Patterson-UTI Energy (PTEN) Investor presentation summary

Business performance and operations

• Averaged 93 active rigs in the U.S. during Q4 2025, with cost controls exceeding expectations.

• Completion services saw less seasonal downtime than expected, with nearly 2 million HHP to be deployed in Q1 2026 and high utilization of natural gas-powered assets.

• Tier II decommissioning will continue in 2026, further reducing fleet size.

• Drilling and completions segments are supported by high-quality, technology-driven assets and integrated service offerings.

• Cash flow is diversified across drilling services, completion services, and drilling products, with drilling services contributing 51% of adjusted gross profit in the last twelve months through Q3 2025.

Financial strategy and capital allocation

• Capital expenditures for 2026, net of asset sales, are expected to be under $500 million.

• Adjusted free cash flow (FCF) in Q4 2025 was the strongest of the year, with another strong year expected in 2026.

• Committed to returning at least 50% of adjusted FCF to shareholders annually through dividends and share repurchases.

• Over 85% of adjusted FCF was returned to investors from early 2024 through Q3 2025.

• Maintains a strong balance sheet with investment grade credit ratings and no senior note maturities until 2028.

Technology, integration, and sustainability

• Integrated digital platforms and data-driven optimization enhance operational efficiency and value creation.

• Investments in natural gas-powered and dual fuel fleets are driving high utilization and customer preference.

• Continuous innovation in drilling products, including rapid deployment of new designs and proprietary software, has increased market share and revenue per rig.

• Sustainability initiatives include industry-firsts in dual fuel, electric, and hydrogen blending technologies, with a long-term vision for responsible energy production.

• Technology and digital investments are expected to drive new revenue opportunities and cost improvements.