Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Tudor, Pickering, Holt & Co. 2015 Hotter 'N Hell Conference
46 slides from Patterson-uti Energy's conference presentation, Jun 17, 2015
Slide 1: Tudor, Pickering, Holt & Co. 2015 Hotter 'N Hell Conference
Tudor, Pickering, Holt & Co. 2015 Hotter ‘N Hell Conference June 17, 2015 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: Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Slide 4: Contract Drilling
Pressure Pumping 41% Contract Drilling 58% Contract Drilling • High quality fleet of land drilling rigs including 156 APEX ® rigs • Leader in walking rig technology for pad drilling applications • Large footprint across North American drilling markets Oil & Natural Gas 1% Components of Revenue Patte
Slide 5: Pressure Pumping
Pressure Pumping 41% Contract Drilling 58% Pressure Pumping • High quality fleet of modern pressure pumping equipment • A leader in natural gas bi-fuel technology • Strong reputation for regional knowledge and efficient operations Patterson-UTI reported results for the year ended December 31, 2014 O
Slide 6: Contract Drilling
Contract Drilling
Slide 7: Improved Performance
Improved Performance 0% 20% 40% 60% 80% 100% 120% U.S. Rig Count Downturn 0% 20% 40% 60% 80% 100% 120% 2008 - Total Baker Hughes U.S. Land Rig Count: -53% Total PTEN U.S. Rig Count: -77% 2014 - Total PTEN U.S. Rig Count: -47% Total Baker Hughes U.S. Land Rig Count: -56% Baker Hughes and Patterson-UT
Slide 8: Rig Fleet Transformation
Other Electric APEX® Other Electric APEX® A Rig Fleet Transformation Mechanical Patterson-UTI Energy Total Rig Fleet Mechanical December 2009 Projected December 2015
Slide 9: A leader in high specification drilling rigs
Class 12/31/2015 A leader in high specification drilling rigs 6/12/2015 …and Expected as of December 31, 2015 APEX-XK 1500 ® APEX-XK 1000™ APEX WALKING ® APEX 1500 ® APEX 1000 ® Total APEX ® Rigs APEX ® Rigs as of June 12, 2015 APEX ® Rig Fleet
Slide 10: Large Geographic Footprint
West Texas 24 Rigs Large Geographic Footprint PTEN’s Active U.S. Land Drilling Rigs as of June 12, 2015 Appalachia 23 Rigs East Texas 15 Rigs Mid-Continent 8 Rigs Mid-Continent 8 Rigs Rockies 9 Rigs South Texas 21 Rigs North Dakota 13 Rigs
Slide 11: ...the impact of APEX rigs has been transformative!
Patterson-UTI Energy …the impact of APEX ® rigs has been transformative!
Slide 12: Increasing APEX Drilling Activity
Increasing APEX ® Drilling Activity Active APEX ® Rig Count
Slide 13: PTEN Relative Active Rig Count by Rig Class
PTEN Relative Active Rig Count by Rig Class 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% APEX® Other Electric Mechanical
Slide 14: Greater Stability of Utilization
Greater Stability of Utilization 0% 20% 40% 60% 80% 100% 120% APEX ® Rig Utilization
Slide 15: Improving Average Rig Revenue Per Day
Improving Average Rig Revenue Per Day 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 Patterson-UTI Total Average Rig Revenue Per Day Excludes early-termination revenues during the third and fourth quarter of 2013 of $3,600 per day and $130 per day, respectively, and early-termination
Slide 16: Preferred rigs account for approximately 91% of Adjusted EBITDA in Contract Drilling
Preferred rigs account for approximately 91% of Adjusted EBITDA in Contract Drilling Adjusted EBITDA Contribution from High Specification Rigs APEX® & Other Electric Mechanical Excludes early-termination revenues during the third and fourth quarter of 2013 of $62.8 million and $2.4 million, respecti
Slide 17: ...the APEX rig outlook remains strong!
Patterson-UTI Energy …the APEX ® rig outlook remains strong!
Slide 18: Continued Demand for APEX Rigs
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % Horizontal % Vertical U.S. Rig Count % by Drilling Type Continued Demand for APEX ® Rigs Source: Baker Hughes North America Rotary Rig Count
Slide 19: Continued Demand for APEX Rigs: Horizontal Rig Count by Power Type
SCR AC AC-powered rigs have increased as a percentage of the horizontal rig count Mechanical Total U.S. Horizontal Rig Count by Power Type Continued Demand for APEX ® Rigs Analysis from Patterson-UTI Energy based on data from RigData and company filings.
Slide 20: ...Patterson-UTI is a technology leader!
Patterson-UTI Energy …Patterson-UTI is a technology leader!
