 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Credit Suisse Credit Suisse 19 19 th Annual Energy Summit Annual Energy Summit February 11, 2014 February 11, 2014 Exhibit 99.1 |
 2 2 Forward Looking Statements Forward Looking Statements This material and any oral statements made in connection with this material This material and any oral statements made in connection with this material include "forward-looking statements" within the meaning of the Securities Act of include "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Statements made which provide 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 Company’s or management’s intentions, beliefs, expectations or predictions for the future are forward-looking statements and are inherently uncertain. The the future are forward-looking statements and are inherently uncertain. The opinions, forecasts, projections or other statements other than statements of opinions, forecasts, projections or other statements other than statements of historical fact, including, without limitation, plans and objectives of management 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 the Company are forward-looking statements. It is important to note that actual results could differ materially from those discussed in such forward-looking results could differ materially from those discussed in such forward-looking statements. Important factors that could cause actual results to differ materially statements. Important factors that could cause actual results to differ materially include the risk factors and other cautionary statements contained from time to 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 time in the Company’s SEC filings, which may be obtained by contacting the Company Company or or the the SEC. SEC. These These filings filings are are also also available available through through the the Company’s Company’s web web site site at at http://www.patenergy.com http://www.patenergy.com or or through through the the SEC’s SEC’s Electronic Electronic Data Data Gathering Gathering and and Analysis Analysis Retrieval Retrieval System System (EDGAR) (EDGAR) at at http://www.sec.gov. http://www.sec.gov. We We undertake undertake no no obligation to publicly update or revise any forward-looking statement. Statements obligation to publicly update or revise any forward-looking statement. Statements made in this presentation include non-GAAP financial measures. The required made in this presentation include non-GAAP financial measures. The required reconciliation to GAAP financial measures are included on our website and at the reconciliation to GAAP financial measures are included on our website and at the end of this presentation. end of this presentation. |
 Why Invest in Patterson-UTI Energy? Why Invest in Patterson-UTI Energy? • • Technology leader Technology leader – – Leader in walking rigs for pad Leader in walking rigs for pad drilling drilling – – Innovator in use of natural gas as a Innovator in use of natural gas as a fuel source for both drilling and fuel source for both drilling and pressure pumping pressure pumping • • Customer focused Customer focused – – Solid relationships with broad and Solid relationships with broad and diverse customer base diverse customer base – – Creating value through focus on Creating value through focus on well site execution well site execution • • Financially flexible Financially flexible – – Strong balance sheet Strong balance sheet – – History of share buybacks History of share buybacks – – Dividends Dividends 3 |
 Who We Are Who We Are |
 Contract Drilling Contract Drilling • • High quality fleet of land drilling High quality fleet of land drilling rigs including 125 APEX rigs including 125 APEX ® ® rigs rigs • • Leader in walking rig Leader in walking rig technology for pad drilling technology for pad drilling applications applications • • Large footprint across North Large footprint across North American drilling markets American drilling markets Patterson-UTI reported results for the year ended December 31, 2013 5 Pressure Pumping 36% Oil & Natural Gas 2% Contract Drilling 62% Components of Revenue |
 Pressure Pumping Pressure Pumping • • High quality fleet of modern High quality fleet of modern pressure pumping equipment pressure pumping equipment • • A leader in natural gas bi-fuel A leader in natural gas bi-fuel technology technology • • Strong reputation for safe and Strong reputation for safe and efficient operations efficient operations Patterson-UTI reported results for the year ended December 31, 2013 6 Pressure Pumping 36% Oil & Natural Gas 2% Contract Drilling 62% Components of Revenue |
