Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — UBS Global Oil and Gas Conference 2015
47 slides from Patterson-uti Energy's conference presentation, May 19, 2015
Slide 1: UBS Global Oil and Gas Conference
UBS Global Oil and Gas Conference May 19, 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: Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Slide 4: Contract Drilling
Pressure Pumping 41% Contract Drilling • High quality fleet of land drilling rigs including 155 APEX ® rigs • Leader in walking rig technology for pad drilling applications • Large footprint across North American drilling markets Patterson-UTI reported results for the year ended December 31, 2014
Slide 5: Pressure Pumping
Pressure Pumping 41% Pressure Pumping • High quality fleet of modern pressure pumping equipment • A leader in natural gas bi-fuel technology • Strong reputation for regional knowledge and efficient operations Patterson-UTI reported results for the year ended December 31, 2014
Slide 6: Contract Drilling
Contract Drilling
Slide 7: Improved Performance
Improved Performance 2008 - Total Baker Hughes U.S. Land Rig Count: -45% Total PTEN U.S. Rig Count: -68% 2014 - Total PTEN U.S. Rig Count: -43% Total Baker Hughes U.S. Land Rig Count: -54% Baker Hughes and Patterson-UTI U.S. Land Rig Counts as of May 15, 2015
Slide 8: A Rig Fleet Transformation
A Rig Fleet Transformation Mechanical Patterson-UTI Energy Total Rig Fleet Mechanical December 2009 Projected December 2015
Slide 9: A leader in high specification drilling rigs
Class 12/31/2015 A leader in high specification drilling rigs 5/19/2015 …and Expected as of December 31, 2015 APEX-XK 1500 ™ APEX-XK 1000 ™ APEX WALKING ® APEX 1500 ® APEX 1000 ® Total APEX ® Rigs APEX ® Rigs as of May 19, 2015 APEX ® Rig Fleet
Slide 10: Large Geographic Footprint
Large Geographic Footprint PTEN’s Active U.S. Land Drilling Rigs as of May 15, 2015 Rockies 22 Rigs Mid-Continent 8 Rigs East Texas 14 Rigs Appalachia 29 Rigs South Texas 24 Rigs Permian Basin 26 Rigs
Slide 11: The impact of APEX rigs has been transformative!
Patterson-UTI Energy …the impact of APEX® rigs has been transformative!
Slide 12: Increasing APEX Drilling Activity
Increasing APEX ® Drilling Activity Active APEX ® Rig Count
Slide 13: PTEN Relative Active Rig Count by Rig Class
PTEN Relative Active Rig Count by Rig Class
Slide 14: Greater Stability of Utilization
Greater Stability of Utilization APEX ® Rig Utilization
Slide 15: Improving Average Rig Revenue Per Day
Improving Average Rig Revenue Per Day Patterson-UTI Total Average Rig Revenue Per Day Excludes early-termination revenues during the third and fourth quarter of of $3,600 per day and $130 per day, respectively, and early-termination revenues during the first quarter of 2015 of $1,020 per day.
Slide 16: Preferred rigs account for approximately 91% of Adjusted EBITDA in Contract Drilling
Preferred rigs account for approximately 91% of Adjusted EBITDA in Contract Drilling Adjusted EBITDA Contribution from High Specification Rigs Excludes early-termination revenues during the third and fourth quarter of of $62.8 million and $2.4 million, respectively, and early-termination revenue dur
Slide 17: The APEX rig outlook remains strong!
Patterson-UTI Energy …the APEX® rig outlook remains strong!
Slide 18: U.S. Rig Count % by Drilling Type
U.S. Rig Count % by Drilling Type Continued Demand for APEX ® Rigs Source: Baker Hughes North America Rotary Rig Count
Slide 19: AC-powered rigs have increased as a percentage of the horizontal rig count
AC-powered rigs have increased as a percentage of the horizontal rig count Total U.S. Horizontal Rig Count by Power Type Continued Demand for APEX ® Rigs Analysis from Patterson-UTI Energy based on data from RigData and company filings. Mechanical
Slide 20: Patterson-UTI is a technology leader!
Patterson-UTI Energy …Patterson-UTI is a technology leader!
