Patterson-UTI (PTEN) AI Stock Analysis

• Market Cap: $2.43B
• Dividend Yield: 4.73%
• Average Volume (3M): 9.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -16.59%
• EPS Growth: 83.95%
• Country: US
• Employees: 9,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.06
• Shares Outstanding: 379,242,030
• 10 Day Avg. Volume: 12,374,459
• 30 Day Avg. Volume: 9,549,147
• PEG Ratio: <0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 14.06
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: $7.17
• Price Target Upside: 12.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: $7.00 ▲(9.37% Upside)

Patterson-UTI's stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability. However, strong technical indicators and a positive earnings call sentiment provide some optimism. The attractive dividend yield adds value, but the negative P/E ratio reflects ongoing profitability issues. Overall, the stock presents a mixed outlook with both risks and opportunities.

Positive Factors

Technological Advancements

Investing in technology enhances operational efficiency and service offerings, positioning the company for long-term competitiveness in the oil and gas sector.

Strong Cash Flow Management

Effective cash flow management and a robust balance sheet provide financial stability and flexibility for future investments and shareholder returns.

Commitment to Shareholder Returns

A strong focus on shareholder returns through dividends and buybacks enhances investor confidence and supports stock value over time.

Negative Factors

Declining Revenue

Declining revenue and net losses indicate challenges in maintaining profitability, which could impact long-term financial health if not addressed.

Regional Activity Declines

Decreased activity in key regions like the Permian Basin can reduce revenue and market share, affecting the company's competitive position.

International Revenue Decline

A decline in international revenue, particularly in strategic markets, can weaken global market presence and profitability.

Patterson-UTI Business Overview & Revenue Model

Company Description

Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. The Contract Drilling Services segment markets its contract drilling services primarily in west Texas, Appalachia, Rockies, Oklahoma, South Texas, East Texas, and Colombia. As of December 31, 2021, this segment had a drilling fleet of 192 marketable land-based drilling rigs. The Pressure Pumping Services segment offers pressure pumping services that consist of well stimulation for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, cementing, and acid pumping services in Texas and the Appalachian region. The Directional Drilling Services segment provides a suite of directional drilling services, including directional drilling and measurement-while-drilling services; supply and rental of downhole performance motors; and software and services that enhances the accuracy of directional and horizontal wellbores, wellbore quality, and on-bottom rate of penetration. It also services equipment to drilling contractors, as well as provides electrical controls and automation to the energy, marine, and mining industries in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.

How the Company Makes Money

Patterson-UTI generates revenue primarily through its two main business segments: drilling services and pressure pumping services. The drilling segment earns income by providing contract drilling services to oil and gas exploration companies, often through long-term contracts that ensure steady cash flow. The pressure pumping segment generates revenue by offering hydraulic fracturing services, which are essential for enhancing oil and gas production. Additionally, the company benefits from economies of scale and operational efficiencies, which help maintain competitive pricing. Key revenue streams also come from the demand for energy services in response to market conditions, oil prices, and the overall activity level in the shale oil and gas sector. Partnerships with major exploration and production companies further bolster its revenue potential, while investments in technology and equipment contribute to improved service offerings and profitability.

Patterson-UTI Financial Statement Overview

Summary

Patterson-UTI faces significant challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet shows moderate leverage and a strong equity base, providing some financial stability. Cash flow generation is relatively strong, but declining free cash flow growth is a concern. The company needs to focus on improving operational efficiency and profitability to enhance its financial health.

Income Statement

Patterson-UTI's income statement shows a challenging period with declining revenue and profitability. The TTM data indicates a negative revenue growth rate of -3.61%, and the company is operating at a net loss with a net profit margin of -2.81%. The gross profit margin is low at 4.54%, and the EBIT margin is negative, reflecting operational inefficiencies. However, the EBITDA margin is relatively healthier at 18.75%, suggesting some operational cash flow strength.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.38, which is manageable within the industry. However, the return on equity is negative at -4.03%, indicating unprofitable use of equity capital. The equity ratio stands at 58.82%, showing a solid equity base relative to total assets, which provides some financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -13.33%, but the operating cash flow to net income ratio is strong at 1.13, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.33, suggesting that while free cash flow is positive, it is not sufficient to cover the net loss fully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.84B	5.38B	4.15B	2.65B	1.36B	1.12B
Gross Profit	219.76M	286.17M	603.72M	317.10M	-574.04M	-348.58M
EBITDA	907.15M	286.89M	1.09B	684.97M	171.38M	-214.46M
Net Income	-136.12M	-968.03M	246.29M	154.66M	-657.08M	-803.69M
Balance Sheet
Total Assets	5.53B	5.83B	7.42B	3.14B	2.96B	3.30B
Cash, Cash Equivalents and Short-Term Investments	186.91M	239.18M	192.68M	137.55M	117.52M	224.91M
Total Debt	1.22B	1.30B	1.35B	855.65M	877.32M	927.70M
Total Liabilities	2.28B	2.36B	2.60B	1.48B	1.35B	1.28B
Stockholders Equity	3.26B	3.47B	4.81B	1.67B	1.61B	2.02B
Cash Flow
Free Cash Flow	288.66M	497.15M	390.22M	129.39M	-70.82M	133.38M
Operating Cash Flow	879.53M	1.18B	1.01B	566.19M	95.50M	278.86M
Investing Cash Flow	-566.77M	-654.74M	-1.02B	-413.23M	-131.59M	-124.98M
Financing Cash Flow	-242.23M	-474.99M	65.57M	-133.38M	-71.93M	-103.15M

