EX-99.1 2 d595739dex991.htm EX-99.1

Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Barclays CEO Energy Conference Barclays CEO Energy Conference September 11-12, 2013 September 11-12, 2013 Exhibit 99.1

2 2 Forward Looking Statements 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 of include "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Statements made which provide 1933 and the Securities Exchange Act of 1934. Statements made which provide the Company’s or management’s intentions, beliefs, expectations or predictions for the Company’s or management’s intentions, beliefs, expectations or predictions for the future are forward-looking statements and are inherently uncertain. The the future are forward-looking statements and are inherently uncertain. The opinions, forecasts, projections or other statements other than statements of opinions, forecasts, projections or other statements other than statements of historical fact, including, without limitation, plans and objectives of management of historical fact, including, without limitation, plans and objectives of management of the Company are forward-looking statements. It is important to note that actual the Company are forward-looking statements. It is important to note that actual results could differ materially from those discussed in such forward-looking results could differ materially from those discussed in such forward-looking statements. Important factors that could cause actual results to differ materially statements. Important factors that could cause actual results to differ materially include the risk factors and other cautionary statements contained from time to include the risk factors and other cautionary statements contained from time to time in the Company’s SEC filings, which may be obtained by contacting the time in the Company’s SEC filings, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company or the SEC. These filings are also available through the Company’s Company’s web web site site at 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. Statements obligation to publicly update or revise any forward-looking statement. Statements made in this presentation include non-GAAP financial measures. The required made in this presentation include non-GAAP financial measures. The required reconciliation to GAAP financial measures are included on our website and at the reconciliation to GAAP financial measures are included on our website and at the end of this presentation. end of this presentation.

Why Invest in Patterson-UTI Energy? Why Invest in Patterson-UTI Energy? 3 • • Technology leader Technology leader – – Leader in walking rigs for pad Leader in walking rigs for pad drilling drilling – – Innovator in use of natural gas as a Innovator in use of natural gas as a fuel source for both drilling and fuel source for both drilling and pressure pumping pressure pumping • • Customer focused Customer focused – – Solid relationships with broad and Solid relationships with broad and diverse customer base diverse customer base – – Creating value through focus on Creating value through focus on well site execution well site execution • • Financially flexible Financially flexible – – Strong balance sheet Strong balance sheet – – History of share buybacks History of share buybacks – – Dividends Dividends

Who We Are Who We Are

Contract Drilling Contract Drilling • • High quality fleet of land drilling High quality fleet of land drilling rigs including 120 APEX rigs including 120 APEX ® ® rigs rigs • • Leader in walking rig Leader in walking rig technology for pad drilling technology for pad drilling applications applications • • Large footprint across North Large footprint across North American drilling markets American drilling markets Patterson-UTI reported results for the six months ended June 30, 2013 5 Contract Contract Drilling Drilling 61% 61% Pressure Pressure Pumping Pumping 37% 37% Oil & Oil & Natural Natural Gas Gas 2% 2% Components of Revenue Components of Revenue

Pressure Pumping Pressure Pumping Patterson-UTI reported results for the six months ended June 30, 2013 6 Components of Revenue Components of Revenue Pressure Pumping 37% Contract Drilling 61% Oil & Natural Gas 2% • • High quality fleet of modern High quality fleet of modern pressure pumping equipment pressure pumping equipment • • A leader in natural gas bi-fuel A leader in natural gas bi-fuel technology technology • • Strong reputation for safe and Strong reputation for safe and efficient operations efficient operations

Contract Drilling Contract Drilling

8 Continued Demand for APEX Continued Demand for APEX ® ® Rigs Rigs Percentage of Horizontal Wells Continues to Increase Percentage of Horizontal Wells Continues to Increase Baker Hughes U.S. Rig Count % by Drilling Type 0% 80% 70% 60% 50% 40% 30% 20% 10% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 % Horizontal % Vertical

