EX-99.1 2 d296976dex991.htm INVESTOR PRESENTATION SLIDES

Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Credit Suisse Energy Summit Credit Suisse Energy Summit February 8-9, 2012 February 8-9, 2012 Exhibit 99.1

2 2 Forward Looking Statements This material and any oral statements made in connection with this material This material and any oral statements made in connection with this material include "forward-looking statements" within the meaning of the Securities Act include "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Statements made which of 1933 and the Securities Exchange Act of 1934. Statements made which provide the Company’s or management’s intentions, beliefs, expectations or provide the Company’s or management’s intentions, beliefs, expectations or predictions for the future are forward-looking statements and are inherently predictions for the future are forward-looking statements and are inherently uncertain. The opinions, forecasts, projections or other statements other than uncertain. The opinions, forecasts, projections or other statements other than statements of historical fact, including, without limitation, plans and objectives statements of historical fact, including, without limitation, plans and objectives of management of the Company are forward-looking statements. It is of management of the Company are forward-looking statements. It is important to note that actual results could differ materially from those important to note that actual results could differ materially from those discussed in such forward-looking statements. Important factors that could discussed in such forward-looking statements. Important factors that could cause actual results to differ materially include the risk factors and other cause actual results to differ materially include the risk factors and other cautionary statements contained from time to time in the Company’s SEC cautionary statements contained from time to time in the Company’s SEC filings, which may be obtained by contacting the Company or the SEC. These filings, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company’s web site at filings are also available through the Company’s web site at http://www.patenergy.com http://www.patenergy.com or or through through the the SEC’s SEC’s Electronic Electronic Data Data Gathering Gathering and and Analysis Analysis Retrieval Retrieval System System (EDGAR) (EDGAR) at at http://www.sec.gov. http://www.sec.gov. We We undertake undertake no no obligation to publicly update or revise any forward-looking statement. obligation to publicly update or revise any forward-looking statement.

3 Presentation • • The Energy Environment The Energy Environment • • PTEN’s Land Drilling Business PTEN’s Land Drilling Business • • PTEN’s Well Stimulation Business PTEN’s Well Stimulation Business • • PTEN’s Strategy PTEN’s Strategy • • PTEN Investment Highlights PTEN Investment Highlights • • Conclusions Conclusions A Transformation in the Energy Industry… A Transformation in the Energy Industry… …A Transformation at PTEN

Changing Energy Environment 4 Source: US Energy Information Administration, Short-Term Energy Outlook, January 10, 2012 Decades of Declining US Crude Oil Production… Reversed in 2009 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5

Changing Energy Environment 5 Source: US Energy Information Administration, Short-Term Energy Outlook, January 10, 2012 Petroleum Imports as a Percent of Total Consumption… More Demand Being Satisfied With US Production 0% 10% 20% 30% 40% 50% 60% 70%

6 Changing Energy Environment – North America Land-Based Energy Unconventional drilling and well completion has Unconventional drilling and well completion has evolved: evolved: • • A “manufacturing” A “manufacturing” approach to drilling and approach to drilling and well completion well completion • • Focus on oil & liquids rich plays Focus on oil & liquids rich plays • • Unconventional drilling and well completion Unconventional drilling and well completion techniques being applied to historically techniques being applied to historically conventional plays conventional plays

7 Changing Energy Environment North America Land-Based Energy PTEN is well positioned in the two “gating” PTEN is well positioned in the two “gating” areas areas • • Land-based drilling Land-based drilling • • Well stimulation Well stimulation – – Frac equipment well-suited to “new wells” Frac equipment well-suited to “new wells” – – Rigs well-suited to “new wells” Rigs well-suited to “new wells”

Changing Energy Environment – Changing Energy Environment – Land-Based Drilling Land-Based Drilling PTEN’s PTEN’s Drilling Drilling Business Business

9 Changing Energy Environment – Land-Based Drilling • • A “manufacturing” A “manufacturing” approach to drilling approach to drilling – – Repetitive, assembly line type drilling Repetitive, assembly line type drilling – – More plays with multi-well pads More plays with multi-well pads – – Laterals are getting longer Laterals are getting longer – – Very rig intensive approach to drilling Very rig intensive approach to drilling • • “Preferred” “Preferred” equipment for these “new wells” equipment for these “new wells” – – 1000 to 1500 HP drawworks 1000 to 1500 HP drawworks – – High capacity mud pumps High capacity mud pumps – – Top drives Top drives – – Automated drilling systems and pipe handling Automated drilling systems and pipe handling – – Quick moving from well completion to well spud Quick moving from well completion to well spud

