Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Cowen and Company Annual Ultimate Energy Conference 2015
29 slides from Patterson-uti Energy's conference presentation, Dec 1, 2015
Slide 1: Cowen and Company Annual Ultimate Energy Conference
Cowen and Company th Annual Ultimate Energy Conference December 1, 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: Contract Drilling
Pressure Pumping 38% Contract Drilling 61% 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 nine mont
Slide 4: Pressure Pumping
Pressure Pumping 38% Contract Drilling 61% 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 nine months ended Sept
Slide 5: Scaling The Business
Scaling The Business Scaling our business effectively is key to our success… …both in upturns and downturns Patterson-UTI U.S. rig count and U.S. drilling staff size through November 17, 2015 Rig Count Drilling Staff Size Patterson-UTI U.S. Rig Count vs. U.S. Drilling Staff Size
Slide 6: Managing Supply Chain
Managing Supply Chain • Sourcing and Supply Security – Negotiated critical cost elements for both Drilling and Pressure Pumping – Solidified availability of strategic commodities • Reduced Costs in 2015 – Sand costs down 25% - 35% – Sand hauling costs down 25% - 35% – Pump parts costs down 15% - 20%
Slide 7: Patterson-UTI Drilling Company
am -_ m PATTERSON-UTI DRILLING COMPANY LLC @ PATTERSON-UTI — Nemes
Slide 8: High Quality Drilling Rigs
128 30 3 High Quality Drilling Rigs APEX ® Rigs APEX ® Rig Fleet by Drawworks Horsepower 1500hp 1000hp 2000hp
Slide 9: Majority of Adjusted EBITDA from APEX Rigs
APEX ® Other Electric Mechanical Majority of Adjusted EBITDA from APEX ® Rigs *Adjusted EBITDA contribution by rig class excluding early termination revenues for the nine months ended September 30, 2015. Adjusted EBITDA Contribution by Rig Class
Slide 10: 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 AP
Slide 11: APEX-XK Integrated Walking System
APEX-XK ® Integrated Walking System
Slide 12: Video of APEX-XK Rig
12 Video of APEX-XK ® Rig APEX-XK ® Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/
Slide 13: West Texas Rigs: Large Geographic Footprint
West Texas 19 Rigs Large Geographic Footprint PTEN’s Active Rig Count by Region as of November 24, 2015 Appalachia 22 Rigs East Texas 8 Rigs Mid-Continent Rigs Rockies 8 Rigs South Texas 12 Rigs North Dakota 11 Rigs Canada 2 Rigs http://patenergy.com/
Slide 14: Patterson-UTI Pressure Pumping
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Slide 15: Modern Pumping Equipment
- 10 Years 25% 5 >10 Years 5% < 5 Years 70% Modern Pumping Equipment Years Average Age Frac Horsepower by Age
Slide 16: Modern Pumping Equipment by Pump Type
Quintuplex 80% Modern Triplex 15% Legacy Triplex 5% Modern Pumping Equipment Modern triplex pumps defined as being placed in service within the last seven years. Frac Horsepower by Pump Type Million Horsepower
Slide 17: Market Concentration Provides Economies of Scale
35% 65% Southwest Region: Northeast Region: Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 353,800 Other horsepower: 55,400 Market Concentration Provides Economies of Scale Pressure Pumping Areas Horsepower distribution as of September 30, 2015 Frac Horsepower
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
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
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: Patterson-UTI Energy
(o @\PATTERSON-UTI = ENERGY NG
Slide 22: Investing in Our Company
Investing in Our Company $598 $637 $445 $453 $976 $1,012 $974 $662 $1,229 $700 <$200 2015E 2016E Year End Capital Expenditures and Acquisitions ($ in millions) 2015 and 2016 Capital expenditure forecast as of October 22, 2015
Slide 23: Strong Financial Position
$300 $300 $265 $2,631 Strong Financial Position 4.97% Series A notes Due October 5, 2020 4.27% Series B notes Due June 14, 2022 Bank Term Loans Maturing September 27, 2017 * Debt and equity balances as of September 30, 2015. $265 million of bank term loans includes quarterly payments totaling $10 mi
Slide 24: Total Liquidity
$500 $76 Total Liquidity * Cash and debt balances as of September 30, 2015. $265 million of bank term loans includes quarterly payments totaling $10 million in the fourth quarter of 2015 and $63.8 million in total for 2016. • $76.5 million cash • $500 million revolver availability • Of $865 million
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
Slide 26: Cowen and Company Annual Ultimate Energy Conference
Cowen and Company December 1, 2015 th Annual Ultimate Energy Conference
Slide 27: Additional References
Additional References
Slide 28: Adjusted EBITDA Reconciliation: Three and Nine Months Ended September 30
Three Months Ended September 30, Nine Months Ended September 30, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income (loss) $ (225,978) $ 15,976 $(235,828) $ 105,081 Income tax expense (benefit) (112,452) 7,556 (120,452) 50,403 Net interest expens
Slide 29: 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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