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Patterson-Uti Energy (PTEN)
NASDAQ:PTEN
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Patterson-UTI
(NASDAQ:PTEN)
53Neutral
Patterson-UTI (PTEN) vs. S&P 500 (SPY)
Market Cap
$2.29B
Dividend Yield5.24%
Average Volume (3M)14.58M
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth5.82%
EPS Growth-481.39%
CountryUS
Employees9,200
SectorEnergy
Sector Strength42
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)<0.01
Shares Outstanding385,987,030
10 Day Avg. Volume13,577,445
30 Day Avg. Volume14,576,591
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)0.62
Price to Sales (P/S)0.00
P/FCF Ratio5.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.86Price Target Upside51.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Patterson-UTI Business Overview & Revenue Model
Company DescriptionPatterson-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 MoneyPatterson-UTI makes money primarily through its contract drilling and pressure pumping services. The company generates revenue by leasing its fleet of land-based drilling rigs to exploration and production companies, charging daily rates for the use of these rigs. Additionally, its pressure pumping services, which include hydraulic fracturing, cementing, and other well completion services, contribute significantly to its earnings. The company's revenue streams are heavily influenced by the level of drilling activity and demand for oil and natural gas, which are in turn affected by commodity prices. Strategic partnerships with energy producers and innovations in drilling technology also play a crucial role in enhancing Patterson-UTI's competitiveness and profitability.
Patterson-UTI Financial Statement Overview
Summary
Patterson-UTI's financial statements present a mixed picture. The company faces profitability challenges with negative net income and EBIT margins, but has no current debt and maintains positive cash flows. Stability in cash flow generation offers potential for recovery, though volatility in revenue and ongoing losses are significant concerns.Income Statement
The income statement shows a mixed performance. The gross profit margin for TTM is approximately 27.36%, which is relatively healthy, but the net profit margin is negative due to significant net losses. Revenue growth has been volatile, with a decline in the most recent period compared to the previous year. The EBIT and EBITDA margins are also concerning, with EBIT being negative and EBITDA showing a low margin of 2.86% for TTM, indicating challenges in operational profitability.45
Neutral
Balance Sheet
The balance sheet reflects a solid equity position with no total debt reported in the TTM period, leading to a strong equity ratio of approximately 59.58%. However, the historical leverage was higher, indicating past financial stress. The return on equity is negative due to net losses, highlighting profitability issues. The current financial position appears stable but with room for improvement in returning to profitability.55
Neutral
Cash Flow
Cash flows are relatively stable, with positive operating cash flow and a free cash flow to net income ratio that indicates cash generation despite accounting losses. The free cash flow growth rate has been inconsistent but remains positive for the most recent period. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from operations.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.15B | 5.38B | 4.15B | 2.65B | 1.36B | 1.12B | Gross Profit |
| 215.16M | 286.17M | 603.72M | 317.10M | -574.04M | -348.58M | EBIT |
| -959.93M | -889.74M | 351.95M | -273.76M | -677.75M | -892.26M | EBITDA |
| 182.69M | 286.89M | 1.09B | 684.97M | 171.38M | -214.46M | Net Income Common Stockholders |
| -1.02B | -968.03M | 246.29M | 154.66M | -657.08M | -803.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 225.20M | 241.29M | 192.68M | 137.55M | 117.52M | 224.91M | Total Assets |
| 5.77B | 5.83B | 7.42B | 3.14B | 2.96B | 3.30B | Total Debt |
| 1.29B | 1.30B | 1.35B | 855.65M | 877.32M | 927.70M | Net Debt |
| 1.07B | 1.06B | 1.15B | 718.10M | 759.80M | 702.78M | Total Liabilities |
| 2.33B | 2.36B | 2.60B | 1.48B | 1.35B | 1.28B | Stockholders Equity |
| 3.43B | 3.47B | 4.81B | 1.67B | 1.61B | 2.02B |
| Cash Flow | Free Cash Flow | ||||
| 404.51M | 497.15M | 390.22M | 129.39M | -70.82M | 133.38M | Operating Cash Flow |
| 1.02B | 1.18B | 1.01B | 566.19M | 95.50M | 278.86M | Investing Cash Flow |
| -591.76M | -654.74M | -1.02B | -413.23M | -131.59M | -124.98M | Financing Cash Flow |
| -372.28M | -474.99M | 65.57M | -133.38M | -71.93M | -103.15M |
Patterson-UTI Technical Analysis
Negative
5.84
Price Trends
6.74
Negative
7.54
Negative
7.83
Negative
Market Momentum
-0.13
Negative
44.62
Neutral
45.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTEN, the sentiment is Negative. The current price of 5.84 is below the 20-day moving average (MA) of 5.96, below the 50-day MA of 6.74, and below the 200-day MA of 7.83, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 45.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PTEN.
