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HOUSTON – September 5, 2017. PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) (“Patterson-UTI”) announced today that it has entered into an agreement to acquire Multi-Shot, LLC d/b/a MS Energy Services (“MS Energy”), on a debt-free basis for total consideration of approximately 8.8 million shares of Patterson-UTI common stock and $75 million of cash. Based in Conroe, Texas, MS Energy is a leading directional drilling services company in the United States. The pending transaction, which is expected to close early in the fourth quarter, is subject to customary closing conditions and receipt of required third party consents, and is subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Act.

Founded in 1980, MS Energy has grown to become a leading provider of directional drilling services in the United States. With operations in most major producing onshore oil and gas basins in the United States, MS Energy provides a comprehensive suite of directional drilling services including directional drilling, downhole performance motors, directional surveying, measurement while drilling (“MWD”), and wireline steering tools.

Mark S. Siegel, Chairman of Patterson-UTI, commented, “The acquisition of MS Energy will broaden our service offerings and strengthen our position as a leading provider of oilfield services in the United States. Additionally, this transaction increases our exposure to North American unconventional drilling activity. With the increasing proportion of pad drilling and the growing number of horizontal wells per pad, directional drilling is seeing an increase in demand, even in the vertical section of the wells, as the well placement is increasingly important to avoid interfering with other nearby wells.” Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “MS Energy has assembled a strong group of talented employees and is well known within the industry for their great reputation in directional drilling services and high-performance drilling motors. Additionally, they have differentiated themselves within the directional drilling industry through a strong focus on technology. MS Energy has proprietary mud motor, MWD and survey equipment that was designed, engineered and manufactured in-house. Their internally-developed and patented Clean Communications (”C2 ”) technology enables high-speed electromagnetic MWD telemetry independent of geological formation constraints in pad drilling, which saves E&P companies considerable drilling time and expense.”

Allen R. Neel, Chairman and Chief Executive Officer of MS Energy, commented, “We look forward to combining our industry leading directional services and technology with Patterson-UTI’s state of the art drilling rig technology to enhance Patterson-UTI’s position as a leading oilfield services company.” Pursuant to the transaction, Mr. Neel will be joining Patterson-UTI as President of MS Energy. Mr. Neel has served as the CEO of MS Energy since 2004 when he co-founded the company that purchased MS Energy from previous owners. Mr. Neel has more than 37 years of experience in oilfield services having worked in the industry since receiving a Bachelor of Science in Petroleum Engineering from the University of Alabama.

Also joining Patterson-UTI will be Paul Culbreth. Mr. Culbreth has served as the COO of MS Energy since he co-founded the company that purchased MS Energy from previous owners in 2004. Mr. Culbreth has held various technical and leadership positions within the oilfield services industry since 1977.

Under the terms of the transaction, Patterson-UTI will acquire all of the issued and outstanding limited liability company interests of MS Energy for consideration of approximately 8.8 million shares of Patterson-UTI common stock and $75 million of cash. In connection with this transaction, Patterson-UTI expects to acquire approximately $30 million of non-cash working capital. The transaction values MS Energy at approximately $215 million, based on the most recent closing price of Patterson-UTI common stock of $15.94. Patterson-UTI will fund the $75 million cash consideration using cash on hand and the Company’s revolving line of credit. The cash consideration paid to the sellers will be used to cover transaction expenses and repay the outstanding debt at MS Energy, and as such, Patterson-UTI will not assume any debt of MS Energy.

The sellers include Denham Capital Management LP and NGP Energy Capital Management, L.L.C. and are represented by Simmons & Company International Energy Specialists of Piper Jaffray.

About Patterson-UTI

Patterson-UTI is an oilfield services company that primarily owns and operates in the United States one of the largest fleets of land-based drilling rigs and a large fleet of pressure pumping equipment. Our contract drilling business operates in the continental United States and western Canada, and our pressure pumping and oilfield rental tools businesses operate primarily in Texas and the Mid-Continent and Appalachian regions. We also provide drilling rig pipe handling technology to drilling contractors in North America and other select markets. In addition, we own and invest as a non-operating working interest owner in oil and natural gas assets that are primarily located in Texas and New Mexico.

Location information about the Company's drilling rigs and their individual inventories is available through the Company's website at www.patenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements which are protected as forwardlooking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI’s current beliefs, expectations or intentions regarding future events. Words such as “anticipate,” “believe,” “budgeted,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “potential,” “project,” “pursue,” “should,” “strategy,” “target,” or “will,” and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forwardlooking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: volatility in customer spending and in oil and natural gas prices, which could adversely affect demand for Patterson-UTI’s services and their associated effect on rates, utilization, margins and planned capital expenditures; global economic conditions; excess availability of land drilling rigs and pressure pumping equipment, including as a result of low commodity prices, reactivation or construction; liabilities from operations; weather; decline in, and ability to realize, backlog; equipment specialization and new technologies; shortages, delays in delivery and interruptions of supply of equipment and materials; ability to hire and retain personnel; loss of, or reduction in business with, key customers; difficulty with growth and in integrating acquisitions; governmental regulation; product liability; legal proceedings; political, economic and social instability risk; ability to effectively identify and enter new markets; cybersecurity risk; dependence on our subsidiaries to meet our long-term debt obligations; variable rate indebtedness risk; and anti-takeover measures in our charter documents. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI’s SEC filings. Patterson-UTI’s filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI’s website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.

