Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Investor Presentation (January 2025)
26 slides from Patterson-uti Energy's investor presentation, Jan 7, 2025
Slide 1: Investor Presentation January 2025
Investor Presentation January 2025
Slide 2: Forward Looking Statements & Disclosures
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 o
Slide 3: Executive Summary
3 Differentiated operating capability with premier Drilling and Completions franchise Integrated service offerings improve well delivery for customers and create value for investors Predictable capital allocation strategy Expect lower capital expenditures in 2025 vs 2024; Expect to return at least 5
Slide 4: Who We Are
Who We Are
Slide 5: Integrated Service and Product Lines
5 Hydraulic Fracturing Wireline Operations Natural Gas Fueling Oilfield Logistics Cementing 3.0 Million Hydraulic Horsepower1 Completion Services Other business includes Patterson Petroleum and Great Plains Oilfield Rental. 1Reflects deployed and idle equipment capacity during the fourth quarter of
Slide 6: Market Leading Presence Among the Largest E&Ps
6 Market Leading Presence Among the Largest E&Ps Roughly 60% of Patterson-UTI's revenue is generated from the 15 most active E&Ps 1Rig count is based on U.S. onshore activity as of 11/29/2024. Source: Enverus 2Total company revenue is YTD October 2024 15 Most Active E&Ps Strong Revenue Share from th
Slide 7: Patterson-UTI Business Update
Patterson-UTI Business Update
Slide 8: Patterson-UTI Business Activity Update
8 Patterson-UTI Business Activity Update Drilling Services Segment ▪ Operated an average of 105 rigs in the United States in Q4 ▪ Expect a relatively steady rig count in Q1 compared to Q4 ▪ Could see activity mix shift from oil to natural gas basins as 2025 progresses ▪ Revenue per day for APEX® Tie
Slide 9: Drilling Services Macro: Offering reliable cash generation
9 Drilling Services Macro: Offering reliable cash generation Adjusted EBITDA1 minus Capital Expenditures per Active U.S. Rig Patterson-UTI Drilling Services Segment, ($, millions) Cash generation at our Drilling Services segment serves as a strong foundation for PTEN's Free Cash Flow ▪ Cash generati
Slide 10: Natural gas-powered assets are effectively sold out
10 Industry HHP Utilization Rate by Engine Type1 Active Industry HHP, U.S. Land, 1Q2025 Estimate Source: 1Patterson-UTI Estimates Natural gas-powered assets are effectively sold out ▪ Outside of 4Q seasonality, there is very little capacity to increase activity of premium natural gas-powered assets,
Slide 11: Completion Services Macro: Cost advantage drives asset differentiation
11 Direct Drive Electric Tier 4 Dual-Fuel Tier 2 Dual-Fuel Conventional Diesel $0 $10 $20 $30 $40 A n n u a l C o s t o f F u e lin g ( m ill io n s ) Completion Services Macro: Cost advantage drives asset differentiation 2025 Estimated U.S. Shale Industry Frac Fleet Market Bifurcation1 Fleet type v
Slide 12: Drilling Products Macro: Outpacing industry activity
12 832 756 686 663 646 620 611 0 100 200 300 400 500 600 700 800 900 1000 $0 $15,000 $30,000 $45,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Drilling Products Macro: Outpacing industry activity Drilling Products Segment: Pro Forma1 U.S. Revenue per U.S. Industry Rig vs. U.S. Industry
Slide 13: Operational Excellence: Efficiency Amplified by Integration
Operational Excellence Efficiency Amplified by Integration
Slide 14: End-to-End Digital Integration and Data-Driven Optimization
14 End-to-End Digital Integration and Data-Driven Optimization DRILLING COMPLETIONS POWERDIGITAL INTEGRATION Harnessing Data to Enable Lower Cost and Higher Impact Drilling & Completion Operations Automation & AI ▪ Simplify and reduce risk in daily operational tasks ▪ Enable repeatable execution in
Slide 15: Integration Advantage: Drilling Services and Products
15 Integration Advantage: Drilling Services and Products Contract Drilling | Patterson-UTI Drilling Diverse rig fleet complete with innovative software solutions Natural Gas Fueling, Well Cementing | NexTier Integrated solutions unlocked through merger Drill Bits | Ulterra Leading provider of PDC dr
Slide 16: Integration Advantage: Completions Services
16 Integration Advantage: Completions Services Proppant Storage and Handling Maximum volume, precision blending Field Gas Conditioning Intelligent blending to maximize fuel cost savings Natural Gas-Enabled Frac Fleet Leading fleet of Tier 4 dual fuel and 100% natural gas equipment Wireline Plug, Per
Slide 17: Positioned for Growth in Natural Gas Fueling and Power Generation
17 DRILLING COMPLETIONS POWERDIGITAL INTEGRATION Mobile energy is a core competency of the company, positioning PTEN to benefit from the next generation of the oilfield Natural Gas Fueling Electronic Power Systems and ControlsPower Generation Positioned for Growth Alongside Growing Demand for Natura
Slide 18: Capital Allocation Framework
Capital Allocation Framework
Slide 19: Capital Allocation Framework: Maximize Shareholder Value and Financial Returns
19 Organic Investing Strategy Targets Strong FCF Conversion Invest to protect and extend our operational advantage Strategic Allocation Target strategic high-return investments that drive returns accretion for PTEN shareholders Maximize Long-Term Free Cash Flow Winning Foundation Allocation Strategy
Slide 20: Investment Grade Capital Structure
20 Financially Positioned for Through-Cycle Resilience TOTAL LIQUIDITY $728 M Includes cash and revolver as of 9/30/2024 LOW LEVERAGE <1 X Net Debt as of 9/30/2024 to LTM Adjusted EBITDA CASH BALANCE $115 M Cash Position as of 9/30/2024 INTEREST COVERAGE >15 X Q3 adjusted EBITDA to Interest Expense
Slide 21: Deliver a Repeatable Shareholder Return Program
21 ▪ For 2024 we exceeded our shareholder return target of 50% of our free cash flow – returning more than $400 million to shareholders ▪ PTEN has paid an $0.08 per share quarterly dividend for nine consecutive quarters ▪ We plan to remain flexible with our method of distribution over time to maximi
Slide 22: Peer Leading Combination of Shareholder Returns with De-Leveraging
22 Shareholder Returns as a % of Current Market Cap Includes Dividends and Share Repurchases Shareholder Returns as a % of Current Market Cap Includes Dividends and Share Repurchases 1Peer group includes OFS comps ACDC, BKR, HAL, HP, LBRT, NBR, PDS, PUMP, and SLB. Peer data sourced from company SEC
Slide 23: Sustainability as a Strategy
23 Sustainability as a Strategy Our Timeline of Innovation in Sustainability Our Vision: To safely and responsibly help provide the world with oil and gas for the products that make peoples’ lives better in a sustainable and profitable manner Find out more in our Sustainability Report at: https://es
Slide 24: Appendix
A PATTERSON-UTI
Slide 25: Reconciliation of Non-GAAP Financial Measures
25 Reconciliation of Non-GAAP Financial Measures (1) 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 in
Slide 26: Reconciliation of Non-GAAP Financial Measures
26 Reconciliation of Non-GAAP Financial Measures (unaudited, dollars in thousands) Nine Months Ended September 30, 2024 Three Months Ended December 31, 2023 Last Twelve Months Ended September 30, 2024 Twelve Months Ended December 31, 2023 Twelve Months Ended December 31, 2022 Twelve Months Ended Dec
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