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Patterson-UTI
(NASDAQ:PTEN)
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Rating:65Neutral
Price Target:
$12.00
▲(4.17% Upside)
Action:Reiterated
Date:09/08/26
Overall score reflects improving operational outlook and constructive technical momentum as the main positives, supported by a moderate dividend yield. The key constraint is financial performance quality: despite revenue growth and solid operating cash flow, PTEN remains net-loss making with compressed margins and declining free cash flow, keeping the score in the mid-range.
Positive Factors
High-Spec Fleet Positioning
Patterson-UTI is directing capital toward upgraded high-capacity rigs and 100% natural gas-powered completion equipment, aligning its fleet with longer laterals and reshaped industry capacity. This supports utilization, pricing quality, and competitiveness over the next several quarters.
Negative Factors
Persistent Unprofitability
Despite revenue growth and healthy EBITDA margin, Patterson-UTI has not restored sustained GAAP profitability. Thin and declining gross margins suggest that pricing recovery and cost control still need to offset operating expenses, depreciation, and other charges.
Read all positive and negative factors
Positive Factors
Negative Factors
High-Spec Fleet Positioning
Patterson-UTI is directing capital toward upgraded high-capacity rigs and 100% natural gas-powered completion equipment, aligning its fleet with longer laterals and reshaped industry capacity. This supports utilization, pricing quality, and competitiveness over the next several quarters.
Read all positive factors
Patterson-UTI Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profit contribution and margins for each business line, highlighting which segments drive cash flow, where efficiencies or losses lie, and how segment performance affects overall profitability and valuation.
Shows profit contribution and margins for each business line, highlighting which segments drive cash flow, where efficiencies or losses lie, and how segment performance affects overall profitability and valuation.
Data provided by:
The Fly
The FlyPatterson-UTI (PTEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.32B
Dividend Yield3.35%
Average Volume (3M)7.64M
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth-6.92%
EPS Growth91.45%
CountryUS
Employees7,900
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.23
Shares Outstanding381,384,900
10 Day Avg. Volume6,766,672
30 Day Avg. Volume7,641,804
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.73
Price to Sales (P/S)0.49
P/FCF Ratio6.30
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit6.90
Enterprise Value/Ebitda5.48
Forecast
1Y Price Target
$13.45Price Target Upside16.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)$4.94B
Patterson-UTI Business Overview & Revenue Model
Company Description
Patterson-UTI Energy, Inc. (PTEN) is a key provider of onshore contract drilling services for oil and natural gas exploration and production companies. Its operations span across the United States and international markets. The company's diverse b...
How the Company Makes Money
PTEN makes money by providing oilfield services and equipment to exploration and production (E&P) companies under service contracts and dayrate-style arrangements, with revenue largely driven by (1) activity levels (rig counts, number of frac spre...
Patterson-UTI Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and improving operational and market picture: sequential revenue and adjusted EBITDA growth, significant pricing gains (drilling contract rates +10–15% vs Q1), a sold-out high-end completions market, record Drilling Products international revenue, and clear fleet/technology investments that position the company to capture higher-spec work into 2027. Offsetting items include a GAAP net loss driven by non-cash Colombia exit charges and minority interest write-downs, a working capital-driven cash drag in Q2 (ERP transition and seasonality), and elevated DD&A/impairment levels. On balance the positives — strong revenue momentum, pricing recovery, targeted capital allocation, and liquidity/financing actions — materially outweigh the near-term negatives.Positive Updates
Quarterly Revenue Growth
Total reported revenue for Q2 2026 was $1,228,000,000, a 10% increase sequentially versus Q1 2026, driven by stronger activity and pricing across all businesses.
Negative Updates
Net Loss and Non-Cash Charges
The company reported a net loss attributable to common shareholders of $20 million, or $0.05 per share. The quarter included non-cash charges of ~$21 million related to the exit of the Contract Drilling business in Colombia and ~$5 million for write-down of a minority interest (total ~ $26 million of non-cash charges disclosed).
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Total reported revenue for Q2 2026 was $1,228,000,000, a 10% increase sequentially versus Q1 2026, driven by stronger activity and pricing across all businesses.
