Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — TPH & Co. Hotter 'N Hell Conference 2023
38 slides from Patterson-uti Energy's conference presentation, May 16, 2023
Slide 1: Patterson-UTI Energy, Inc. TPH & Co. Hotter 'N Hell Conference
Patterson-UTI Energy, Inc. TPH & Co. Hotter ‘N Hell Conference May 16, 2023
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: Company Update
Company Update Solid execution and returning cash to shareholders Well positioned to generate substantial free cash flow in 2023 Generated $117 million of free cash flow in the first quarter of 2023 Prioritizing cash flow and margin over market share Benefiting from the renewal of drilling rig contr
Slide 4: A Leading Provider of Tier-1, Super-Spec Rigs
A Leading Provider of Tier-1, Super-Spec Rigs 88% of PTEN’s active rigs are Tier-1, Super-Spec, the most in-demand class for E&P companies Rig count as of May 15, 2023. Active U.S. rigs represents the number of the Company’s drilling rigs that were earning revenue under a drilling contract in the Un
Slide 5: Broad Geographic Footprint
Broad Geographic Footprint Leveraged to the strongest drilling markets Active Rig Count 128 TOTAL By Region As of May 15, 2023 61 WEST TEXAS 22 NORTHEAST 13 MID-CONTINENT 11 EAST TEXAS 9 SOUTH TEXAS 6 ROCKIES 6 NORTH DAKOTA
Slide 6: U.S. Drilling Margins per Operating Day
U.S. Drilling Margins per Operating Day The repricing of rig contracts to current leading-edge rates expected to drive margins higher Adjusted gross margin is defined as revenue less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Average adjusted gro
Slide 7: Focused on Shareholder Returns
Focused on Shareholder Returns PTEN has returned more than $1.2 billion to shareholders in the last 10+ years
Slide 8: Patterson-UTI Segments
Patterson-UTI Segments 2 DRILLING PUMPING Onshore contract drilling in U.S. and Colombia, primarily focused on Tier-1, Super-Spec rigs and rigs capable of using alternative fuel sources such as natural gas, hi-line electrical power, and lithium batteries Full-service pressure pumping focused on engi
Slide 9: Contract Drilling
Contract Drilling PATTERSON-UTI DRILLING COMPANY LLC
Slide 10: Patterson-UTI Drilling: Our History
Patterson-UTI Drilling OUR HISTORY 1978 Patterson Drilling formed 2001 Patterson Energy and UTI Energy merge WHERE WE — ARE NOW 2006 2015 2017 2018 Mean § © PTEN acquires Rig Warrior Rig Technologies PTEN acquires Seventy Seven Energy PTEN acquires Current Power 019 First EcoCell® battery hybrid ene
Slide 11: What is a Tier-1, Super-Spec Rig?
What is a Tier-1, Super-Spec Rig? Patterson-UTI is a market and technology leader 1,500 hp elevated drawworks for more room under rig floor Mast rated for at least 750,000 pound hookload High pressure circulating system (7,500 psi) Third mud pump for greater hydraulic horsepower Multi-well pad capab
Slide 12: Natural Gas Powered Engines on Drilling Rigs
Natural Gas Powered Engines on Drilling Rigs Offering fuel flexibility and utilizing local infrastructure Able to utilize local natural gas infrastructure already available thereby reducing the need for diesel fuel transportation and consumption Cleaner burning natural gas helps to reduce emissions
Slide 13: EcoCell
EcoCell® Optimizing efficiency and reducing the carbon footprint of our rig Leveraging stored energy helps to optimize fuel efficiency and reduce fuel costs. Reduced fuel consumption helps to reduce emissions. Patterson-UTI is a leader in the use of lithium batteries on drilling rigs.
