NexTier Oilfield Solutions Inc
NexTier Oilfield Solutions — Merger or Acquisition (June 2023)
23 slides from NexTier Oilfield Solutions's merger presentation, Jun 15, 2023
Slide 1: Creating a New Industry Leading Drilling and Completions Services Provider
Patterson-UTI Energy & NexTier Oilfield Solutions Creating a New Industry Leading Drilling and Completions Services Provider June 2023 Exhibit 99.2
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's and NexTi
Slide 3: A Compelling Combination
A Compelling Combination Establishes a premier drilling and completions provider in U.S. land positioned among the leaders in contract drilling, pressure pumping, and directional drilling Attractive investment opportunity with greater size and scale facilitating increased share float and liquidity a
Slide 4: Transaction Overview
Transaction Overview Structure No-premium all-stock merger of equals Implies total enterprise value of approximately $5.4 billion 0.7520 shares of Patterson-UTI common stock issued per outstanding share of NexTier common stock Share exchange expected to be tax-free to shareholders of both companies
Slide 5: Compelling Value Creation Opportunity
Compelling Value Creation Opportunity Revenue ~$6.9B 1Q23 annualized combined Significant Shareholder Returns Combined company committed to continuing to return 50%+ FCF to shareholders through dividends and share repurchases Synergies ~$200M expected within 18 months post-close and annually thereaf
Slide 6: Operations Across the Most Active U.S. Basins
Operations Across the Most Active U.S. Basins 172 Super-Spec Drilling Rigs 3.3 Million Hydraulic Horsepower Nearly 2/3 Dual Fuel Capable Frac Fleets Leading Provider Drilling & Completions Services Using Low Carbon Fuel Sources PTEN Drilling PTEN Drilling and Pressure Pumping NexTier Colombia
Slide 7: Creates a New North American Player with Revenue Among Industry Leaders
Creates a New North American Player with Revenue Generation Among the Industry Leaders… North American Oilfield Services Revenue Comparison (Q1 2023A Annualized) Combined Source: Company filings. Note: $ in billions. Data as of 31-Mar-2023, represents 1Q23 annualized revenue. Includes publicly trade
Slide 8: Significantly Expanded North American Frac Footprint
U.S. Active Frac Fleet Count Frac Reported Horsepower …with a Significantly Expanded North American Frac Footprint Source: Public filings, Company provided information, Rystad & Wall Street Research Others Current Energy Services Frac Horsepower Landscape (United States Market Only) Combined
Slide 9: Significant Cost Savings and Operational Synergies Opportunity
1One-time costs expected to be incurred to achieve the synergies are approximately $80 million Significant Cost Savings and Operational Synergies Opportunity ~$200M estimated cost savings and operational synergies within 18 months1 following close and annually thereafter Operations integration Suppl
Slide 10: Creates a New Industry Leader with Significant Size
Source: Company filings, Capital IQ, Bloomberg, IBES. Data as of 13-Jun-2023. Note: $ in billions. Creates a New Industry Leader with Significant Size Enterprise Value Combined
Slide 11: Leading Provider of Contract Drilling Services
Leading Provider of Contract Drilling Services A super-spec rig is defined as at least a 1,500 horsepower, AC-powered rig that has at least a 750,000-pound hookload, a 7,500-psi circulating system, and is pad-capable. A Tier-1, super-spec rig is defined as a super-spec rig that also has a third mud
Slide 12: Patterson-UTI's MS Directional
Patterson-UTI’s 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 13: Patterson-UTI's Superior QC
Patterson-UTI’s Superior QC Space flight navigation algorithms ™ Improved well placement allowing for better frac designs Better steering to target zones Better wellbore quality
Slide 14: A Leader in U.S. Land Completions Services
A Leader in U.S. Land Completions Services Combined company will be the second largest pressure pumping company in the U.S., owning 3.3 million horsepower with 45 active frac spreads Nearly 2/3 of the combined company’s fleet will be dual-fuel capable reducing fuel costs and lowering emissions and m
Slide 15: Leveraging NexTier's Wellsite Integration Model
Power Solutions NexHub Digital Operations Innovative Reservoir Engineering Integrated Wireline Service $7M/Fleet Potential Annual Incremental Adjusted EBITDA & CapEx Reduction Value per Fleet with fully realized Integrated Solutions Last-Mile Logistics Merger creates significant value creation poten
Slide 16: Pumping Hour Comparison
Pumping Hour Comparison 2022 Results, NexTier Frac with Integrated P&P vs. 3rd Party vs. w/ Non-NEX Wireline Crew Integrated w/ NexTier Wireline Increase in Daily Frac Operating Efficiency1 18% Source: 1NexTier 2022 Regional Case Study The Winning P&P Formula… Digitally connected through NexHub™ for
Slide 17: Proppant Logistics and Storage
Truckloads per Well Estimated for a 12,500 ton well w/ Lowest Carbon Footprint Maximum Payload = Fewest Trucks 27 Tons per load means up to 30% fewer truck trips to location 75% less NPT with NexMile™ Logistics Logistics NPT per Fleet NexMile Logistics vs. 3rd Party Logistics Digital Integration = H
Slide 18: Power Solutions Natural Gas Fueling
Power Solutions consistently increases natural gas consumption Less diesel consumption results in a lower emissions profile The Power Solutions Bottom Line… Every 10% of increased diesel displacement reduces fuel costs by more than $1.5M annually per fleet 3rd Party Provider 3rd Party could not blen
Slide 19: NexHub Equipment Health Management
NexHub™ Equipment Health Management drives higher equipment performance at lower operating costs +110% Engine Lifecycle +125% Power End Lifecycle +65% Transmission Lifecycle Annual CapEx reduced by $1.5M annually, per fleet Lifecycle Improvement: NexHub Implementation
Slide 20: Unlocking Value and Enhancing Efficiency Through Data Analytics
Unlocking Value and Enhancing Efficiency Through Data Analytics Patterson-UTI’s portal for the real time collection, aggregation, analysis, and visualization of data from drilling rigs and frac spreads Connects rigs and frac spreads through a digital interface to PTEN engineers and customers Allows
Slide 21: Sustainability Leadership Position in Low Carbon Solutions
Sustainability Leadership Position in Low Carbon Solutions Sources: 1NEX Internal Estimates, 2U.S. Energy Information Administration 50%+ combined company fleet dual fuel capable Sustainability leadership position in low-carbon emissions utilizing natural gas as a primary fuel Engine control automat
Slide 22: Combined Company Focused on Human Capital Management
Combined Company Focused on Human Capital Management Shared commitment to investing in and developing employees to create employer of choice in the energy industry Commitment to safety Formalized leadership training Performance management and development programs Promoting diversity and inclusion in
Slide 23: A Compelling Investment Opportunity
A Compelling Investment Opportunity Expands customer base and service capabilities Drives improved free cash flow outlook Supports low-carbon strategy Delivers meaningful cross-selling opportunities and cost synergies Accelerates capital returns to shareholders and selectively invest in value accret
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