Patterson-UTI Energy, Inc. · NASDAQ:PTEN
Patterson-UTI Energy — Investor Presentation (March 2024)
21 slides from Patterson-UTI Energy's investor presentation, Mar 5, 2024
Slide 1: Investor Presentation
Investor Presentation March 5, 2024
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: Who We Are
Who We Are a PATTERSON-UTI
Slide 4: Building a Diversified Oilfield Services Leader
Building a Diversified Oilfield Services Leader $6.8B 2nd Largest OFS Provider in OUR NAM by Revenue HISTORY $2.4B Total Company Revenue ($) $1.4B $0.8B 1978 1980 2001 2010 2017 2021 Pro Forma 2023 Patterson Drilling First frac job for Patterson Energy PTEN acquires Key PTEN acquires PTEN acquires P
Slide 5: A Leader in North America…
A Leader in North America… 2023 North America Revenue ($) Billions Patterson-UTI at a Glance Corporate HQ Founded Employees Houston 1978 10,600 Average Daily Enterprise Value2 Market Cap2 Trading Volume3 $6.0 B $4.8 B $82 M Peer A PTEN PTEN Peer B Peer C Peer D Peer E Peer F Peer G Peer H Pro Forma1
Slide 6: Service and Product Lines Integrated to Build a Sustained Operating Advantage
Patterson-UTI | Service and Product Lines Integrated to Build a Sustained Operating Advantage Drilling 131 Services Tier 1 Super-Spec Drilling Rigs1 APEX Drilling Fleet Directional Drilling Wellbore Navigation Electronics Manufacturing Drilling Technology Completion 3.3 Services Million Hydraulic Ho
Slide 7: Key Takeaways
Key Takeaways Relatively steady U.S. onshore activity outlook likely to continue through 2024 Steady outlook in oil basins; some slight near-term activity reductions likely in natural gas basins Strong Fundamentals for Our Differentiated Service Equipment Utilization remains high for equipment and s
Slide 8: Operational Excellence
Operational Excellence Efficiency amplified by Integration
Slide 9: Drilling & Completions | Industry Fundamentals
Drilling & Completions | Industry Fundamentals OFS consolidation has improved industry fundamentals Drilling Industry Fundamentals Frac Industry Fundamentals ▪ Industry Bifurcation: Top drilling contractors now make ▪ Industry Bifurcation: Top completion service providers up a substantial portion of
Slide 10: Greater Lateral Footage | Drilling Services and Products
Greater Lateral Footage | Drilling Services and Products OUR STRATEGY IS DELIVERING ULTIMATE OPERATING OUTPERFORMANCE Year-Over-Year Change Annualized Lateral Footage Drilled by Rig Type2 1Q24E vs. 1Q23 Actual for Active Rigs and Margin per Day per Rig Company Estimates for a Representative Midland
Slide 11: Delivering Efficiency | Completion Services
Delivering Efficiency | Completion Services Industry asset bifurcation + NexTier integrated services = Value Creation U.S. Frac Fleet Market Bifurcation Active Fleet Type vs. Cost of Fueling for a representative fleet NexMile Logistics 35 Power Solutions CNG Fueling Annualized Cost of Fueling,2 ($)
Slide 12: Wellsite Efficiency Delivered WITH Capital Efficiency
Wellsite Efficiency Delivered WITH Capital Efficiency PATTERSON-UTI DRILLING RIG EFFICIENCY CAPITAL EFFICIENCY ANNUAL DRILLED LATERAL PRODUCTION FEET PER RIG (MIDLAND BASIN) 83% 400000 Adjusted EBITDA Margin1 CapEx as % of Revenue 350000 300000 IMPROVEMENT 40% 250000 200000 30% 150000 100000 20% 500
Slide 13: Capital Allocation Framework
Capital Allocation Framework
Slide 14: Capital Allocation Framework
Capital Allocation Framework Maximize Shareholder Value And Financial Returns Repeatable Shareholder Strategic Allocation Return Program Target strong return on capital, Allocation increase shareholder return Target return of at least 50% of program, and/or Strategy Free Cash Flow annually to furthe
Slide 15: Investment Grade Capital Structure
Investment Grade Capital Structure Financially Positioned for Through-Cycle Resilience LOW LEVERAGE CASH BALANCE TOTAL LIQUIDITY <1 X $193 M $790 M Net Debt as of 12/31/2023 to Cash Position as of 12/31/2023 Includes cash and revolver as of Q4 Annualized adjusted EBITDA 12/31/2023 NEAREST INTEREST C
Slide 16: Deliver a Repeatable Shareholder Return Program
Deliver a Repeatable Shareholder Return Program $1 BILLION SHARE BUYBACK AUTHORIZATION 1 Patterson-UTI targets ▪ For 2024 we expect to exceed our shareholder returning at least 50% return target of 50% of our free cash flow – expect to return of its Free Cash Flow to at least $400 million to shareho
Slide 17: Track-Record of Shareholder Returns
Track-Record of Shareholder Returns PTEN shareholder return expected to grow again in 2024 Cash Returned to Shareholders Average Annual Shareholder Return as a % of Year-End Market Cap ($) millions (%) Percent, 2018-2023 Patterson-UTI Dividends Patterson-UTI Share Repurchases 8% $400 6% $301 $288 4%
Slide 18: Delivering Value
Delivering Value a PATTERSON-UTI
Slide 19: 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 Find out more in our Sustainability with oil and gas for the products that make peo
Slide 20: Why invest in Patterson-UTI?
The bottom line… Why invest in Patterson-UTI? Well Defined Capital Allocation Strategy Strong capital structure and disciplined investing strategy with focus on 40+% FCF conversion; commitment to return at least 50% of free cash flow to investors annually Opportunity to Grow Returns in a Steady U.S.
Slide 21: Patterson-UTI
@ PATTERSON-UTI 4
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