Patterson-UTI Energy (PTEN) Investor Presentation summary

Business performance and market position

• Maintains a leading presence among the largest U.S. E&Ps, with nearly 60% of revenue from the 15 most active operators.

• Diversified across drilling, completions, and drilling products, with 52% of adjusted gross profit from drilling services and 34% from completions.

• High utilization of Tier-1 drilling rigs and natural gas-powered frac assets, preferred for their performance and cost efficiency.

• Integrated service offerings and technology-driven solutions enhance well delivery and investor value.

• International drilling products revenue has a 3-year CAGR of over 20% through 2024.

Financial performance and capital allocation

• Cash generation per active U.S. rig in drilling services has remained steady, supporting strong free cash flow.

• Adjusted free cash flow conversion has been consistent, with 44% in 2024 and 38% in LTM 2025.

• Exceeded 2024 shareholder return target, returning over $417 million and maintaining a $0.08 per share quarterly dividend for twelve consecutive quarters.

• Targets returning at least 50% of adjusted free cash flow to shareholders annually through dividends and repurchases.

• Maintains a strong balance sheet with $186M cash, $684M total liquidity, and no senior note maturities until 2028.

Operational strategy and technology

• Focuses on structurally reducing operating costs and maintenance capital expenditures while maintaining high-quality equipment.

• Selectively invests in long-term strategic technology opportunities with returns exceeding cost of capital.

• Digital integration and data-driven optimization streamline workflows and enable automation in drilling and completions.

• Integrated drilling and completions platforms deliver operational synergies and performance-based returns.

• Over 80% of the active frac fleet is natural gas-enabled, providing a cost advantage and supporting sustained demand.