Patterson-UTI Energy (PTEN) 8-K Annual Ultimate Energy Conference

Cowen and Company

4

th

Annual Ultimate Energy Conference

December 3, 2014

Exhibit 99.1

Forward Looking Statements

2

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 management’s intentions, beliefs, expectations or predictions for

the future are forward-looking statements and are inherently uncertain. The

opinions, forecasts, projections or other statements other than statements 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

results could differ materially from those discussed in such forward-looking

statements.  Important factors that could cause actual results to differ materially

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

Company

or

the

SEC.

These

filings

are

also

available

through

the

Company’s

web

site at http://www.patenergy.com

or through the SEC’s Electronic Data Gathering

and

Analysis

Retrieval

System

(EDGAR)

at

http://www.sec.gov.

We

undertake

no

obligation to publicly update or revise any forward-looking statement.  Statements

made in this presentation include non-GAAP financial measures.  The required

reconciliation to GAAP financial measures are included on our website and at the

end of this presentation.

Patterson-UTI Energy is a leading

provider of contract drilling and

pressure pumping services

3

Contract Drilling

•

High quality fleet of land drilling

rigs including 143 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, 2014

4

Pressure

Pumping

39%

Oil &

Natural

Gas

2%

Contract

Drilling

59%

Components of Revenue

Pressure Pumping

•

High quality fleet of modern pressure

pumping equipment

•

A leader in natural gas bi-fuel

technology

•

Strong reputation for regional

knowledge and efficient operations

Patterson-UTI reported results for the nine months ended September 30, 2014

5

Pressure

Pumping

39%

Oil &

Natural

Gas

2%

Contract

Drilling

59%

Components of Revenue

Contract Drilling

7

Contract Drilling Capital Expenditures and Acquisitions

($ in millions)

Investing in Our Drilling Rig Fleet

More than $5 billion invested since 2005

2014 Capital expenditure forecast as of October 23, 2014

$531

$540

$361

$395

$656

$785

$745

$505

$785

2006

2007

2008

2009

2010

2011

2012

2013

2014E

A Rig Fleet Transformation

8

Mechanical

Patterson-UTI Energy Total Rig Fleet

Mechanical

December 2009

Projected September 2015

Other

Electric

APEX®

Other

Electric

APEX®

…and Expected as of September 30, 2015

APEX

®

Rigs as of December 3, 2014

61

4

49

44

11

169

9/30/2015

A leader in high specification drilling rigs

35

4

49

44

11

143

12/3/2014

APEX

®

Rig Fleet

9

Class

APEX-XK 1500™

APEX-XK 1000™

APEX WALKING

®

APEX 1500

®

APEX 1000

®

Total

APEX

®

Rigs

Permian Basin

53 Rigs

Large Geographic Footprint

10

PTEN’s Active U.S. Land Drilling Rigs

as of December 2014

East Texas

15 Rigs

Appalachia 

38 Rigs

North Texas

6 Rigs

Mid-Continent

28 Rigs

Rockies

33 Rigs

South Texas

38 Rigs

Why invest in APEX

®

rigs?

…the impact has been transformative!

Increasing APEX

®

Drilling Activity

12

Active APEX

®

Rig Count

0

20

40

60

80

100

120

140

160

PTEN Relative Active Rig Count by Rig Class

13

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

APEX®

Other Electric

Mechanical

Greater Stability of Utilization

14

APEX

®

Rig Utilization

0%

20%

40%

60%

80%

100%

120%

Improving Average Rig Revenue Per Day

15

Patterson-UTI Total Average Rig Revenue Per Day

Excludes

early-termination

revenues

during

the

third

and

fourth

quarter

of

2013

of

$3,600

per

day

and

$130

per day, respectively.

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

Adjusted EBITDA Contribution from High

Specification Rigs

16

Preferred rigs account for approximately

89% of Adjusted EBITDA in Contract Drilling

Excludes

early-termination

revenues

during

the

third

and

fourth

quarter

of

2013

of

$62.8

million

and

$2.4 million, respectively.

