Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Non-Deal Roadshow (July 2015)
46 slides from Patterson-uti Energy's roadshow presentation, Jul 30, 2015
Slide 1: Patterson-UTI Energy, Inc. Meetings with Investors
Patterson-UTI Energy, Inc. Meetings with Investors July 30-31, 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 38% Contract Drilling 61% Contract Drilling • High quality fleet of land drilling rigs including 159 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 38% Contract Drilling 61% 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 six months ended June 30, 2015
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: -56% Total PTEN U.S. Rig Count: -77% 2014 - Total PTEN U.S. Rig Count: -48% Total Baker Hughes U.S. Land Rig Count: -55% Baker Hughes and Patterson-UT
Slide 8: A 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 7/30/2015 …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 July 30, 2015 APEX ® Rig Fleet
Slide 10: Large Geographic Footprint
West Texas 27 Rigs Large Geographic Footprint PTEN’s Active U.S. Land Drilling Rigs as of July 24, 2015 Appalachia 21 Rigs East Texas 15 Rigs Mid-Continent 9 Rigs Mid-Continent 9 Rigs Rockies 8 Rigs South Texas 19 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 Patterson-UTI Total Average Rig Revenue Per Day Excludes early-termination revenues during the third and fourth quarters of 2013 of $3,600 per day and $130 per day, respectively, and early-termination revenues during the first and second quarters of 2015 of $1,0
Slide 16: Preferred rigs account for approximately 96% of Adjusted EBITDA in Contract Drilling
Preferred rigs account for approximately 96% 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 quarters of 2013 of $62.8 million and $2.4 million, respect
Slide 17: The APEX rig outlook remains strong
Patterson-UTI Energy …the APEX ® rig outlook remains strong!
Slide 18: Continued Demand for APEX Rigs: U.S. Rig Count by Drilling Type
U.S. Rig Count % by Drilling Type Continued Demand for APEX ® Rigs Source: Baker Hughes North America Rotary Rig Count
Slide 19: AC-powered rigs increased as a percentage of the horizontal rig count
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: The APEX-XK
23 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 24: Enhancing our Position in Pad Drilling
24 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 25: Enhancing our Position in Pad Drilling
25 Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology
Slide 26: Early Adopter of Natural Gas Engines
26 Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology
Slide 27: Pressure Pumping
Pressure Pumping
Slide 28: Growing Pressure Pumping Business
Growing Pressure Pumping Business Period End Fracturing Horsepower Other Horsepower Investments in Pressure Pumping… …Have Increased Fleet Size and Quality 1,100
Slide 29: A Significant Player in Regional Markets
34% 66% Southwest Region: Northeast Region: Fracturing Horsepower Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 343,800 Other horsepower: 55,400 A Significant Player in Regional Markets Pressure Pumping Areas Horsepower distribution as of June 30, 2015
Slide 30: 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 31: A Leader in Bi-Fuel Technology
31 A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services
Slide 32: Comprehensive Lab Services
Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 33: Financial Flexibility
Financial Flexibility
Slide 34: 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 July 23, 2015
Slide 35: 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 $187 million remaining authoriz
Slide 36: Strong Financial Position
Strong Financial Position 2Q15 Period End Line of Credit Availability Cash Total Liquidity ($ in millions) Liquidity defined as end of period cash plus availability under revolving line of credit
Slide 37: Includes $600 million of debt not due until at least 2020
Includes $600 million of debt not due until at least 2020 Strong Financial Position 6% 2% -4% -2% 15% 13% 18% 14% 24% 22% -10% 0% 10% 20% 30% 40% 50% 2Q15 Period End Net Debt to Capital Ratio
Slide 38: 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 39: Patterson-UTI Energy, Inc. Meetings with Investors
Patterson-UTI Energy, Inc. Meetings with Investors July 30-31, 2015
Slide 40: Patterson-UTI Energy Inc.
@PATTERSON-UTI ENERGY INC.
Slide 41: Investing in Our Drilling Rig Fleet
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 July 23, 2015
Slide 42: Investing in Pressure Pumping
More Than $1.5 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 July 23, 2015
Slide 43: Strong Financial Position
Strong Financial Position • Total liquidity of approximately $577 million – $76.5 million of cash at June 30, 2015 – $500 million revolver availability at June 30, 2015 • $796 million net debt at June 30, 2015 – 21.7% Net Debt/Total Capitalization – $300 million of 4.97% Series A notes due October 5
Slide 44: Term Contract Coverage
Term Contract Coverage • Based on term contracts in place as of July 23, 2015 – An average of 85 rigs expected under term contract in the third quarter of 2015 – An average of 77 rigs expected under term contract during the second half of 2015 • Drilling term contract revenue backlog of $1.0 billion
Slide 45: Adjusted EBITDA Reconciliation
Three Months Ended June 30, Six Months Ended June 30, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ (18,975) $ 54,283 $ (9,850) $ 89,105 Income tax expense (benefit) (14,720) 25,905 (8,000) 42,847 Net interest expense 8,931 7,041 17
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