Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Scotia Howard Weil 48th Annual Energy Conference 2020
27 slides from Patterson-uti Energy's conference presentation, Mar 24, 2020
Slide 1: Patterson-UTI Energy, Inc.
Patterson-UTI Energy, Inc. Scotia Howard Weil 48th Annual Energy Conference March 24, 2020
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: Market Outlook
Market Outlook • Economic disruptions related to COVID-19 are having a negative impact on global oil demand. At the same time, announced production increases from Russia and Saudi Arabia are expected to increase oil supply. As a result, oil prices have been negatively impacted. • With the drop in oi
Slide 4: History of Scaling the Business During Downturns
History of Scaling the Business During Downturns Total Operating Costs1 vs. PTEN Average Rig Count Total Capital Expenditures vs. PTEN Average Rig Count $2,500 300 $1,200 300 Total Operating Costs ($ in millions) Capital Expenditures ($ in millions) 250 $1,000 250 $2,000 PTEN Average Rig Count PTEN
Slide 5: Strong Balance Sheet
Strong Balance Sheet Capital Structure ($ in millions) $2,834 Stockholders’ Equity $100 Term loan due 2022 $525 3.95% senior notes due 2028 22% Net Debt / Total Cap $350 5.15% senior notes due 2029 * Balance sheet data as of December 31, 2019. The total debt balance of $975 million includes $8.5 mil
Slide 6: Limited Near-Term Debt Maturities
Limited Near-Term Debt Maturities Debt Maturity Distribution ($ in millions) $525 $350 $100 2020 2021 2022 2023 20241 2025 2026 2027 2028 2029 Debt Maturity Year 6 1 $600 million available under undrawn revolving line of credit that matures in 2024
Slide 7: Contract Drilling
CONTRACT DRILLING GL PATTERSON-UTI
Slide 8: 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 12% 17% 11% 11% 11% 600 18% 18% 21% 17% 400 43% 69% 69% 77% 78% 200 61% 65% 0 2014 2015 2016 2017 2018 2019 3
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: Pressure Pumping
a simi oe pressure i PUMPING a = - @partersonu sf
Slide 16: 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 16
Slide 17: Dual-Fuel Frac Spreads
Dual-Fuel Frac Spreads • Patterson-UTI began dual fuel operations in 2012 • 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 17
Slide 18: 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 19: 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 19
Slide 20: Environmental and Social Responsibility
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
Slide 21: 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 22: 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 23: 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 24: Patterson-UTI Energy Inc.
_A_ PATTERSON-UTI ENERGY INC.
Slide 25: 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 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
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