 Contract Drilling Contract Drilling |
 8 Continued Demand for APEX ® Rigs Percentage of Horizontal Wells Continues to Increase Baker Hughes U.S. Rig Count Baker Hughes U.S. Rig Count % by Drilling Type % by Drilling Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % Horizontal % Vertical |
 …and Expected as of December 31, 2014 …and Expected as of December 31, 2014 APEX-XK 1500™ APEX-XK 1500™ APEX-XK 1000™ APEX-XK 1000™ APEX WALKING APEX WALKING ® ® APEX 1500 APEX 1500 ® ® APEX 1000 APEX 1000 ® ® Total APEX Total APEX ® ® Rigs Rigs Class Class 9 APEX APEX ® ® Rigs as of February 11, 2014 Rigs as of February 11, 2014 36 36 4 4 49 49 44 44 11 11 144 144 12/31/2014 12/31/2014 A leader in high specification drilling rigs A leader in high specification drilling rigs 17 17 4 4 49 49 44 44 11 11 125 125 2/11/2014 2/11/2014 APEX APEX ® ® Rig Fleet Rig Fleet |
 Preferred rigs account for approximately Preferred rigs account for approximately 87% of Contract Drilling EBITDA 87% of Contract Drilling EBITDA Contribution from High Specification Rigs Contribution from High Specification Rigs Contract Drilling EBITDA Contribution by Rig Class Contract Drilling EBITDA Contribution by Rig Class Year Ended December 31, 2013 Year Ended December 31, 2013 10 Mechanical Mechanical APEX APEX ® ® & Other & Other Electric Electric |
 APEX WALKING APEX WALKING ® ® Rigs Rigs • • Capable of walking with drill Capable of walking with drill pipe and collars racked in pipe and collars racked in derrick derrick • • Full multi-directional walking Full multi-directional walking capability capability • • Walking times average 45 Walking times average 45 minutes for 10’ minutes for 10’ – – 15’ 15’ well well spacing spacing 11 http://patenergy.com/drilling/technology/apexwalk http://patenergy.com/drilling/technology/apexwalk |
 Strong Demand for Pad Drilling Strong Demand for Pad Drilling 12 • • Pad drilling is contributing Pad drilling is contributing to increasing rig efficiency to increasing rig efficiency • • Pad drilling capable rigs are Pad drilling capable rigs are highly utilized highly utilized • • All new APEX All new APEX ® rigs rigs completed in 2014 are completed in 2014 are expected to have walking expected to have walking systems systems http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology |
 APEX-XK™ APEX-XK™ Rig Walking on Pad Rig Walking on Pad 13 http://patenergy.com/drilling/technology/apexwalk/ http://patenergy.com/drilling/technology/apexwalk/ Video of APEX-XK™ Rig |
 The APEX-XK The APEX-XK ™ ™ • • Enhanced mobility including Enhanced mobility including more efficient rig up and rig more efficient rig up and rig down down • • Greater clearance under rig Greater clearance under rig floor for optional walking floor for optional walking system system • • Advanced environmental spill Advanced environmental spill control integrated into drilling control integrated into drilling floor floor • • Optimized number of truck Optimized number of truck loads for rig moves loads for rig moves • • Available in both 1500 HP and Available in both 1500 HP and 1000 HP 1000 HP 14 http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology |
 Enhancing our Position in Pad Drilling Enhancing our Position in Pad Drilling 15 Walking Systems Can be Added to Any Rig in Our Fleet… Walking Systems Can be Added to Any Rig in Our Fleet… …Allowing for True Multi-Directional Pad Drilling Capabilities …Allowing for True Multi-Directional Pad Drilling Capabilities |
 Enhancing our Position in Pad Drilling 16 http://patenergy.com/drilling/technology http://patenergy.com/drilling/technology |
 Early Adopter of Natural Gas Engines 17 http://patenergy.com/drilling/technology |
 Using Natural Gas as a Fuel Source 18 • First contract driller to use GE’s Waukesha natural gas engines on a modern land rig • 28 rigs currently configured to use natural gas as the primary fuel source including 7 natural gas powered rigs and 21 bi-fuel capable rigs • We plan to add GE Waukesha engines to two additional rigs and upgrade 17 rigs with bi-fuel systems during 2014 • Natural gas powered rigs can result in up to 80% lower fuel costs http://patenergy.com/drilling/technology |
