Patterson-UTI Energy, Inc. · NASDAQ:PTEN
Patterson-UTI Energy — Investor Presentation (March 2025)
27 slides from Patterson-UTI Energy's investor presentation, March 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 2025
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: Executive Summary
Executive Summary Differentiated operating capability with premier Drilling and Completions franchise Integrated service offerings improve well delivery for customers and create value for investors High-quality asset base with strong utilization on top-tier assets Tier-1 drilling rigs are well utili
Slide 4: Who We Are
Who We Are
Slide 5: Patterson-UTI | Integrated Service and Product Lines
Patterson-UTI | Integrated Service and Product Lines Building the 3rd Largest North American OFS Company by Revenue Drilling 135 Services Tier-1 Super-Spec Drilling Rigs1 APEX® Drilling Fleet Directional Drilling Wellbore Navigation Electronics Manufacturing Drilling Technology Completion 3.0 Servic
Slide 6: Market Leading Presence Among the Largest E&Ps
Market Leading Presence Among the Largest E&Ps Roughly 60% of Patterson-UTI's revenue is generated from the 15 most active E&Ps Strong Revenue Share from the most active E&Ps 0% 20% 40% 60% Operator Alignment 15 Most Active U.S. Operators Share of the US Rig Count1 ▪ Patterson-UTI is strategically a
Slide 7: Patterson-UTI Business Overview
Patterson-UTI Business Overview
Slide 8: Diversified Cash Flow Across Drilling and Completions Markets
Diversified Cash Flow Across Drilling and Completions Markets Strong cash flow driven by leading drilling services and products and completions services 2024 Patterson-UTI Company Profile Adjusted Gross Profit as a % of Company Total Other 1 Drilling Products 2% 11% Patterson-UTI is a leader across
Slide 9: Drilling Services Macro: Offering reliable cash generation
Drilling Services Macro: Offering reliable cash generation Cash generation at our Drilling Services segment serves as a steady foundation for PTEN's Free Cash Flow Adjusted EBITDA1 minus Capital Expenditures per Active U.S. Rig Patterson-UTI Drilling Services Segment, ($, millions) $6.0 150 124 124
Slide 10: Completion Services Macro: Industry premium asset utilization is high
Completion Services Macro: Industry premium asset utilization is high Premium natural gas-powered assets are in high demand, and about 80% of our active fleet can be powered by natural gas Industry HHP Utilization Rate by Engine Type1 Natural gas-powered assets are effectively sold out Active Indust
Slide 11: Completion Services Macro: Cost advantage drives asset differentiation
Completion Services Macro: Cost advantage drives asset differentiation Industry capital cost of power generation gives Tier 4 Dual Fuel a slight cost advantage over Electric 2025 Estimated U.S. Shale Industry Frac Fleet Market Bifurcation1 Fleet type vs. cost of fueling for a representative U.S. Lan
Slide 12: Drilling Products Macro: Outpacing industry activity
Drilling Products Macro: Outpacing industry activity Rapid deployment of incremental design improvements create a demonstrable & sustainable advantage Drilling Products Segment: Pro Forma1 U.S. Revenue per U.S. Industry Rig per Month U.S. Active Rigs Drill Bit Outperformance $45,000 1000 U.S. Drilli
Slide 13: Efficiency Amplified by Integration
Operational Excellence Efficiency Amplified by Integration
Slide 14: Harnessing Data to Enable Higher Impact Drilling & Completion Operations
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Harnessing Data to Enable Higher Impact Drilling & Completion Operations Patterson-UTI creates sustainable value with our end-to-end digital integration and data-driven optimization strategy Integrate Critical Applications Streamline Digital Products Qu
Slide 15: Integration Advantage: Drilling Services and Products
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Integration Advantage: Drilling Services and Products Patterson-UTI's integrated drilling Fully integrated throughout the drill site Digitally enabled by: platform can improve drilling days on pad, ™ Drill Bits | Ulterra Leading provider of PDC drill bi
Slide 16: Integration Advantage: Completions Services
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Integration Advantage: Completions Services Fully integrated throughout the completions site Patterson-UTI integrates industry- leading equipment and technology Natural Gas-Enabled Frac Fleet at scale to deliver unique Leading fleet of Tier 4 dual fuel
Slide 17: Integration Advantage: Power Services
DIGITAL INTEGRATION DRILLING COMPLETIONS POWER Integration Advantage: Power Services Mobile energy is a core competency of the company, positioning PTEN to benefit from the next generation of the oilfield Natural Gas Fueling Power Generation Electronic Power Systems and Controls Industry Growth in N
Slide 18: Capital Allocation Framework
Capital Allocation Framework
Slide 19: Capital Allocation Framework
Capital Allocation Framework Maximize Shareholder Value and Financial Returns Repeatable Shareholder Strategic Allocation Return Program Target strategic high-return Allocation Expect to return at least 50% of investments that drive returns Strategy Free Cash Flow annually to accretion for PTEN shar
Slide 20: Investment Grade Capital Structure
Investment Grade Capital Structure Financially Positioned for Through-Cycle Resilience LOW LEVERAGE CASH BALANCE TOTAL LIQUIDITY <1 X $241 M $739 M Net Debt as of 12/31/2024 to LTM Cash Position as of 12/31/2024 Includes cash and pro forma Adjusted EBITDA revolver1 as of 12/31/2024 NEAREST INTEREST
Slide 21: Deliver a Repeatable Shareholder Return Program
Deliver a Repeatable Shareholder Return Program Patterson-UTI targets ▪ For 2024 we exceeded our shareholder return target of 50% returning at least 50% of our free cash flow – returned more than $417 million to of its Free Cash Flow to shareholders shareholders annually ▪ PTEN has paid an $0.08 per
Slide 22: Peer Leading Combination of Shareholder Returns with De-Leveraging
Peer Leading Combination of Shareholder Returns with De-Leveraging Last 12 Months through 12/31/2024 Shareholder Returns as a % of Current Market Cap % Change in Net Shareholder Debt , as Returns Capital Leases, a % of andMarket Current Operating CapLeases Includes Dividends and Share Repurchases In
Slide 23: 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 24: A Patterson-UTI
A PATTERSON-UTI
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Leverage Ratio (dollars in thousands) Twelve Months Ended (1) Adjusted earnings before interest, taxes, depreciation and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization 1 amortization (“Adjusted EBITDA”) is not defined by December
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA less Capital Expenditures, Drilling Services (dollars in thousands) Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 Adjusted Earnings
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit Drilling Completion Drilling Services Services Products Other (in thousands) For the year ended December 31, 2024 Revenues 1,727,810 3,232,785 351,651 65,665 Less direct operating costs (1,029,591) (2,658,170) (191,107) (41,001) Les
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