Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Credit Suisse 24th Annual Energy Summit 2019
24 slides from Patterson-uti Energy's conference presentation, Feb 12, 2019
Slide 1: Credit Suisse 24th Annual Energy Summit
Credit Suisse February 12-13, 2019 24th Annual Energy Summit 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: Review of 4Q18 Earnings Call
Review of 4Q18 Earnings Call Repurchased 9.3 million shares in 2018, or 4.2% of the outstanding shares at the beginning of the year, for $150 million Including dividends, returned a total of $181 million to shareholders in 2018 Projected capex for 2019 of $465 million – a 27% reduction from 2018 The
Slide 4: Patterson-UTI Drilling Company
m PATTERSON-UTI DRILLING COMPANY LLC. BIS Directional h Superior QC
Slide 5: Evolution of U.S. Land Industry Rig Demand by Rig Type
Evolution of U.S. Land Industry Rig Demand by Rig Type Source: Patterson-UTI estimates
Slide 6: U.S. Land Super-Spec Rig Fleet Growth
U.S. Land Super-Spec Rig Fleet Growth Source: Patterson-UTI Estimates Super-spec rigs defined as 1500hp AC-powered rigs with at least 750,000 pound hookload, pad-capable (walking or skidding) and a 7,500 psi high-pressure circulating system PTEN holding share in super-spec rig count growth Utilizati
Slide 7: Patterson-UTI APEX Rig Fleet
Patterson-UTI APEX® Rig Fleet Super-spec rigs defined as 1500hp AC-powered rigs with at least 750,000 pound hookload, pad-capable (walking or skidding) and a 7,500 psi circulating system
Slide 8: Directional Drilling
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 of geologic
Slide 9: Superior QC
Superior QC Superior QC services increase the accuracy of wellbore placement to improve well-to-well spacing Reduces Ellipse of Uncertainty of MWD surveys More accurate well spacing provides for better production economics Superior QC is a leader in terms of speed, automation, accuracy, and technica
Slide 10: Example of Three-Well Pad Drilled Without Correction
Example of Three-Well Pad Drilled Without Correction Three wells (in red) were drilled without survey error corrections using standard MWD and within the industry standard field acceptance criteria Post drilling analysis with Superior QC Fault Detection, Isolation, and Recovery (FDIR) shows actual w
Slide 11: Future Automation and Remote Operations
Future 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 Controllin
Slide 12: Universal Pressure Pumping
A premier source for hydraulic fracturing, cementing and acidizing services for reservoir enhancement. Universal Pressure Pumping provides well services primarily in Texas and the Mid-Continent and Appalachian regions.
Slide 13: Pressure Pumping Footprint
Pressure Pumping Footprint APPALACHIA / 6 WEST TEXAS / 6 SOUTH TEXAS / 4 MID-CONTINENT / 1 By Region As of February 7, 2019 Active Spread Count 17
Slide 14: Innovative: Centralized Logistics Center
Innovative: Centralized Logistics Center Efficient procurement and logistics of sand and chemicals are important to success in hydraulic fracturing. central scheduling and tracking software 24/7 dispatch personnel smart phone apps in the field Centralized logistics center includes:
Slide 15: Innovative Pressure Pumping Technology: Bi-Fuel
Innovative Pressure Pumping Technology: Bi-Fuel More flexible fuel source as 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 16: Financial Information
nr PATTERSON-UTI ENERGY INC. Financial Information
Slide 17: Strong Balance Sheet
Strong Balance Sheet Net Debt to Total Capital 50% Average 17.4% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% | QL Q2 Q3 Q4 Qt Q2 Q3 Q4 Q4 Q2 Q3 Q4 Q1 Q2 Q3 4 Q1 O2 Q3 O4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 04 2014 2012 2013 2044 2015 2016 2017 2018 @QPATTERSON-UTI | 17 A NUT
Slide 18: Strong Financial Position
Strong Financial Position Substantial Liquidity $245 million cash as of December 31, 2018 $600 million revolver through March 2023 20.1% Net Debt/Total Capital at December 31, 2018 $300 million term loan matures October 2020 $300 million term loan matures June 2022 $525 million 3.95% senior notes du
Slide 19: A History of Returning Capital to Shareholders
A History of Returning Capital to Shareholders Source: Patterson-UTI company filings and Baker Hughes Rig Count
Slide 20: Why Invest in Patterson-UTI Energy?
Patterson-UTI is the only company in the U.S. onshore unconventional market leveraged to the critical path services of contract drilling, pressure pumping, and directional drilling Patterson-UTI has a history of returning cash to shareholders when appropriate Patterson-UTI has a strong balance sheet
Slide 21: Patterson-UTI Energy Inc.
40 PATTERSON-UTI ERGY INC.
Slide 22: Additional References
PATTERSON-UTI ENERGY INC. Additional References
Slide 23: APEX Class Rigs
APEX® Class Rigs 198 APEX-XK® APEX 300-Series® APEX 1500® APEX PK™ APEX 1000® Other AC 69 50 39 36 1 2 APEX-XC® 1
Slide 24: 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
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