APEX 1500 APEX 1500™ TM APEX 1000 APEX 1000™ TM APEX Walking APEX Walking™ TM Total New Rigs Total New Rigs Other Electric Rigs Other Electric Rigs Class Class 10 Changing Energy Environment – Land-Based Drilling New and Well-Suited Rigs as of December 31, 2011 New and Well-Suited Rigs as of December 31, 2011 61 61 15 15 45 45 121 121 54 54 12/31/2012 12/31/2012 30 new rigs planned in 2012 30 new rigs planned in 2012 175 by the end of 2012 175 by the end of 2012 38 38 13 13 40 40 91 91 54 54 12/31/2011 12/31/2011 Currently PTEN has 145 of these “Preferred Rigs” …and Expected as of December 31, 2012 …and Expected as of December 31, 2012

11 New APEX Rigs Have Significantly Increased Fleet Quality. Changing Energy Environment – Land-Based Drilling 30 New Rigs expected to be added in 2012 30 New Rigs expected to be added in 2012 27 121 0 20 40 60 80 100 2008 2009 2010 2011 2012E 120 140

12 Changing Energy Environment – Land-Based Drilling • • Increasing focus on oil & liquids rich plays Increasing focus on oil & liquids rich plays – – Horizontal drilling techniques developed for shale gas have Horizontal drilling techniques developed for shale gas have been a “game changer” been a “game changer” for oil and liquids rich shales for oil and liquids rich shales – – Approximately 60% of PTEN operating rigs are drilling for oil Approximately 60% of PTEN operating rigs are drilling for oil or liquids or liquids – – “Fit-for-purpose” “Fit-for-purpose” rigs are very active in oil & liquids rich rigs are very active in oil & liquids rich plays, but not all oil & liquids rich plays require “fit-for- plays, but not all oil & liquids rich plays require “fit-for- purpose” purpose” rigs (i.e. Permian and Mississippi Lime) rigs (i.e. Permian and Mississippi Lime) • • Decreasing Dry Gas Exposure Decreasing Dry Gas Exposure – – Less than 30 rigs in the US drilling for dry gas under Less than 30 rigs in the US drilling for dry gas under contracts that are well-to-well or that have an initial term of contracts that are well-to-well or that have an initial term of less than one year less than one year – – Expect continued rig movement from dry gas to oil and Expect continued rig movement from dry gas to oil and liquids rich areas liquids rich areas

13 PTEN’s Active Rigs in Unconventional Areas PTEN’s Active Rigs in Unconventional Areas as of February 2012 as of February 2012 Bakken 20 Rigs Changing Energy Environment – Land-Based Drilling 5 Rigs Piceance 7 Rigs Marcellus 30 Rigs Barnett 16 Rigs Eagle Ford 29 Rigs Haynesville 23 Rigs Niobrara 1 Rig Utica 4 Rigs Pinedale Woodford 6 Rigs

14 Changing Energy Environment – Land-Based Drilling PTEN has designed three types of land rigs PTEN has designed three types of land rigs for these “new wells”: for these “new wells”: • • Each designed to meet customer demands in Each designed to meet customer demands in different markets different markets – – Each has specific applications for which it is “most suitable” Each has specific applications for which it is “most suitable” • • Significance: Significance: – – Drilling is an integral part of the well “manufacturing” Drilling is an integral part of the well “manufacturing” business business •Fast drilling and “speedy” •Fast drilling and “speedy” rig moves rig moves – – APEX Walking ™ APEX Walking ™ rigs and APEX 1000™ rigs and APEX 1000™ provide access to provide access to certain “challenging well locations” certain “challenging well locations”

15 Changing Energy Environment – Land-Based Drilling APEX 1000™ APEX 1500™ APEX Walking™ •1000 hp AC drawworks •Small footprint, big rig capability •Fast move & rig- up •Walking system is an optional feature •1500 hp AC drawworks •Great all purpose rig •Fast move & rig- up •Ideal for Eagle Ford, Barnett, and Haynesville •1000 to 200 hp drawworks •Able to move in all directions •Able to “walk” with mast up and drill pipe/collars in the derrick •A leadership position in for- purpose” rig category this “fit-

Changing Energy Environment – Land-Based Drilling Video of Walking Rig Moving Video of Walking Rig Moving