…and Expected as of December 31, 2013 …and Expected as of December 31, 2013 APEX-XK 1500™ APEX-XK 1500™ APEX-XK 1000™ APEX-XK 1000™ APEX WALKING APEX WALKING ® ® APEX 1500 APEX 1500 ® ® APEX 1000 APEX 1000 ® ® Total APEX Total APEX ® ® Rigs Rigs Class Class 9 APEX APEX ® ® Rigs as of June 30, 2013 Rigs as of June 30, 2013 12/31/2013 12/31/2013 A leader in high specification drilling rigs A leader in high specification drilling rigs 13 13 4 4 48 48 44 44 11 11 120 120 6/30/2013 6/30/2013 19 19 4 4 48 48 44 44 11 11 126 126 APEX APEX ® ® Rig Fleet Rig Fleet

Preferred rigs account for approximately Preferred rigs account for approximately 85% of Contract Drilling EBITDA 85% of Contract Drilling EBITDA Contribution from High Specification Rigs Contribution from High Specification Rigs Contract Drilling EBITDA Contribution by Rig Class Contract Drilling EBITDA Contribution by Rig Class Six Months Ended June 30, 2013 Six Months Ended June 30, 2013 10 Mechanical APEX ® & Other Electric

Strong Demand for Pad Drilling Strong Demand for Pad Drilling 11 • • Pad drilling is contributing Pad drilling is contributing to increasing rig efficiency to increasing rig efficiency • • Pad drilling capable rigs are Pad drilling capable rigs are highly utilized highly utilized • • All new APEX All new APEX ® rigs delivered rigs delivered in 2013 will have walking in 2013 will have walking systems suitable for pad systems suitable for pad drilling drilling http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology

12 http://patenergy.com/drilling/technology/apexwalk/ http://patenergy.com/drilling/technology/apexwalk/ Video of APEX-XK™ Rig APEX-XK™ APEX-XK™ Rig Walking on Pad Rig Walking on Pad

The APEX-XK The APEX-XK ™ ™ • • Enhanced mobility including Enhanced mobility including more efficient rig up and rig more efficient rig up and rig down down • • Greater clearance under rig Greater clearance under rig floor for optional walking floor for optional walking system system • • Advanced environmental spill Advanced environmental spill control integrated into drilling control integrated into drilling floor floor • • Optimized number of truck Optimized number of truck loads for rig moves loads for rig moves • • Available in both 1500 HP and Available in both 1500 HP and 1000 HP 1000 HP 13 http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology

APEX WALKING APEX WALKING ® ® Rigs Rigs • • Capable of walking with drill Capable of walking with drill pipe and collars racked in pipe and collars racked in derrick derrick • • Full multi-directional walking Full multi-directional walking capability capability • • Walking times average 45 Walking times average 45 minutes for 10’ minutes for 10’ – – 15’ 15’ well well spacing spacing 14 http://patenergy.com/drilling/technology/apexwalk http://patenergy.com/drilling/technology/apexwalk

Enhancing our Position in Pad Drilling Enhancing our Position in Pad Drilling 15 Walking Systems Can be Added to Any Rig in Our Fleet… Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drilling Capabilities …Allowing for True Multi-Directional Pad Drilling Capabilities

Enhancing our Position in Pad Drilling Enhancing our Position in Pad Drilling 16 http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology

Early Adopter of Natural Gas Engines Early Adopter of Natural Gas Engines 17 http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology

Using Natural Gas as a Fuel Source Using Natural Gas as a Fuel Source 18 http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology • First contract driller to use GE’s 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 rigs and 17 bi-fuel capable rigs. • 30 rigs expected to be equipped with natural gas or bi-fuel engines by the end of 2013 • Natural gas powered rigs can result in up to 80% lower fuel costs

Pressure Pumping Pressure Pumping

A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology 20 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services • • Engines can burn a fuel mix Engines can burn a fuel mix comprised of up to 70% comprised of up to 70% natural gas natural gas • • Comparable torque and Comparable torque and horsepower as an all diesel horsepower as an all diesel engine engine • • Reduces operating costs by Reduces operating costs by lowering fuel costs lowering fuel costs • • Good for environmental Good for environmental sustainability sustainability

A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology 21 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services

