Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Bank of America Merrill Lynch Global Energy Conference 2019
27 slides from Patterson-uti Energy's conference presentation, Nov 13, 2019
Slide 1: Patterson-UTI Energy, Inc.
Patterson-UTI Energy, Inc. Bank of America Merrill Lynch Global Energy Conference November 13, 2019
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 intention
Slide 3: Patterson-UTI Energy, Inc.
Patterson-UTI Energy, Inc. Contract Drilling Originally founded in 1978, Patterson-UTI’s contract drilling business is a leading provider of super-spec drilling rigs with a large footprint across U.S. drilling markets. Pressure Pumping A leading provider of hydraulic fracturing services across Texas
Slide 4: Financial Focus
Financial Focus • Focused on generating positive cash flow after capex • Focused on maintaining a strong balance sheet • Focused on returning cash to shareholders through a stable dividend, augmented by opportunistic share repurchases Cash Returned to Shareholders ($ in Millions) 2007 - 2019 Dividen
Slide 5: Contract Drilling
CONTRACT DRILLING Gi PATTERSON-UTI Ae ami a
Slide 6: Evolution of U.S. Land Industry Rig Demand by Rig Power Type
Evolution of U.S. Land Industry Rig Demand by Rig Power Type 2000 U.S. Land Rig Count by Rig Power Type AC SCR Mechanical 1800 1600 32% 1400 U.S. Land Rig Count 1200 25% 14% 1000 14% 16% 800 13% 17% 13% 600 18% 18% 21% 17% 400 43% 69% 69% 75% 200 61% 65% 0 2014 2015 2016 2017 2018 11/2/2019 Year End
Slide 7: Super-Spec Rigs as a Technology Platform
Super-Spec Rigs as a Technology Platform Patterson-UTI APEX® Rig Fleet Super-spec rigs will be the platform from which advancements in automation and remote operations are deployed Upgradeable • PTEN is well positioned as a leader in the super-spec rig to Super- market Spec 48 • Advancements in rig
Slide 8: Automation and Remote Operations
Automation and Remote Operations RIG AUTOMATION REMOTE OPERATIONS Consistent, automated processes at the Remote operations allow a specialist to wellsite limit safety risks, reduce well costs, manage multiple wells at one time streamline logistics and increase margins DIRECTIONAL DRILLING AUTOMATION
Slide 9: Applications
™ Applications ™ ™ Adaptive Auto-Driller: Automated Toolface Adaptive control loops maximize Drilling Control rate of penetration (ROP) through Closed loop technology that changing formations and minimize automates toolface control while slide dysfunction. Optimized to drilling, enabling the process
Slide 10: Superior QC
™ Superior QC • Superior QC services increase the accuracy of wellbore placement to improve well-to- well spacing • More accurate well spacing provides for: • Fewer frac hits • Less parent-child communication between wells • Generally better production economics • Superior QC is a leader in terms of
Slide 11: Bit Guidance
™ Bit Guidance Superior QC Bit Guidance Superior QC’s directional drilling control combined with Superior QC’s Fault Detection, Isolation, and Recovery (FDIR) software provides for real-time corrections and accurate well placement, reducing tortuosity and maximizing exposure to targeted production z
Slide 12: GenAssist powered by EcoCell
™ ™ ™ powered by GenAssist™ is an energy management software system that leverages EcoCell’s™ stored energy to optimize fuel efficiency and emissions. Automatically starts/stops engines and sets optimal load to achieve best possible fuel economy and emissions levels. • Alternative solution to 4th ge
Slide 13: Pressure Pumping
PRESSURE pPUMPING: ENERGY INC.- @ PATTERSON, UTI
Slide 14: Dual-Fuel Frac Spreads
Dual-Fuel Frac Spreads More flexible Reduces fuel source as operating engines can costs by burn a fuel mix comprised of lowering fuel up to 70% costs natural gas Comparable Good for torque and environmental horsepower sustainability to an all diesel engine 14
Slide 15: Dual-Fuel Frac Spreads
Dual-Fuel Frac Spreads • Patterson-UTI began dual fuel operations in 2012 and has expanded to five dual fuel spreads • Patterson-UTI has completed more than 12,400 dual fuel fracturing stages saving customers approximately 10 million gallons of diesel more than 7.3 million gallons of diesel 15
Slide 16: Blender Remote Control & Automation
Blender Remote Control & Automation • Developing new control systems to allow the blender to be remotely operated from the data van • Increased data collection capability will improve predictive analytics modeling helping to improve blender up time and reduce maintenance costs • Remote operations wi
Slide 17: Using AI with Digital Twin Technology
Using AI with Digital Twin Technology Predictive analytics utilizing AI and digital twin technology • Continuously monitors PTEN’s frac trailers • Improves operational performance • Reduces operating costs 17
Slide 18: Financial Focus
FINANCIAL FOCUS Gi PATTERSON-UTI fl ee ee Ae ami a
Slide 19: Strong Financial Position
Strong Financial Position Substantial Liquidity $165 million cash as of September 30, 2019 $600 million revolver through March 2024 21.6% Net Debt/Total Capital at September 30, 2019 * $150 million term loan matures June 2022 * $300 million Series B notes mature June 2022 * $525 million 3.95% senior
Slide 20: Patterson-UTI Strong Balance Sheet
Patterson-UTI Strong Balance Sheet • New $350 million senior notes o Public offering priced on November 7, 2019 and expected to close on November 15, 2019 o Investment grade terms o Matures November 15, 2029 • Plan to use proceeds from senior notes offering to repay $300 million Series B notes due J
Slide 21: a PATTERSON: UT
a PATTERSON: UT (esese) INC.
Slide 22: Environmental and Social Responsibility
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
Slide 23: Patterson-UTI Core Values
Patterson-UTI Core Values • Safety and Environment o We believe that the safety of our employees and the protection of our environment is a cornerstone • Operational Excellence o We deliver high-quality, value-added services and focus on innovative solutions in all aspects of our work • Honesty and
Slide 24: Environmental
Environmental • Air Quality o We utilize natural gas engines, dual-fuel equipment and other technologies that reduce our air emissions • Water Quality o We strive to conduct our drilling and completion activities in a manner that protects the quality of ground and surface water • Land Use o We emplo
Slide 25: Social
Social Our people are our most important asset and our greatest strength • Health and Safety o Our goal is to provide an incident-free work environment. The safety of our employees and others is our highest priority • Diversity and Inclusion o We are committed to fostering a work environment where a
Slide 26: Non-U.S. GAAP Financial Measures
Non-U.S. GAAP Financial Measures (1) (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, amorti
Slide 27: Patterson-UTI
4 PATTERSON-UTI 4
Patterson-UTI Energy — Bank of America Merrill Lynch Global Energy Conference 2019 on 6ix