Patterson-UTI Energy, Inc. Barclays CEO Energy Conference September 11-12, 2013
Why Invest in Patterson-UTI Energy Technology leader Leader in walking rigs for pad drilling Innovator in use of natural gas as a fuel source for both drilling and pressure pumping Customer focused Solid relationships with broad…
Who We Are
Contract Drilling High quality fleet of land drilling rigs including 120 APEX rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets Components of Revenue…
Pressure Pumping High quality fleet of modern pressure pumping equipment A leader in natural gas bi-fuel technology Strong reputation for safe and efficient operations Components of Revenue Pressure Pumping 37% Contract…
Contract Drilling
Continued Demand for APEX Rigs Percentage of Horizontal Wells Continues to Increase Baker Hughes U.S. Rig Count 80% % by Drilling Type 70% 60% 50% 40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 %…
APEX Rig Fleet APEX Rigs as of June 30, 2013 and Expected as of December 31, 2013 Class 6/30/2013 12/31/2013 APEX-XK 1500 13 19 APEX-XK 1000 4 4 APEX WALKING 48 48 APEX 1500 44 44 APEX 1000 11 11 Total APEX Rigs 120 126 A leader…
Contribution from High Specification Rigs Contract Drilling EBITDA Contribution by Rig Class Six Months Ended June 30, 2013 Mechanical APEX & Other Electric Preferred rigs account for approximately 85% of Contract…
Strong Demand for Pad Drilling Pad drilling is contributing to increasing rig efficiency Pad drilling capable rigs are highly utilized All new APEX rigs delivered in 2013 will have walking systems suitable for pad drilling…
APEX-XK Rig Walking on Pad Video of APEX-XK Rig http://patenergy.com/drilling/technology/apexwalk/ 12
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 Optimized number of…
APEX WALKING Rigs Capable of walking with drill pipe and collars racked in derrick Full multi-directional walking capability Walking times average 45 minutes for 10 15 well spacing…
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 15
Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology 16
Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology 17
Using Natural Gas as a Fuel Source First contract driller to use GEs Waukesha natural gas engines on a modern land rig 21 rigs currently configured to use natural gas as the primary fuel source including 4 natural gas powered…
Pressure Pumping
A Leader in Bi-Fuel Technology Engines can burn a fuel mix comprised of up to 70% natural gas Comparable torque and horsepower as an all diesel engine Reduces operating costs by lowering fuel costs Good for environmental…
A Leader in Bi-Fuel Technology http://patenergy.com/pressurepumping/services 21
A Leader in Bi-Fuel Technology One of the largest bi-fuel frac fleets in the Marcellus More than 400 stages completed using natural gas as a fuel source Replaced more than 94,000 gallons of diesel with cleaner burning natural…
Investing in Our Company Capital Expenditures and Acquisitions ( in millions) 1,012 976 974 800 637 598 445 453 2006 2007 2008 2009 2010 2011 2012 2013E 25
Strong Financial Position History of returning capital to investors Stock Buyback Repurchased 7% of shares in 2012 Repurchased approximately 50.9 million of shares during the third quarter of 2013 New 200 million share repurchase…
Strong Financial Position Total liquidity of approximately 609 million 149 million of cash at June 30, 2013 460 million revolver availability at June 30, 2013 547 million net debt at June 30,…
Patterson-UTI Energy, Inc. Barclays CEO Energy Conference September 11-12, 2013
Additional References
Active in Unconventional Plays PTENs Active Rigs in Unconventional Areas as of September 2013 Bakken 17 Rigs Marcellus 23 Rigs Utica 7 Rigs Piceance 5 Rigs Woodford 1 Rig Barnett 2 Rigs Haynesville 7 Rigs Eagle Ford…
Large Geographic Footprint PTENs Active U.S. Land Drilling Rigs as of September 2013 Rockies 29 Rigs Appalachia & Midwest Mid-Continent 30 Rigs North Texas 20 Rigs 5 Rigs East Texas Permian Basin 12 Rigs 52 Rigs South…
Term Contract Coverage Based on term contracts in place as of July 25, 2013 An average of 121 rigs expected under term contract in the third quarter of 2013 An average of 113 rigs expected under term contract for the second half of…
Mechanical Rigs Mechanical Rigs 147 mechanical rigs in fleet Most are upgraded to meet customers diverse needs Improved mud systems Iron roughnecks and other automation Enhanced mobility Ideally suited for certain markets and…
Growing Pressure Pumping Business Recent Investments in Pressure Pumping Have Increased Fleet Size and Quality 760 Pressure Pumping Horsepower 800 600 (000s) 65 400 200 0 2006 2007 2008 2009 2010* 2011 2012 2013E…
Pressure Pumping Areas of Operation A Significant Player in Regional Markets Fracturing Horsepower 51% 49% Northeast Region: Fracturing horsepower: 333,000 Southwest Region: Other horsepower: 61,500 Fracturing horsepower:…
Modern Pressure Pumping Fleet PTEN Fracturing Horsepower by Age As of June 30, 2013 10 Years 6% 5 - 10 Years 21%
Strong Financial Returns Growth in Per-Share Book Value The Warren Buffett Standard 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 37
Non-GAAP Financial Measures PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) Three Months Ended Six Months Ended (dollars in thousands) June 30, June 30, 2013 2012 2012 2012 Earnings Before Interest, Taxes,…
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