Financial Data and Key Metrics Changes - Net income for Q4 2022 was $100 million or $0.46 per share, up from $61.5 million or $0.28 per share in Q3 2022 [12] - Adjusted EBITDA for Q4 2022 was almost 5 times that of Q4 2021, indicating significant profitability improvement [5] - Average rig revenue per day in the U.S. increased by $9,800 or 44% year-over-year from Q4 2021 to Q4 2022 [12] - The debt to adjusted EBITDA metric improved to 1.2x for 2022, with a fourth quarter annualized basis of less than 0.9x gross or approximately 0.7x net of cash [18] Business Line Data and Key Metrics Changes - In contract drilling, average adjusted rig margin per day in the U.S. increased by $2,970, driven by successful contract renewals at favorable pricing [12] - Pressure pumping revenues increased to $307 million in Q4 2022, with an adjusted gross margin of $86 million [38] - Directional drilling revenues improved to $59.5 million in Q4 2022 from $58.9 million in Q3 2022, with adjusted gross margin rising to $11.2 million [14] Market Data and Key Metrics Changes - The average rig count in the U.S. rose by 3 rigs to 131 rigs in Q4 2022 [8] - In Colombia, contract drilling revenues for Q4 2022 were $15.1 million, with an adjusted gross margin of $4.9 million [13] - The company anticipates an average rig count in the U.S. of 130 rigs for Q1 2023, with an expected increase in average rig margin per day by approximately $1,000 [13] Company Strategy and Development Direction - The company remains optimistic about being in a multiyear up-cycle, with high demand for Tier 1 super-spec rigs and premium pressure pumping equipment [6] - The strategic focus includes converting engines to Tier 4 dual fuel to reduce operational costs and emissions, and enhancing technology in directional drilling [10] - The company is shifting towards higher-margin rotary steerable work, with revenues from this segment increasing to approximately 20% of directional drilling revenues in 2022 [35] Management's Comments on Operating Environment and Future Outlook - Management expects continued high utilization of Tier 1 super-spec rigs to support current leading-edge rates, despite potential softness in gas markets outside the Northeast [31] - The company anticipates significant increases in earnings and cash flow during 2023, driven by repricing drilling rig contracts to current leading-edge rates [31] - Management acknowledges potential downside risks in gas markets but believes the Northeast remains stable due to long-term contracts with well-hedged customers [83] Other Important Information - The company plans to return 50% of free cash flow to shareholders through dividends and share buybacks [44] - Capital expenditures for 2023 are expected to be approximately $550 million, with a focus on maintenance and reactivation CapEx [16] - The company ended 2022 with $836 million of long-term debt and a cash balance of $138 million, reflecting improved profitability [18] Q&A Session Summary Question: Outlook on rig count and market demand - Management noted that while there may be a decline in gas rig counts, demand for oil rigs is expected to offset this, maintaining a tight market for high-spec rigs [23][31] Question: Reactivation of rigs and market conditions - Management confirmed plans for eight rig reactivations in 2023, with sufficient demand to support these actions despite potential softness in gas markets [82][87] Question: Pricing and operational costs - Management indicated that they expect to reprice around 30 contracts in the first half of 2023, with significant increases in revenue per day anticipated [66][88] Question: Pressure pumping market dynamics - Management highlighted that pressure pumping services remain robust, with supply constraints limiting equipment availability [34][38] Question: Hydrogen blending project - The trial for blending hydrogen with natural gas was successful, and the company is excited about the potential for reducing emissions in the future [121][100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39270 Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) 10713 W. Sam Houston Pkwy N, Suite 800 Houston, T ...

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q3 2022 Earnings Conference Call October 27, 2022 10:00 AM ET Company Participants Mike Drickamer – Vice President-Investor Relations Andy Hendricks – Chief Executive Officer Andy Smith – Chief Financial Officer Conference Call Participants Scott Gruber – Citi Luke Lemoine – Piper Sandler Derek Podhaizer – Barclays Don Crist – Johnson Rice Saurabh Pant – Bank of America Keith Mackey – RBC Sean Mitchell – Daniel Energy David Smith – Pickering Energy Partners Dan Kutz ...

