Profile: Patterson-UTI Energy Inc (PTEN.O)

Patterson-UTI Energy, Inc. (Patterson-UTI) is a provider of contract drilling business. The Company operates primarily in Texas, New Mexico, Oklahoma, Arkansas, Louisiana, Mississippi, Alabama, Colorado, Arizona, Utah, Wyoming, Montana, North Dakota, South Dakota, Pennsylvania, West Virginia and western Canada. As of December 31, 2008, Patterson-UTI had a drilling fleet that consisted of 344 marketable land-based drilling rigs. The Company provides pressure pumping services to oil and natural gas operators primarily in the Appalachian Basin. These services consist primarily of well stimulation and cementing for completion of new wells and remedial work on existing wells. It provides drilling fluids, completion fluids and related services to oil and natural gas operators offshore in the Gulf of Mexico and on land in Texas, New Mexico, Oklahoma and Louisiana. Drilling and completion fluids are used by oil and natural gas operators to control pressure when drilling and completing oil and natural gas wells. It owns and invests in oil and natural gas assets as a working interest owner. Its oil and natural gas interests are located primarily in Texas, New Mexico, Mississippi and Louisiana. Patterson-UTI conducts its business through four segments: contract drilling, pressure pumping services, drilling and completion fluids services, and oil and natural gas exploration and production.

Contract Drilling Operations

The Company markets its contract drilling services to major and independent oil and natural gas operators. As of December 31, 2008, it had 344 marketable land-based drilling rigs, which comprised: 93 in west Texas and southeastern New Mexico; 92 in north central and eastern Texas, northern Louisiana, Mississippi and Alabama; 56 in the Rocky Mountain region (Colorado, Arizona, Utah, Wyoming, Montana, North Dakota and South Dakota); 50 in south Texas and southern Louisiana; 27 in the Texas panhandle, Oklahoma and Arkansas; 6 in the Appalachian Basin, and 20 in western Canada. At December 31, 2008, Patterson-UTI owned and operated 308 trucks and 405 trailers used to rig down, transport and rig up its drilling rigs. Most repair and overhaul work to its drilling rig equipment is performed at its yard facilities located in Texas, New Mexico, Oklahoma, Wyoming, Utah and western Canada.

Pressure Pumping Operations

Patterson-UTI provides pressure pumping services to oil and natural gas operators primarily in the Appalachian Basin. Pressure pumping services are primarily well stimulation and cementing for the completion of new wells and remedial work on existing wells. Its pressure pumping equipment as of December 31, 2008 included, 42 cement pumper trucks; 66 triplex pumper trucks; 54 nitrogen pumper trucks; five quintiplex pump trailers; 31 blender trucks; 28 bulk acid trucks/acid pumper trucks; 47 bulk cement trucks; 27 bulk nitrogen trucks; six bulk nitrogen tractor trailer combinations; 69 bulk sand trucks; 14 sand pneumatic trucks; seven sand pneumatic trailers; nine flatbed material trucks; 24 connection trucks; two shale fracturing manifold trailers; one shale fracturing iron trailer; eight shale fracturing sand field bins with conveyors; two shale fracturing large conveyors, and 21 tractors.

Drilling and Completion Fluids Operations

The Company provides drilling fluids, completion fluids and related services to oil and natural gas operators offshore in the Gulf of Mexico and on land in Texas, New Mexico, Oklahoma and Louisiana. It serves its offshore customers through six stockpoint facilities located along the Gulf of Mexico in Texas and Louisiana and its land-based customers through 14 stockpoint facilities in Texas, Louisiana, Oklahoma and New Mexico. It operates a barite grinding facility with two barite grinding mills in Houma, Louisiana. Patterson-UTI owns and operates 13 trucks and 141 trailers and lease another 34 trucks which are used to transport drilling and completion fluids and related equipment.

Oil and Natural Gas Operations

The Company had been engaged in the development, exploration, acquisition and production of oil and natural gas. Through October 31, 2007, it served as operator with respect to several properties and was involved in the development, exploration, acquisition and production of oil and natural gas. Effective November 1, 2007, it sold the related operations portion of its exploration and production business, which was the portion of that business that managed the development, exploration, acquisition and production of oil and natural gas. As of December 31, 2008, Patterson-UTI owned and invested in oil and natural gas assets as a working interest owner. Its oil and natural gas interests are located primarily in producing regions of Texas, New Mexico, Mississippi and Louisiana. The customers of each of its three oil service business segments are oil and natural gas operators. The customer base includes both major and independent oil and natural gas operators. During 2008, no single customer accounted for 10% or more of the Company’s consolidated operating revenues.