322,413 $ 116,942 Income tax expense (benefit) 91,619 108,432 176,196 187,938 72,856 Net interest expense (income) 28,846 27,441
Patterson UTI Energy — Raymond James Annual Institutional Investors Conference 2015 on 6ix