Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Non-Deal Roadshow (August 2023)
23 slides from Patterson-uti Energy's roadshow presentation, Aug 14, 2023
Slide 1: Patterson-UTI Energy, Inc. Piper Sandler & Co. Meetings with Investors
Patterson-UTI Energy, Inc. Piper Sandler & Co. Meetings with Investors August 14-16, 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation and any oral statements made in connection with this presentation include forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not l
Slide 3: Patterson-UTI Energy
Patterson-UTI Energy The addition of NexTier Oilfield Solutions and Ulterra Drilling Technologies advances our strategy to enhance our positions in both drilling and completions, areas where Patterson-UTI has a strong 45-year history of operations and innovation.
Slide 4: A leading provider of drilling and completions services in the U.S.
A leading provider of drilling and completions services in the U.S. Strong cash generation Focused on shareholder returns A leading revenue generator in North America >$7 billion of combined enterprise value Increased stock trading liquidity $2.0 billion of combined 1H23 annualized Adjusted EBITDA $
Slide 5: A New Industry Leader with Significant Size
A New Industry Leader with Significant Size Source: Company filings and Bloomberg. Data as of August 8, 2023. Note: $ in billions. * Implied enterprise value for Patterson-UTI on a combined basis using implied purchase price of Ulterra. *
Slide 6: NAM Revenue Generation Among the Industry Leaders
NAM Revenue Generation Among the Industry Leaders Source: Company filings. Note: $ in billions. Data as of June 30, 2023, represents 1H23 annualized revenue.
Slide 7: Strong Cash Flow Generation
Strong Cash Flow Generation Combination of Patterson-UTI, NexTier, and Ulterra expected to be accretive to earnings per share and free cash flow in 2024 $200 million of annual synergies expected within 18 months $2.0 billion of combined 1H23 annualized Adjusted EBITDA
Slide 8: Focused on Shareholder Returns
Focused on Shareholder Returns PTEN has returned more than $1.2 billion to shareholders in the last 10+ years
Slide 9: 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 10: 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 Nearly 2/3 of the combined company’s fleet will be dual-fuel capable, reducing fuel costs and lowering emissions and making the combined company
Slide 11: 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 Integrated Wireline Plug & Perforation Spare Wireline Capacity H
Slide 12: Truckloads per Well / NexMile Logistics
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 13: Power Solutions consistently increases natural gas consumption
Power Solutions consistently increases natural gas consumption 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 blend with CNG Power Solutions Natural Gas Fueling Elevating the
Slide 14: 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 NexHub Implementation
Slide 15: Ulterra's Global Expansion
Competes in major drilling regions with dedicated sales teams and repair facilities supporting customers in over 30 countries Ulterra international revenue outside of NAM represents a significant growth opportunity Improving Saudi Arabia competitive position with increased Saudization targets (achie
Slide 16: Drill Bit Market Characteristics
Drill Bit Market Characteristics PDC Drill Bit Overview Polycrystalline Diamond Compact (PDC) Drill Bits Represent ~90% of the bits used in the U.S. oil & gas industry Drill bits drive drilling speed (ROP), duration (footage drilled) and tool face control (staying in the pay zone), resulting in mate
Slide 17: Comprehensive PDC Drill Bit Offering
Comprehensive PDC Drill Bit Offering Ulterra innovates and introduces key drill bit technologies that solve customer problems Oil and gas drill bit market only. Source: Company provided information Matrix is tungsten carbide CounterForce® Split Blade® RipSaw® WaveCut® Lateral Vibration 2013 Cuttings
Slide 18: Ulterra: Mission-Critical Technology Delivering Significant Value
Ulterra: Mission-Critical Technology Delivering Significant Value Ulterra’s bits represent a small fraction of well costs but deliver substantial value through higher ROP Bits represent <1% of well cost Sub-optimal bit selection results in excess cost and operator rig time Ulterra captures value for
Slide 19: Advanced Manufacturing & Repair Capabilities
Advanced Manufacturing & Repair Capabilities Source: Management records 1 Estimated sq. ft. upon completion of new facility estimated to be online by 2025 with full manufacturing capabilities Leduc, Alberta (40,800 sq. ft.) Saudi Arabia (80,000 sq. ft.) 1 Fort Worth, Texas (114,000 sq. ft.) Global M
Slide 20: Data Driven Designs Improve Drilling Efficiency
Data Driven Designs Improve Drilling Efficiency E&P operators require a partner that can keep pace with their rapid innovation cycle Constantly pushing the limits of drilling parameters (more weight-on-bit, higher flow-rates and extended laterals) Ulterra’s large scale, de-centralized engineering te
Slide 21: Complementary Data Platforms
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 for custom performance applications and advanced algorithms when
Slide 22: Ulterra's Attractive Organic Growth Channels to New Markets
Ulterra’s Attractive Organic Growth Channels to New Markets Source: Ulterra management records Downhole Tools Geothermal Engineered in-house Uniquely placed in the Bottom Hole Assembly (“BHA”) to provide maximum protection of the mud motor or rotary steerable, Measurement-While-Drilling tool (“MWD”)
Slide 23: Patterson-UTI
@ PATTERSON-UTI 4 pat! QuNIvVERSAL BSS directional A superior gc SJ cunneny greatplains
Patterson UTI Energy — Non-Deal Roadshow (August 2023) on 6ix