Read all positive updates
Company Guidance
Guidance highlights: for Q3 Patterson‑UTI expects Drilling Services to average ~100 rigs (Q2 avg 92 rigs, 8,361 operating days) and to exit the quarter above 100, with Drilling Services adjusted gross profit ≈ $145M (Q2 $114M; $134M ex‑$20M Colombia non‑cash); Completion Services adjusted gross profit ≈ $140M (Q2 $123M) and Drilling Products adjusted gross profit ≈ $40M (Q2 $37M); Other adjusted gross profit ≈ $5M; G&A ≈ $70M and DD&A ≈ $225M for Q3. Q2 reported revenue was $1,228M, adjusted EBITDA $232M, net loss $20M (‑$0.05/share; weighted avg shares 380M), Q2 CapEx was $156M (Drilling $60M, Completions $75M, Products $19M) and 2026 CapEx net is expected ≈ $600M; cash at quarter end $203M with $0 drawn on a $500M revolver, senior note maturities deferred (refinanced to 2036) and interest expense expected ≈ $20M/quarter. Management expects 2026 adjusted free cash flow to more than cover dividends (board approved $0.10/share quarterly) and to improve meaningfully in 2027; by year‑end ~90% of active frac horsepower should be gas‑powered, and drilling day rates on new contracts were up roughly 10%–15% vs Q1 with upgraded rigs commanding several thousand dollars/day premiums.Patterson-UTI Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.67B | 4.83B | 5.38B | 4.15B | 2.65B | 1.36B |
| Gross Profit | 663.32M | 229.86M | 286.17M | 603.72M | 317.10M | -574.04M |
| EBITDA | 835.81M | 907.78M | 286.89M | 1.09B | 692.06M | 171.38M |
| Net Income | -89.72M | -93.64M | -968.03M | 246.29M | 154.66M | -654.54M |
Balance Sheet | ||||||
| Total Assets | 5.37B | 5.57B | 5.83B | 7.42B | 3.14B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 203.17M | 420.64M | 239.18M | 192.68M | 137.55M | 117.52M |
| Total Debt | 1.26B | 1.28B | 1.30B | 1.35B | 855.65M | 877.32M |
| Total Liabilities | 2.27B | 2.35B | 2.36B | 2.60B | 1.48B | 1.35B |
| Stockholders Equity | 3.10B | 3.22B | 3.47B | 4.81B | 1.67B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 177.72M | 372.19M | 497.15M | 390.22M | 129.39M | -70.82M |
| Operating Cash Flow | 733.27M | 961.22M | 1.18B | 1.01B | 566.19M | 95.50M |
| Investing Cash Flow | -537.22M | -567.15M | -654.74M | -1.02B | -413.23M | -131.59M |
| Financing Cash Flow | -175.18M | -210.73M | -474.99M | 65.57M | -133.38M | -71.93M |
Patterson-UTI Technical Analysis
Positive
11.52
Price Trends
11.57
Negative
10.96
Positive
10.05
Positive
Market Momentum
-0.12
Negative
47.83
Neutral
69.01
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 11.52 is above the 20-day moving average (MA) of 11.37, below the 50-day MA of 11.57, and above the 200-day MA of 10.05, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 69.01 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $4.32B | -49.11 | -2.82% | 3.35% | -6.92% | 91.45% | |
64 Neutral | $3.87B | -27.66 | -5.27% | 2.58% | 16.57% | -328.07% | |
60 Neutral | $1.20B | 5.34 | 36.75% | 10.09% | 6.05% | ― | |
57 Neutral | $3.10B | 25.16 | 6.08% | 1.90% | 2.29% | -43.28% | |
55 Neutral | $1.32B | 59.90 | 2.07% | 2.68% | 25.36% | -59.73% | |
54 Neutral | $1.07B | -77.43 | -1.49% | ― | -15.14% | 92.26% |
* Energy Sector Average
PTEN
Patterson-UTI
11.33
5.90
108.54%
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38.72
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5.96
1.76
41.77%
PUMP
Propetro Holding
8.75
3.56
68.59%
LBRT
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18.98
6.87
56.69%
Patterson-UTI Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Patterson-UTI Highlights Q3 Rig Activity and Fleet Strategy
Positive
Sep 8, 2026
In a September 2026 investor presentation, Patterson-UTI reported that third-quarter pricing and activity were tracking in line with expectations, with U.S. rig count averaging 100 through the first two months and an anticipated exit at 104 active...
Business Operations and StrategyDividendsFinancial Disclosures
Patterson-UTI posts Q2 results and boosts drilling demand
Positive
Jul 30, 2026
Patterson-UTI Energy, Inc. is a leading U.S.-based oilfield services provider focused on drilling and completion services for oil and natural gas exploration and production companies. Its core offerings include contract drilling, integrated well c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.