Patterson-UTI Energy, Inc. · NASDAQ:PTEN
Patterson-UTI Energy — Investor Presentation (May 2024)
21 slides from Patterson-UTI Energy's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
Slide 2: Forward Looking Statements & Disclosures
Forward Looking Statements & Disclosures 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 managemen
Slide 3: Who We Are
Who We Are
Slide 4: Building a Diversified Oilfield Services Leader
Building a Diversified Oilfield Services Leader $6.8B 2nd Largest OFS Provider in OUR NAM by Revenue HISTORY $2.4B Total Company Revenue ($) $1.5B $1.4B 1978 1980 2001 2010 2017 2021 Pro Forma 2023 Patterson Drilling First frac job for Patterson Energy PTEN acquires Key PTEN acquires PTEN acquires P
Slide 5: A Leader in North America
A Leader in North America… 2023 North America Revenue ($) Billions Patterson-UTI at a Glance Corporate HQ Founded Employees Houston 1978 10,600 Enterprise Value2 Market Cap2 $5.7 B $4.5 B Peer A PTEN PTEN Peer B Peer C Peer D Peer E Peer F Peer G Peer H Pro Forma1 With a Active Markets over Internat
Slide 6: Patterson-UTI | Service and Product Lines
Patterson-UTI | Service and Product Lines Integrated to Build a Sustained Operating Advantage Drilling 131 Services Tier 1 Super-Spec Drilling Rigs1 APEX® Drilling Fleet Directional Drilling Wellbore Navigation Electronics Manufacturing Drilling Technology Completion 3.3 Services Million Hydraulic H
Slide 7: Peer Leading Combination of Shareholder Returns and De-Leveraging
Peer Leading Combination of Shareholder Returns and De-Leveraging Since 9/30/2023 – Just after the close of the NexTier merger and Ulterra acquisition Shareholder Returns as a % of Current Market Cap % Change in Net Shareholder Debt , as Returns Capital a % Leases, andMarket of Current Operating Cap
Slide 8: Key Takeaways
Key Takeaways U.S. onshore activity should remain relatively steady through year-end Oil activity could improve slightly starting in Q3; natural gas activity expected to improve in 2025 Strong Fundamentals for Our Differentiated Service Equipment Utilization remains high for equipment and services t
Slide 9: Operational Excellence: Efficiency Amplified by Integration
Operational Excellence Efficiency Amplified by Integration
Slide 10: Drilling & Completions: Industry Fundamentals
Drilling & Completions: Industry Fundamentals Improved industry fundamentals compared to prior cycles Drilling Industry Fundamentals Frac Industry Fundamentals ▪ Industry Bifurcation: Top drilling contractors make up a ▪ Industry Bifurcation: Top completion service providers make substantial portion
Slide 11: Greater Lateral Footage: Drilling Services and Products
Greater Lateral Footage: Drilling Services and Products OUR STRATEGY IS DELIVERING ULTIMATE OPERATING OUTPERFORMANCE Year-Over-Year Change Annualized Lateral Footage Drilled by Rig Type2 2Q24E vs. 4Q22 Actual for Active Rigs and Margin per Day per Rig Company Estimates for a Representative Midland B
Slide 12: Industry Fundamentals: Completion Services
Industry Fundamentals: Completion Services Premium natural gas-powered assets effectively sold out Industry Fleet Utilization Rate by Equipment Type1 Next-generation natural gas-powered assets remain effectively sold out Active Industry Fleets, U.S. Land, 2Q2024 Estimate ▪ There is very little capac
Slide 13: Capital Allocation Framework
Capital Allocation Framework
Slide 14: Capital Allocation Framework
Capital Allocation Framework Maximize Shareholder Value and Financial Returns Repeatable Shareholder Strategic Allocation Return Program Target strong return on capital, Allocation increase shareholder return Target return of at least 50% of Free Strategy Cash Flow annually to shareholders1 program,
Slide 15: Investment Grade Capital Structure
Investment Grade Capital Structure Financially Positioned for Through-Cycle Resilience LOW LEVERAGE CASH BALANCE TOTAL LIQUIDITY <1 X $170 M $718 M Net Debt as of 3/31/2024 to Cash Position as of 3/31/2024 Includes cash and revolver as of Q1 Annualized adjusted EBITDA 3/31/2024 NEAREST INTEREST COVE
Slide 16: Targets returning at least 50% of Free Cash Flow to shareholders
Deliver a Repeatable Shareholder Return Program $945 MILLION SHARE BUYBACK AUTHORIZATION 1 Patterson-UTI targets ▪ For 2024 we expect to exceed our shareholder returning at least 50% return target of 50% of our free cash flow – expect to return at of its Free Cash Flow to least $400 million to share
Slide 17: Track-Record of Shareholder Returns
Track-Record of Shareholder Returns PTEN shareholder return expected to grow again in 2024 Cash Returned to Shareholders Average Annual Shareholder Return as a % of Year-End Market Cap ($) millions (%) Percent, 2018-2023 Dividend Buyback FCF Conversion 8% $550 45% 40+% $500 $450 33% 35% $400+ 6% $40
Slide 18: Delivering Value
Delivering Value
Slide 19: Sustainability as a Strategy
Sustainability as a Strategy Patterson-UTI has demonstrated a resilient commitment to long-term sustainability Our Timeline of Innovation in Sustainability Our Vision: To safely and responsibly help provide the world Find out more in our Sustainability with oil and gas for the products that make peo
Slide 20: Why invest in Patterson-UTI?
The bottom line… Why invest in Patterson-UTI? Well Defined Capital Allocation Strategy Strong capital structure and disciplined investing strategy with focus on 40+% FCF conversion; commitment to return at least 50% of free cash flow to investors annually Leader among multiple U.S. shale products an
Slide 21: A PATTERSON-UTI
A PATTERSON-UTI
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