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Patterson-Uti Energy (PTEN)
NASDAQ:PTEN
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Patterson-UTI
(NASDAQ:PTEN)55Neutral
Patterson-UTI (PTEN) vs. S&P 500 (SPY)
Market Cap
$2.90B
Dividend Yield4.26%
Average Volume (3M)10.74M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth29.70%
EPS Growth-341.43%
CountryUS
Employees9,200
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)-2.48
Shares Outstanding386,390,300
10 Day Avg. Volume12,310,930
30 Day Avg. Volume10,738,380
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.54
Price to Cash Flow (P/CF)2.30
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside46.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Patterson-UTI Business Overview & Revenue Model
Company DescriptionPatterson-UTI Energy, Inc. (PTEN) is a leading provider of oilfield services and products to exploration and production companies in the United States. The company operates primarily in the sectors of contract drilling, pressure pumping, and directional drilling. Patterson-UTI owns and operates one of the largest and most technologically advanced fleets of land-based drilling rigs in North America, offering services that enhance the efficiency and safety of oil and gas extraction.
How the Company Makes MoneyPatterson-UTI generates revenue through its primary business segments: contract drilling, pressure pumping, and directional drilling services. The contract drilling segment is the largest contributor, where the company provides rigs on a day-rate basis to oil and gas operators who require drilling services. The pressure pumping segment involves hydraulic fracturing services that aid in the extraction of oil and natural gas from unconventional reservoirs. Directional drilling services enhance wellbore placement and trajectory control, which are crucial for efficient resource recovery. Key factors contributing to the company's earnings include the demand for energy, the level of drilling activity in North America, and its ability to maintain a modern and efficient fleet. Patterson-UTI may also engage in strategic partnerships and alliances that enhance its service offerings and market reach.
Patterson-UTI Financial Statement Overview
Summary
Patterson-UTI has shown revenue growth and cash flow improvements, but profitability remains a significant challenge with consistent net losses. The balance sheet shows a reduced debt load, yet negative equity return highlights ongoing financial struggles. The company needs to address profitability to enhance its overall financial health.Income Statement
The company's revenue has shown growth over the years, with a significant increase from $1.12 billion in 2020 to $5.38 billion in 2024. However, the net profit margin is negative, with a net loss reported in 2024, indicating profitability issues. The gross profit margin has improved, but EBIT margins remain negative, reflecting operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved as total debt reduced significantly by 2024. However, the return on equity is negative due to ongoing losses, which is a concern for investors. The equity ratio is stable, indicating a balanced capital structure, but the negative equity growth is a risk.40
Negative
Cash Flow
Operating cash flow has improved, providing a strong cash foundation for the company. Free cash flow has grown consistently, which is positive. However, with free cash flow to net income ratio being skewed due to net losses, sustainability of cash flow is uncertain.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.38B | 4.15B | 2.65B | 1.36B | 1.12B | Gross Profit |
| 286.17M | 603.72M | 317.10M | -574.04M | -348.58M | EBIT |
| -889.74M | 351.95M | -273.76M | -677.75M | -892.26M | EBITDA |
| 286.89M | 1.09B | 684.97M | 171.38M | -214.46M | Net Income Common Stockholders |
| -968.03M | 246.29M | 154.66M | -657.08M | -803.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 241.29M | 192.68M | 137.55M | 117.52M | 224.91M | Total Assets |
| 5.83B | 7.42B | 3.14B | 2.96B | 3.30B | Total Debt |
| 79.44M | 1.35B | 855.65M | 877.32M | 927.70M | Net Debt |
| -161.85M | 1.15B | 718.10M | 759.80M | 702.78M | Total Liabilities |
| 2.36B | 2.60B | 1.48B | 1.35B | 1.28B | Stockholders Equity |
| 3.47B | 4.81B | 1.67B | 1.61B | 2.02B |
| Cash Flow | Free Cash Flow | |||
| 497.15M | 390.22M | 129.39M | -70.82M | 133.38M | Operating Cash Flow |
| 1.18B | 1.01B | 566.19M | 95.50M | 278.86M | Investing Cash Flow |
| -654.74M | -1.02B | -413.23M | -131.59M | -124.98M | Financing Cash Flow |
| -474.99M | 65.57M | -133.38M | -71.93M | -103.15M |
Patterson-UTI Technical Analysis
Negative
7.51
Price Trends
8.34
Negative
8.11
Negative
8.67
Negative
Market Momentum
-0.29
Positive
40.28
Neutral
18.10
Positive