Patterson-UTI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTEN, the sentiment is Positive. The current price of 6.4 is above the 20-day moving average (MA) of 6.03, above the 50-day MA of 5.74, and above the 200-day MA of 6.37, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTEN.

Patterson-UTI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OII	―	$2.32B	10.19	28.92%	―	8.71%	72.09%
HP	―	$2.67B	-81.24	-1.19%	3.72%	25.92%	-109.50%
SDRL	―	$1.97B	27.22	2.60%	―	-13.36%	-82.21%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PTEN	―	$2.43B	-18.16	-4.00%	4.73%	-16.59%	83.95%
NBR	―	$784.85M	5.59	47.77%	―	6.52%	―
RIG	―	$4.36B	-1.21	-32.05%	―	16.93%	-335.82%

Patterson-UTI Corporate Events

Patterson-UTI Energy Reports Q3 2025 Financial Results

Patterson-UTI Energy, Inc. is a prominent provider of drilling and completion services for oil and natural gas exploration and production companies, operating primarily in the United States and select international markets. The company offers contract drilling services, integrated well completion services, and directional drilling services, along with specialized bit solutions globally.

Patterson-UTI Energy’s Earnings Call: Balancing Innovation and Challenges

Patterson-UTI Energy’s recent earnings call painted a picture of a company navigating through a mix of technological advancements and financial challenges. While the firm showcased its operational resilience and strategic focus on technology and cash flow management, it also faced hurdles such as net losses, regional activity declines, and legal expenses. The sentiment was a blend of optimism about future prospects and caution due to present challenges.

Patterson-UTI Reports Q3 2025 Revenue and Loss

Patterson-UTI Energy reported a total revenue of $1.2 billion for the third quarter of 2025, with a net loss of $36 million attributable to common stockholders. Despite the challenging environment, the company managed to return $64 million to shareholders and maintained strong operational performance across its segments. The company anticipates steady activity levels into 2026, with a focus on optimizing business operations and enhancing commercial strategies. The introduction of new technologies like the Vertex™ Automated Controls is expected to improve efficiency and asset management. The company also noted that U.S. oil production might face pressure due to declining rig counts, while the outlook for natural gas remains strong.

The most recent analyst rating on (PTEN) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.

Patterson-UTI Board Member Leslie Beyer Resigns

On September 18, 2025, Leslie A. Beyer resigned from the Board of Directors of Patterson-UTI Energy, Inc. following her confirmation by the U.S. Senate as Assistant Secretary for Land and Minerals Management at the U.S. Department of the Interior. The company expressed gratitude for Beyer’s contributions, acknowledging her role in shaping industry policy and supporting the energy workforce, and anticipates her impactful service in her new governmental position.

The most recent analyst rating on (PTEN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.

Patterson-UTI Highlights Steady Operations and Share Repurchase

In September 2025, Patterson-UTI Energy, Inc. presented an investor update highlighting its steady operational activities and financial strategies for the remainder of the year. The company reported operating 93 rigs in the U.S. and anticipates stable activity levels into the fourth quarter. Despite activity reductions in the Permian Basin, other areas have remained steady or increased. Patterson-UTI aims to enhance shareholder returns by prioritizing cost reduction, strategic technology investments, and maximizing free cash flow. The company has repurchased $22 million in shares this quarter and expects stronger cash flow in the latter half of 2025.

The most recent analyst rating on (PTEN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.

Patterson-UTI Promotes James Holcomb to COO

Patterson-UTI Energy, Inc. announced the promotion of James M. Holcomb to Chief Operating Officer, effective August 8, 2025. With over 35 years of experience in contract drilling operations, Holcomb’s leadership is expected to strengthen the company’s operational capabilities and industry positioning.

The most recent analyst rating on (PTEN) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.