Patterson-UTI Energy, Inc. Barclays CEO Energy-Power Conference September 6-7, 2022 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 opinion ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39270 Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) Delaware 75-2504748 (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - Net income for Q2 2022 was $21.9 million or $0.10 per share, compared to a net loss of $28.8 million or $0.13 per share in Q1 2022 [11] - Adjusted EBITDA forecast for 2022 is now expected to exceed $600 million, with a slight increase in CapEx forecast to $390 million due to rising activity and cost inflation [4][11] Business Line Data and Key Metrics Changes - In contract drilling, average U.S. rig count increased by six rigs to 121, with 127 active rigs currently [5] - Average adjusted rig margin per day increased by $2,220, while average rig revenue per day increased by $2,770 [11] - Pressure pumping revenues reached $238 million, a 26% increase from Q1, with adjusted gross margin improving to $46.9 million [15] - Directional drilling revenues increased by 27% to $54.8 million, with adjusted gross margin improving to $9.4 million [15] Market Data and Key Metrics Changes - Tier 1 super spec rig utilization is greater than 90%, with Patterson-UTI's utilization exceeding 95% [6] - The active rig count is at its highest level since early 2020, indicating strong demand and limited supply [6] Company Strategy and Development Direction - The company is positioned to benefit from strong market fundamentals, focusing on contract drilling, pressure pumping, and directional drilling services [19] - Plans to push day rates and contract terms while maintaining a disciplined approach to activity growth [19] - Emphasis on technology in directional drilling to improve wellbore quality and efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management believes the industry is in a multi-year upcycle, with U.S. oilfield service companies showing financial discipline [18] - Anticipation of continued increases in rig activity and pricing, with constraints on rig supply positively impacting market pricing [25][27] Other Important Information - The company has approximately $440 million of future day rate drilling revenue under term contracts, up from $400 million at the end of Q1 [12] - The company expects to generate approximately $15.5 million of revenue in Colombia for Q3, with adjusted gross margin of approximately $4.8 million [14] Q&A Session Summary Question: Rig count and future activity - Management confirmed five additional rigs are committed to work in 2022, with continued increases expected despite some constraints on rig supply [25] Question: Contract coverage and day rates - Management indicated that day rates are increasing rapidly, and they expect to extend contract lengths as they negotiate for 2023 [27] Question: Pressure pumping capacity - Management stated that while they are currently focused on 12 spreads, they are open to adding more if market conditions warrant [36] Question: CapEx and supply chain - Management noted that lead times for equipment are around six months, prompting an increase in CapEx to secure necessary items for next year [43] Question: Labor issues - Management acknowledged ongoing challenges in recruiting but emphasized successful efforts to find and retain personnel [51] Question: Cash flow and working capital - Management expects working capital increases to be limited in the second half of the year, projecting positive cash flow for 2022 [56] Question: Colombia market conditions - Management reported that operations in Colombia remain stable, with no anticipated changes due to the political climate [57] Question: Utilization of less efficient rigs - Management believes there is a low probability of operators accepting less efficient rigs, as their customer base is focused on increasing activity with Tier 1 super spec rigs [60]

Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from to Commission file number 1-39270 Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) Delaware 75-2504748 (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - The company reported a significant increase in average adjusted margin in the U.S., which rose by $1,720 per day in Q1 2022, with expectations for further growth of $1,100 per day in Q2 2022 [5][8] - Total adjusted EBITDA for 2022 is now expected to exceed $500 million, reflecting strong pricing momentum for services [8] - The rig count in the U.S. increased by nine rigs sequentially to 115 rigs in Q1 2022 [8] Business Line Data and Key Metrics Changes - In contract drilling, revenues and margins increased significantly due to higher activity and day rates, with average adjusted margin per rig day reaching $7,170 [9] - Pressure pumping revenues improved to $190 million in Q1 2022, with adjusted gross margin rising to $32.1 million, aided by a sales and use tax refund [12] - Directional drilling revenues increased by 23% to $43.3 million in Q1 2022, with expectations for revenues to reach approximately $50 million in Q2 2022 [16] Market Data and Key Metrics Changes - The leading edge day rates for Tier 1 rigs are now in the upper $20,000 range, with total day rates exceeding $30,000 including ancillary equipment [6] - In Colombia, contract drilling revenues increased to $17 million in Q1 2022, up from $15.8 million in the previous quarter [9] Company Strategy