Successful Integration and Strategic Positioning
Patterson-UTI has successfully integrated NexTier and Ulterra, solidifying its position in the oilfield services sector. The strategic moves have enhanced their operational excellence, customer relations, and free cash flow generation.
Strong Financial Returns and Shareholder Value
Patterson-UTI generated $570 million of free cash flow in the first four quarters since the NexTier and Ulterra transactions. They returned $346 million to shareholders through share repurchases and dividends, amounting to 15% of the current market cap.
Innovative Commercial Strategy
The company entered its first fully integrated drilling and completion arrangement under a performance-based agreement, showing strong results. This strategy is attracting potential new customers and has significant upside potential.
Electric Fleet Expansion
Patterson-UTI increased its electric horsepower to 155,000 in Q4, demonstrating capital discipline and a focus on upgrading its fleet.
International Growth Opportunities
Patterson-UTI signed a joint venture agreement in the UAE with ADNOC Drilling and SLB, marking a significant international opportunity.