Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Goldman Sachs Global Energy Conference 2019
25 slides from Patterson-uti Energy's conference presentation, Jan 9, 2019
Slide 1: Goldman Sachs Global Energy Conference 2019
Goldman Sachs January 9, 2019 Global Energy Conference 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 intentions
Slide 3: Current Market Conditions
Current Market Conditions Industry drilling activity along with demand for other oilfield services is expected to slow at WTI price levels below $50 per barrel. Source: Bloomberg
Slide 4: Patterson-UTI Drilling Company
m PATTERSON-UTI DRILLING COMPANY LLC. BIS Directional h Superior QC
Slide 5: Evolution of U.S. Land Industry Rig Demand by Rig Type
Evolution of U.S. Land Industry Rig Demand by Rig Type Source: Patterson-UTI estimates
Slide 6: U.S. Land Super-Spec Rig Fleet Growth
U.S. Land Super-Spec Rig Fleet Growth Source: Patterson-UTI Estimates Super-spec rigs defined as 1500hp AC-powered rigs with at least 750,000 pound hookload, pad moving system (walking or skidding) and a 7,500 psi high-pressure circulating system PTEN holding share in super-spec rig count growth Dec
Slide 7: Patterson-UTI APEX Rig Fleet
Patterson-UTI APEX® Rig Fleet Super-spec rigs defined as 1500hp AC-powered rigs with at least 750,000 pound hookload, pad-capable (walking or skidding) and a 7,500 psi circulating system
Slide 8: Patterson-UTI Major Upgrades to Super-Spec Capability
Patterson-UTI Major Upgrades to Super-Spec Capability Four additional major upgrades announced in July 2018 – each supported by a four-year customer contract Upgrade costs for these rigs expected to be approximately $15 million each. The payback on this cost is expected to be within the four-year co
Slide 9: Directional Drilling
Directional Drilling MS Directional, a leading provider of directional drilling services in the United States MS Directional has a strong technology focus with proprietary mud motor, MWD and survey equipment Patented C2 technology enables high-speed electromagnetic telemetry independent of geologica
Slide 10: Superior QC
Superior QC Superior QC services increase the accuracy of wellbore placement to improve well-to-well spacing Reduces Ellipse of Uncertainty of MWD surveys More accurate well spacing provides for better production economics Superior QC is a leader in terms of speed, automation, accuracy, and technica
Slide 11: Example of Three-Well Pad Drilled Without Correction
Example of Three-Well Pad Drilled Without Correction Three wells (in red) were drilled without survey error corrections using standard MWD and within the industry standard field acceptance criteria Post drilling analysis with Superior QC Fault Detection, Isolation, and Recovery (FDIR) shows actual w
Slide 12: Future Automation and Remote Operations
Future Automation and Remote Operations REMOTE OPERATIONS Remote operations allow a specialist to manage multiple wells at one time RIG AUTOMATION Consistent, automated processes at the wellsite limit safety risks, reduce well costs, streamline logistics and increase margins DD AUTOMATION Controllin
Slide 13: Universal Pressure Pumping
A premier source for hydraulic fracturing, cementing, nitrogen and acidizing services for reservoir enhancement. Universal Pressure Pumping provides well services primarily in Texas and the Mid-Continent and Appalachian regions.
Slide 14: Pressure Pumping Footprint
Pressure Pumping Footprint APPALACHIA / 7 WEST TEXAS / 6 SOUTH TEXAS / 5 MID-CONTINENT / 3 By Region As of October 25, 2018 Active Spread Count 21
Slide 15: Innovative: Centralized Logistics Center
Innovative: Centralized Logistics Center Efficient procurement and logistics of sand and chemicals are important to success in hydraulic fracturing. central scheduling and tracking software 24/7 dispatch personnel smart phone apps in the field Currently operational for Texas and Mid-Con and expandin
Slide 16: Innovative Pressure Pumping Technology: Bi-Fuel
Innovative Pressure Pumping Technology: Bi-Fuel More flexible fuel source as 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
Slide 17: Financial Information
nr PATTERSON-UTI ENERGY INC. Financial Information
Slide 18: Strong Balance Sheet
Strong Balance Sheet Net Debt to Total Capital 50% Average 17.3% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% | Q1 2 03 G4 QI Q2 Q3 O4 Q1 Q2 O03 A4 QI Q2 O3 Q4 AI Q2 03 O24 QI _Q2 Q3 O4 QI Q2 A3 a4 a1 Q2 a3 2011 2012 2013 2014 2015 2016 2017 2018 @QPATTERSON-UTI | 1s A NUT
Slide 19: Strong Financial Position
Strong Financial Position Substantial Liquidity $214 million cash as of September 30, 2018 $600 million revolver through March 2023 19.5% Net Debt/Total Capital at September 30, 2018 $300 million term loan matures October 2020 $300 million term loan matures June 2022 $525 million 3.95% senior notes
Slide 20: A History of Returning Capital to Shareholders
A History of Returning Capital to Shareholders We expect to generate free cash flow in 2018 Patterson-UTI has a history of returning capital to shareholders Source: Patterson-UTI company filings and Baker Hughes Rig Count
Slide 21: Why Invest in Patterson-UTI Energy?
Patterson-UTI is the only company in the U.S. onshore unconventional market leveraged to the critical path services of contract drilling, pressure pumping, and directional drilling Patterson-UTI has a history of returning cash to shareholders when appropriate Patterson-UTI has a strong balance sheet
Slide 22: Patterson-UTI Energy Inc.
40 PATTERSON-UTI ERGY INC.
Slide 23: Additional References
PATTERSON-UTI ENERGY INC. Additional References
Slide 24: APEX Class Rigs
APEX® Class Rigs 198 APEX-XK® APEX 300-Series® APEX 1500® APEX PK™ APEX 1000® Other AC 69 51 39 35 1 2 APEX-XC® 1
Slide 25: Non-U.S. GAAP Financial Measures
Non-U.S. GAAP Financial Measures (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, amortizati
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