17 Changing Energy Environment – Land-Based Drilling • • PTEN has approximately 180 other rigs in the fleet PTEN has approximately 180 other rigs in the fleet • • Approximately 100 of these are active as of February Approximately 100 of these are active as of February 2012 2012 • • As oil and “other liquids” As oil and “other liquids” plays emerge, these rigs plays emerge, these rigs should be in greater demand should be in greater demand

18 Changing Energy Environment – Land-Based Drilling • • PTEN is a “preferred provider” PTEN is a “preferred provider” for conventional for conventional drilling rigs drilling rigs – – Major upgrade program has provided: Major upgrade program has provided: – – PTEN commitment to customers and service PTEN commitment to customers and service • • PTEN’s large fleet provides substantial PTEN’s large fleet provides substantial “upside” “upside” if drilling continues to increase if drilling continues to increase Improved mud systems Iron roughnecks and other automation Enhanced mobility Major rig refurbishments

19 Changing Energy Environment – Land-based Drilling • • Long term contracts Long term contracts – – PTEN expects to average 120 rigs under term PTEN expects to average 120 rigs under term contract in 2012 including 131 in the first quarter contract in 2012 including 131 in the first quarter – – Approximately 60% of active rigs in the US are Approximately 60% of active rigs in the US are committed under term contracts committed under term contracts – – Term contracts have an initial duration of at least Term contracts have an initial duration of at least 12 months 12 months – – Provides estimated future dayrate drilling revenue Provides estimated future dayrate drilling revenue stream of approximately $1.8 billion for 2012 and stream of approximately $1.8 billion for 2012 and beyond beyond – – Continued customer interest in term agreements Continued customer interest in term agreements with PTEN with PTEN

Changing Energy Environment – Changing Energy Environment – Well Stimulation Well Stimulation PTEN’s PTEN’s Pressure Pressure Pumping Pumping Business Business

21 Changing Energy Environment – Well Stimulation • • Changing Significance of Well Stimulation Changing Significance of Well Stimulation – – Shale and other unconventional plays changed the Shale and other unconventional plays changed the business business • • • • • • • • – – Changing equipment (“quints”) and crew Changing equipment (“quints”) and crew competencies competencies – – Key to unlocking long laterals and greatly increased Key to unlocking long laterals and greatly increased shale production shale production Substantial increases in horizontal completions Substantial increases in horizontal completions Increasing number of stages per well Increasing number of stages per well Substantially higher HP requirements Substantially higher HP requirements Higher pressures and higher volumes Higher pressures and higher volumes

22 Changing Energy Environment – Well Stimulation • • Pressure pumping Pressure pumping – – PTEN has been in the business for more than 30 PTEN has been in the business for more than 30 years years – – Well positioned for Eagle Ford, Marcellus, and Utica Well positioned for Eagle Ford, Marcellus, and Utica shales shales – – Strong regional management and infrastructure Strong regional management and infrastructure – – Consistent reputation for customer service and Consistent reputation for customer service and operational excellence operational excellence – – Strong, long-term record of organic growth in Strong, long-term record of organic growth in revenue and EBITDA revenue and EBITDA

23 Changing Energy Environment – Well Stimulation Service Areas Service Areas Northeast Region Southwest Region

24 Changing Energy Environment – Well Stimulation Fracturing Equipment Fracturing Equipment Nitrogen / Nitrogen / Cement / Acid Cement / Acid Unit Unit 183 Quintiplex 183 Quintiplex 91 Triplex 91 Triplex 130 Pumpers 130 Pumpers Horsepower Horsepower 549,500 HP 549,500 HP 81,570 HP 81,570 HP As of December 31, 2011 As of December 31, 2011 …and Expected as of December 31, 2012 …and Expected as of December 31, 2012 Total of approx. 774,000 HP (based upon current orders) 239 Quintiplex 239 Quintiplex 91 Triplex 91 Triplex 133 Pumpers 133 Pumpers 12/31/2012 12/31/2012 689,500 HP 689,500 HP 84,600 HP 84,600 HP 12/31/2012 12/31/2012

25 Changing Energy Environment – Well Stimulation • • Shortage of quality equipment & crews has Shortage of quality equipment & crews has encouraged long-term contracts in pressure encouraged long-term contracts in pressure pumping pumping • • PTEN has 5 frac crews under term contract PTEN has 5 frac crews under term contract – – 1 in S. Texas 1 in S. Texas – – 2 in Permian 2 in Permian – – 2 in Marcellus 2 in Marcellus • • Approximately 155,000 HP under term Approximately 155,000 HP under term contract contract • • Currently in negotiations for additional Currently in negotiations for additional commitments commitments