2010

2011

2012

2013

2014

APEX®

& Other Electric

Mechanical

Why invest in APEX

®

rigs?

…the outlook remains strong!

18

U.S. Rig Count % by Drilling Type

Continued Demand for APEX

®

Rigs

Source: Baker Hughes North America Rotary Rig Count

0%

10%

20%

30%

40%

50%

60%

70%

80%

% Horizontal

% Vertical

Total U.S. Horizontal Rig Count by Power Type

Continued Demand for APEX

®

Rigs

Analysis from Patterson-UTI Energy based on data from RigData and company filings.

19

AC-powered rigs represent only half

of the horizontal rig count

SCR

AC

Mechanical

Why invest in APEX

®

rigs?

…Patterson-UTI is a technology leader!

APEX WALKING

®

Rigs

21

•

Capable of walking with drill pipe

and collars racked in derrick

•

Full multi-directional walking

capability

•

Walking times average 45 minutes

for 10’

–

15’

well spacing

http://patenergy.com/drilling/technology/apexwalk

21

Strong Demand for Pad Drilling

22

•

Pad drilling is contributing to

increasing rig efficiency

•

Pad drilling capable rigs are

highly utilized

•

Most new APEX

®

rigs

completed in 2014 are

expected to have walking

systems

http://patenergy.com/drilling/technology

22

APEX-XK™

Rig Walking on Pad

23

http://patenergy.com/drilling/technology/apexwalk/

23

Video of APEX-XK™

Rig

The APEX-XK

™

24

•

Enhanced mobility including more

efficient rig up and rig down

•

Greater clearance under rig floor for

optional walking system

•

Advanced environmental spill

control integrated into drilling floor

•

Minimized number of truck loads for

rig moves

•

Available in both 1500 HP and 1000

HP

http://patenergy.com/drilling/technology

24

Enhancing our Position in Pad Drilling

25

Walking Systems Can be Added to Any Rig in Our Fleet…

…Allowing for True Multi-Directional Pad Drilling Capabilities

25

Enhancing our Position in Pad Drilling

26

http://patenergy.com/drilling/technology

26

Early Adopter of Natural Gas Engines

27

http://patenergy.com/drilling/technology

27

Using Natural Gas as a Fuel Source

28

•

First contract driller to use GE’s

Waukesha natural gas engines on

a modern land rig

•

49 rigs currently configured to use

natural gas as the primary fuel

source including 9 natural gas

powered rigs and 40 bi-fuel

capable rigs 

•

We plan to add GE Waukesha

engines to one additional rig and

upgrade six additional rigs with bi-

fuel systems

•

Natural gas powered rigs can

result in up to 80% lower fuel

costs

http://patenergy.com/drilling/technology

28

Pressure Pumping

Investing in Pressure Pumping

30

Pressure Pumping Capital Expenditures and Acquisitions

($ in millions)

More Than $1 billion invested since 2005

2014 Capital expenditure forecast as of October 23, 2014

$41

$48

$61

$43

$289

$198

$194

$123

$430

2006

2007

2008

2009

2010

2011

2012

2013

2014E

Growing Pressure Pumping Business

31

Investments in Pressure Pumping…

…Have Increased Fleet Size and Quality

65

1,100

0

200

400

600

800

1000

1200

2006

2007

2008

2009

2010

2011

2012

2013

2014E

June

2015E

Fracturing Horsepower

Other Horsepower

Year End

Southwest Region:

Northeast Region:

