Patterson-UTI (PTEN) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 5.49%
• Average Volume (3M): 8.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -16.59%
• EPS Growth: 83.95%
• Country: US
• Employees: 9,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.06
• Shares Outstanding: 379,242,030
• 10 Day Avg. Volume: 8,770,195
• 30 Day Avg. Volume: 8,148,429
• PEG Ratio: <0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 14.06
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: $7.07
• Price Target Upside: 21.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.31
• Revenue Forecast (FY): $4.78B

• Rating: 56 Neutral
• Price Target: $6.00 ▲(2.92% Upside)

Patterson-UTI's overall stock score reflects significant financial challenges, including declining revenues and profitability, which weigh heavily on the score. The company's technical indicators suggest mixed momentum, while the valuation is impacted by a negative P/E ratio, though the dividend yield is a positive aspect. The earnings call provided some optimism with technological advancements and cash flow management, but these are tempered by ongoing financial and regional challenges.

Positive Factors

Technological Advancements

Investing in technology enhances operational efficiency and service offerings, positioning the company for long-term competitiveness in the oil and gas sector.

Strong Cash Flow Management

Effective cash flow management and a robust balance sheet provide financial stability and flexibility for future investments and shareholder returns.

Commitment to Shareholder Returns

A strong focus on shareholder returns through dividends and buybacks enhances investor confidence and supports stock value over time.

Negative Factors

Declining Revenue

Declining revenue and net losses indicate challenges in maintaining profitability, which could impact long-term financial health if not addressed.

Regional Activity Declines

Decreased activity in key regions like the Permian Basin can reduce revenue and market share, affecting the company's competitive position.

International Revenue Decline

A decline in international revenue, particularly in strategic markets, can weaken global market presence and profitability.

Patterson-UTI Business Overview & Revenue Model

Company Description

Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. The Contract Drilling Services segment markets its contract drilling services primarily in west Texas, Appalachia, Rockies, Oklahoma, South Texas, East Texas, and Colombia. As of December 31, 2021, this segment had a drilling fleet of 192 marketable land-based drilling rigs. The Pressure Pumping Services segment offers pressure pumping services that consist of well stimulation for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, cementing, and acid pumping services in Texas and the Appalachian region. The Directional Drilling Services segment provides a suite of directional drilling services, including directional drilling and measurement-while-drilling services; supply and rental of downhole performance motors; and software and services that enhances the accuracy of directional and horizontal wellbores, wellbore quality, and on-bottom rate of penetration. It also services equipment to drilling contractors, as well as provides electrical controls and automation to the energy, marine, and mining industries in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.

How the Company Makes Money

Patterson-UTI generates revenue primarily through its two key segments: contract drilling and pressure pumping services. In the contract drilling segment, the company earns money by leasing its drilling rigs to exploration and production companies, charging a day rate for the use of its rigs along with ancillary services. The pressure pumping segment generates revenue by providing hydraulic fracturing services, which involve the pumping of high-pressure fluid into oil and gas wells to enhance production. Additionally, the company may benefit from cost-sharing arrangements and strategic partnerships with major oil and gas operators. Fluctuations in oil and gas prices can significantly impact demand for these services, thereby affecting revenue. The company's operational efficiencies, combined with its focus on technology and safety, further contribute to its competitive edge and profitability in the sector.

Patterson-UTI Financial Statement Overview

Summary

Patterson-UTI faces significant challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet shows moderate leverage and a strong equity base, providing some financial stability. Cash flow generation is relatively strong, but declining free cash flow growth is a concern. The company needs to focus on improving operational efficiency and profitability to enhance its financial health.

Income Statement

Patterson-UTI's income statement shows a challenging period with declining revenue and profitability. The TTM data indicates a negative revenue growth rate of -3.61%, and the company is operating at a net loss with a net profit margin of -2.81%. The gross profit margin is low at 4.54%, and the EBIT margin is negative, reflecting operational inefficiencies. However, the EBITDA margin is relatively healthier at 18.75%, suggesting some operational cash flow strength.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.38, which is manageable within the industry. However, the return on equity is negative at -4.03%, indicating unprofitable use of equity capital. The equity ratio stands at 58.82%, showing a solid equity base relative to total assets, which provides some financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -13.33%, but the operating cash flow to net income ratio is strong at 1.13, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.33, suggesting that while free cash flow is positive, it is not sufficient to cover the net loss fully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.84B	5.38B	4.15B	2.65B	1.36B	1.12B
Gross Profit	219.76M	286.17M	603.72M	317.10M	-574.04M	-348.58M
EBITDA	907.15M	286.89M	1.09B	692.06M	171.38M	-219.34M
Net Income	-136.12M	-968.03M	246.29M	154.66M	-654.54M	-803.69M
Balance Sheet
Total Assets	5.53B	5.83B	7.42B	3.14B	2.96B	3.71B
Cash, Cash Equivalents and Short-Term Investments	184.78M	239.18M	192.68M	137.55M	117.52M	224.91M
Total Debt	1.29B	1.30B	1.35B	855.65M	877.32M	927.70M
Total Liabilities	2.28B	2.36B	2.60B	1.48B	1.35B	1.69B
Stockholders Equity	3.25B	3.47B	4.81B	1.67B	1.61B	2.02B
Cash Flow
Free Cash Flow	288.66M	497.15M	390.22M	129.39M	-70.82M	133.38M
Operating Cash Flow	879.53M	1.18B	1.01B	566.19M	95.50M	278.86M
Investing Cash Flow	-566.77M	-654.74M	-1.02B	-413.23M	-131.59M	-124.98M
Financing Cash Flow	-242.23M	-474.99M	65.57M	-133.38M	-71.93M	-103.15M

Patterson-UTI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.83 is below the 20-day moving average (MA) of 6.00, below the 50-day MA of 5.96, and below the 200-day MA of 5.94, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 12.42 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HP	73 Outperform	$2.75B	-16.80	-5.87%	3.24%	35.89%	-148.39%
OII	73 Outperform	$2.36B	10.33	28.92%	―	8.71%	72.09%
NBR	69 Neutral	$746.41M	5.31	47.77%	―	6.52%	―
SDRL	66 Neutral	$1.96B	63.22	1.18%	―	-9.31%	-91.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
RIG	60 Neutral	$4.37B	-1.22	-32.05%	―	16.93%	-335.82%
PTEN	56 Neutral	$2.21B	-16.54	-4.00%	5.49%	-16.59%	83.95%

Patterson-UTI Corporate Events

Patterson-UTI Reports Q3 2025 Revenue and Loss

Patterson-UTI Energy reported a total revenue of $1.2 billion for the third quarter of 2025, with a net loss of $36 million attributable to common stockholders. Despite the challenging environment, the company managed to return $64 million to shareholders and maintained strong operational performance across its segments. The company anticipates steady activity levels into 2026, with a focus on optimizing business operations and enhancing commercial strategies. The introduction of new technologies like the Vertex™ Automated Controls is expected to improve efficiency and asset management. The company also noted that U.S. oil production might face pressure due to declining rig counts, while the outlook for natural gas remains strong.

Patterson-UTI Board Member Leslie Beyer Resigns

On September 18, 2025, Leslie A. Beyer resigned from the Board of Directors of Patterson-UTI Energy, Inc. following her confirmation by the U.S. Senate as Assistant Secretary for Land and Minerals Management at the U.S. Department of the Interior. The company expressed gratitude for Beyer’s contributions, acknowledging her role in shaping industry policy and supporting the energy workforce, and anticipates her impactful service in her new governmental position.