and Development Direction - The company is focused on increasing contract backlog and securing longer-term contracts due to rising demand and limited supply of rigs [6][10] - Management anticipates continued pricing increases in the market for equipment and services, indicating a strong pricing environment not seen in a decade [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in oil and gas demand is primarily driven by the reopening of world economies rather than geopolitical events [22] - The company expects the market for its services to remain tight, with operators needing to commit to higher prices to secure equipment and crews [26] - There is an expectation of a step-up in rig count in 2023 as larger public operators begin to increase their programs [67] Other Important Information - The company is maintaining its 2022 capital expenditure forecast at approximately $350 million, with a focus on the first half of the year to mitigate supply chain issues [19] - Increased working capital was a drag on cash flow in Q1 2022, but management expects this to moderate and cash balances to increase over the year [20] Q&A Session Summary Question: Pricing and Rig Revenue Expectations - Management indicated that there is significant upside potential for average rig revenue and margins, with expectations for continued upward movement in pricing [32][34] Question: Rig Count Projections - Management revised their year-end rig count projection to above 700 rigs, citing strong market conditions [39] Question: Contract Duration and Pricing - The majority of contracts are expected to roll to higher prices, with a shift towards longer contract durations due to market tightness [41] Question: Supply Chain and Labor Issues - Management acknowledged challenges in hiring and retaining labor but does not foresee a strong need for significant wage increases at this time [35] Question: Future Rig Demand and Upgrades - Management confirmed that there are sufficient existing rigs that can be upgraded to meet demand, with no plans for new builds [51]

Operations and Fleet - As of December 31, 2021, the company operated a fleet of 192 marketed land-based drilling rigs in the U.S. and Colombia, with 73 rigs in West Texas and 33 in Appalachia[34]. - The average active U.S. rig count increased to 106 in Q4 2021, up from 80 in Q3 2021, partly due to the acquisition of 13 active rigs from Pioneer Energy Services Corp.[23]. - The company ended Q4 2021 with 11 active pressure pumping spreads, with an expected average of 11 active spreads in Q1 2022[24]. - The company has invested approximately $409 million over the last three years to modify and upgrade its drilling fleet[37]. - Average rigs operating per day in the U.S. decreased from 149 in 2019 to 82 in 2021, with 1,662 wells drilled in 2021 compared to 2,690 in 2019[43]. - Pressure pumping equipment totaled approximately 1.1 million horsepower as of December 31, 2021, with 497 units in operation[48]. Financial Performance - The average oil price per barrel in Q4 2021 was $77.45, showing a recovery from the lows experienced in 2020[20]. - Capital expenditures for 2021 were approximately $166 million, with a forecast increase to $170 million for 2022 due to rising activity levels[25]. - The contract drilling backlog in the U.S. increased from approximately $301 million in 2020 to $325 million in 2021, with 22% expected to remain after 2022[59]. - Approximately 57% of consolidated operating revenues in 2021 came from the ten largest customers, with one customer accounting for approximately $216 million, or 16% of total revenues[58]. - The company recorded a $220 million charge in Q4 2021 related to the abandonment of 43 legacy, non-super-spec rigs due to limited commercial opportunity[43]. - A charge of $32.2 million was recorded in Q4 2021 for the abandonment of approximately 0.2 million horsepower within the pressure pumping fleet[49]. Acquisitions and Divestitures - The acquisition of Pioneer Energy Services was completed on October 1, 2021, valued at approximately $278 million, enhancing the company's contract drilling capabilities[27]. - The company sold its acquired well servicing rig business for $43 million in cash on December 31, 2021, presenting the results as a discontinued operation[30]. Technology and Innovation - The EcoCell™ lithium battery hybrid energy management system was commercialized to reduce fuel consumption and emissions on drilling rigs[64]. - The company continues to enhance technology offerings, including the Cortex® operating system for rig performance and the GenAssist™ application for fuel efficiency[45]. - The company abandoned certain directional drilling equipment totaling $2.5 million in Q4 2021 due to advances in technology rendering those assets obsolete[54]. Employee Relations and Safety - The company had approximately 5,000 full-time employees as of January 31, 2022, with employee relations considered satisfactory[66]. - The company trained over 3,500 employees on its Code of Business Conduct and Ethics in 2021[72]. - The company has implemented safety protocols in response to the COVID-19 pandemic, allowing many office-based employees to work from home[69]. - The company is committed to diversity and inclusion, requiring new supervisors and managers to attend training on these topics[71]. Regulatory and Environmental Considerations - The company is subject to numerous federal, state, and local