Patterson-UTI reports Q2 EPS (13c), consensus (4c)

Reports Q2 revenue $1.2B, consensus $1.21B. “Our Q2 activity was in line with the market, and at the same time we see opportunities with our operational footprint, technology portfolio, and financial position to improve our market position in both drilling and completions,” said CEO Andy Hendricks. “…We remain focused on growing our digital and product portfolio to uniquely help our customers operate more safely and efficiently while also generating meaningful free cash flow for our investors…We believe if oil directed activity does not recover from current levels, we will likely see a larger negative impact on U.S. oil production than we have seen so far, which is encouraging for our longer-term outlook relative to current activity levels. In natural gas basins, activity improved slightly in Q2 and has remained steady into Q3. We are having increased conversations around additional natural gas directed activity as we approach 2026, and we continue to see long-term upside to natural gas directed activity as U.S. producers look to satisfy both rising domestic demand and growing global demand for U.S. LNG.” “Our balance sheet remains a key strategic advantage, with low leverage and strong liquidity,” said CFO Andy Smith. “…We expect free cash flow will accelerate in the second half of 2025, and a disciplined approach to capital allocation should lead to higher returns and drive long-term value for our shareholders.”