PTEN’s Strategic Approach PTEN’s Strategic Approach

27 PTEN’s Strategic Approach • • Concentrate on two core businesses Concentrate on two core businesses • • Plan to continue to grow organically Plan to continue to grow organically – – PTEN has the balance sheet and expected cash PTEN has the balance sheet and expected cash flow to support continued organic growth in both flow to support continued organic growth in both businesses businesses – – Acquisitions Acquisitions and and dispositions dispositions only only when when the the price price is is right right • • Customer demand in both businesses support Customer demand in both businesses support term contracts term contracts – – PTEN continuing to enter into term contracts for PTEN continuing to enter into term contracts for rigs & frac crews rigs & frac crews

PTEN Investment PTEN Investment Highlights Highlights

29 PTEN Investment Highlights Components of Components of Total Revenue Total Revenue Operating Income Operating Income Contract Drilling Contract Drilling 65% 65% Pressure Pressure Pumping Pumping 33% 33% Oil & Natural Oil & Natural Gas Gas 2% % Segment ($ in 000’s) Segment ($ in 000’s) Contract Drilling Contract Drilling $346,083 $346,083 Pressure Pumping Pressure Pumping 193,440 193,440 Oil & Natural Gas Oil & Natural Gas 23,982 23,982 Corporate & Other Corporate & Other (37,904) (37,904) Total Total $525,601 $525,601

30 PTEN Investment Highlights • No equity sales in more than 11 years • History of returning capital to investors – Stock Buyback • Total of $592 million in 2006 through 2008 – Cash Dividend • Initiated cash dividend in 2004 • Quarterly dividend currently $0.05 per share

31 PTEN Investment Highlights • • Leading market position Leading market position – – One of the “Big 3” One of the “Big 3” US land drillers US land drillers – – One of the largest pressure pumping companies in the US One of the largest pressure pumping companies in the US – – Well positioned to grow organically and through Well positioned to grow organically and through opportunistic acquisition opportunistic acquisition • • Diverse asset base Diverse asset base – – Drilling rigs well-matched to customers’ Drilling rigs well-matched to customers’ needs needs – – Well stimulation assets that meet customers’ Well stimulation assets that meet customers’ needs needs • • Favorable industry trends Favorable industry trends – – Emerging shale and unconventional resource plays Emerging shale and unconventional resource plays – – US land drilling and pressure pumping are major US land drilling and pressure pumping are major beneficiaries of these trends beneficiaries of these trends

32 PTEN Investment Highlights • • Flexible operating model Flexible operating model – – Maximizes earnings growth during periods of increased Maximizes earnings growth during periods of increased activity activity – – Minimizes costs during periods of low activity Minimizes costs during periods of low activity – – Strong cash flow generation Strong cash flow generation • • Strong management team Strong management team – – Prudent financial management Prudent financial management – – Operational management that is customer responsive Operational management that is customer responsive – – Proven track record through numerous cycles Proven track record through numerous cycles • • Strong financial position Strong financial position – – Low leverage Low leverage – – Adequate liquidity to meet medium-term growth and capex Adequate liquidity to meet medium-term growth and capex needs needs

PTEN Investment Highlights Growth in Shareholder Equity Growth in Shareholder Equity The Warren Buffet Standard The Warren Buffet Standard 33 0 500 1,000 1,500 2,000 2,500 3,000 Thousands 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 500 1,000 1,500 2,000 2,500 3,000 Thousands 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

34 • • Favorable trends are likely to persist in North Favorable trends are likely to persist in North American oil and natural gas markets American oil and natural gas markets • • US Land Drilling and Pressure Pumping are major US Land Drilling and Pressure Pumping are major beneficiaries of the new trends beneficiaries of the new trends • • Patterson-UTI has the right assets: Patterson-UTI has the right assets: – – Drilling rigs well-matched to the customers’ Drilling rigs well-matched to the customers’ needs needs – – Well stimulation assets that meet customers’ Well stimulation assets that meet customers’ needs needs – – Operational management that is customer responsive Operational management that is customer responsive – – Prudent financial management Prudent financial management • • Long-term record of building shareholder equity Long-term record of building shareholder equity Conclusions

Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Credit Suisse Energy Summit Credit Suisse Energy Summit February 8-9, 2012 February 8-9, 2012