Fracturing horsepower: 614,000

Other horsepower: 31,500

Fracturing horsepower: 304,000

Other horsepower: 55,300

A Significant Player in Regional Markets

Pressure Pumping Areas

32

Horsepower distribution as of October 23, 2014

33%

67%

Fracturing Horsepower

A Leader in Bi-Fuel Technology

•

Engines can burn a fuel mix

comprised of up to 70% natural

gas

•

Comparable torque and

horsepower to an all diesel engine

•

Reduces operating costs by

lowering fuel costs

•

Good for environmental

sustainability

http://patenergy.com/pressurepumping/services

33

A Leader in Bi-Fuel Technology

34

http://patenergy.com/pressurepumping/services

34

A Leader in Bi-Fuel Technology

35

•

One of the largest bi-fuel frac

fleets in the Marcellus

•

Approximately 1,700 stages

completed using natural gas as a

fuel source

•

Replaced more than 983,000

gallons of diesel with cleaner

burning natural gas

•

Eliminated 7.4 million pounds of

transportation loads on local

roads

http://patenergy.com/pressurepumping/services

35

Comprehensive Lab Services

http://patenergy.com/pressurepumping/services

36

Financial Flexibility

Investing in Our Company

38

Capital Expenditures and Acquisitions

($ in millions)

2014 Capital expenditure forecast as of October 23, 2014

$598

$637

$445

$453

$976

$1,012

$974

$662

$1,300

2006

2007

2008

2009

2010

2011

2012

2013

2014E

Strong Financial Position

39

•

History of returning capital to investors

–

Cash Dividend

•

Initiated cash dividend in 2004

•

Doubled quarterly cash dividend to $0.10 per share in February

2014

–

Stock Buyback

•

Total of $857 million repurchased since 2005

•

Repurchased $85.8 million of stock in 2013 at an average

price of $20.83

•

Approximately $187 million remaining authorization as of

September 30, 2014

•

Returned approximately $1.3 billion to shareholders since

2005

Strong Financial Position

40

Total Liquidity

($ in millions)

Liquidity defined as end of period cash plus availability under revolving line of credit

*  From

September

30,

2014

through

October

23,

2014,

the

Company

borrowed

$170

million

under

the

revolving

credit facility, leaving approximately $290 million available as of October 23, 2014.

208

283

398

244

387

273

571

710

499

0

100

200

300

400

500

600

700

800

2006

2007

2008

2009

2010

2011

2012

2013

3Q14*

Year End

Line of Credit Availability

Cash

Strong Financial Position

41

Net Debt to Capital Ratio

$600 million of debt not due until at least 2020

*

From September 30, 2014 through October 23, 2014, the Company borrowed $170 million under the revolving

credit

facility,

leaving

approximately

$290

million

available

as

of

October

23,

2014.

6%

2%

-

4%

-

2%

15%

13%

18%

14%

18%

-10%

0%

10%

20%

30%

40%

50%

2006

2007

2008

2009

2010

2011

2012

2013

3Q14*

Year End

Strong Financial Returns

42

Growth in Per-Share Book Value

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Why Invest in Patterson-UTI Energy?

•

Continuing Transformation

–

Committed to high-spec land rigs where

demand remains strong

–

Creating value through focus on well

site execution

•

Technology leader

–

Leader in walking rigs for pad drilling

–

Innovator in use of natural gas as a fuel

source for both drilling and pressure

pumping

•

Financially flexible

–

Strong balance sheet

–

History of share buybacks

–

Dividends

43

Cowen and Company

4

th

Annual Ultimate Energy Conference

December 3, 2014

Additional References

Active in Unconventional Plays

46

PTEN’s Active Rigs in Unconventional Areas

as of December 2014

Bakken

Piceance

Haynesville

Marcellus

Barnett

19 Rigs

Eagle Ford

3 Rigs

20 Rigs

2 Rigs

35 Rigs

5 Rigs

Utica  

17 Rigs

Woodford 

2 Rigs

Pinedale

4 Rigs

Term Contract Coverage

•

Based on term contracts in place as of October 23, 2014

–

An average of 157 rigs expected under term contract in the

fourth quarter of 2014

–

An average of 93 rigs expected under term contract during

2015

Improving earnings visibility and returns stability

47

•

PTEN expects to continue signing term contracts

•

Drilling term contract revenue backlog of $1.7 billion at

September 30, 2014

Strong Financial Position

•

Total liquidity of approximately $499 million*

–

$38.6 million of cash at September 30, 2014

–

$460 million revolver availability at September 30, 2014*

•

$646 million net debt at September 30, 2014*

–

18.4% Net Debt/Total Capitalization*

–

$300 million of 4.97% Series A notes due October 5, 2020

–

$300 million of 4.27% Series B notes due June 14, 2022

–

$85 million of 5-year term loan

•

No equity sales in last 14 years

•

Reduced share count by 26.0 million shares since

2005

48

*

From September 30, 2014 through October 23, 2014, the Company borrowed $170 million under our revolving

credit

facility,

leaving

approximately

$290

million

available

as

of

October

23,

2014.

