Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — J.P. Morgan Inaugural Energy Equity Investor Conference 2016
28 slides from Patterson-uti Energy's conference presentation, Jun 28, 2016
Slide 1: J.P. Morgan Inaugural Energy Equity Investor Conference
J.P. Morgan Inaugural Energy Equity Investor Conference June 28, 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: Contract Drilling
Pressure Pumping 36% Contract Drilling 63% 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 Oil & Natural Gas 1% Components of Revenue Patte
Slide 4: Pressure Pumping
Pressure Pumping 36% Contract Drilling 63% Pressure Pumping • High quality fleet of modern pressure pumping equipment • Strong reputation for regional knowledge and efficient operations • Concentrated footprint provides economies of scale Oil & Natural Gas 1% Components of Revenue Patterson-UTI repo
Slide 5: 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 June 15, 2016 Patterson-UTI U.S. Rig Count vs. U.S. Drilling Staff Size Rig Count Drilling Staff Size
Slide 6: 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%
Slide 7: Patterson-UTI Drilling Company LLC
m PATTERSON-UTI DRILLING COMPANY LLC @Q PATTERSON: UTI
Slide 8: High Quality Drilling Rigs
128 30 3 High Quality Drilling Rigs APEX ® Rig Fleet by Drawworks Horsepower 1500hp 1000hp 2000hp APEX ® Rigs
Slide 9: Majority of Adjusted EBITDA from APEX Rigs
APEX ® Other Electric Mechanical Majority of Adjusted EBITDA from APEX ® Rigs Adjusted EBITDA Contribution by Rig Class *Adjusted EBITDA contribution by rig class excluding early termination revenues for the three months ended March 31, 2016.
Slide 10: 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 AP
Slide 11: APEX-XK Integrated Walking System
APEX-XK ® Integrated Walking System
Slide 12: Video of APEX-XK Rig
12 Video of APEX-XK ® Rig APEX-XK ® Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/
Slide 13: Large Geographic Footprint
West Texas 12 Rigs Large Geographic Footprint PTEN’s Active Rig Count by Region as of June 22, 2016 Appalachia 18 Rigs East Texas 5 Rigs Mid-Continent 6 Rigs Rockies 3 Rigs South Texas 4 Rigs North Dakota 6 Rigs Canada 1 Rig http://patenergy.com/
Slide 14: Patterson-UTI
@\ PATTERSON-UTI AO un
Slide 15: Modern Pumping Equipment: Frac Horsepower by Age
< 5 Years 69% 5 - 10 Years 26% >10 Years 5% Modern Pumping Equipment Frac Horsepower by Age Years Average Age
Slide 16: Modern Pumping Equipment: Frac Horsepower by Pump Type
Quintuplex 80% Modern Triplex 14% Legacy Triplex 6% Modern Pumping Equipment Frac Horsepower by Pump Type 1 Million Horsepower Modern triplex pumps defined as being placed in service within the last seven years.
Slide 17: Market Focus Provides Economies of Scale
35% 65% Southwest Region: Northeast Region: Frac Horsepower Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 353,800 Other horsepower: 55,400 Market Focus Provides Economies of Scale Pressure Pumping Areas Horsepower distribution as of March 31, 2016
Slide 18: 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 19: Technology Focused: PowderStim Dry Friction Reducer
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
Slide 20: 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 21: Strong Financial Position
Strong Financial Position
Slide 22: Investing in Our Company
Investing in Our Company $598 $637 $445 $453 $976 $1,012 $974 $662 $1,229 $744 $170 2016E Year End Capital Expenditures and Acquisitions ($ in millions) 2016 Capital expenditure forecast as of April 28, 2016
Slide 23: Strong Financial Position: Capital Structure
$300 $300 $245 $2,489 Strong Financial Position Capital Structure ($ in Millions) 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. Tota
Slide 24: Total Liquidity
$500 $187 Total Liquidity $ in Millions Line of Credit Availability Cash • $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 3
Slide 25: 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
Slide 26: J.P. Morgan Inaugural Energy Equity Investor Conference
J.P. Morgan Inaugural Energy Equity Investor Conference June 28, 2016
Slide 27: Additional References
Additional References
Slide 28: Adjusted EBITDA Reconciliation
Three Months Ended March 31, Three Months Ended December 31, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ (70,503) $ 9,125 $ (58,658) Income tax expense (benefit) (35,430) 6,720 (27,511) Net interest expense 10,690 8,258 9,391 Depr
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