A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology • • One of the largest bi-fuel frac One of the largest bi-fuel frac fleets in the Marcellus fleets in the Marcellus • • More than 400 stages More than 400 stages completed using natural gas as completed using natural gas as a fuel source a fuel source • • Replaced more than 94,000 Replaced more than 94,000 gallons of diesel with cleaner gallons of diesel with cleaner burning natural gas burning natural gas • • Eliminated 700,000 pounds of Eliminated 700,000 pounds of transportation loads on local transportation loads on local roads roads 22 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services

Comprehensive Lab Services Comprehensive Lab Services 23 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services

Financial Financial Flexibility Flexibility

25 Capital Expenditures and Acquisitions Capital Expenditures and Acquisitions ($ in millions) ($ in millions) Investing in Our Company Investing in Our Company $598 $637 $445 $453 $976 $1,012 $974 $800 2006 2007 2008 2009 2010 2011 2012 2013E

26 • • History of returning capital to investors History of returning capital to investors – – Stock Buyback Stock Buyback •Repurchased 7% of shares in 2012 •Repurchased 7% of shares in 2012 •Repurchased •Repurchased approximately approximately $50.9 $50.9 million million of of shares shares during during the third quarter of 2013 the third quarter of 2013 •New $200 million share repurchase program authorized •New $200 million share repurchase program authorized on September 6, 2013 on September 6, 2013 •Total of $830 million repurchased since 2005 •Total of $830 million repurchased since 2005 – – Cash Dividend Cash Dividend •Initiated cash dividend in 2004 •Initiated cash dividend in 2004 •Quarterly dividend currently $0.05 per share •Quarterly dividend currently $0.05 per share • • Returned more than $1.1 billion to shareholders since Returned more than $1.1 billion to shareholders since 2005 2005 Strong Financial Position Strong Financial Position

• • Total liquidity of approximately $609 million Total liquidity of approximately $609 million – – $149 million of cash at June 30, 2013 $149 million of cash at June 30, 2013 – – $460 million revolver availability at June 30, 2013 $460 million revolver availability at June 30, 2013 • • $547 million net debt at June 30, 2013 $547 million net debt at June 30, 2013 – – <17% Net Debt/Total Capitalization <17% Net Debt/Total Capitalization – – $300 million of 4.97% Series A notes due October 5, 2020 $300 million of 4.97% Series A notes due October 5, 2020 – – $300 million of 4.27% Series B notes due June 14, 2022 $300 million of 4.27% Series B notes due June 14, 2022 – – $96.3 million of 5-year term loan $96.3 million of 5-year term loan • • No equity sales in last 13 years No equity sales in last 13 years • • Reduced share count by 27.8 million shares since Reduced share count by 27.8 million shares since 2005 2005 Strong Financial Position Strong Financial Position 27

Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Barclays CEO Energy Conference Barclays CEO Energy Conference September 11-12, 2013 September 11-12, 2013

Additional References Additional References

PTEN’s Active Rigs in Unconventional Areas PTEN’s Active Rigs in Unconventional Areas as of September 2013 as of September 2013 Bakken Marcellus 17 Rigs 23 Rigs Utica 7 Rigs Active in Unconventional Plays Active in Unconventional Plays Woodford 1 Rig Piceance 5 Rigs Barnett 2 Rigs Eagle Ford 31 Rigs Haynesville 7 Rigs 30

31 PTEN’s Active U.S. Land Drilling Rigs PTEN’s Active U.S. Land Drilling Rigs as of September 2013 as of September 2013 East Texas Appalachia & Midwest North Texas Mid-Continent Rockies South Texas 29 Rigs 30 Rigs 20 Rigs 35 Rigs 5 Rigs 12 Rigs Permian Basin 52 Rigs Large Geographic Footprint Large Geographic Footprint

