Citi 2014 Global Energy and Utilities Conference May 14, 2014
Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Contract Drilling
APEX Rig Fleet APEX Rigs as of May 14, 2014 and Expected as of March 31, 2015 Class 5/14/2014 3/31/2015 APEX-XK 1500 22 42 APEX-XK 1000 4 4 APEX WALKING 49 49 APEX 1500 44 44 APEX 1000 11 11 Total APEX Rigs 130 150 A leader…
Large Geographic Footprint PTENs Active U.S. Land Drilling Rigs as of May 2014 Rockies 33 Rigs Appalachia & Midwest Mid-Continent 34 Rigs North Texas 24 Rigs 6 Rigs East Texas Permian Basin 14 Rigs 54 Rigs South…
Improving Average Revenue Per Day Patterson-UTI Total Average Revenue Per Day 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 7 Excludes early-termination revenues during the third and fourth quarter…
Pressure Pumping
Growing Pressure Pumping Business Investments in Pressure Pumping Have Increased Fleet Size and Quality Pressure Pumping Horsepower (000s) 1000 800 800 600 400 65 200 0 2006 2007 20082009 2010* 2011 2012 2013 2014E…
Pressure Pumping Areas A Significant Player in Regional Markets Fracturing Horsepower 52% 48% Northeast Region: Fracturing horsepower: 320,000 Southwest Region: Other horsepower: 54,000 Fracturing horsepower: 350,000 Other…
A Leader in Bi-Fuel Technology One of the largest bi-fuel frac fleets in the Marcellus Approximately 700 stages completed using natural gas as a fuel source Replaced more than 358,000 gallons of diesel with cleaner burning…
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…
Citi 2014 Global Energy and Utilities Conference May 14, 2014
Additional References
Contract Drilling High quality fleet of land drilling rigs including 130 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 regional knowledge and efficient operations Components of Revenue Pressure Pumping…
Investing in Our Drilling Rig Fleet Contract Drilling Capital Expenditures and Acquisitions ( in millions) 785 745 700 656 531 540 505 395 361 2006 2007 2008 2009 2010 2011 2012 2013 2014E More than 4.5 billion invested…
Why invest in APEX rigs the impact has been transformative
Greater Consistency in Rig Activity Active APEX Rig Count 140 120 100 80 60 40 20 0 19
Rig Count by Rig Class APEX Other Electric Mechanical 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20
Contribution from High Specification Rigs APEX & Other Electric Mechanical 2010 2011 2012 2013 Preferred rigs account for approximately 87% of Contract Drilling EBITDA 22 Excludes early-termination revenues during the third and…
Why invest in APEX rigs the outlook remains strong
Continued Demand for APEX Rigs U.S. Rig Count % by Drilling Type 80% 70% 60% 50% 40% 30% High-Spec rigs account 20% for less than half of the total horizontal rig count 10% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011…
Consolidated Segment of Industry High-Specification Rigs by Owner Type Others Next 5 Largest Big 3 Public U.S. Drillers Land Drillers Big 3 U.S. land drillers control almost 70% of the high specification rigs in the U.S.…
Why invest in APEX rigs Patterson-UTI is a technology leader
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 27 27…
Strong Demand for Pad Drilling Pad drilling is contributing to increasing rig efficiency Pad drilling capable rigs are highly utilized All new APEX rigs completed in 2014 are expected to have walking systems…
APEX-XK Rig Walking on Pad http://patenergy.com/drilling/technology/apexwalk/ 29 29
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…
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 31 31
Enhancing our Position in Pad Drilling http://patenergy.com/drilling/technology 32 32
Early Adopter of Natural Gas Engines http://patenergy.com/drilling/technology 33 33
Using Natural Gas as a Fuel Source First contract driller to use GEs Waukesha natural gas engines on a modern land rig 34 rigs currently configured to use natural gas as the primary fuel source including 7 natural gas powered rigs…
Active in Unconventional Plays PTENs Active Rigs in Unconventional Areas as of May 2014 Bakken 20 Rigs Marcellus 20 Rigs Utica 13 Rigs Piceance Woodford 2 Rigs 2 Rigs Barnett 2 Rigs Haynesville 5 Rigs Eagle Ford…
Continued Demand for APEX Rigs Total U.S. Horizontal Rig Count by Power Type Mechanical AC SCR AC-powered rigs represent less than half of the horizontal rig count 36 Analysis from Patterson-UTI Energy based on IHS…
Term Contract Coverage Based on term contracts in place as of April 24, 2014 An average of 137 rigs expected under term contract in the second quarter of 2014 An average of 111 rigs expected under term contract during the remaining…
Investing in Pressure Pumping Pressure Pumping Capital Expenditures and Acquisitions ( in millions) 289 198 210 194 123 61 41 48 43 2006 2007 2008 2009 2010 2011 2012 2013 2014E Approximately 1 billion invested since…
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 40 40
Investing in Our Company Capital Expenditures and Acquisitions ( in millions) 976 1,012 974 950 637 662 598 445 453 2006 2007 2008 2009 2010 2011 2012 2013 2014E 43
Strong Financial Position History of returning capital to investors Cash Dividend Initiated cash dividend in 2004 Recently announced doubling of quarterly cash dividend to 0.10 per share Stock Buyback Total of 843 million…
Strong Financial Position Total Liquidity 800 ( in millions) Line of Credit Availability Cash 710 718 700 600 571 500 398 387 400 300 283 273 244 208 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 1Q14 Year End…
Strong Financial Position Net Debt to Capital Ratio 50% 40% 30% 18% 20% 15% 13% 14% 13% 6% 10% 2% 0% -4% -2% -10% 2006 2007 2008 2009 2010 2011 2012 2013 1Q14 Year End 600 million of debt not due until at least 2020 46
Strong Financial Returns Growth in Per-Share Book Value 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 47
Strong Financial Position Total liquidity of approximately 718 million 258 million of cash at March 31, 2014 460 million revolver availability at March 31, 2014 432 million net debt at March 31, 2014 13.4% Net Debt/Total…
Non-GAAP Financial Measures PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) Three Months Ended (dollars in thousands) March 31, 2014 2013 Earnings Before Interest, Taxes, Depreciation and Amortization…
Non-GAAP Financial Measures PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) 2013 2012 2011 2010 2009 2008 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net…
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