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Patterson-Uti Energy (PTEN)
NASDAQ:PTEN
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Patterson-UTI (PTEN) AI Stock Analysis

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PTEN

Patterson-UTI

(NASDAQ:PTEN)

Rating:52Neutral
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 (PTEN) vs. SPDR S&P 500 ETF (SPY)

Patterson-UTI Business Overview & Revenue Model

Company DescriptionPatterson-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 MoneyPatterson-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 Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -1.13%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments such as stable oil prices, strong financials, and successful integration of acquisitions. However, these were tempered by a reported net loss and challenges in drilling and completion activities. Despite the earnings and operational challenges, the company maintains a strong liquidity position and is optimistic about future prospects with strategic investments and digital innovations.
Q2-2025 Updates
Positive Updates
Stable Oil Prices
Oil prices have stabilized in the mid-$60 per barrel range, which is encouraging for future drilling and completion activity.
Emerald Fleet Utilization
The Emerald fleet of 100% natural gas-powered equipment remains fully utilized, showing strong demand for cleaner energy solutions.
Strong Financial Position
Patterson-UTI closed the quarter with $186 million in cash and an undrawn $500 million revolving credit facility, indicating strong liquidity.
Positive Free Cash Flow
The company is poised to see significant free cash flow in the second half of the year, exceeding dividend requirements.
Digital Performance Center
The company's PTEN Digital Performance Center is enhancing customer efficiency through automation and machine learning.
Successful Integration of Acquisitions
The integration of NexTier and Ulterra is yielding strategic benefits beyond cost synergies, positioning the company for future growth.
Negative Updates
Net Loss Reported
The company reported a net loss of $49 million, or $0.13 per share, including a $28 million impairment related to Colombian drilling operations.
Moderating Activity
The U.S. Contract Drilling business tracked industry activity with the rig count expected to decline into the mid-90s in the third quarter.
Completion Services Challenges
The Completion Services segment saw slightly reduced activity, with gaps in the calendar for several large dedicated fleets.
Colombian Operations Impairment
A $28 million impairment was reported related to the company's drilling operations in Colombia.
Company Guidance
During the Patterson-UTI Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating a moderated drilling activity in the third quarter, with an expected average rig count in the mid-90s, reflecting a sequential decline from the second quarter's 104 rigs. Despite a net loss of $49 million or $0.13 per share, influenced by a $28 million impairment in Colombian drilling operations, the company saw a resilient performance in its Completions Services segment with $719 million in revenue and an adjusted gross profit of $100 million. Patterson-UTI maintained a strong balance sheet with $186 million in cash and a $500 million undrawn revolver, projecting significant free cash flow in the latter half of the year. The company continues to invest in technology, with the PTEN Digital Performance Center and automated hydraulic fracturing technology, Vertex, poised to enhance operational efficiencies and long-term shareholder value.

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
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.38B4.15B2.65B1.36B1.12B
Gross Profit286.17M603.72M317.10M-574.04M-348.58M
EBITDA286.89M1.09B684.97M171.38M-214.46M
Net Income-968.03M246.29M154.66M-657.08M-803.69M
Balance Sheet
Total Assets5.83B7.42B3.14B2.96B3.30B
Cash, Cash Equivalents and Short-Term Investments241.29M192.68M137.55M117.52M224.91M
Total Debt1.30B1.35B855.65M877.32M927.70M
Total Liabilities2.36B2.60B1.48B1.35B1.28B
Stockholders Equity3.47B4.81B1.67B1.61B2.02B
Cash Flow
Free Cash Flow497.15M390.22M129.39M-70.82M133.38M
Operating Cash Flow1.18B1.01B566.19M95.50M278.86M
Investing Cash Flow-654.74M-1.02B-413.23M-131.59M-124.98M
Financing Cash Flow-474.99M65.57M-133.38M-71.93M-103.15M

Patterson-UTI Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.10
Price Trends
50DMA
6.02
Positive
100DMA
6.39
Negative
200DMA
7.21
Negative
Market Momentum
MACD
-0.02
Positive
RSI
49.86
Neutral
STOCH
37.85
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.88B5.6912.75%-15.60%32.51%
67
Neutral
$15.28B9.736.25%5.18%4.49%-71.88%
64
Neutral
$1.67B7.787.57%6.96%12.23%-37.06%
63
Neutral
$2.73B-6.65%24.47%-55.45%
63
Neutral
$577.71M10.795.17%10.76%19.15%15.37%
52
Neutral
$2.35B-27.16%5.25%-7.98%-1011.04%
51
Neutral
$522.64M-44.00%-0.94%-19.18%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PTEN
Patterson-UTI
6.10
-3.90
-39.00%
HP
Helmerich & Payne
16.82
-21.61
-56.23%
NBR
Nabors Industries
33.29
-68.45
-67.28%
RIG
Transocean
3.08
-2.72
-46.90%
BORR
Borr Drilling
2.23
-4.27
-65.69%
SDRL
Seadrill Limited
30.38
-24.68
-44.82%

Patterson-UTI Corporate Events

Business Operations and StrategyFinancial Disclosures
Patterson-UTI Reports Q2 2025 Net Loss Amid Impairment
Negative
Jul 24, 2025

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Patterson-UTI Holds Annual Stockholders Meeting June 2025
Neutral
Jun 5, 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.

Business Operations and StrategyFinancial Disclosures
Patterson-UTI Highlights 2025 Strategic Focus and Updates
Neutral
Jun 2, 2025

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.

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.Date of analysis: Jul 25, 2025