Attached files
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| 8-K - FORM 8-K - PATTERSON UTI ENERGY INC | d453718d8k.htm |
 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). |
 |