Patterson UTI Energy : Q4

PATTERSON-UTIENERGY, INC. Non-U.S. GAAP Financial Measures (unaudited, dollars in thousands)

		Three Months Ended			Twelve Months Ended			Three Months Ended
		December 31,			December 31,			September 30,
		2020			2019		2020			2019		2020
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (1):
Net loss	$	(106,527)	$		(85,923)	$	(803,692)	$		(425,703)	$	(112,111)
Income tax benefit		(24,846)			(23,430)		(127,326)			(104,675)		(12,993)
Net interest expense		7,249			26,651		39,516			69,191		11,050
Depreciation, depletion, amortization and impairment		153,709			180,011		670,910			1,003,873		157,319
Impairment of goodwill		-			-		395,060			17,800		-
Adjusted EBITDA	$	29,585	$		97,309	$	174,468	$		560,486	$	43,265
Total Revenue	$	220,801	$		492,297	$	1,124,249	$		2,470,685	$	207,141
Adjusted EBITDA Margin (Adjusted EBITDA / Total Revenue)		13.4%			19.8%		15.5%			22.7%		20.9%
Adjusted EBITDA by operating segment:
Contract drilling	$	43,464	$		93,657	$	285,393	$		516,678	$	55,061
Pressure pumping		2,274			18,930		(14,036)			131,251		6,248
Directional drilling		1,086			1,202		(4,108)			(501)		(312)
Other operations		286			6,319		(174)			5,878		431
Corporate		(17,525)			(22,799)		(92,607)			(92,820)		(18,163)
Consolidated Adjusted EBITDA	$	29,585	$		97,309	$	174,468	$		560,486	$	43,265

1. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not defined by accounting principles generally accepted in the United States of America ("U.S. GAAP"). We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax benefit and depreciation, depletion, amortization and impairment expense (including impairment of goodwill). We present Adjusted EBITDA because we believe it provides to both management and investors additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the U.S. GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies.

PATTERSON-UTIENERGY, INC. Non-U.S. GAAP Financial Measures (unaudited, dollars in thousands)

		Three Months Ended			Twelve Months Ended			Three Months Ended
		December 31,			December 31,			September 30,
Margin by Operating Segment:		2020			2019		2020			2019		2020
Contract drilling
Revenues	$	115,574	$		270,785	$	669,126	$		1,308,350	$	115,054
Direct operating costs		71,158			175,427		380,822			785,355		59,117
Margin		44,416			95,358		288,304			522,995		55,937
Restructuring expenses		-			-		2,430			-		-
Other operating expenses (income), net		(30)			-		(4,185)			-		-
Selling, general and administrative		982			1,701		4,666			6,317		876
Adjusted EBITDA		43,464			93,657		285,393			516,678		55,061
Depreciation, amortization and impairment		104,928			113,169		433,771			668,007		102,275
Impairment of goodwill		-			-		395,060			-		-
Operating loss	$	(61,464)	$		(19,512)	$	(543,438)	$		(151,329)	$	(47,214)
Operating days
	5,720			11,291		29,904			54,544		5,499
Average margin per operating day (Margin / Operating days)	$	7.77	$		8.45	$	9.64	$		9.59	$	10.17
Pressure pumping
Revenues	$	79,498	$		161,448	$	336,111	$		868,694	$	71,973
Direct operating costs		75,417			139,597		310,261			724,788		63,721
Margin		4,081			21,851		25,850			143,906		8,252
Restructuring expenses		-			-		31,331			-		-
Selling, general and administrative		1,807			2,921		8,555			12,655		2,004
Adjusted EBITDA		2,274			18,930		(14,036)			131,251		6,248
Depreciation, amortization and impairment		34,044			45,493		152,630			233,952		37,104
Operating loss	$	(31,770)	$		(26,563)	$	(166,666)	$		(102,701)	$	(30,856)
Total jobs
	267			308		1,001			1,349		249
Average margin per total job (Margin / Total jobs)	$	15.28	$		70.94	$	25.82	$		106.68	$	33.14
Margin as a percentage of revenues (Margin / Revenues)		5.1%			13.5%		7.7%			16.6%		11.5%
Directional drilling
Revenues	$	16,858	$		38,572	$	73,356	$		188,786	$	10,271
Direct operating costs		14,702			34,726		69,050			178,645		9,754
Margin		2,156			3,846		4,306			10,141		517
Restructuring expenses		-			-		3,175			-		-
Selling, general and administrative		1,070			2,644		5,239			10,642		829
Adjusted EBITDA		1,086			1,202		(4,108)			(501)		(312)
Depreciation, amortization and impairment		6,806			10,468		36,504			52,223		9,600
Operating loss	$	(5,720)	$		(9,266)	$	(40,612)	$		(52,724)	$	(9,912)
Margin as a percentage of revenues (Margin / Revenues)
	12.8%			10.0%		5.9%			5.4%		5.0%
Other operations
Revenues	$	8,871	$		21,492	$	45,656	$		104,855	$	9,843
Direct operating costs		8,015			13,765		41,790			84,909		8,665
Margin		856			7,727		3,866			19,946		1,178
Restructuring expenses		-			-		501			-		-
Selling, general and administrative		570			1,408		3,539			14,068		747
Adjusted EBITDA		286			6,319		(174)			5,878		431
Depreciation, depletion, amortization and impairment		6,424			9,331		41,511			42,803		6,852
Impairment of goodwill		-			-		-			17,800		-
Operating loss	$	(6,138)	$		(3,012)	$	(41,685)	$		(54,725)	$	(6,421)