Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Johnson Rice 2016 Energy Conference
30 slides from Patterson-uti Energy's conference presentation, Sep 21, 2016
Slide 1: Johnson Rice 2016 Energy Conference
Johnson Rice 2016 Energy Conference September 21, 2016 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: Contract Drilling
Contract Drilling High quality fleet of land drilling rigs including 161 APEX® rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets Patterson-UTI reported results for the six months ended June 30, 2016
Slide 4: Pressure Pumping
Pressure Pumping High quality fleet of modern pressure pumping equipment Strong reputation for regional knowledge and efficient operations Concentrated footprint provides economies of scale Patterson-UTI reported results for the six months ended June 30, 2016
Slide 5: Contract Drilling
Contract Drilling @ © PATTERSON. UTI DRILLING COMPANY LLC ENERGY
Slide 6: Patterson-UTI U.S. Rig Count
Patterson-UTI U.S. Rig Count The Patterson-UTI U.S. rig count has increased nine rigs since late-April. Of the rigs reactivated: 94% were 1,500 horsepower 88% were equipped with walking systems 75% were equipped with 7,500 psi circulating systems 94% utilization of APEX® rigs with 1,500 horsepower,
Slide 7: Overcoming Reactivation Challenges
Overcoming Reactivation Challenges Reactivation Costs Expected to be approximately $200,000 per rig Patterson-UTI expected to have ample liquidity following the extension of the revolving credit facility and repayment of term loans Labor U.S. Drilling headcount has increased by more than 200 people
Slide 8: High Quality Drilling Rigs APEX Rigs
High Quality Drilling Rigs 161 APEX® Rigs
Slide 9: The APEX-XK
The APEX-XK® Enhanced X-Y mobility Walk with full set-back of pipe in mast More efficient rig up / rig down Walking times average 45 minutes for 10’ – 15’ well spacing Advanced environmental spill control integrated into drilling floor Reduced number of truck loads for rig moves 53 APEX-XK 1500® and
Slide 10: APEX-XK Integrated Walking System
APEX-XK® Integrated Walking System
Slide 11: APEX-XK Rig Walking on Pad
APEX-XK® Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/ Video of APEX-XK® Rig
Slide 12: West Texas Rigs Large Geographic Footprint
West Texas 17 Rigs Large Geographic Footprint PTEN’s Active Rig Count by Region as of September 19, 2016 Appalachia 17 Rigs East Texas 3 Rigs Mid-Continent 6 Rigs Rockies 6 Rigs South Texas 6 Rigs North Dakota 6 Rigs Canada 2 Rigs http://patenergy.com/
Slide 13: Drilling Technologies
Drilling Technologies Designs, manufactures and services high-spec rig components with a recent focus on top drive technology Expands the Patterson-UTI technology portfolio A highly talented group of people with a tremendous amount of experience
Slide 14: Pressure Pumping
Pressure Pumping UNIVERSAL @\PATTERSON-UTI — pot 1
Slide 15: Managing Supply Chain
Managing Supply Chain Developing strategic relationships around critical materials and services to: Manage supply volumes during a recovery Mitigate potential cost inflation Leveraging technologies to improve operational efficiencies and reduce cost
Slide 16: Modern Pumping Equipment
Modern Pumping Equipment Modern triplex pumps defined as being placed in service within the last seven years.
Slide 17: Market Focus Provides Economies of Scale
Southwest Region: Northeast Region: Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 353,800 Other horsepower: 55,400 Market Focus Provides Economies of Scale Pressure Pumping Areas Horsepower distribution as of June 30, 2016
Slide 18: Technology Focused: PropLogic Sand Management System
Technology Focused PropLogic™ Sand Management System Fully enclosed well-site sand management system More accurate than conventional sand trailers/bins More efficient use of proppant as less sand is wasted
Slide 19: Technology Focused: PowderStim Dry Friction Reducer System
Technology Focused PowderStim® Dry Friction Reducer System hydrates powder form of friction reducer directly into the fluid stream Logistically safer and more efficient compared to liquefied friction reducers Successful with both fresh water and heavy brines More cost effective by utilizing produced
Slide 20: Technology Focused: Comprehensive Lab Services
Technology Focused Comprehensive Lab Services Ability to test vendors’ chemicals enhances quality controls Unique in-house friction flow loop test assembly for faster test results In-house lab services are faster and more cost efficient than outsourcing
Slide 21: Strong Financial Position
Strong Financial Position @\PATTERSON-UTI — pot 1
Slide 22: Investing in Our Company
Investing in Our Company Capital Expenditures and Acquisitions ($ in millions) 2016 Capital expenditure forecast as of July 28, 2016
Slide 23: Strong Financial Position
Strong Financial Position 22% Debt/ Total Cap* Stockholder’s Equity 4.97% Series A notes Due October 5, 2020 4.27% Series B notes Due June 14, 2022 Revolving Credit Facility* Maturing March 27, 2019 * On July 8, 2016, Patterson-UTI used cash on hand plus $70 million from its revolving credit facilit
Slide 24: Total Liquidity
Total Liquidity* $49 million cash as of June 30, 2016 and after giving effect to the bank credit agreement amendment and related term debt repayment $500 million revolver through September 27, 2017 $358 million of revolver extended through March 27, 2019 Subject to a borrowing base comprised of elig
Slide 25: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? High Quality Assets 161 APEX® rigs comprised primarily of 1500 horsepower and pad capable rigs Creating value through focus on well site execution Technology leader Leader in walking rigs for pad drilling Innovator in deploying latest technologies for pressure pum
Slide 26: Johnson Rice 2016 Energy Conference
Johnson Rice 2016 Energy Conference September 21, 2016
Slide 27: Additional References
Additional References @\PATTERSON-UTI — pot 1
Slide 28: Borrowing Base Designed to Grow with Working Capital
Borrowing Base Designed to Grow with Working Capital Equipment capped at 60% of total borrowing base 40% of eligible equipment book value 50% of eligible inventory 75% of eligible receivables 90% of eligible cash Increase in borrowing base from $1 million increase in :** Cash $2.25 million Receivabl
Slide 29: Supplemental Information: Pro Forma Debt to Total Capital Ratio
Supplemental Information Pro Forma Debt to Total Capital Ratio (unaudited, dollars in thousands) June 30, 2016 Repayment of Term Loans Revolver Borrowing Pro Forma Current portion of long-term debt (excluding debt issuance cost) $86,250 $(86,250) $- $- Long-term debt (excluding debt issuance cost) 7
Slide 30: Adjusted EBITDA Reconciliation
Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ (85,866) $ (18,975) $ (156,369) $ (9,850) Income tax expense (benefit) (49,027) (14,720) (84,457) (8,000) Net in
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