Slide 21: APEX Walking Rigs
21 APEX WALKING ® Rigs • Capable of walking with drill pipe and collars racked in the mast • Full multi-directional walking capability • Walking times average 45 minutes for 10’ – 15’ well spacing http://patenergy.com/drilling/technology/apexwalk
Slide 22: Strong Demand for Pad Drilling
22 Strong Demand for Pad Drilling • Pad drilling is contributing to increasing rig efficiency • Pad drilling capable rigs are highly utilized • Most new APEX ® rigs are expected to have walking systems http://patenergy.com/drilling/technology
Slide 23: Video of APEX-XK Rig
23 Video of APEX-XK ® Rig APEX-XK ® Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/
Slide 24: The APEX-XK
24 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 • Minimized number of truck loads for rig moves • Available in both 1500 HP and 1000
Slide 25: Enhancing our Position in Pad Drilling
25 Enhancing our Position in Pad Drilling Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drilling Capabilities
Slide 26: Enhancing our Position in Pad Drilling
26 Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology
Slide 27: Early Adopter of Natural Gas Engines
27 Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology
Slide 28: Pressure Pumping
Pressure Pumping
Slide 29: Growing Pressure Pumping Business
Growing Pressure Pumping Business Investments in Pressure Pumping… …Have Increased Fleet Size and Quality 1,100 June Fracturing Horsepower Other Horsepower Period End 2015E
Slide 30: A Significant Player in Regional Markets
33% 67% Southwest Region: Northeast Region: Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 326,30 Other horsepower: 55,400 A Significant Player in Regional Markets Pressure Pumping Areas Horsepower distribution as of March 31, 2015 Fracturing Horsepower
Slide 31: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology • 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 http://patenergy.com/pressurepumping/services
Slide 32: A Leader in Bi-Fuel Technology
32 A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services
Slide 33: A Leader in Bi-Fuel Technology
33 A Leader in Bi-Fuel Technology • One of the largest bi-fuel frac fleets in the Marcellus • Approximately 1,950 stages completed using natural gas as a fuel source • Replaced approximately 1.3 million gallons of diesel with cleaner burning natural gas • Eliminated 9.6 million pounds of transportat
Slide 34: Comprehensive Lab Services
Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 35: Financial Flexibility
Financial Flexibility
Slide 36: Investing in Our Company
Investing in Our Company $598 $637 $445 $453 $976 $1,012 $974 $662 $1,229 $710 2015E Year End Capital Expenditures and Acquisitions ($ in millions) 2015 Capital expenditure forecast as of April 23, 2015
Slide 37: Strong Financial Position
Strong Financial Position • History of returning capital to investors – Cash Dividend • Initiated cash dividend in 2004 • Doubled quarterly cash dividend to $0.10 per share in February 2014 – Stock Buyback • Total of $857 million repurchased since 2005 • Approximately $187 million remaining authoriz
Slide 38: Strong Financial Position
Strong Financial Position 1Q15 Period End Line of Credit Availability Cash Total Liquidity ($ in millions) Liquidity defined as end of period cash plus availability under revolving line of credit
Slide 39: $600 million of debt not due until at least 2020
$600 million of debt not due until at least 2020 Strong Financial Position 6% 2% -4% -2% 15% 13% 18% 14% 24% 21% -10% 0% 10% 20% 30% 40% 50% 1Q15 Period End Net Debt to Capital Ratio
Slide 40: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? • Continuing Transformation – Committed to high-spec land rigs where demand remains strong – Creating value through focus on well site execution • Technology leader – Leader in walking rigs for pad drilling – Innovator in use of natural gas as a fuel source for bo
Slide 41: Patterson-UTI Energy Inc.
@PATTERSON-UTI ENERGY INC.
Slide 42: More than $5 billion invested since 2005
More than $5 billion invested since 2005 Contract Drilling Capital Expenditures and Acquisitions ($ in millions) Investing in Our Drilling Rig Fleet 2015 Capital expenditure forecast as of April 23, 2015 $531 $540 $361 $395 $656 $785 $745 $505 $772 $520 2015E
Slide 43: More Than $1.4 billion invested since 2005
More Than $1.4 billion invested since 2005 Investing in Pressure Pumping $41 $48 $61 $43 $289 $198 $194 $123 $418 $165 2015E Pressure Pumping Capital Expenditures and Acquisitions ($ in millions) 2015 Capital expenditure forecast as of April 23, 2015
Slide 44: Strong Financial Position
Strong Financial Position • Total liquidity of approximately $587 million – $86.9 million of cash at March 31, 2015 – $500 million revolver availability at April 27, 2015 • $793.1 million net debt at March 31, 2015 – 21.5% Net Debt/Total Capitalization – $300 million of 4.97% Series A notes due Octo
Slide 45: Adjusted EBITDA reconciliation
Twelve Months Ended December 31, 2014 2013 $ 162,664 $ 188,009 91,619 108,432 28,846 27,441 718,730 597,469 $1,001,859 $ 921,351 $3,182,291 $2,716,034 31.5% 33.9% $ 765,874 $ 704,990 236,676 217,228 37,094 44,348 (37,785) (45,215) $1,001,859 $ 921,351 Three Months Ended March 31, Adjusted Earnings B
Slide 46: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ 162,664 $ 188,009 $ 299,477 $ 322,413 $ 116,942 Income tax expense (benefit) 91,619 108,432 176,196 187,938 72,856 Net interest expense (income) 28,846 27,441
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