Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Credit Suisse 19th Annual Energy Summit (February 2014)
38 slides from Patterson-uti Energy's conference presentation, Feb 11, 2014
Slide 1: Credit Suisse 19th Annual Energy Summit
Credit Suisse 19 th Annual Energy Summit Exhibit 99.1 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Credit Suisse Annual Energy Summit February 11, 2014 February 11, 2014
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: Who We Are
Who We Are Who We Are
Slide 5: Contract Drilling
High quality fleet of land drilling rigs including 125 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 ended December 31, 2013 5 Pressure Pumping 36% Oil & Natural Gas 2% Con
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 year ended December 31, 2013 6 Pressure Pumping 36% Oil & Natural Gas 2% Contract Drilling 62% Components of R
Slide 7: Contract Drilling
Contract Drilling Contract Drilling
Slide 8: Continued Demand for APEX Rigs
8 Percentage of Horizontal Wells Continues to Increase Baker Hughes U.S. Rig Count % by Drilling Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Horizontal % Vertical Continued Demand for APEX ® Rigs Baker Hughes U.S. Rig Count % by Drilling Type
Slide 9: APEX Rig Fleet
…and Expected as of December 31, 2014 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® 9 APEX ® Rigs as of February 11, 2014 36 4 49 44 11 17 4 49 44 11 …and Expected as of December 31, 2014 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® Total APEX Total APE
Slide 10: Contract Drilling EBITDA Contribution by Rig Class
Contract Drilling EBITDA Contribution by Rig Class Year Ended December 31, 2013 10 Mechanical APEX ® & Other Electric Preferred rigs account for approximately Preferred rigs account for approximately 87% of Contract Drilling EBITDA 87% of Contract Drilling EBITDA Contribution from High Specification
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 completed in 2014 are expected to have walking systems http://patenergy.com/drilling/technology Strong Demand for Pad Drilling Strong Demand for Pad Drilling • • Pad drillin
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 ™ Rig
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 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
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 28 rigs currently configured to use natural gas as the primary fuel source including 7 natural gas powered rigs and 21 bi-fuel capable rigs We plan to add GE Waukesha engines to two additional rigs and upgrade 17
Slide 19: Large Geographic Footprint
19 PTEN’s Active U.S. Land Drilling Rigs as of February 2014 East Texas Appalachia & Midwest North Texas Rockies South Texas 31 Rigs 32 Rigs 23 Rigs 36 Rigs 5 Rigs 14 Rigs Permian Basin 53 Rigs Mid-Continent PTEN’s Active U.S. Land Drilling Rigs as of February 2014 Large Geographic Footprint Large G
Slide 20: Pressure Pumping
Pressure Pumping Pressure Pumping
Slide 21: 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 21 http://patenergy.com/pressurepumping/services A Leader in Bi-Fuel Technology A Leader in Bi-
Slide 22: A Leader in Bi-Fuel Technology
22 http://patenergy.com/pressurepumping/services A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services
Slide 23: A Leader in Bi-Fuel Technology
One of the largest bi-fuel frac fleets in the Marcellus More than 600 stages completed using natural gas as a fuel source Replaced more than 332,000 gallons of diesel with cleaner burning natural gas Eliminated 2.4 million pounds of transportation loads on local roads 23 http://patenergy.com/pressur
Slide 24: Comprehensive Lab Services
24 http://patenergy.com/pressurepumping/services Comprehensive Lab Services Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 25: Financial Flexibility
Financial Financial Flexibility Flexibility
Slide 26: Investing in Our Company
26 Capital Expenditures and Acquisitions ($ in millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014E $598 $637 $445 $453 $976 $1,012 $974 $662 $950 Capital Expenditures and Acquisitions ($ in millions) Investing in Our Company Investing in Our Company
Slide 27: A Different Size Company
0 500 1,000 1,500 2,000 2,500 3,000 Revenue EBITDA +86% +81% Average 2008-2010 Average 2011-2013 A Different Size Company
Slide 28: History of returning capital to investors
28 History of returning capital to investors Cash Dividend $0.10 per share Stock Buyback price of $20.83 December 31, 2013 Returned approximately $1.2 billion to shareholders since 2005 • • History of returning capital to investors – – Cash Dividend • Initiated cash dividend in 2004 • Initiated cash
Slide 29: Total liquidity of approximately $710 million
Total liquidity of approximately $710 million $250 million of cash at December 31, 2013 $460 million revolver availability at December 31, 2013 $443 million net debt at September 30, 2013 13.8% Net Debt/Total Capitalization $300 million of 4.97% Series A notes due October 5, 2020 $300 million of 4.2
Slide 30: Credit Suisse Annual Energy Summit
Credit Suisse 19 th Annual Energy Summit Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Credit Suisse Annual Energy Summit February 11, 2014 February 11, 2014
Slide 31: Additional References
Additional References Additional References
Slide 32: Active in Unconventional Plays
32 PTEN’s Active Rigs in Unconventional Areas as of February 2014 19 Rigs 1 Rig 22 Rigs 2 Rigs 33 Rigs 5 Rigs 9 Rigs 2 Rigs Bakken Piceance Woodford Barnett Eagle Ford Haynesville Utica Marcellus PTEN’s Active Rigs in Unconventional Areas as of February 2014 Active in Unconventional Plays Active in
Slide 33: Term Contract Coverage
Based on term contracts in place as of February 6, 2014 An average of 124 rigs expected under term contract in the first quarter of 2014 An average of 93 rigs expected under term contract for 2014 PTEN expects to continue signing term contracts 33 Drilling term contract revenue backlog of $946 milli
Slide 34: Growing Pressure Pumping Business
34 Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality * Includes acquisition of approximately 210,000 pressure pumping horsepower in October 2010 0 200 400 600 800 Fracturing Horsepower Other Horsepower 2006 2007 2008 2009 2010* 2011 2012 2013 Year End 760 65 Recent Inves
Slide 35: Pressure Pumping Areas of Operation
35 Fracturing horsepower: 343,000 Other horsepower: 28,000 Fracturing horsepower: 332,000 Other horsepower: 60,600 A Significant Player in Regional Markets 51% 49% Southwest Region: Northeast Region: Northeast Region: Fracturing horsepower: 343,000 Other horsepower: 28,000 Fracturing horsepower: 332
Slide 36: Strong Financial Returns
Growth in Per-Share Book Value 36 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Strong Financial Returns Strong Financial Returns Growth in Per-Share Book Value
Slide 37: Non-GAAP Financial Measures
37 PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2013 2012 2013 2012 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income Income tax expense Net interest exp
Slide 38: EBITDA Reconciliation 2008-2013
38 2013 2012 2011 2010 2009 2008 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income (loss) $ 188,009 $ 299,477 $ 322,413 $ 116,942 $ (38,290) $ 347,069 Income tax expense (benefit) 108,432 176,196 187,938 72,856 (17,595) 193,490 Net interest expense (income) 27,44
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