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 7.51 is below the 20-day moving average (MA) of 8.25, below the 50-day MA of 8.34, and below the 200-day MA of 8.67, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 18.10 is Positive, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $42.47B | 14.41 | 18.47% | 2.00% | 9.10% | 55.56% | |
78 Outperform | $56.26B | 13.32 | 21.59% | 2.68% | 9.58% | 6.53% | |
75 Outperform | $21.70B | 8.83 | 25.14% | 2.72% | -0.32% | -3.41% | |
67 Neutral | $2.54B | 8.45 | 10.50% | 5.24% | -2.59% | -27.85% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
55 Neutral | $2.90B | ― | -23.39% | 4.26% | 29.70% | -341.43% | |
42 Neutral | $396.82M | ― | -89.17% | ― | -2.52% | -450.75% |
* Energy Sector Average
Performance Comparison
PTEN
Patterson-UTI
7.51
-4.06
-35.09%
BKR
Baker Hughes Company
42.89
12.31
40.26%
HAL
Halliburton
25.00
-10.82
-30.21%
HP
Helmerich & Payne
25.57
-12.62
-33.05%
NBR
Nabors Industries
41.32
-43.13
-51.07%
SLB
Schlumberger
41.37
-8.83
-17.59%
Patterson-UTI Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -9.52% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements and challenges. While the company achieved significant milestones in cash flow, debt reduction, and product performance, it faced a net loss and pricing pressures in some segments. The sentiment is balanced with optimism for future growth and market opportunities.Highlights
Strong Free Cash Flow and Shareholder Returns
Patterson-UTI Energy, Inc. delivered strong free cash flow in 2024 and returned significant capital to shareholders, reducing total share count by more than 6% and paying a cumulative dividend equal to 4% of the current market cap.
Debt Reduction
The company reduced net debt, including leases, by almost $100 million.
Record Performance in Drilling Products Segment
The drilling products segment outperformed industry activity, with US revenue down less than 5% despite a more than 10% decline in industry rig count, and international revenue improved. Downhole tools and product innovation revenue more than doubled in 2024.
Successful Launch of New Fuel Gas Technology
The new fuel gas technology allowed customers to use more trapped fuel gas, addressing challenges with fuel gas quality and reducing diesel displacement.
Emerald Fleet Expansion
The company operated more than 150,000 horsepower of natural gas powered completion equipment and expects to surpass 200,000 horsepower by mid-2025.
Lowlights
Net Loss for the Quarter
The company reported a net loss attributable to common shareholders of $52 million or $0.13 per share in the fourth quarter.
Pricing Pressure in Completions Business
Pricing in the completions business was under pressure, with expectations of continued pricing challenges into the first and second quarters of 2025.
Decline in US Contract Drilling Revenue
Despite strong margins, US contract drilling saw lower revenue in line with a slowdown in industry activity.
Company Guidance
During the fourth quarter of fiscal year 2024, Patterson-UTI Energy, Inc. presented robust financial performance and outlined strategic guidance for 2025 during their earnings call. The company reported total revenue of $1.162 billion and adjusted EBITDA of $225 million, despite facing industry-wide challenges. Their strategic initiatives led to strong free cash flow generation of $523 million for the year, with significant capital returns to shareholders, including a 6% reduction in total share count and a dividend payment amounting to 4% of their current market cap. The company also reduced net debt by nearly $100 million. Patterson-UTI Energy plans to continue allocating at least 50% of adjusted free cash flow to shareholders in 2025 through dividends and share buybacks. Looking ahead, they anticipate steady US drilling activity, supported by favorable oil and natural gas commodity prices, and aim to further integrate and optimize their service offerings to enhance margins. The company is also keen on expanding its natural gas-powered and integrated service offerings, expecting over 200,000 horsepower of Emerald natural gas-powered completion assets by mid-2025.Patterson-UTI Corporate Events
Business Operations and Strategy
Patterson-UTI Plans CapEx Reduction, Focus on Gas Basins
Positive
Jan 7, 2025
Patterson-UTI has announced plans to reduce capital expenditures in 2025 compared to 2024, while maintaining a steady rig count and shifting activity towards natural gas basins. The company aims to return at least 50% of free cash flow to investors, emphasizing a strong capital structure and a focus on maximizing margins through optimized resource allocation. With high utilization rates for its natural gas-powered assets, Patterson-UTI is strategically aligned with the most active exploration and production companies, contributing to predictable cash generation and industry-leading asset performance.
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.