Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Q2 2025 Earnings Presentation
31 slides from Patterson-uti Energy's earnings presentation, Jul 24, 2025
Slide 1: Investor Presentation
Investor Presentation June 2025
Slide 2: Forward Looking Statements & Disclosures
Forward Looking Statements & Disclosures 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 managemen
Slide 3: Business Activity Update
Business Activity Update Drilling Services Segment ▪ Averaged 106 rigs in the United States through the first two months of the second quarter of 2025 ▪ Currently operating 100 rigs in the United States and expect to exit the second quarter of 2025 slightly below current activity Completion Services
Slide 4: Executive Summary
Executive Summary Differentiated operating capability with premier Drilling and Completions franchise Integrated service offerings improve well delivery for customers and create value for investors High-quality asset base with strong utilization on top-tier assets Tier-1 drilling rigs and natural ga
Slide 5: Who We Are
Who We Are
Slide 6: Patterson-UTI | Company Overview
Patterson-UTI | Company Overview Building an Integrated OFS Company Drilling 135 Services Tier-1 Super-Spec Drilling Rigs1 APEX® Drilling Fleet Directional Drilling Wellbore Navigation Electronics Manufacturing Drilling Technology Completion 2.9 Services Million Hydraulic Horsepower1 Hydraulic Fract
Slide 7: Market Leading Presence Among the Largest E&Ps
Market Leading Presence Among the Largest E&Ps Roughly 60% of Patterson-UTI's revenue is generated from the 15 most active E&Ps Strong Revenue Share from the most active E&Ps 0% 20% 40% 60% Operator Alignment 15 Most Active U.S. Operators Share of the US Rig Count1 Patterson-UTI is strategically ali
Slide 8: Patterson-UTI Business Overview
Patterson-UTI Business Overview
Slide 9: Diversified Cash Flow Across Drilling and Completions Markets
Diversified Cash Flow Across Drilling and Completions Markets Cash flow driven by drilling services and products and completions services Patterson-UTI Company Profile Adjusted Gross Profit as a % of Company Total Last Twelve Months Through 1Q25 Patterson-UTI is a leader across both the Drilling 1 O
Slide 10: Drilling Services | Delivering Operating Outperformance
Drilling Services | Delivering Operating Outperformance D R I V I N G D R I L L I N G E F F I C I E N C Y TO D E L I V E R R E S U LT S Market Outperformance Annualized Lateral Footage Drilled by Rig Type 3 1Q25 vs. 1Q23 Actual for Active Rigs and Adjusted Gross Profit per Day Company Estimates for
Slide 11: Drilling Services | Reliable cash generation
Drilling Services | Reliable cash generation Cash generation at our Drilling Services segment serves as a foundation for PTEN's Free Cash Flow Adjusted EBITDA1 minus Capital Expenditures per Active U.S. Rig Patterson-UTI Drilling Services Segment, ($, millions) Performance Drilling Patterson-UTI 124
Slide 12: Completion Services | Industry premium asset utilization is high
Completion Services | Industry premium asset utilization is high Premium natural gas-powered assets are in high demand, and about 80% of our active fleet can be powered by natural gas Industry HHP Utilization Rate by Engine Type1 Natural gas-powered assets Current idle capacity is largely Active Ind
Slide 13: Completion Services | Cost advantage drives asset differentiation
Completion Services | Cost advantage drives asset differentiation Industry capital cost of power generation gives Tier 4 Dual Fuel a slight cost advantage over Electric Estimated U.S. Shale Industry Frac Fleet Market Bifurcation1 Fleet type vs. cost of fueling for a representative U.S. Land fleet Fr
Slide 14: Drilling Products | Outpacing industry activity
Drilling Products | Outpacing industry activity Rapid deployment of incremental design improvements create a demonstrable & sustainable advantage Drilling Products Segment Pro Forma1 U.S. Revenue per U.S. Industry Rig per Month Drill Bit Outperformance U.S. Active Rigs $60,000 900 U.S. Drilling Rig
Slide 15: Patterson-UTI Enterprise | Strong and Consistent FCF Generation
Patterson-UTI Enterprise | Strong and Consistent FCF Generation Wellsite Efficiency Delivered with Capital Efficiency Delivering Consistent Free Cash Flow Generation Patterson-UTI has benefited in the era of Patterson-UTI Enterprise improving U.S. shale capital efficiency Adjusted EBITDA minus Capex
Slide 16: Operational Excellence
Operational Excellence Efficiency Amplified by Integration
Slide 17: Harnessing Data to Enable Higher Impact Drilling & Completion Operations