• • Based on term contracts in place as of July 25, 2013 Based on term contracts in place as of July 25, 2013 – – An average of 121 rigs expected under term contract in the An average of 121 rigs expected under term contract in the third quarter of 2013 third quarter of 2013 – – An average of 113 rigs expected under term contract for the An average of 113 rigs expected under term contract for the second half of 2013 second half of 2013 • • PTEN expects to continue signing term contracts PTEN expects to continue signing term contracts Term Contract Coverage Term Contract Coverage Improving earnings visibility and returns stability Improving earnings visibility and returns stability 32 • • Drilling term contract revenue backlog of $1.05 billion Drilling term contract revenue backlog of $1.05 billion at June 30, 2013 at June 30, 2013

• • Mechanical Rigs Mechanical Rigs – – 147 mechanical rigs in fleet 147 mechanical rigs in fleet – – Most are upgraded to meet customers’ Most are upgraded to meet customers’ diverse diverse needs needs Improved mud systems Improved mud systems Iron roughnecks and other automation Iron roughnecks and other automation Enhanced mobility Enhanced mobility – – Ideally suited for certain markets and wells Ideally suited for certain markets and wells – – Favorable return profiles given low book values Favorable return profiles given low book values – – Even better returns if drilling activity accelerates Even better returns if drilling activity accelerates Mechanical rigs are an option on higher drilling activity Mechanical rigs are an option on higher drilling activity Mechanical Rigs Mechanical Rigs 33 http://patenergy.com/drilling/technology/conventional http://patenergy.com/drilling/technology/conventional

34 Recent Investments in Pressure Pumping… Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality …Have Increased Fleet Size and Quality * Includes * Includes acquisition acquisition of of approximately 210,000 approximately 210,000 pressure pressure pumping pumping horsepower horsepower in in October October 2010 2010 Growing Pressure Pumping Business Growing Pressure Pumping Business 800 600 400 200 0 2006 2007 2008 2009 2010* 2011 2012 2013E Fracturing Horsepower Other Horsepower Year End 760 65

35 Fracturing horsepower: 343,000 Fracturing horsepower: 343,000 Other horsepower: 24,500 Other horsepower: 24,500 Fracturing horsepower: 333,000 Fracturing horsepower: 333,000 Other horsepower: 61,500 Other horsepower: 61,500 A Significant Player in Regional Markets A Significant Player in Regional Markets Pressure Pumping Areas of Operation Pressure Pumping Areas of Operation Fracturing Horsepower 51% 49% Southwest Region: Northeast Region:

5 - 5 - 10 10 Years Years 36 Average age of only three years Average age of only three years PTEN Fracturing Horsepower by Age PTEN Fracturing Horsepower by Age As of June 30, 2013 As of June 30, 2013 Modern Pressure Pumping Fleet 21% 21% 73% 73% < 5 < 5 Years Years Years Years 6% 6% >10 >10

Strong Financial Returns Strong Financial Returns Growth in Per-Share Book Value Growth in Per-Share Book Value The Warren Buffett Standard The Warren Buffett Standard 37 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Non-GAAP Financial Measures 38 PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) (1) EBITDA is not defined by generally accepted accounting principles (“GAAP”). We present EBITDA (a non-GAAP measure) because we believe it provides additional information with respect to both the performance of our fundamental business activities and our ability to meet our capital expenditures and working capital requirements. EBITDA should not be construed as an alternative to the GAAP measures of net income or operating cash flow. Three Months Ended June 30, Six Months Ended June 30, 2013 2012 2012 2012 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income $ 40,768 $ 92,538 $ 96,998 $ 189,812 Income tax expense 23,528 53,340 55,656 109,257 Net interest expense 6,691 4,872 13,284 9,400 Depreciation, depletion, amortization and impairment 137,182 128,477 273,617 251,430 EBITDA $ 208,169 $ 279,227 $ 439,555 $ 559,899 Total revenue $ 659,316 $ 681,112 $ 1,326,355 $ 1,427,033 EBITDA margin EBITDA by operating segment: Contract drilling $ 145,352 $ 186,243 $ 315,523 $ 391,740 Pressure pumping 62,043 63,778 120,794 134,368 Oil and natural gas 11,503 12,107 25,366 24,094 Corporate and other (10,729) 17,099 (22,128) 9,697 Consolidated EBITDA $ 208,169 $ 279,227 $ 439,555 $ 559,899 31.6% 41.0% 33.1% 39.2%