Patterson-UTI Energy (PTEN) investor relations material

Business performance and market positioning

• Maintains a high-quality U.S. shale asset base with strong demand for premium Tier-1 drilling rigs and natural gas-powered frac assets, supported by limited supply and ongoing investments in digital and automation technologies.

• Integrated service offerings across drilling, completions, and products improve well delivery and create value for investors, with diversified cash flow streams from each segment.

• Drilling services averaged 100 rigs in the U.S. through early Q3 2026, with expectations to exit Q3 at 104 active rigs and further reactivations anticipated.

• Completion services are operating at high utilization, with natural gas-powered fleets favored by customers and ongoing decommissioning of Tier II diesel assets.

• Drilling products segment benefits from rapid innovation, with revenue per industry rig up 40% since early 2023 and growing market share on operated rigs.

Financial performance and capital allocation

• Adjusted gross profit for the twelve months ended June 30, 2026, was 47% from drilling services, 39% from completion services, and 12% from drilling products.

• Drilling services cash conversion remained steady at 57-61% from 2023 through LTM Q2 2026, reflecting resilient cash generation and scalable capital expenditures.

• Consolidated unlevered cash conversion was 37% for LTM 2026, with a focus on sustained adjusted free cash flow through the cycle.

• Capital allocation strategy commits to returning at least 50% of adjusted free cash flow annually to shareholders via dividends and repurchases, with over 85% returned since 2024.

• Maintains an investment grade credit rating, low leverage (~1x net debt/EBITDA), $203M cash, and $701M total liquidity as of June 30, 2026, with no senior note maturities until 2029.

Technology, integration, and sustainability

• Digital integration and data-driven optimization streamline operations, enabling automation and real-time decision-making across drilling and completions.

• Integrated drilling and completion platforms leverage proprietary technologies, advanced equipment, and digital performance centers to enhance efficiency and value.

• Sustainability initiatives include a timeline of innovations such as dual fuel and natural gas-powered equipment, lithium hybrid power systems, and hydrogen blending demonstrations.

• Ongoing investments in natural gas and electric fleets, with responsible high-grading and retirement of lower-return assets to improve environmental performance.

• Strategic capital allocation targets high-return investments in core markets to protect and extend operational advantages.