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Patterson-Uti Energy (PTEN)
NASDAQ:PTEN

Patterson-UTI (PTEN) AI Stock Analysis

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Patterson-UTI

(NASDAQ:PTEN)

53Neutral
Patterson-UTI's overall score reflects its current challenges and potential opportunities. The company struggles with profitability but maintains a strong balance sheet with no debt and positive cash flows. Technical analysis indicates a bearish trend, adding to the caution. While valuation is hindered by net losses, the dividend yield remains attractive. The earnings call provides some optimism with stable financials and strategic initiatives, though external factors like commodity price volatility pose risks. The recent corporate appointment adds a positive note to the company's strategic direction.

Patterson-UTI (PTEN) vs. S&P 500 (SPY)

Patterson-UTI Business Overview & Revenue Model

Company DescriptionPatterson-UTI Energy, Inc. (PTEN) operates as a leading provider of onshore drilling and pressure pumping services, primarily serving the oil and natural gas industry. The company is headquartered in Houston, Texas, and is known for its extensive fleet of land-based drilling rigs and pressure pumping equipment. Patterson-UTI is committed to delivering high-efficiency, reliable services that enable energy producers to optimize their operations and improve resource recovery.
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
45
Neutral
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.
Balance Sheet
55
Neutral
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.
Cash Flow
60
Neutral
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.15B5.38B4.15B2.65B1.36B1.12B
Gross Profit
215.16M286.17M603.72M317.10M-574.04M-348.58M
EBIT
-959.93M-889.74M351.95M-273.76M-677.75M-892.26M
EBITDA
182.69M286.89M1.09B684.97M171.38M-214.46M
Net Income Common Stockholders
-1.02B-968.03M246.29M154.66M-657.08M-803.69M
Balance SheetCash, Cash Equivalents and Short-Term Investments
225.20M241.29M192.68M137.55M117.52M224.91M
Total Assets
5.77B5.83B7.42B3.14B2.96B3.30B
Total Debt
1.29B1.30B1.35B855.65M877.32M927.70M
Net Debt
1.07B1.06B1.15B718.10M759.80M702.78M
Total Liabilities
2.33B2.36B2.60B1.48B1.35B1.28B
Stockholders Equity
3.43B3.47B4.81B1.67B1.61B2.02B
Cash FlowFree Cash Flow
404.51M497.15M390.22M129.39M-70.82M133.38M
Operating Cash Flow
1.02B1.18B1.01B566.19M95.50M278.86M
Investing Cash Flow
-591.76M-654.74M-1.02B-413.23M-131.59M-124.98M
Financing Cash Flow
-372.28M-474.99M65.57M-133.38M-71.93M-103.15M

Patterson-UTI Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.93
Price Trends
50DMA
6.74
Negative
100DMA
7.54
Negative
200DMA
7.83
Negative
Market Momentum
MACD
-0.13
Negative
RSI
44.62
Neutral
STOCH
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 5.93 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
$1.48B4.4712.75%-15.60%32.51%
HPHP
66
Neutral
$1.77B8.127.57%7.53%12.23%-37.06%
63
Neutral
$411.61M5.448.30%13.48%30.97%281.37%
RIRIG
60
Neutral
$2.29B-6.65%24.47%-55.45%
57
Neutral
$7.13B3.45-3.67%5.68%0.46%-50.35%
53
Neutral
$2.36B-24.93%5.24%5.82%-481.39%
NBNBR
43
Neutral
$468.32M-44.00%-0.94%-19.18%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PTEN
Patterson-UTI
5.93
-5.27
-47.05%
HP
Helmerich & Payne
16.82
-20.32
-54.71%
NBR
Nabors Industries
27.36
-52.05
-65.55%
RIG
Transocean
2.59
-3.65
-58.49%
BORR
Borr Drilling
1.72
-4.04
-70.14%
SDRL
Seadrill Limited
23.86
-28.33
-54.28%

Patterson-UTI Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 0.85%|
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.