PATTERSON-UTI ENERGY, INC.

Non-GAAP Financial Measures (Unaudited)

(dollars in thousands)

Non-GAAP Financial Measures

49

Three Months Ended

September 30,

Nine Months Ended

September 30,

2014

2013

2014

2013

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

(Adjusted EBITDA)(1):

Net income

$

15,976

$

74,420

$

105,081

$

171,418

Income tax expense

7,556

43,301

50,403

98,957

Net interest expense

6,759

7,210

20,812

20,494

Depreciation, depletion, amortization and impairment

237,825

140,734

538,573

414,351

Adjusted EBITDA

$

268,116

$

265,665

$

714,869

$

705,220

Total revenue

$

845,628

$

730,907

$2,281,072

$2,057,262

Adjusted EBITDA margin

31.7%

36.3%

31.3%

34.3%

Adjusted EBITDA by operating segment:

Contract drilling

$

202,804

$

217,289

$

557,674

$

532,812

Pressure pumping

62,795

50,677

157,913

171,471

Oil and natural gas

11,449

10,225

29,423

35,591

Corporate and other

(8,932)

(12,526)

(30,141)

(34,654)

Consolidated Adjusted EBITDA

$

268,116

$

265,665

$

714,869

$

705,220

(1)

The company makes use of financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) to help in the

assessment of ongoing operating performance. These non-GAAP financial measures are reconciled to their most directly comparable GAAP measures in the tables

above. We define Adjusted EBITDA as net income plus net interest expense, income tax expense and depreciation, depletion, amortization and impairment expense.

We present Adjusted EBITDA 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.  Adjusted EBITDA is not defined by GAAP and, as such, should not be construed as an

alternative to net income (loss) or operating cash flow. We define margin as revenues less direct operating costs.  We present margin because we believe it to be the

component of our earnings most impacted by the variability in our contract drilling and pressure pumping operations. Margin is not defined by GAAP and, as such,

should not be construed as an alternative to net income (loss).

Non-GAAP Financial Measures

50

PATTERSON-UTI ENERGY, INC.

Non-GAAP Financial Measures (Unaudited)

(dollars in thousands)

2013

2012

2011

2010

2009

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

(Adjusted EBITDA)(1):

Net income (loss)

$

188,009

$

299,477

$

322,413

$

116,942

$

(38,290)

Income tax expense (benefit)

108,432

176,196

187,938

72,856

(17,595)

Net interest expense (income)

27,441

22,196

15,465

11,098

3,767

Depreciation, depletion, amortization and impairment

597,469

526,614

437,279

333,493

289,847

Net impact of discontinued operations

-

-

(209)

1,778

1,979

Adjusted EBITDA

$

921,351

$

1,024,483

$

962,886

$

536,167

$

239,708

Total revenue

$

2,716,034

$

2,723,414

$

2,565,943

$

1,462,931

$

781,946

Adjusted EBITDA margin

33.9%

37.6%

37.5%

36.7%

30.7%

(1) The company makes use of financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) to

help in the assessment of ongoing operating performance. These non-GAAP financial measures are reconciled to their most directly comparable GAAP measures in

the tables above. We define Adjusted EBITDA as net income plus net interest expense, income tax expense and depreciation, depletion, amortization and impairment

expense. We present Adjusted EBITDA 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.  Adjusted EBITDA is not defined by GAAP and, as such, should not be

construed as an alternative to net income (loss) or operating cash flow. We define margin as revenues less direct operating costs.  We present margin because we

believe it to be the component of our earnings most impacted by the variability in our contract drilling and pressure pumping operations. Margin is not defined by

GAAP and, as such, should not be construed as an alternative to net income (loss).