Patterson-UTI Energy, Inc. Barclays CEO Energy-Power Conference September 3-4, 2019
FINANCIAL FOCUS
Financial Focus Focused on generating positive cash flow after capex Focused on maintaining a strong balance sheet Focused on returning cash to shareholders through a stable dividend, augmented by opportunistic share repurchases…
TECHNOLOGY DEVELOPMENT
Automation and Remote Operations RIG AUTOMATION REMOTE OPERATIONS Consistent, automated processes at the Remote operations allow a specialist to wellsite limit safety risks, reduce well costs, manage multiple wells at one time…
Automation and Remote Operations RIG AUTOMATION REMOTE OPERATIONS DIRECTIONAL DRILLING AUTOMATION a 7
RIG AUTOMATION
Super-Spec Rigs as a Technology Platform Super-spec rigs will be the platform from which advancements in automation and remote operations are deployed PTEN is well positioned as a leader in the super-spec rig market Advancements…
PTENs Proprietary Operating System for APEX Rigs 10
Applications Adaptive Auto-Driller: Automated Toolface Adaptive control loops maximize Drilling Control rate of penetration (ROP) through Closed loop technology that changing formations and minimize automates toolface control…
Superior QC Superior QC services increase the accuracy of wellbore placement to improve well-to- well spacing More accurate well spacing provides for: Fewer frac hits Less parent-child communication between wells Generally…
Bit Guidance Superior QC Bit Guidance Superior QCs directional drilling control combined with Superior QCs Fault Detection, Isolation, and Recovery (FDIR) software provides for real-time corrections and accurate well placement,…
New Directional Drilling Mud Motor Design Next generation bearing New transmission design maximizes assembly maintains full support of robustness and reliability allowing critical driveline components even customers to fully…
Enhanced Measurement While Drilling (MWD) Platform Increased data transmission rates to support remote operations and directional drilling automation Improved durability to better withstand increasing drilling intensity…
Environmental Sustainability
powered by GenAssist is an energy management software system that leverages EcoCells stored energy to optimize fuel efficiency and emissions. Automatically starts/stops engines and sets optimal load to achieve best possible fuel…
Natural Gas Powered Drilling Rigs Utilize lower cost natural gas to help reduce fuel costs Lower emissions than diesel powered rigs PTEN was the first contract driller to use GEs Waukesha natural gas engines on a modern land…
e-Frac Patterson-UTIs subsidiary, Current Power, has the ability to provide everything between the turbine and the electric motor for an electric frac spread and has supplied e-frac equipment Drive Systems Capable of providing…
Dual-Fuel Frac Spreads More flexible Reduces fuel source as operating engines can costs by burn a fuel mix comprised of lowering fuel up to 70% costs natural gas Comparable Good for torque and environmental horsepower…
Dual-Fuel Frac Spreads Patterson-UTI began dual fuel operations in 2012 and has expanded to five dual fuel spreads Patterson-UTI has completed more than 10,300 dual fuel fracturing stages saving customers more than 7.3…
DATA ANALYTICS AND REMOTE OPERATIONS
PTEN+ Advanced Data Analytics and Performance Center Able to remotely monitor PTENs drilling, directional drilling, and pressure pumping operations Staffed by engineers and data analysts: o Drilling optimization engineers who work…
PTEN+ Real Time Rig Monitoring 24 Patterson-UTI Drilling Company LLC
Offsite Frac 25 Universal Pressure Pumping, Inc.
Using AI with Digital Twin Technology Predictive analytics utilizing AI and digital twin technology Continuously monitors PTENs frac trailers Improves operational performance Reduces operating costs 26
Blender Remote Control & Automation Developing new control systems to allow the blender to be remotely operated from the data van Increased data collection capability will improve predictive analytics modeling helping to improve…
FINANCIAL FOCUS
Strong Financial Position Substantial Liquidity 256 million cash as of June 30, 2019 600 million revolver through March 2024 21.0% Net Debt/Total Capital at June 30, 2019 300 million term loan matures October 2020 300 million…
Patterson-UTI Strong Balance Sheet New 150 million term loan o Three year term due June 2022 o Investment grade terms o Favorable pricing at Libor + 112.5 basis points Plan to use proceeds from term loan plus cash on hand to…
A History of Returning Cash to Shareholders Cash Returned to Shareholders ( in Millions) 2007 - 2019 Dividends Stock buyback 200.6 181.1 163.7 167.0 139.4 102.6 71.8 66.8 32.3 32.6 35.4 27.2 23.1 2007 2008 2009 2010…
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
Patterson-UTI Core Values Safety and Environment o We believe that the safety of our employees and the protection of our environment is a cornerstone Operational Excellence o We deliver high-quality, value-added services and focus…
Environmental Air Quality o We utilize natural gas engines, dual-fuel equipment and other technologies that reduce our air emissions Water Quality o We strive to conduct our drilling and completion activities in a manner that…
Social Our people are our most important asset and our greatest strength Health and Safety o Our goal is to provide an incident-free work environment. The safety of our employees and others is our highest priority Diversity and…
Non-U.S. GAAP Financial Measures (1) (1) Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) is not defined by U.S. GAAP. We define Adjusted EBITDA as net income (loss) plus net interest…
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