Patterson-UTI Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.48B | 4.46 | 12.75% | ― | -15.60% | 32.51% | |
66 Neutral | $1.67B | 8.12 | 7.57% | 7.97% | 12.23% | -37.06% | |
63 Neutral | $411.61M | 5.26 | 8.30% | 13.95% | 30.97% | 281.37% | |
60 Neutral | $2.29B | ― | -6.65% | ― | 24.47% | -55.45% | |
57 Neutral | $7.13B | 3.45 | -3.67% | 5.68% | 0.46% | -50.35% | |
53 Neutral | $2.29B | ― | -24.93% | 5.24% | 5.82% | -481.39% | |
43 Neutral | $429.54M | ― | -44.00% | ― | -0.94% | -19.18% |
* Energy Sector Average
Performance Comparison
PTEN
Patterson-UTI
5.84
-5.23
-47.24%
HP
Helmerich & Payne
16.11
-21.14
-56.75%
NBR
Nabors Industries
26.93
-52.02
-65.89%
RIG
Transocean
2.55
-3.61
-58.60%
BORR
Borr Drilling
1.69
-4.08
-70.71%
SDRL
Seadrill Limited
23.79
-28.33
-54.36%
Patterson-UTI Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -0.68%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautiously optimistic outlook with significant strengths in integrated project performance and financial stability. However, there are concerns about potential impacts from commodity price volatility and slight expected declines in profitability in some segments.Q1-2025 Updates
Positive Updates
Steady Drilling Activity and Recovery in Completions
The first quarter of 2025 saw steady drilling activity across U.S. shale and a strong recovery in completions activity following fourth quarter budget constraints.
Strong Financial Position
The company closed Q1 with $225 million in cash and an undrawn $500 million revolver, maintaining low leverage and an investment grade credit rating.
Record Performance in Integrated Projects
The initial fully-integrated P10 Advantage project exceeded expectations, delivering performance bonuses and accretive margins.
Increased Demand in Natural Gas Basins
There was a notable increase in demand in natural gas basins, with the Haynesville being a significant beneficiary.
High-Quality Fleet and Technology
More than 80% of the active fleet can be powered by natural gas, with the Emerald fleet growing as a proportion of overall frac activity.
Positive Feedback on Cortex Automation Platform
The Cortex automation platform continues to set a standard in drilling automation, delivering high operational efficiency and better returns.
Negative Updates
Potential Impact from Commodity Volatility
Recent commodity softness, especially in oil, could lead to reevaluation of plans by customers if prices remain low.
Slight Decline in Drilling Services Adjusted Gross Profit Expected
For Q2 2025, a slight decline in adjusted gross profit for Drilling Services is expected due to a reduction in average contracted revenue.
Completion Services Price Concerns
Pricing in Completion Services was down compared to Q4 2024, although partially offset by cost reductions.
Market Uncertainty Affecting Activity Levels
Despite current stability, there's a concern that if oil prices remain low, there could be some reduction in activity levels later in the year.
Company Guidance
During the Patterson-UTI First Quarter 2025 Earnings Conference Call, guidance was provided indicating steady drilling activity across U.S. shale and a strong recovery in completions activity. The company highlighted positive momentum in natural gas basins, which is expected to continue, while oil basins show stable demand. Financially, Patterson-UTI reported a total revenue of $1,281 million and a net income of $1 million, with an adjusted EBITDA of $251 million. They closed the quarter with $225 million in cash and an undrawn $500 million revolver. The company expects a slight decline in adjusted gross profit for drilling and completion services in the second quarter, driven by a reduction in average contracted revenue and seasonal cost increases. The guidance emphasized the company's commitment to maintaining a strong balance sheet, returning at least half of adjusted free cash flow to shareholders, and capital allocation flexibility, with a full-year capital budget of approximately $600 million.Patterson-UTI Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Patterson-UTI Appoints New Chief Accounting Officer
Positive
Apr 3, 2025
On April 3, 2025, Patterson-UTI Energy, Inc. announced the appointment of Forrest Robinson as the new Chief Accounting Officer. Robinson, who previously served as the company’s corporate controller, brings extensive experience from his roles at Callon Petroleum Company and Newfield Exploration Company, as well as his background in audit practice at BDO USA, LLP. This strategic appointment is expected to strengthen the company’s financial leadership and enhance its operational efficiency.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.