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Harnessing Data to Enable Higher Impact Drilling & Completion Operations Patterson-UTI creates sustainable value with our end-to-end digital integration and data-driven optimization strategy Integrate Critical Applications Streamline Digital Products Qu
Slide 18: Integration Advantage: Drilling Services and Products
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Integration Advantage: Drilling Services and Products Patterson-UTI's integrated Fully integrated throughout the drill site drilling platform can improve Digitally enabled by: drilling days on pad, creating Drill Bits | Ulterra value for our customers a
Slide 19: Integration Advantage: Completions Services
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Integration Advantage: Completions Services Fully integrated throughout the completions site Patterson-UTI integrates industry- leading equipment and technology Natural Gas-Enabled Frac Fleet Leading fleet of Tier 4 dual fuel and 100% natural gas equipm
Slide 20: Integration Advantage: Power Services
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Integration Advantage: Power Services Mobile energy is a core competency of the company, positioning PTEN to benefit from the next generation of the oilfield Natural Gas Fueling Power Generation Electronic Power Systems and Controls Industry Growth in N
Slide 21: Capital Allocation Framework
Capital Allocation Framework
Slide 22: Capital Allocation Framework
Capital Allocation Framework Maximize Shareholder Value and Financial Returns Repeatable Shareholder Return Program Strategic Allocation Allocation Expect to return at least 50% of Target strategic high-return Strategy adjusted Free Cash Flow annually investments that drive returns to shareholders1
Slide 23: Investment Grade Capital Structure
Investment Grade Capital Structure Financially Positioned for Through-Cycle Resilience LOW LEVERAGE CASH BALANCE TOTAL LIQUIDITY 1X $225 M $723 M Net Debt as of 3/31/2025 to LTM Cash Position as of 3/31/2025 Includes cash and revolver as of Adjusted EBITDA 3/31/2025 INTEREST COVERAGE NEAREST CREDIT
Slide 24: Deliver a Repeatable Shareholder Return Program
Deliver a Repeatable Shareholder Return Program ▪ For 2024 we exceeded our shareholder return target of 50% of our adjusted free cash flow – returned more than $417 Patterson-UTI targets million to shareholders returning at least 50% of its adjusted ▪ PTEN will have paid an $0.08 per share quarterly
Slide 25: Peer Leading Combination of Shareholder Returns with De-Leveraging
Peer Leading Combination of Shareholder Returns with De-Leveraging Shareholder Returns as a % of Current Market Cap Shareholder Returns as a % of Current Market Cap % Change Includes Dividends in andNet Debt, Share Capital Leases, and Operating Leases Repurchases Last 12 Months through 3/31/2025. In
Slide 26: Sustainability as a Strategy
Sustainability as a Strategy Patterson-UTI has demonstrated a resilient commitment to long-term sustainability Our Timeline of Innovation in Sustainability Our Vision: To safely and responsibly help provide the world with Find out more in our Sustainability Report at: oil and gas for the products th
Slide 27: A Patterson-UTI
A PATTERSON-UTI @ePaTTERSON-UT! NeExTieR ()ucrerra [DRILLING COMPANY BSS virectional A supenor ac <{ CURRENT \ |
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit Drilling Services Completion Services Drilling Products Other (dollars in thousands) For the Last Twelve Months March 31, 2025 Revenues $ 1,683,097 $ 3,053,868 $ 347,341 $ 63,782 Less direct operating costs (1,005,483) (2,570,257) (
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA less Capital Expenditures, Drilling Services (dollars in thousands) Three Months Ended Twelve Months Ended Three Months Ended Last Twelve Months March 31, 2025 December 31, 2024 March 31, 2024 March 31, 2025 Adjusted Earnings Before Inter
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Leverage Ratio (dollars in thousands) Adjusted Earnings Before Interest, Taxes, Depreciation Three Months Ended Twelve Months Ended Three Months Ended (1) Adjusted earnings before interest, taxes, depreciation and Amortization1 March 31, 2025 December 31
Slide 31: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Free Cash Flow (dollars in thousands) Last Twelve Months Three Months Ended Twelve Months Ended March 31, March 31, December 31, 2025 2025 2024 2024 2023 2022 2021 2020 2019 (1) Adjusted Free Cash Flow : Net cash provided by operating activities