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Irving, Texas – February 27, 2014 – Natural Gas Partners, through its most recent fund, NGP Natural Resources X, L.P., and NGP Energy Technology Partners II, L.P. (collectively “NGP”) have made a $100 million equity commitment to MS Energy Services, LLC (“MS Energy” or the “Company”).  MS Energy is a leading independent, vertically-integrated directional drilling company with operations in most major onshore oil and gas basins in the United States.  Denham Capital (“Denham”), the current majority owner of MS Energy, will maintain its ownership position in the Company going forward.


NGP’s growth equity investment will be used primarily to fund MS Energy’s organic growth opportunities, allowing the Company to further expand its current fleet of over 1,300 directional drilling motors, which have a long history of providing superior performance through the use of MS Energy’s proprietary technology and experienced personnel.  This investment gives MS Energy the ability to keep up with increasing demand resulting from the proliferation of horizontal drilling and increasing lateral lengths.  In addition to directional drilling motors, MS Energy will also expand its fleet of measurement-while-drilling (“MWD”) and survey equipment, offering its customers some of the latest, most advanced horizontal drilling technologies on the market today.


MS Energy is led by Allen Neel, an experienced oilfield services executive with a track record of creating value in the directional drilling business. Mr. Neel has a successful background developing and managing an array of oilfield services operations, including wireline, survey, MWD and various other directional drilling services.  Mr. Neel has been the Chief Executive Officer of MS Energy since August 2004.  Prior to serving in his current role, Mr. Neel held senior management positions at MS Energy’s predecessor, Warrior Energy Services (formerly Black Warrior Wireline Corp.).  Prior to Warrior Energy Services, Mr. Neel held management roles at Graves Well Drilling and Halliburton Services.


MS Energy is also led by Neel’s long-time partners Paul Culbreth (President and Chief Operating Officer) and Ron Whitter (Executive Vice President and Chief Financial Officer). Prior to serving in his current role as President and Chief Operating Officer of MS Energy, Mr. Culbreth held various senior management and operations positions at Warrior Energy Services, Phoenix Drilling Services and Ocean Drilling and Exploration.  Mr. Culbreth was also a founder of Houston Directional Services.  Prior to serving in his current role as Executive Vice President and Chief Financial Officer of MS Energy, Mr. Whitter served as Chief Accounting Officer of Stewart & Stevenson LLC, Chief Financial Officer of Warrior Energy Services, and held other financial and accounting positions with Oil States Industries, Norfolk Energy and Transco Energy.
“I am very excited to partner with NGP,” said Mr. Neel. “This investment allows us to continue meeting our customers’ directional drilling equipment and service needs, and also provides capital to further enhance our existing product lines while also developing new cutting-edge technologies to help our clients drill laterals longer, quicker, and with more precision than ever before.  With involvement from two leading energy-focused private equity firms in NGP and Denham, I am confident that we can continue growing the company to meet the industry’s ever-expanding needs.”


“NGP is extremely pleased to be partnering with MS Energy and Denham, as this investment represents numerous core tenets of NGP.  MS Energy is led by a cohesive, experienced management team with a track record of creating outsized returns in oilfield services, and the Company has multiple attractive uses of capital.  As the unconventional revolution continues to resemble a manufacturing operation, best-in-class service providers such as MS Energy will play a major role in E&P operators’ ability to drill wells on time and on budget.” said Kenneth A. Hersh, CEO of NGP Energy Capital Management.


About MS Energy Services, LLC
With over 20 years of experience in the industry, MS Energy is ranked as a leading independent directional drilling services company with an established presence in most major producing onshore oil and gas basins in the United States.  As one of the most comprehensive oilfield service companies, MS Energy provides expertise in downhole electric wireline, directional survey, MWD and various other directional drilling services.


About Natural Gas Partners
Founded in 1988, Natural Gas Partners (NGP) is a $10.5 billion family of private equity investment funds organized to make investments in the natural resources sector. NGP is part of the investment platform of NGP Energy Capital Management, a premier investment franchise in the natural resources industry, which together with its affiliates has managed approximately $13 billion in cumulative committed capital since inception. www.naturalgaspartners.com


About NGP Energy Technology Partners
NGP Energy Technology Partners ("NGP ETP") invests equity capital for growth and buyout transactions in companies that provide products and services to the oil and gas, power, environmental, energy efficiency, and alternative energy sectors. Founded in 2005, NGP ETP manages approximately $500 million and is led by investment professionals that have extensive experience investing in virtually all types of energy technology. The investment team strives to partner with strong, experienced management teams and work with them to create significant value. NGP ETP is an affiliate of NGP Energy Capital Management. www.ngpetp.com


About Denham Capital
Denham Capital is a leading energy and resources-focused global private equity firm. With over $7.9 billion of invested and committed capital, Denham makes direct investments in the energy and resources sectors, including businesses involving oil and gas, metals and minerals, and power and renewables. With offices in Boston, Houston, London, São Paulo and Perth, Denham invests across the globe. Denham invests across all stages of the corporate lifecycle, from exploration and development projects to mature, operating businesses, and all segments of the capital structure. www.denhamcapital.com


For questions, please contact:


MS Energy Services, LLC
Allen Neel
Telephone: (936) 442-2500


Natural Gas Partners
Daniel Goodman
Telephone: (713) 579-5725

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