PATTERSON UTI ENERGY INC - FORM 8-K - EX-99.1 - December 3, 2014

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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).

PATTERSON UTI ENERGY INC Reports