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Patterson-UTI
(NASDAQ:PTEN)
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Rating:56Neutral
Price Target:
$9.50
▼(-6.86% Downside)
Action:Reiterated
Date:07/30/26
PTEN scores in the mid-range primarily due to improving revenue and solid operating cash generation with manageable leverage, but ongoing GAAP losses and thin/compressed margins cap the Financial Performance score. The latest earnings call was a meaningful positive (stronger Q3 guidance, pricing gains, and dividend/free-cash-flow coverage), while technicals are a headwind with the stock trading below key short- and medium-term moving averages. Valuation is supported by the dividend yield, but the negative P/E reflects loss-making results.
Positive Factors
Operating cash generation
Consistent, material operating cash flow well above GAAP losses shows robust cash conversion from operations. This durable cash generation funds capex, fleet upgrades, dividends and debt actions over the next 2–6 months, reducing reliance on capital markets during cyclical upswings.
Negative Factors
High DD&A and impairments
Elevated depreciation, depletion and impairment charges are a persistent drag on GAAP profitability and reflect a heavy capital base. Over the medium term these non‑cash charges limit reported earnings recovery and can compress returns even as cash metrics improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash generation
Consistent, material operating cash flow well above GAAP losses shows robust cash conversion from operations. This durable cash generation funds capex, fleet upgrades, dividends and debt actions over the next 2–6 months, reducing reliance on capital markets during cyclical upswings.
Read all positive factors
Patterson-UTI Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profit contribution and margins for each business line, highlighting which segments drive cash flow, where efficiencies or losses lie, and how segment performance affects overall profitability and valuation.
Shows profit contribution and margins for each business line, highlighting which segments drive cash flow, where efficiencies or losses lie, and how segment performance affects overall profitability and valuation.
Data provided by:
The Fly
The FlyPatterson-UTI (PTEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.98B
Dividend Yield3.44%
Average Volume (3M)9.64M
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth-6.92%
EPS Growth91.45%
CountryUS
Employees7,900
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.23
Shares Outstanding379,617,650
10 Day Avg. Volume8,315,075
30 Day Avg. Volume9,638,392
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.73
Price to Sales (P/S)0.49
P/FCF Ratio6.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.10Price Target Upside28.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$4.76B
Patterson-UTI Business Overview & Revenue Model
Company Description
Patterson-UTI Energy, Inc. (PTEN) is a key provider of onshore contract drilling services for oil and natural gas exploration and production companies. Its operations span across the United States and international markets. The company's diverse b...
How the Company Makes Money
PTEN generates revenue by providing oilfield services to exploration and production (E&P) customers under service contracts and daywork arrangements tied to customers’ drilling and completion activity levels. A core revenue stream is contract land...
Patterson-UTI Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and improving operational and market picture: sequential revenue and adjusted EBITDA growth, significant pricing gains (drilling contract rates +10–15% vs Q1), a sold-out high-end completions market, record Drilling Products international revenue, and clear fleet/technology investments that position the company to capture higher-spec work into 2027. Offsetting items include a GAAP net loss driven by non-cash Colombia exit charges and minority interest write-downs, a working capital-driven cash drag in Q2 (ERP transition and seasonality), and elevated DD&A/impairment levels. On balance the positives — strong revenue momentum, pricing recovery, targeted capital allocation, and liquidity/financing actions — materially outweigh the near-term negatives.Positive Updates
Quarterly Revenue Growth
Total reported revenue for Q2 2026 was $1,228,000,000, a 10% increase sequentially versus Q1 2026, driven by stronger activity and pricing across all businesses.
Negative Updates
Net Loss and Non-Cash Charges
The company reported a net loss attributable to common shareholders of $20 million, or $0.05 per share. The quarter included non-cash charges of ~$21 million related to the exit of the Contract Drilling business in Colombia and ~$5 million for write-down of a minority interest (total ~ $26 million of non-cash charges disclosed).
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Total reported revenue for Q2 2026 was $1,228,000,000, a 10% increase sequentially versus Q1 2026, driven by stronger activity and pricing across all businesses.