Slide 21: APEX Walking Rigs
21 APEX WALKING ® Rigs • Capable of walking with drill pipe and collars racked in the mast • Full multi-directional walking capability • Walking times average 45 minutes for 10’ – 15’ well spacing http://patenergy.com/drilling/technology/apexwalk
Slide 22: Strong Demand for Pad Drilling
22 Strong Demand for Pad Drilling • Pad drilling is contributing to increasing rig efficiency • Pad drilling capable rigs are highly utilized • Most new APEX ® rigs are expected to have walking systems http://patenergy.com/drilling/technology
Slide 23: Video of APEX-XK Rig
23 Video of APEX-XK ™ Rig APEX-XK ™ Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/
Slide 24: The APEX-XK
24 The APEX-XK ™ • Enhanced mobility including more efficient rig up and rig down • Greater clearance under rig floor for optional walking system • Advanced environmental spill control integrated into drilling floor • Minimized number of truck loads for rig moves • Available in both 1500 HP and 1000
Slide 25: Enhancing our Position in Pad Drilling
25 Enhancing our Position in Pad Drilling Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drilling Capabilities
Slide 26: Enhancing our Position in Pad Drilling
26 Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology
Slide 27: Early Adopter of Natural Gas Engines
27 Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology
Slide 28: Pressure Pumping
Pressure Pumping
Slide 29: Growing Pressure Pumping Business
Growing Pressure Pumping Business Investments in Pressure Pumping… …Have Increased Fleet Size and Quality 1,100
Slide 30: A Significant Player in Regional Markets
Southwest Region: Northeast Region: Fracturing horsepower: 663,800 Other horsepower: 32,165 Fracturing horsepower: 326,300 Other horsepower: 55,400 A Significant Player in Regional Markets Pressure Pumping Areas Horsepower distribution as of March 31, 2015
Slide 31: A Leader in Bi-Fuel Technology
A Leader in Bi-Fuel Technology • 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 http://patenergy.com/pressurepumping/services
Slide 32: A Leader in Bi-Fuel Technology
32 A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services
Slide 33: Comprehensive Lab Services
Comprehensive Lab Services http://patenergy.com/pressurepumping/services
Slide 34: Financial Flexibility
Financial Flexibility
Slide 35: Investing in Our Company
Investing in Our Company Capital Expenditures and Acquisitions ($ in millions) 2015 Capital expenditure forecast as of April 23, 2015
Slide 36: Strong Financial Position
Strong Financial Position • History of returning capital to investors – Cash Dividend • Initiated cash dividend in 2004 • Doubled quarterly cash dividend to $0.10 per share in February 2014 – Stock Buyback • Total of $857 million repurchased since 2005 • Approximately $187 million remaining authoriz
Slide 37: Strong Financial Position
Strong Financial Position Total Liquidity ($ in millions) Liquidity defined as end of period cash plus availability under revolving line of credit
Slide 38: $600 million of debt not due until at least 2020
$600 million of debt not due until at least 2020 Strong Financial Position Net Debt to Capital Ratio
Slide 39: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? • Continuing Transformation – Committed to high-spec land rigs where demand remains strong – Creating value through focus on well site execution • Technology leader – Leader in walking rigs for pad drilling – Innovator in use of natural gas as a fuel source for bo
Slide 40: UBS Global Oil and Gas Conference
UBS Global Oil and Gas Conference May 19, 2015
Slide 41: Patterson-UTI Energy Inc.
@\PATTERSON-UTI ‘Se ENERGY INC.
Slide 42: More than $5 billion invested since 2005
More than $5 billion invested since 2005 Contract Drilling Capital Expenditures and Acquisitions ($ in millions) Investing in Our Drilling Rig Fleet 2015 Capital expenditure forecast as of April 23, 2015
Slide 43: More Than $1.4 billion invested since 2005
More Than $1.4 billion invested since 2005 Investing in Pressure Pumping Pressure Pumping Capital Expenditures and Acquisitions ($ in millions) 2015 Capital expenditure forecast as of April 23, 2015
Slide 44: Term Contract Coverage
Term Contract Coverage • Based on term contracts in place as of April 23, 2015 – An average of 101 rigs expected under term contract in the second quarter of 2015 – An average of 83 rigs expected under term contract during the last three quarters of 2015 • Drilling term contract revenue backlog of $
Slide 45: Strong Financial Position
Strong Financial Position • Total liquidity of approximately $587 million – $86.9 million of cash at March 31, 2015 – $500 million revolver availability at April 27, 2015 • $793.1 million net debt at March 31, 2015 – 21.5% Net Debt/Total Capitalization – $300 million of 4.97% Series A notes due Octo
Slide 46: Adjusted EBITDA Reconciliation
Three Months Ended March 31, Twelve Months Ended December 31, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net income $ 9,125 $ 34,822 $ 162,664 $ 188,009 Income tax expense 6,720 16,942 91,619 108,432 Net interest expense 8,258 7,012 28,846 27,441 De
Slide 47: 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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