Patterson-UTI (PTEN) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 5.25%
• Average Volume (3M): 10.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -7.98%
• EPS Growth: -1011.04%
• Country: US
• Employees: 9,200
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.13
• Shares Outstanding: 385,987,030
• 10 Day Avg. Volume: 8,954,806
• 30 Day Avg. Volume: 10,934,324
• PEG Ratio: 0.43
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.75
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: -105.73
• Enterprise Value/Ebitda: 1.35
• 1Y Price Target: $7.58
• Price Target Upside: 24.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 52 Neutral
• Price Target: $6.00 ▼(-1.64%Downside)

Patterson-UTI's overall stock score of 52 reflects a company with mixed financial performance, marked by profitability challenges but strong liquidity and strategic investments. The technical analysis suggests a lack of direction, and the valuation highlights the impact of ongoing losses despite a high dividend yield. The earnings call provided a more optimistic outlook with future growth potential through technological advancements.

Positive Factors

Earnings

PTEN's 2Q Adjusted EBITDA of $231 million surpassed consensus by 3%, driven by strong performance in Completion Services.

Future Growth Opportunities

Management is engaging in increased discussions about additional gas-directed activity into 2026, indicating potential future growth opportunities.

Shareholder Returns

Patterson-UTI Energy returned $46 million to shareholders in 2Q through dividends and share repurchases, showcasing strong cash returns.

Negative Factors

Financial Performance

Patterson-UTI Energy's Free Cash Flow in 2Q missed consensus primarily due to a higher working capital build.

Operational Performance

Drilling Services appear modestly weaker in both activity and margins.

Patterson-UTI Business Overview & Revenue Model

Company Description

Patterson-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 Money

Patterson-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 show negative net income and EBIT margins, a solid balance sheet with no debt, and positive cash flows. The company faces profitability challenges but maintains stability in cash flow generation, suggesting potential for recovery.

Income Statement

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

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

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	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
EBITDA	286.89M	1.09B	684.97M	171.38M	-214.46M
Net Income	-968.03M	246.29M	154.66M	-657.08M	-803.69M
Balance Sheet
Total Assets	5.83B	7.42B	3.14B	2.96B	3.30B
Cash, Cash Equivalents and Short-Term Investments	241.29M	192.68M	137.55M	117.52M	224.91M
Total Debt	1.30B	1.35B	855.65M	877.32M	927.70M
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

• Technical Analysis Sentiment: Neutral
• Last Price: 6.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTEN, the sentiment is Neutral. The current price of 6.1 is below the 20-day moving average (MA) of 6.15, above the 50-day MA of 6.02, and below the 200-day MA of 7.21, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 37.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PTEN.

Patterson-UTI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDRL	71 Outperform	$1.88B	5.69	12.75%	―	-15.60%	32.51%
Sector *	67 Neutral	$15.28B	9.73	6.25%	5.18%	4.49%	-71.88%
HP	64 Neutral	$1.67B	7.78	7.57%	6.96%	12.23%	-37.06%
RIG	63 Neutral	$2.73B	―	-6.65%	―	24.47%	-55.45%
BORR	63 Neutral	$577.71M	10.79	5.17%	10.76%	19.15%	15.37%
PTEN	52 Neutral	$2.35B	―	-27.16%	5.25%	-7.98%	-1011.04%
NBR	51 Neutral	$522.64M	―	-44.00%	―	-0.94%	-19.18%

Patterson-UTI Corporate Events

Patterson-UTI Reports Q2 2025 Net Loss Amid Impairment

Patterson-UTI Energy reported a net loss of $49 million for the second quarter of 2025, impacted by a $28 million non-cash asset impairment related to its Colombian drilling operations. Despite the loss, the company returned $46 million to shareholders and highlighted its strategic focus on technology and digital solutions to improve market positioning. The company noted increased oil market volatility and cautious customer behavior due to macroeconomic uncertainties but remains optimistic about long-term opportunities, particularly in natural gas basins. Patterson-UTI’s technological advancements, such as the Cortex® Automation Platform and Vertex™ frac automation, are expected to enhance customer relationships and drive future growth.

The most recent analyst rating on (PTEN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.

Patterson-UTI Holds Annual Stockholders Meeting June 2025

On June 5, 2025, Patterson-UTI Energy, Inc. held its Annual Meeting of Stockholders, where 353,304,006 of the 385,978,013 outstanding shares were represented. During the meeting, eleven directors were elected to the board, PricewaterhouseCoopers LLP was ratified as the independent accounting firm for 2025, and the compensation of named executive officers was approved on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (PTEN) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.

Patterson-UTI Highlights 2025 Strategic Focus and Updates

In its recent investor presentation, Patterson-UTI Energy, Inc. highlighted its operational updates and strategic focus for 2025. The company reported operating 100 rigs in the U.S. and anticipates a slight decrease in activity by the end of the second quarter of 2025. Despite some job delays, the completion services segment maintains high utilization of natural gas-powered assets. Patterson-UTI expects stronger adjusted free cash flow in the latter half of 2025, with a flexible capital expenditure budget. The company emphasizes its differentiated operating capabilities and aims to return at least 50% of adjusted free cash flow to investors, supported by a strong capital structure with no senior note maturities until 2028.

The most recent analyst rating on (PTEN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.