EX-99.1 2 d453718dex991.htm EX-99.1

Barclays September 5 – 7, 2017 CEO Energy-Power Conference Exhibit 99.1

Forward-Looking Statements This material and any oral statements made in connection with this material include "forward-looking statements" within the meaning of the Securities Act of 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 future are forward-looking statements and are inherently uncertain. The opinions, forecasts, projections or other statements other than statements 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 results could differ materially from those discussed in such forward-looking statements. Important factors that could cause actual results to differ materially 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 Company or the SEC. These filings are also available through the Company’s web site at http://www.patenergy.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement. Statements made in this presentation include non-U.S. GAAP financial measures. The required reconciliation to U.S. GAAP financial measures are included on our website and/or at the end of this presentation. 2

Who We Are: An Oilfield Services Leader Patterson-UTI reported results for the six months ended June 30, 2017. 3 DRILLING PRESSURE PUMPING High quality fleet of land drilling rigs, including 198 APEX ® class rigs Leader in walking rig technology for pad drilling applications Large footprint with super- spec rigs across North American drilling markets RENTALS TECHNOLOGY High quality fleet of 1.5 million horsepower of pressure pumping equipment Strong reputation for regional knowledge and efficient operations Scale helps to drive efficiencies Leading position in underbalanced drilling air compression equipment with 17 active spreads in the Northeast United States Surface equipment support packages including fit-for- purpose drilling mud storage systems, acid tanks and wellsite containment Designs, manufactures and services high-spec rig components and pipe handling equipment that provide efficiency, safety and serviceability 55% Components of Revenue* 48% CONTRACT DRILLING 49% PRESSURE PUMPING 3% OTHER

Broad Footprint in Oilfield Services patenergy.com 4 WEST TEXAS / 41 APPALACHIA / 29 MID-CONTINENT / 29 SOUTH TEXAS / 21 EAST TEXAS / 18 ROCKIES / 13 NORTH DAKOTA / 8 CANADA / 3 By Region As of August 31, 2017 Active Rig Count 162 TEXAS / 650k HP APPALACHIA / 270k HP MID-CONTINENT / 190k HP Active Horsepower PATTERSON-UTI OPERATING AREAS UNIVERSAL PRESSURE PUMPING FIELD OFFICES GREAT PLAINS OILFIELD RENTAL FIELD OFFICES 1.1 MM By Region As of August 31, 2017 WARRIOR TOP DRIVE FACILITY PATTERSON-UTI DRILLING FIELD OFFICES AND YARDS

Comprehensive Oilfield Services and Solutions * Following completion of pending acquisition of MS Energy Services 5 Contract Drilling Hydraulic Fracturing Directional Drilling* Cementing Acidizing Nitrogen Service Air Drilling Drilling Motor Rentals* Water Transfer Drilling Top Drives Well Surveying* Rental Equipment

Directional Drilling 6 Acquiring MS Energy Services, a leading provider of directional drilling services in the United States Total consideration for the acquisition includes approximately 8.8 million shares of Patterson- UTI common stock and $75 million of cash MS Energy Services has a strong technology focus with proprietary mud motor, MWD and survey equipment Patented C 2 technology enables high-speed electromagnetic telemetry independent of geological formation constraints, which reduces both drilling time and expense

Efficiency Efficiency improves well economics Patterson-UTI has the scale, processes, people and equipment necessary for efficient operations Technology Technology helps to improve efficiency Patterson-UTI is a technology leader in oilfield services U.S. Oilfield Services Scale Scale helps to improve efficiency Patterson-UTI is the only company with market leading positions in the United States in contract drilling, pressure pumping and directional drilling* Financially Flexible Strong Balance Sheet Scalable business structure Patterson-UTI is a Leader: Why Invest in Patterson-UTI Energy? * Following completion of pending acquisition of MS Energy Services 7

Patterson-UTI: A Leader in Oilfield Services Efficiency Efficiency improves well economics. * Following completion of pending acquisition of MS Energy Services 8 People Crews receive extensive onboarding and ongoing training to ensure competency and refine operating and safety procedures. Processes Patterson-UTI utilizes industry leading management systems and field audit processes to maximize reliability and provide continuous learning and feedback process. Innovation Patterson-UTI is a leader in the super-spec rig market. Super-spec rigs, modern pressure pumping fleets and comprehensive directional drilling* provide critical path services for E&P companies.

People: Personnel Development 9 it's our way of life. Working incident free is not just a priority to us Operational excellence is our minimum standard excellence is our way of life. Development of our people is a core value continuous learning is our way of life.

Process: Management System • Management System allows for continuous updates on Policies & Priorities • Comprehensive Rig and Frac Fleet audits ensure uptime, preventative maintenance, continuous improvement. • Incident Management System allow data for Reporting and tracking to completion of Incidents and Management of Change (MOC). 10

Innovative Rig Designs: APEX-XK ® 11 Able to walk x/y with full set-back of pipe in mast Walking system integrated into substructure Blowout Preventer remains upright in substructure while walking Drawworks on rig floor allows more clearance under rig for walking Advanced environmental spill control integrated into drilling floor

Innovative Rig Designs: APEX-XC ™ 12 Standard with higher-torque top drive Enhanced setback capacity for efficiently drilling longer laterals Increased clearance for walking over and around wellheads on a pad HPU, accumulator and walking system integrated in substructure for efficient rig moves and rig walks Integrated walking system with auto-walk and auto-steering functionality Increased mud pump horsepower

