Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Merger or Acquisition (July 2023)
18 slides from Patterson-uti Energy's merger presentation, Jul 5, 2023
Slide 1: Acquisition of Ulterra Drilling Technologies, L.P.
Patterson-UTI Energy, Inc. Acquisition of Ulterra Drilling Technologies, L.P. July 5, 2023
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding 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 Patterson
Slide 3: Ulterra Drilling Technologies
Ulterra Drilling Technologies Who is Ulterra? • Ulterra specializes in polycrystalline diamond compact (PDC) drill bits • Global footprint • Leader in drill bit technology innovation • Experienced engineering and manufacturing • A market leader in North America • Strong potential for growth in Middl
Slide 4: Benefits to Patterson-UTI
Benefits to Patterson-UTI Strengthens position as leading provider of drilling and completion services in the United States • Ulterra’s PDC technology is complementary to Patterson-UTI’s contract drilling, directional drilling services, controls automation and well placement technologies • Ulterra h
Slide 5: Transaction Overview
Transaction Overview Consideration • Acquisition includes $370 million of cash plus 34.9 million shares of Patterson-UTI common stock • Purchase is on a debt-free basis • Patterson-UTI plans to fund the cash consideration using a combination of cash on hand and its revolving line of credit Expected
Slide 6: Strategic Rationale: Consistent Cultures of Innovation
Strategic Rationale: Consistent Cultures of Innovation Patterson-UTI and Ulterra employ similar strategies to develop, market and sell their respective products and services Technology-focused sales approach Technical Sales engineers market products directly to operator Products and services address
Slide 7: Ulterra's Global Expansion
Ulterra’s Global Expansion Competes in major drilling regions with dedicated sales teams and repair facilities supporting customers in over 30 countries • Ulterra international revenue outside of NAM represents a significant growth opportunity • Improving Saudi Arabia competitive position with incre
Slide 8: PDC Drill Bit Overview
PDC Drill Bit Overview Polycrystalline Diamond Compact (PDC) Drill Bits Represent ~90% of the bits used in the U.S. oil & gas industry Drill bits drive drilling speed (ROP), duration (footage drilled) and tool face control (staying in the pay zone), resulting in material increases to drilling effici
Slide 9: Comprehensive PDC Drill Bit Offering
Comprehensive PDC Drill Bit Offering Ulterra innovates and introduces key drill bit technologies that solve customer problems Ulterra designs, manufactures, sells and rents matrix and steel-bodied PDC drill bits. Bits are typically rented, except in select international markets where they are sold.
Slide 10: Ulterra: Mission-Critical Technology Delivering Significant Value
Ulterra: Mission-Critical Technology Delivering Significant Value Ulterra’s bits represent a small fraction of Drill Bits are Mission-Critical Ulterra vs. Competitors ROP – 12.25” well costs but deliver substantial value through higher ROP (Rate of Penetration ft/hr) • Bits represent <1% of well cos
Slide 11: Advanced Manufacturing & Repair Capabilities
Advanced Manufacturing & Repair Capabilities Global Manufacturing & Repair Facilities Rapid prototyping at scale Fort Worth, Texas (114,000 sq. ft.) • All manufacturing & product engineering are in-house • Ability to redesign or field test new materials to meet specific customer needs Leduc, Alberta
Slide 12: Data Driven Designs Improve Drilling Efficiency
Data Driven Designs Improve Drilling Efficiency “Working with Ulterra allows you to push the limitations of every run, “Ulterra has the best bits I’ve run. Top-end ROP along with good evaluate the performance, and make adjustments to continue to take your tracking and steerability. They have great e
Slide 13: Complementary Data Platforms
Complementary Data Platforms Patterson-UTI’s portal for the NexTier’s NextHub Digital Center Ulterra’s proprietary database of real-time collection, aggregation, is a cutting-edge platform that bit runs that houses ~80% of all analysis and visualization of enables highly efficient field bit runs on
Slide 14: Ulterra's Attractive Organic Growth Channels to New Markets
Ulterra’s Attractive Organic Growth Channels to New Markets Downhole Tools Geothermal Mining TorkBusterTD® U616M SoftDrive® RPS616 Engineered in-house Dedicated sales team targeting US & Active discussions for several utility-scale geothermal opportunities in 2H’23 Australian copper & lithium mining
Slide 15: A New Industry Leader with Significant Size
A New Industry Leader with Significant Size North American Drilling and Completion Services Enterprise Value Comparison $6.4* $4.0 $3.9 $3.2 $2.7 $1.5 $1.4 $1.3 $1.0 $0.6 $0.5 Source: Company filings and Bloomberg. Data as of July 3, 2023. Note: $ in billions. * Implied enterprise value for Patterso
Slide 16: NAM Revenue Generation Among the Industry Leaders
NAM Revenue Generation Among the Industry Leaders North American Oilfield Services Revenue Comparison (Q1 2023 Annualized) $11.1 $7.2 $6.8 $5.0 $4.0 $3.4 $3.3 $2.8 $2.3 $1.1 $0.9 Source: Company filings. Note: $ in billions. Data as of March 31, 2023, represents 1Q23 annualized revenue. Includes pub
Slide 17: Summary
Summary Complementary Expands Dataset Complementary to U.S. contract Expands comprehensive drilling and drilling and directional drilling completions dataset business Broadens Footprint Broadens international footprint, especially in the Middle East 17
Slide 18: PATTERSON-UTI
4 PATTERSON-UTI 4 OT jn Qparrensonun = QuNIVERSAL BFS Drectiona/ Suerorgc = -XcuRRENT §—great plains
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