Slide 14: Hi-Line Electrical Power
Patterson-UTI provides in-house electrical engineering, hardware packaging, and installation services to power our rigs from electric utility lines This full-service offering enables our customers to utilize an optimal power solution on our drilling rig when it comes to emission impacts at the wells
Slide 15: Engine Automation
Engine Automation Automating efficient engine management to optimize fuel savings and emission reduction Automation to start and stop engines as needed to meet fluctuations in rig power demand Helps to reduce fuel costs and emissions by optimizing the average genset load and decreasing the overall g
Slide 16: Power Management Dashboard
Power Management Dashboard Real time remote monitoring of rig fuel consumption and emissions Monitors real time rig power usage to effectively manage fuel consumption and reduce fuel costs Interactive analytical tools allow monitoring of 40 different engine data fields (pressures, temps, speed, alar
Slide 17: Pressure Pumping
Pressure Pumping MUNIVERSAL
Slide 18: Universal Pressure Pumping: Our History
Universal Pressure Pumping 1980 First frac job 2004 Industry first Marcellus slick water frac OUR HISTORY 2006 Industry first horizontal Marcellus slick water frac vertical 2010 2014 2017 PTEN acquires Key Eneray Services’ pressure pumping assets Acquisitions of Torqued Up and Platinum Energy Servic
Slide 19: Natural Gas Powered Frac Spreads
Dual-fuel equipment capable of instantaneous substitution up to 85% Natural Gas Powered Frac Spreads Improved fuel emissions, optimized consumption Majority of frac spreads are dual-fuel Saved >35MM gal diesel >32K dual-fuel frac stages
Slide 20: Digital Transformation
Digital Transformation Remote operations, enhanced analytics Operational data aggregation and equipment health monitoring Condition-based decision-making coupled with predictive analytics Edge automation Automated pump controls and fuel optimization provide safer, more reliable and consistently repe
Slide 21: Technical Expertise and Collaboration
Technical Expertise and Collaboration Engineered solutions Changes to completion design increased frac intensity and improved stimulated reservoir volume while lowering costs Remote simul-frac operation cut completion time by 38% for Permian customer >30% reduction in treatment schedule deviations I
Slide 22: Technical Expertise and Collaboration: Intelligent fluid chemistry
Technical Expertise and Collaboration Intelligent fluid chemistry Domain experts formulate frac chemistry Real-time water rheology with friction reducing performance Environmentally friendly formulations Customer value Optimizing frac fluid chemistry has lowered well completion costs and improved co
Slide 23: Directional Drilling and Data Analytics
Directional Drilling and Data Analytics
Slide 24: MS Directional
MS Directional A leading provider of directional drilling services Strong reputation for the reliability and durability of downhole performance motors and measurement-while-drilling (MWD) tools Remote MWD operations with reduced personnel are standard on all directional drilling jobs
Slide 25: Superior QC
Superior QC Space flight navigation algorithms Improved well placement Better steering to target zones Better wellbore quality ™ ™
Slide 26: Financials
Financials @\ PATTERSON-UTI . 4
Slide 27: Strong Financial Position
Strong Financial Position 0.8x Net Debt to Adjusted EBITDA1 Net debt of $670 million at March 31, 2023 No near-term debt maturities at March 31, 2023 $483 million 3.95% senior notes due 2028 $345 million 5.15% senior notes due 2029 Favorable credit ratings Moody’s – Baa3 S&P – BB+ 1 Net debt to adju
Slide 28: No Near-Term Debt Maturities
No Near-Term Debt Maturities At December 31, 2022, $600 million available under revolving line of credit that matures in 2026 ($550 million available after March 2024 and $417 million available after March 2025)
Slide 29: Environmental & Social Sustainability
Environmental & Social Sustainability
Slide 30: Patterson-UTI Core Values
Patterson-UTI Core Values Safety and Environment The safety of our employees and the protection of our environment is a cornerstone, and we are committed to providing a safe, incident-free work environment for all. Operational Excellence We partner with our customers to achieve their goals, through
Slide 31: Environmental
Environmental Air Quality We utilize natural gas engines, dual-fuel equipment and other technologies that reduce our air emissions Water Quality We strive to conduct our drilling and completion activities in a manner that protects the quality of ground and surface water Land Use We employ spill prev
Slide 32: Social
Social Our people are our most important asset and our greatest strength Health and Safety Our goal is to provide an incident-free work environment. The safety of our employees and others is our highest priority. We regularly audit and review our HSE performance in all of our businesses. Diversity,
Slide 33: Patterson-UTI
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Slide 34: Appendix
Appendix @\ PATTERSON-UTI . 4
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 income tax expense, net int
Slide 36: Non-GAAP Financial Measures: U.S. Drilling Average Adjusted Gross Margin
Non-GAAP Financial Measures U.S. Drilling Average Adjusted Gross Margin Adjusted gross margin is defined as revenue less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Average adjusted gross margin per operating day is defined as adjusted gross margi
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 income tax expense, net int
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures
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