Sustainability

Sustainability

At Patterson-UTI Energy, we are committed to long-term sustainability with respect to the environment, our society and our long-term corporate success.

Environmental Sustainability

Patterson-UTI Energy is committed to a clean and healthy environment with long-term sustainability. It is our goal to minimize our environmental impact in the communities in which we work and live, while providing services for our customers in a safe and responsible manner. We are pursuing various initiatives to make improvements in air quality, water quality, land usage, use of energy and reducing waste materials.

Air quality

We have introduced engines capable of using natural gas for fuel into our drilling and pressure pumping fleets. Natural gas as fuel is significantly better from an environmental perspective as it generates less carbon dioxide than diesel fuel, as well as less particulate matter. Different technology options are available depending on the application and fuel availability. We offer bi-fuel capabilities for both pressure pumping and drilling where the fuel mixture can be up to 70% natural gas. As well, technology for using 100% natural gas for power generation is available on certain mobile drilling rigs. As natural gas fuel distribution becomes more available in the various areas where we work, we anticipate the demand for these technologies will continue to increase. By utilizing high percentages of natural gas instead of diesel, engines can burn cleaner, offer reduced emissions, improve air quality in the regions where we work and improve the sustainability of the environment.

Water quality

We work with our customers to employ industry best practices when performing operations. We strive to maintain isolation of drilling and completion activities in order to protect the quality of ground and surface water in the regions in which we work.

Land use

The use and impact on the land in which we perform operations is a concern to our industry, and we work with our customers, who hold the rights to the use of the land, in various ways in order to minimize environmental impact. We have processes in place to minimize the size of the footprint in which we set-up our drilling and pressure pumping equipment at the well sites, and we have long-term initiatives in order to achieve further reductions in our footprint. Additionally, our drilling and pressure pumping equipment has various forms of containment designed to confine fluids, the majority of which are water-based, to the operations.

Efficient use of energy

In line with our commitment to a clean environment, we strive to ensure that we are maximizing efficiency in the use of the various fuels on which we rely. One example of this is seen in our ongoing upgrade of our drilling rig fleet. Our new high-spec APEX® rig design, which uses AC power and control systems, provides a higher level of energy use efficiency compared to previous generations of drilling rigs. In doing so, we can transfer energy from the diesel and natural gas fuels to the overall drilling process in a more fuel-efficient manner.

Waste

Our facilities and our operations use a variety of initiatives to minimize waste materials such as recycling of paper materials or sending metal-based materials for reprocessing and re-use. In this effort, we are able to reduce physical waste and improve the quality of the environment in which we work.

Social Sustainability

As part of the society in which we work and live, our people are our biggest asset, and we are committed to their safety, health, security and professional development so that they can continue to be positive contributors.

Safety

Our goal is to provide an incident-free work environment. Our managers and supervisors are accountable for the safety of our people and are committed to ensuring that they have safe working equipment, required personal protection and training for their tasks. Our employees are trained to be responsible for their safety to protect themselves, their team members and others.

Health

Our health and wellness program provides for extensive preventative care and is designed to improve our employees' fitness for work, personal safety on the job and overall well-being. We believe this program is one of the most comprehensive benefit packages offered in the energy services industry for employees and their families.

Diversity

We are committed to fostering a work environment where all people feel valued and respected. We are proud of our workforce, where all employees can contribute to the success of the Company, drawing upon their unique backgrounds, perspectives and life experiences. In return, the Company embraces its diversity of people, thoughts and talents, and combines these strengths to pursue extraordinary results for the Company, its employees and its shareholders.

Professional Development

We offer individuals in our company the opportunity to advance in their professional careers through various methods including intensive, multi-day classroom training programs in numerous skills and competencies related to drilling and completing wells, as well as management training programs. These programs are geared to providing our employees with a maximum of possible opportunities to advance throughout the company. In doing so, our employees have the opportunity to become positive influences in the communities in which they work and live.

Corporate Sustainability

Long-term sustainability of our company is a top priority at Patterson-UTI Energy. We strive to ensure that we have a well-trained and motivated workforce in order to provide competitive services to our customers in the areas of drilling and completing oil and gas wells. We believe our management is properly incentivized through performance metrics in order to best guide our company.

Employee Development and Motivation

Our employees are trained and developed in various skills and competencies directly related to their positions in the safe operations of drilling and completing wells. Further training for certain positions includes leadership and management skills in order for individuals to be able to progress within our organization. Employees have the opportunity to advance through a merit-based system that takes into account the employee's performance. Through this process, our company continues to develop future leaders and managers from within.

Corporate Governance

Corporate oversight and governance is performed by the Board of Directors and their committees. The make-up of the Board of Directors is reviewed to ensure that the Board is comprised of individuals with diverse skill sets in the areas of general business and the oil and gas industry in order to best serve the shareholders.

Performance-based Compensation

Compensation for executive management is managed by the Compensation Committee of the Board of Directors. This topic is addressed in detail in the section entitled Compensation Discussion and Analysis of our Proxy Statement for the Annual Meeting of Shareholders, which may be accessed electronically through the "SEC Filings" link in the "Governance" section of our website.

Risk analysis

Risk in our business and to our company is evaluated by management so that plans can be put into place to minimize and manage risks to our company, to clients and to individuals. Our Board of Directors evaluates its role in risk oversight on an ongoing basis. Our Board of Directors has adopted Corporate Governance Guidelines, which can be accessed electronically in the "Governance" section of our website. The Guidelines describe one of the Board's primary responsibilities as overseeing Patterson-UTI's processes for assessing and managing risks. The Board discharges its responsibility, in part, through regular inquiries from the Chairman of the Board and/or the Lead Director to management, periodic communications from management to the Board of Directors of particular risks and events, and discussions during Board meetings with and without management of general and specific risks to Patterson-UTI.