 19 PTEN’s Active U.S. Land Drilling Rigs PTEN’s Active U.S. Land Drilling Rigs as of February 2014 as of February 2014 East Texas Appalachia & Midwest North Texas Rockies South Texas 31 Rigs 32 Rigs 23 Rigs 36 Rigs 5 Rigs 14 Rigs Permian Basin 53 Rigs Large Geographic Footprint Large Geographic Footprint Mid-Continent |
 Pressure Pumping Pressure Pumping |
 A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology • • Engines can burn a fuel mix Engines can burn a fuel mix comprised of up to 70% comprised of up to 70% natural gas natural gas • • Comparable torque and Comparable torque and horsepower as an all diesel horsepower as an all diesel engine engine • • Reduces operating costs by Reduces operating costs by lowering fuel costs lowering fuel costs • • Good for environmental Good for environmental sustainability sustainability 21 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services |
 A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology 22 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services |
 A Leader in Bi-Fuel Technology A Leader in Bi-Fuel Technology • • One of the largest bi-fuel frac One of the largest bi-fuel frac fleets in the Marcellus fleets in the Marcellus • • More than 600 stages More than 600 stages completed using natural gas as completed using natural gas as a fuel source a fuel source • • Replaced more than 332,000 Replaced more than 332,000 gallons of diesel with cleaner gallons of diesel with cleaner burning natural gas burning natural gas • • Eliminated 2.4 million pounds Eliminated 2.4 million pounds of transportation loads on local of transportation loads on local roads roads 23 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services |
 Comprehensive Lab Services Comprehensive Lab Services 24 http://patenergy.com/pressurepumping/services http://patenergy.com/pressurepumping/services |
 Financial Financial Flexibility Flexibility |
 26 Capital Expenditures and Acquisitions Capital Expenditures and Acquisitions ($ in millions) ($ in millions) Investing in Our Company Investing in Our Company 2006 2007 2008 2009 2010 2011 2012 2013 2014E $598 $637 $445 $453 $976 $1,012 $974 $662 $950 |
 A Different Size Company 0 500 1,000 1,500 2,000 2,500 3,000 Revenue EBITDA +86% +81% Average 2008-2010 Average 2011-2013 |
 28 • • History of returning capital to investors History of returning capital to investors – – Cash Dividend Cash Dividend •Initiated cash dividend in 2004 •Initiated cash dividend in 2004 •Recently announced doubling of quarterly cash dividend to •Recently announced doubling of quarterly cash dividend to $0.10 per share $0.10 per share – – Stock Buyback Stock Buyback •Total of $843 million repurchased since 2005 •Total of $843 million repurchased since 2005 •Repurchased $85.8 million of stock in 2013 at an average •Repurchased $85.8 million of stock in 2013 at an average price of $20.83 price of $20.83 •Approximately $187 million remaining authorization as of •Approximately $187 million remaining authorization as of December 31, 2013 December 31, 2013 • • Returned approximately $1.2 billion to shareholders Returned approximately $1.2 billion to shareholders since 2005 since 2005 Strong Financial Position Strong Financial Position |
 • • Total liquidity of approximately $710 million Total liquidity of approximately $710 million – – $250 million of cash at December 31, 2013 $250 million of cash at December 31, 2013 – – $460 million revolver availability at December 31, 2013 $460 million revolver availability at December 31, 2013 • • $443 million net debt at September 30, 2013 $443 million net debt at September 30, 2013 – – 13.8% Net Debt/Total Capitalization 13.8% Net Debt/Total Capitalization – – $300 million of 4.97% Series A notes due October 5, 2020 $300 million of 4.97% Series A notes due October 5, 2020 – – $300 million of 4.27% Series B notes due June 14, 2022 $300 million of 4.27% Series B notes due June 14, 2022 – – $92.5 million of 5-year term loan $92.5 million of 5-year term loan • • No equity sales in last 13 years No equity sales in last 13 years • • Reduced share count by 28.4 million shares since Reduced share count by 28.4 million shares since 2005 2005 Strong Financial Position Strong Financial Position 29 |
 Patterson-UTI Energy, Inc. Patterson-UTI Energy, Inc. Credit Suisse Credit Suisse 19 19 th Annual Energy Summit Annual Energy Summit February 11, 2014 February 11, 2014 |
 Additional References Additional References |
