Patterson-UTI Energy (PTEN) investor relations material

Strategic positioning and business overview

• Integrated offerings in drilling, completions, and drilling products drive value and efficiency for customers and investors.

• High-quality asset base with strong utilization, especially Tier-1 rigs and natural gas-powered frac fleets.

• Focus on technology and operational efficiency to outperform in core markets.

• Predictable capital allocation, scaling expenditures with activity and returning at least 50% of adjusted FCF to investors.

• Strong capital structure with no senior note maturities until 2029 and investment grade ratings.

Operational performance and market trends

• Expect to exit Q2 2026 with 95 active rigs, targeting 100+ by year-end, with additional reactivations planned.

• Leading edge dayrates on contract renewals have increased mid-single digits since early 2026.

• Completion services benefiting from stronger-than-expected pricing tailwinds and high utilization.

• Ongoing decommissioning of Tier II diesel assets, favoring investments in 100% natural gas equipment.

• Consolidated adjusted EBITDA for Q2 2026 expected to be ~$220 million; 2026 capex forecast at ~$600 million.

Segment highlights and innovation

• Drilling services segment maintains steady cash conversion rates (57–61%) and resilient cash generation.

• Completion services fleet is being high-graded, with a shift toward natural gas-powered equipment.

• Drilling products segment outpaces industry activity, with revenue per rig up 40% since early 2023.

• Integrated digital platforms and automation drive operational efficiency and customer value.

• Sustainability initiatives include ongoing innovation in fuel efficiency and emissions reduction.