Innovative Rig Upgrades: • Significantly upgrading seven APEX 1000® rigs to APEX-XK® rigs. The first two upgrades have been completed and delivered to the field. • Six of the upgraded rigs have been contracted. Average contract duration in excess of 18 months. • Upgraded rigs will have all of the capabilities of a newbuild APEX-XK®, but at a much lower cost than a newbuild. 13

Innovative Rig Technology: Warrior 500 Ton AC Top Drive 14 HIGH PERFORMANCE - 50,000 ft-lbs continuous torque rating REDUNDANT POWER DELIVERY - Four independent power pathways from the AC bus to the top drive quill - No single-point sources of failure from generator to drill pipe REVOLUTIONARY POWER TRANSMISSION - No gear case - No power transmission lubrication SERVICEABILITY - Most major modules are interchangeable without specialized technicians - Comprehensive advanced diagnostics SAFETY AND EFFICIENCY - Comprehensive feedback of pipe-handler functions - Enhanced user interface and top drive control functions OPTIONAL INTEGRATED CASING DRIVE - Casing Running Tool not required

Innovative Pressure Pumping Technology: Bi-Fuel 15 Engines can burn a fuel mix comprised of up to 70% natural gas Comparable torque and horsepower to an all diesel engine Reduces operating costs by lowering fuel costs Good for environmental sustainability

Innovative: Performance Data Analytics Real-time innovative data analysis system collects and analyzes data across region, pad and rigs for performance by formation, section, crew, etc. Ability to analyze equipment and maintenance data across rigs and vendors to benchmark performance and maximize reliability Provide comprehensive performance reports that can be shared across the Company to foster a best- in-class culture focused on technology and operational excellence 16

Innovative: Centralized Logistics Center Efficient procurement and logistics of sand and chemicals is important to being successful in hydraulic fracturing. Centralized logistics center includes: 17 central scheduling and tracking software 24/7 dispatch personnel smart phone apps in the field Currently operational in Texas Expanding to Mid-Con and Appalachia

Innovative: Automation and Remote Operations * Following completion of pending acquisition of MS Energy Services 18 REMOTE OPERATIONS Remote operations allow a specialist to execute multiple wells at one time RIG AUTOMATION Consistent, automated processes at the wellsite limit safety risks, reduces well costs, streamlines logistics and increases margins DD AUTOMATION* Controlling downhole equipment with software closed-loop automation enhances quality and efficiency

Strong Financial Position 19 Substantial Liquidity • $40 million cash as of June 30, 2017 • $490 million revolver extended through March 2019 • $140 million drawn at July 31, 2017 and $15.6 million letters of credit • $75 million of cash to be used as part of acquisition cost for MS Energy Services 15.7% Net Debt/Total Capital at June 30, 2017 $300 million term loan matures October 2020 $300 million term loan matures June 2022 No term debt maturities until October 2020

Efficiency Efficiency improves well economics Patterson-UTI has the scale, processes, people and equipment necessary for efficient operations Technology Technology helps to improve efficiency Patterson-UTI is a technology leader in oilfield services U.S. Oilfield Services Scale Scale helps to improve efficiency Patterson-UTI is the only company with market leading positions in the United States in contract drilling, pressure pumping and directional drilling* Financially Flexible Strong Balance Sheet Scalable business structure Patterson-UTI is a Leader: Why Invest in Patterson-UTI Energy? * Following completion of pending acquisition of MS Energy Services 20

Additional References

APEX ® Class Rigs *Five to be converted to APEX-XK. 198 APEX-XK 1500® APEX 300-Series® APEX 1500® APEX PK™ APEX 1000®* Other AC 59 53 47 28 9 2 23

Modern Pressure Pumping Equipment Hydraulic fracturing horsepower location as of August 31, 2017 24 MID-CONTINENT 20% TEXAS 57% APPALACHIA 23% 1.5 MM HORSEPOWER

Non-U.S. GAAP Financial Measures 25 Three Months Ended June 30, 2017 2016 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net loss $ (92,184) $ (85,866) Income tax benefit (56,354) (49,027) Net interest expense 8,433 10,578 Depreciation, depletion, amortization and impairment 219,328 170,975 Adjusted EBITDA $ 79,223 $ 46,660 Total Revenue $ 579,186 $ 193,907 Adjusted EBITDA margin 13.7% 24.1% Adjusted EBITDA by operating segment: Contract drilling $ 88,052 $ 49,953 Pressure pumping 52,441 1,375 Other 3,557 2,545 Corporate (64,827) (7,213) Consolidated Adjusted EBITDA $ 79,223 $ 46,660 Six Months Ended June 30, 2017 2016 $ (155,723) $ (156,369) (93,301) (84,457) 16,297 21,268 375,545 347,745 $ 142,818 $ 128,187 $ 884,361 $ 462,846 16.1% 27.7% $ 136,905 $ 135,956 71,800 6,986 3,778 4,046 (69,665) (18,801) $ 142,818 $ (unaudited, dollars in thousands) 128,187 (1) Adjusted EBITDA is a supplemental financial measure not defined by United States generally accepted accounting principles, or U.S. GAAP. We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax expense (benefit) and depreciation, depletion, amortization and impairment expense (including impairment of goodwill). We present Adjusted EBITDA because we believe it provides to both management and investors 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. Adjusted EBITDA should not be construed as an alternative to the U.S. GAAP measure of net income (loss).