regulations that could increase operational costs and affect business[75]. - The company faces potential legislative and regulatory changes regarding hydraulic fracturing that could impact operations and costs[83]. - The company monitors and assesses new policies related to greenhouse gas emissions and climate change, which may affect operations[89]. - The company does not anticipate significant capital expenditures for environmental control facilities in the foreseeable future[74]. Risk Management and Insurance - The company maintains liability and other forms of insurance to mitigate risks associated with its operations[91]. - The company has indemnification agreements with many customers, but these may be limited or unenforceable under certain circumstances[91]. - The company maintains various types of insurance coverage, including a $1.5 million deductible for workers' compensation and a $10 million deductible for general liability[92]. - The company self-insures several risks, including loss of earnings and most cybersecurity risks[92]. - The company retains the risk for any loss in excess of insurance policy limits or exclusions[93]. Financial Position and Borrowings - As of December 31, 2021, the applicable margin on LIBOR rate loans was 1.75% and on base rate loans was 0.75%[291]. - The company had no borrowings outstanding under its revolving credit facility as of December 31, 2021[291]. - Under the Reimbursement Agreement, the company is obligated to pay Scotiabank interest at LIBOR plus 2.25% per annum for any amounts not paid on demand[292]. - The company has exposure to interest rate market risk associated with borrowings under the Credit Agreement[290]. Seasonality and Market Conditions - Seasonality has not significantly affected the company's overall operations, although there is slower activity toward the end of the calendar year[95]. - The carrying values of cash and cash equivalents, trade receivables, and accounts payable approximate fair value due to their short-term maturity[293]. - The company utilizes numerous independent subcontractors and multiple suppliers for raw materials and services[96].

Financial Data and Key Metrics Changes - For Q4 2021, the company reported a net loss of $362 million or $1.68 per share, which included pre-tax charges totaling $286 million [17] - The adjusted EBITDA for 2022 is expected to exceed $450 million, which is more than $100 million above the CapEx forecast of approximately $350 million [7][18] - The average rig margin per day during Q4 decreased to $5,450 due to increased labor and rig reactivation costs [19] Business Line Data and Key Metrics Changes - In contract drilling, total revenue increased by 46% and adjusted gross margin increased by 26% [19] - Pressure pumping profitability improved significantly, with adjusted gross margin rising to $20.9 million on $183 million of revenues in Q4 [23] - Directional drilling adjusted gross margin for Q4 was $1 million, which included a $4 million non-cash write-off of inventory [25] Market Data and Key Metrics Changes - The U.S. rig count is projected to be between 650 to 700 for the industry in 2022 [39] - The company expects to generate approximately $16 million of revenue in Colombia for Q1 2022 [20] Company Strategy and Development Direction - The company plans to focus on high return, quick payback opportunities for CapEx, with a majority directed towards maintenance and reactivation [8][32] - The company is increasing its quarterly dividend to $0.04 per share, reflecting improved cash flow [8] - The company aims to upgrade approximately 20 rigs to Tier 1 status in 2022, with expected paybacks ranging from 1 to 3 years [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a multiyear up cycle in the oilfield services sector due to tight premium equipment availability and improving pricing [30][31] - The company anticipates strong EBITDA growth year-on-year, driven by higher activity and improved pricing [32] - Management noted that labor remains tight but compensation increases have been implemented to address potential challenges [81] Other Important Information - The company repaid a $50 million balance on its term loan, resulting in approximately $741 million of net debt outstanding as of December 31, 2021 [27] - The company has a total of 107 Tier 1 super-spec rigs in the U.S., with 95% utilization [11] Q&A Session Summary Question: Guidance for 2022 and rig count expectations - Management expects the rig count in 2022 to be between 650 to 700, with improving pricing and profitability across businesses [39][40] Question: Daily gross margins expectations - Management indicated that daily gross margins are expected to improve, with some rigs earning over $30,000 per day [42][44] Question: Term contracts and pricing - Management confirmed that term contracts are rolling up and will not be dilutive to expected realized day rates [55][58] Question: Pressure pumping margins - Management expects continued progression in pressure pumping gross margins throughout the year, potentially reaching high teens [71][73] Question: Rig upgrades and costs - Management noted that upgrading Tier 2 rigs to Tier 1 super-spec could be costly, with their own upgrades costing about $2 million each [46][47] Question: Directional drilling growth - Management highlighted the impressive growth in directional drilling and plans to roll out new technology to improve profitability [82]