Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — J.P. Morgan 2018 Energy Conference
27 slides from Patterson-uti Energy's conference presentation, Jun 18, 2018
Slide 1: J.P. Morgan 2018 Energy Conference
J.P. Morgan June 18-19, 2018 2018 Energy Conference 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: Who We Are: An Oilfield Services Leader
Who We Are: An Oilfield Services Leader * Patterson-UTI reported revenue for the three months ended March 31, 2018. DRILLING PRESSURE PUMPING High quality fleet of land drilling rigs, including 198 APEX® class rigs Leader in walking rig technology for pad drilling applications Large footprint with s
Slide 4: Comprehensive Oilfield Services and Solutions
Comprehensive Oilfield Services and Solutions Contract Drilling Hydraulic Fracturing Directional Drilling Cementing Acidizing Nitrogen Service Air Drilling Drilling Motor Rentals Water Transfer Drilling Top Drives Well Surveying Rental Equipment
Slide 5: Broad Footprint in Oilfield Services
patenergy.com WEST TEXAS / 57 APPALACHIA / 31 MID-CONTINENT / 27 SOUTH TEXAS / 21 EAST TEXAS / 20 ROCKIES / 13 NORTH DAKOTA / 9 CANADA / 0 By Region As of June 14, 2018 Active Rig Count 178 TEXAS / 696k HP APPALACHIA / 321k HP MID-CONTINENT / 233k HP Active Horsepower PATTERSON-UTI OPERATING AREAS U
Slide 6: Why Invest in Patterson-UTI Energy?
Efficiency Efficiency improves well economics Patterson-UTI has the scale, processes, people and equipment necessary for efficient operations Technology Technology helps to improve efficiency Patterson-UTI is a technology leader in oilfield services U.S. Oilfield Services Scale Scale helps to improv
Slide 7: A History of Returning Capital to Shareholders
A History of Returning Capital to Shareholders We expect to generate substantial free cash flow in 2018 Patterson-UTI has a history of returning capital to shareholders Source: Patterson-UTI Company Filings. Repurchased 924,800 shares Announced increase in quarterly dividend to $0.04 from $0.02
Slide 8: Patterson-UTI: A Leader in Oilfield Services
Patterson-UTI: A Leader in Oilfield Services Efficiency Efficiency improves well economics. People Crews receive extensive onboarding and ongoing training to ensure competency and refine operating and safety procedures. Processes Patterson-UTI utilizes industry leading management systems and field a
Slide 9: People: Personnel Development
People: Personnel Development Working incident free is not just a priority to us — it's our way of life. Operational excellence is our minimum standard — excellence is our way of life. Development of our people is a core value — continuous learning is our way of life.
Slide 10: Innovative Rig Designs: APEX-XK
Innovative Rig Designs: APEX-XK® Able to walk x/y with full set-back of pipe in mast Walking system integrated into substructure Blowout Preventer remains upright in substructure while walking Drawworks on rig floor allows more clearance under rig for walking Advanced environmental spill control int
Slide 11: Innovative Rig Designs: APEX-XC
Innovative Rig Designs: APEX-XC™ Standard with higher-torque top drive Enhanced setback capacity for efficiently drilling longer laterals Increased clearance for walking over and around wellheads on a pad HPU, accumulator and walking system integrated in substructure for efficient rig moves and rig
Slide 12: Innovative Rig Upgrades
Innovative Rig Upgrades: All 12 or the major upgrades planned for 2018 have customer contracts. Of the 12 major upgrades, seven have been delivered and are included in our active rig count. The remaining five major upgrades are expected to be incremental to our current rig count. Upgraded rigs will
Slide 13: Innovative Pressure Pumping Technology: Bi-Fuel
Innovative Pressure Pumping Technology: Bi-Fuel 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
Slide 14: Innovative: Performance Data Analytics
Innovative: Performance Data Analytics Real-time innovative data analysis system collects and analyzes data across region, pad and rigs for performance by formation, section, crew, etc. Ability to analyze equipment and maintenance data across rigs and vendors to benchmark performance and maximize re
Slide 15: Innovative: Centralized Logistics Center
Innovative: Centralized Logistics Center Efficient procurement and logistics of sand and chemicals is important to being successful in hydraulic fracturing. Centralized logistics center includes: central scheduling and tracking software 24/7 dispatch personnel smart phone apps in the field Currently
Slide 16: Innovative: Directional Drilling
Innovative: Directional Drilling MS Directional, a leading provider of directional drilling services in the United States MS Directional has a strong technology focus with proprietary mud motor, MWD and survey equipment Patented C2 technology enables high-speed electromagnetic telemetry independent
Slide 17: Innovative: Automation and Remote Operations
Innovative: Automation and Remote Operations REMOTE OPERATIONS Remote operations allow a specialist to manage multiple wells at one time RIG AUTOMATION Consistent, automated processes at the wellsite limit safety risks, reduce well costs, streamline logistics and increase margins DD AUTOMATION Contr
Slide 18: Strong Financial Position
Strong Financial Position Substantial Liquidity $304 million cash as of March 31, 2018 $600 million revolver through March 2023 17.3% Net Debt/Total Capital at March 31, 2018 $300 million term loan matures October 2020 $300 million term loan matures June 2022 $525 million 3.95% senior notes due 2028
Slide 19: Why Invest in Patterson-UTI Energy?
Efficiency Efficiency improves well economics Patterson-UTI has the scale, processes, people and equipment necessary for efficient operations Technology Technology helps to improve efficiency Patterson-UTI is a technology leader in oilfield services U.S. Oilfield Services Scale Scale helps to improv
Slide 20: Patterson-UTI Energy Inc.
40 PATTERSON-UTI ERGY INC.
Slide 21: Additional References
PATTERSON-UTI ENERGY INC. Additional References
Slide 22: Process: Management System
Process: Management System Management System allows for continuous updates on Policies & Priorities Comprehensive Rig and Frac Fleet audits ensure uptime, preventative maintenance, continuous improvement. Incident Management System allow data for Reporting and tracking to completion of Incidents and
Slide 23: Innovative Rig Technology: Warrior Ton AC Top Drive
Innovative Rig Technology: Warrior 500 Ton AC Top Drive HIGH PERFORMANCE - 50,000 ft-lbs continuous torque rating REDUNDANT POWER DELIVERY - Four independent power pathways from the AC bus to the top drive quill - No single-point sources of failure from generator to drill pipe REVOLUTIONARY POWER TR
Slide 24: APEX Class Rigs
APEX® Class Rigs 198 APEX-XK 1500® APEX 300-Series® APEX 1500® APEX PK™ APEX 1000® Other AC 67 52 43 31 2 2 APEX-XC® 1
Slide 25: Modern Pressure Pumping Equipment
Modern Pressure Pumping Equipment Fracturing horsepower location as of April 26, 2018 APPALACHIA 25% 1.5 MM HORSEPOWER TEXAS 56% MID-CONTINENT 19%
Slide 26: Non-U.S. GAAP Financial Measures
Non-U.S. GAAP Financial Measures (1) Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by U.S. GAAP. We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax expense (benefit) and depreciation, depletion, amortizati
Slide 27: Patterson-UTI Energy Inc.
40 PATTERSON-UTI ERGY INC.
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