Seventy Seven Energy — Goldman Sachs Global Energy Conference 2017
28 slides from Seventy Seven Energy's conference presentation, Jan 5, 2017
Slide 1: Goldman Sachs Global Energy Conference 2017
Goldman Sachs Global Energy Conference 2017 January 5-6, 2017 Filed by Patterson-UTI Energy, Inc. Pursuant to Rule 425 of the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Seventy Seven Energy Inc. Commission File No.: 000-556
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: Contract Drilling
Contract 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 6: Pressure Pumping
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 7: Contract Drilling
Contract Drilling @ © PATTERSON. UTI DRILLING COMPANY LLC ENERGY
Slide 8: High Quality Drilling Rigs APEX Rigs
High Quality Drilling Rigs 161 APEX® Rigs
Slide 9: High-Spec Drilling Rigs
High-Spec Drilling Rigs Combined High-Spec Rig Fleet* # Rigs % Pad Capable From Patterson-UTI APEX-XK 1500® 56 91% APEX Walking® 49 100% APEX 1500® 45 24% APEX 1000® 11 73% Total 161 74% From Seventy Seven Energy PeakeRigs™ 28 100% Other AC rigs 12 75% Total 40 93% Total Combined High-Spec Rig Fleet
Slide 10: The APEX-XK
The APEX-XK® Enhanced X-Y mobility Walk with full set-back of pipe in mast More efficient rig up / rig down Walking times average 45 minutes for 10’ – 15’ well spacing Advanced environmental spill control integrated into drilling floor Reduced number of truck loads for rig moves 52 APEX-XK 1500® and
Slide 11: APEX-XK Integrated Walking System
APEX-XK® Integrated Walking System
Slide 12: Large Geographic Footprint
West Texas PTEN: 21 Rigs SSE: 11 Rigs Large Geographic Footprint Revenue Generating Rig Count by Region Appalachia PTEN: 15 Rigs SSE: 13 Rigs East Texas PTEN: 7 Rigs SSE: 5 Rigs Mid-Continent PTEN: 8 Rigs SSE: 13 Rigs Rockies PTEN: 7 Rigs SSE: 3 Rigs South Texas PTEN: 11 Rigs SSE: 8 Rigs North Dakot
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: Pressure Pumping
Pressure Pumping UNIVERSAL @\PATTERSON-UTI — pot 1
Slide 15: Modern Pumping Equipment
Modern Pumping Equipment Modern triplex pumps defined as being placed in service within the last seven years.
Slide 16: Modern Pressure Pumping Fleet
Modern Pressure Pumping Fleet Combined Pressure Pumping Fleet1 Horsepower % Quintuplex % Modern Triplex2 % 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 Reflects information as of December 13, 2016, and assumes consum
Slide 17: Enhanced Pressure Pumping Footprint
Enhanced Pressure Pumping Footprint Appalachia PTEN: ~354k HHP Texas/New Mexico* PTEN: ~662k HHP SSE: ~140k HHP Mid-Continent* SSE: ~360k HHP * Reflects Patterson-UTI horsepower location as of September 30, 2016 and Seventy Seven Energy horsepower location as of November 7, 2016, and assumes consumm
Slide 18: Technology Focused: PropLogic Sand Management System
Technology Focused PropLogic™ Sand Management System Fully enclosed well-site sand management system More accurate than conventional sand trailers/bins More efficient use of proppant as less sand is wasted
Slide 19: Technology Focused: PowderStim Dry Friction Reducer System
Technology Focused PowderStim® Dry Friction Reducer System hydrates powder form of friction reducer directly into the fluid stream Logistically safer and more efficient compared to liquefied friction reducers Successful with both fresh water and heavy brines More cost effective by utilizing produced
Slide 20: Technology Focused: Comprehensive Lab Services
Technology Focused Comprehensive Lab Services Ability to test vendors’ chemicals enhances quality controls Unique in-house friction flow loop test assembly for faster test results In-house lab services are faster and more cost efficient than outsourcing
Slide 21: Strong Financial Position
Strong Financial Position @\PATTERSON-UTI — pot 1
Slide 22: Investing in Our Company
Investing in Our Company Capital Expenditures and Acquisitions ($ in millions) 2016 Capital expenditure forecast as of October 27, 2016
Slide 23: Strong Financial Position
Strong Financial Position 21% Debt/ Total Cap* Stockholder’s Equity 4.97% Series A notes Due October 5, 2020 4.27% Series B notes Due June 14, 2022 Revolving Credit Facility Maturing March 27, 2019 * Debt and equity balances as of September 30, 2016. The total debt balance of $615 million includes $
Slide 24: 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 Undrawn with $500 million bor
Slide 25: Why Invest in Patterson-UTI Energy?
Why Invest in Patterson-UTI Energy? High Quality Assets 161 APEX® rigs comprised primarily of 1500 horsepower and pad capable rigs Creating value through focus on well site execution Technology leader Leader in walking rigs for pad drilling Innovator in deploying latest technologies for pressure pum
Slide 26: Goldman Sachs Global Energy Conference 2017
Goldman Sachs Global Energy Conference 2017 January 5-6, 2017
Slide 27: Additional References
Additional References @\PATTERSON-UTI — pot 1
Slide 28: Adjusted EBITDA Reconciliation
Three Months Ended September 30, Nine Months Ended June 30, 2016 2015 2016 2015 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): Net loss $ (84,143) $ (225,978) $ (240,512) $ (235,828) Income tax benefit (49,428) (112,452) (133,885) (120,452) Net interest
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