 32 PTEN’s Active Rigs in Unconventional Areas PTEN’s Active Rigs in Unconventional Areas as of February 2014 as of February 2014 Active in Unconventional Plays Active in Unconventional Plays 19 Rigs 1 Rig 22 Rigs 2 Rigs 33 Rigs 5 Rigs 9 Rigs 2 Rigs Bakken Piceance Woodford Barnett Eagle Ford Haynesville Utica Marcellus |
 • • Based on term contracts in place as of February 6, 2014 Based on term contracts in place as of February 6, 2014 – – An average of 124 rigs expected under term contract in the An average of 124 rigs expected under term contract in the first quarter of 2014 first quarter of 2014 – – An average of 93 rigs expected under term contract for 2014 An average of 93 rigs expected under term contract for 2014 • • PTEN expects to continue signing term contracts PTEN expects to continue signing term contracts Term Contract Coverage Term Contract Coverage Improving earnings visibility and returns stability Improving earnings visibility and returns stability 33 • • Drilling term contract revenue backlog of $946 million at Drilling term contract revenue backlog of $946 million at December 31, 2013 December 31, 2013 |
 34 Recent Investments in Pressure Pumping… Recent Investments in Pressure Pumping… …Have Increased Fleet Size and Quality …Have Increased Fleet Size and Quality * Includes * Includes acquisition acquisition of of approximately approximately 210,000 210,000 pressure pressure pumping pumping horsepower horsepower in in October October 2010 2010 Growing Pressure Pumping Business Growing Pressure Pumping Business 0 200 400 600 800 Fracturing Horsepower Other Horsepower 2006 2007 2008 2009 2010* 2011 2012 2013 Year End 760 65 |
 Southwest Region: 35 Northeast Region: Northeast Region: Fracturing horsepower: 343,000 Fracturing horsepower: 343,000 Other horsepower: 28,000 Other horsepower: 28,000 Fracturing horsepower: 332,000 Fracturing horsepower: 332,000 Other horsepower: 60,600 Other horsepower: 60,600 A Significant Player in Regional Markets A Significant Player in Regional Markets Pressure Pumping Areas of Operation 51% 49% |
 Strong Financial Returns Strong Financial Returns Growth in Per-Share Book Value Growth in Per-Share Book Value 36 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 |
 Non-GAAP Financial Measures 37 PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2013 2012 2013 2012 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income Income tax expense Net interest expense Depreciation, depletion, amortization and impairment EBITDA Total revenue EBITDA margin EBITDA by operating segment: Contract drilling Pressure pumping Oil and natural gas Corporate and other Consolidated EBITDA (1) EBITDA is not defined by generally accepted accounting principles (“GAAP”). We present EBITDA (a non-GAAP measure) because we believe it provides 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. EBITDA should not be construed as an alternative to the GAAP measures of net income or operating cash flow. $ 16,591 $ 58,859 $ 188,009 $ 299,477 9,475 35,585 108,432 176,196 6,947 5,738 27,441 22,196 183,118 132,791 597,469 526,614 $ 216,131 $ 232,973 $ 921,351 $ 1,024,483 $ 658,772 $ 652,750 $ 2,716,034 $ 2,723,414 32.8% 35.7% 33.9% 37.6% $ 172,178 $ 168,982 $ 704,990 $ 739,709 45,757 60,856 217,228 243,857 8,757 12,304 44,348 48,627 (10,561) (9,169) (45,215) (7,710) $ 216,131 $ 232,973 $ 921,351 $ 1,024,483 |
 Non-GAAP Financial Measures 38 2013 2012 2011 2010 2009 2008 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): Net income (loss) $ 188,009 $ 299,477 $ 322,413 $ 116,942 $ (38,290) $ 347,069 Income tax expense (benefit) 108,432 176,196 187,938 72,856 (17,595) 193,490 Net interest expense (income) 27,441 22,196 15,465 11,098 3,767 (923) Depreciation, depletion, amortization and impairment 597,469 526,614 437,279 333,493 289,847 275,990 Net impact of discontinued operations - - (209) 1,778 1,979 15,190 EBITDA $ 921,351 $ 1,024,483 $ 962,886 $ 536,167 $ 239,708 $ 830,816 Total revenue $ 2,716,034 $ 2,723,414 $ 2,565,943 $ 1,462,931 $ 781,946 $ 2,063,880 EBITDA margin 33.9% 37.6% 37.5% 36.7% 30.7% 40.3% PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures (Unaudited) (dollars in thousands) EBITDA is not defined by generally accepted accounting principles (“GAAP”). We present EBITDA (a non-GAAP measure) because we believe it provides 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. EBITDA should not be construed as an alternative to the GAAP measures of net income or operating cash flow. (1) |