Seventy Seven Energy — Merger or Acquisition (December 2016)
21 slides from Seventy Seven Energy's merger presentation, Dec 13, 2016
Slide 1: Patterson-UTI Energy, Inc. Merger with Seventy Seven Energy Inc.
Patterson-UTI Energy, Inc. Merger with Seventy Seven Energy Inc. December 13, 2016 Exhibit 99.2
Slide 2: Important Information for Investors and Stockholders
Important Information for Investors and Stockholders This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The proposed transaction will be submitted to the stockholders of each of Patterson-UTI Energy,
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI’s and SSE’s
Slide 4: Cautionary Statement Regarding Forward-Looking Statements (Continued)
Cautionary Statement Regarding Forward-Looking Statements (Continued) Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI’s and SSE’s SEC filings. Patterson-UTI’s f
Slide 5: Transaction Terms
Transaction Terms Consideration Patterson-UTI will issue approximately 49.6 million shares of common stock subject to downward adjustment Patterson-UTI to repay all of Seventy Seven Energy’s outstanding debt at closing Patterson-UTI/Seventy Seven Energy pro forma ownership of approximately 75%/25% b
Slide 6: Transaction Terms: Financing and Approval
Transaction Terms Financing to repay Seventy Seven Energy Debt $500 million available under Patterson-UTI line of credit $150 million unsecured bridge financing commitment Patterson-UTI expects to issue additional equity to maintain historically conservative capital structure Approval Shareholder vo
Slide 7: Significant Opportunities for Synergies
Significant Opportunities for Synergies Patterson-UTI expects to achieve synergies in excess of $50 million Cost synergies are primarily related to organizational, supply chain, and corporate efficiencies Synergies also related to infrastructure optimization
Slide 8: Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Patterson-UTI Energy is a leading provider of contract drilling and pressure pumping services
Slide 9: Patterson-UTI Drilling
Patterson-UTI Drilling High quality fleet of land drilling rigs including 161 APEX® rigs Leader in walking rig technology for pad drilling applications Large footprint across North American drilling markets Patterson-UTI reported results for the nine months ended September 30, 2016
Slide 10: Seventy Seven Energy Drilling
Seventy Seven Energy Drilling High quality fleet of land drilling rigs including 40 high-spec drilling rigs of which 28 are fit-for-purpose PeakeRigs™ 93% of high-spec rigs are pad capable Attractive position in the Scoop/Stack Seventy Seven Energy reported results for the two months ended September
Slide 11: High-Spec Drilling Rigs
High-Spec Drilling Rigs Combined High-Spec Rig Fleet # Rigs % Pad Capable From Patterson-UTI Drilling APEX-XK 1500® 56 91% APEX Walking® 49 100% APEX 1500® 45 24% APEX 1000® 11 73% Total 161 74% From Seventy Seven Energy Drilling PeakeRigs™ 28 100% Other AC rigs 12 75% Total 40 93% Total Combined 20
Slide 12: Large Geographic Footprint
West Texas PTEN: 19 Rigs 77: 11 Rigs Large Geographic Footprint Revenue Generating Rig Count by Region as of December 12, 2016 Appalachia PTEN: 15 Rigs 77: 13 Rigs East Texas PTEN: 5 Rigs 77: 5 Rigs Mid-Continent PTEN: 7 Rigs 77: 13 Rigs Rockies PTEN: 7 Rigs 77: 3 Rigs South Texas PTEN: 10 Rigs 77:
Slide 13: Drilling Technologies
Drilling Technologies Designs, manufactures and services high-spec rig components with a recent focus on top drive technology Enhances the Patterson-UTI technology portfolio and engineering capabilities A highly talented group of people with a tremendous amount of experience
Slide 14: Patterson-UTI Pressure Pumping
Patterson-UTI Pressure Pumping High quality fleet of modern pressure pumping equipment Strong reputation for regional knowledge and efficient operations Concentrated footprint provides economies of scale Patterson-UTI reported results for the nine months ended September 30, 2016
Slide 15: Seventy Seven Energy Pressure Pumping
Seventy Seven Energy Pressure Pumping High pressure fleet with approximately 500,000 horsepower 90% of fleet has been added in the past 5-years High quality facilities and rail transload access Seventy Seven Energy reported results for the two months ended September 30, 2016
Slide 16: Modern Pressure Pumping Fleet
Modern Pressure Pumping Fleet Combined Pressure Pumping Fleet Horsepower % Quintuplex % Modern Triplex % Legacy Triplex Patterson-UTI 1,015,800 80% 13% 7% Seventy Seven Energy 500,000 75% 25% 0% Total Combined 1,515,800 79% 17% 5% 16 Modern triplex pumps defined as being placed in service within the
Slide 17: Enhanced Pressure Pumping Footprint
Enhanced Pressure Pumping Footprint Appalachia PTEN: ~354k HHP Texas/New Mexico PTEN: ~662k HHP 77: ~140k HHP Mid-Continent 77: ~360k HHP Patterson-UTI horsepower location as of September 30, 2016. Seventy Seven Energy horsepower location as of November 7, 2016.
Slide 18: Oilfield Rentals
Seventy Seven Energy Oilfield Rentals A new product line for Patterson-UTI Diverse line of equipment and onsite services to complement drilling and pressure pumping Rental model creates opportunity for attractive returns in an upturn Seventy Seven Energy reported results for the two months ended Sep
Slide 19: Patterson-UTI Total Liquidity
Patterson-UTI Total Liquidity $37 million cash as of September 30, 2016 $500 million revolver through September 27, 2017 $358 million of revolver extended through March 27, 2019 Subject to a borrowing base comprised of eligible cash, inventory, receivables and equipment Currently undrawn with $500 m
Slide 20: Strategy To Deliver Shareholder Value
Strategy To Deliver Shareholder Value Greater size and scale and improved market positioning Highly marketable drilling and pressure pumping fleets for increased market presence Strong balance sheet and liquidity Material synergies and efficiencies to be realized
Slide 21: Patterson-UTI Energy, Inc. Merger with Seventy Seven Energy Inc.
Patterson-UTI Energy, Inc. Merger with Seventy Seven Energy December 13, 2016
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