Read all positive updates
Company Guidance
Guidance highlights: for Q3 Patterson‑UTI expects Drilling Services to average ~100 rigs (Q2 avg 92 rigs, 8,361 operating days) and to exit the quarter above 100, with Drilling Services adjusted gross profit ≈ $145M (Q2 $114M; $134M ex‑$20M Colombia non‑cash); Completion Services adjusted gross profit ≈ $140M (Q2 $123M) and Drilling Products adjusted gross profit ≈ $40M (Q2 $37M); Other adjusted gross profit ≈ $5M; G&A ≈ $70M and DD&A ≈ $225M for Q3. Q2 reported revenue was $1,228M, adjusted EBITDA $232M, net loss $20M (‑$0.05/share; weighted avg shares 380M), Q2 CapEx was $156M (Drilling $60M, Completions $75M, Products $19M) and 2026 CapEx net is expected ≈ $600M; cash at quarter end $203M with $0 drawn on a $500M revolver, senior note maturities deferred (refinanced to 2036) and interest expense expected ≈ $20M/quarter. Management expects 2026 adjusted free cash flow to more than cover dividends (board approved $0.10/share quarterly) and to improve meaningfully in 2027; by year‑end ~90% of active frac horsepower should be gas‑powered, and drilling day rates on new contracts were up roughly 10%–15% vs Q1 with upgraded rigs commanding several thousand dollars/day premiums.Patterson-UTI Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.67B | 4.83B | 5.38B | 4.15B | 2.65B | 1.36B |
| Gross Profit | 663.32M | 229.86M | 286.17M | 603.72M | 317.10M | -574.04M |
| EBITDA | 841.60M | 907.78M | 286.89M | 1.09B | 692.06M | 171.38M |
| Net Income | -89.72M | -93.64M | -968.03M | 246.29M | 154.66M | -654.54M |
Balance Sheet | ||||||
| Total Assets | 5.37B | 5.57B | 5.83B | 7.42B | 3.14B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 203.17M | 420.64M | 239.18M | 192.68M | 137.55M | 117.52M |
| Total Debt | 1.26B | 1.28B | 1.30B | 1.35B | 855.65M | 877.32M |
| Total Liabilities | 2.27B | 2.35B | 2.36B | 2.60B | 1.48B | 1.35B |
| Stockholders Equity | 3.10B | 3.22B | 3.47B | 4.81B | 1.67B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 177.72M | 372.19M | 497.15M | 390.22M | 129.39M | -70.82M |
| Operating Cash Flow | 733.27M | 961.22M | 1.18B | 1.01B | 566.19M | 95.50M |
| Investing Cash Flow | -537.22M | -567.15M | -654.74M | -1.02B | -413.23M | -131.59M |
| Financing Cash Flow | -175.18M | -210.73M | -474.99M | 65.57M | -133.38M | -71.93M |
Patterson-UTI Technical Analysis
Negative
10.20
Price Trends
10.30
Negative
10.69
Negative
8.75
Positive
Market Momentum
-0.05
Negative
45.02
Neutral
48.03
Neutral
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 10.2 is above the 20-day moving average (MA) of 9.89, below the 50-day MA of 10.30, and above the 200-day MA of 8.75, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 48.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PTEN.
Patterson-UTI Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.86B | 14.02 | 32.92% | ― | 3.84% | 75.32% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $1.27B | 5.77 | 36.75% | ― | 6.05% | ― | |
57 Neutral | $2.79B | -39.68 | -2.45% | ― | 7.91% | -120.67% | |
56 Neutral | $3.98B | -45.43 | -2.82% | 3.53% | -6.92% | 91.45% | |
55 Neutral | $3.45B | -9.15 | -14.16% | 2.83% | 29.73% | -272.28% | |
53 Neutral | $5.94B | -1.74 | -20.24% | ― | 12.90% | -274.70% |
* Energy Sector Average
PTEN
Patterson-UTI
10.05
4.95
97.21%
HP
Helmerich & Payne
37.07
21.67
140.68%
NBR
Nabors Industries
83.11
49.75
149.13%
OII
Oceaneering International
49.25
27.83
129.93%
RIG
Transocean
5.16
2.21
74.92%
SDRL
Seadrill Limited
42.94
14.77
52.43%
Patterson-UTI Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Patterson-UTI posts Q2 results and boosts drilling demand
Positive
Jul 30, 2026
Patterson-UTI Energy, Inc. is a leading U.S.-based oilfield services provider focused on drilling and completion services for oil and natural gas exploration and production companies. Its core offerings include contract drilling, integrated well c...
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Patterson-UTI Expands Equity Plan and Refinances Senior Notes
Positive
Jun 4, 2026
At the June 4, 2026 annual meeting, Patterson-UTI stockholders approved an amendment to the 2021 Long-Term Incentive Plan, adding 28.9 million shares to the pool available for equity-based awards and thereby expanding the company’s capacity ...
Business Operations and StrategyFinancial Disclosures
Patterson-UTI Sees U.S. Shale Activity Accelerating in 2026
Positive
May 26, 2026
Patterson-UTI reported that U.S. shale activity is inflecting higher in 2026, and it expects to exit the second quarter with about 95 active rigs and to surpass 100 active rigs in the United States by year-end, supported by discussions with both p...
Business Operations and StrategyPrivate Placements and Financing
Patterson-UTI completes $500 million senior notes offering
Positive
May 19, 2026
On May 19, 2026, Patterson-UTI Energy, Inc. completed a $500 million offering of 6.050% senior unsecured notes due May 15, 2036, with interest payable semiannually each May 15 and November 15. The notes rank pari passu with the company’s oth...
Business Operations and StrategyPrivate Placements and Financing
Patterson-UTI Announces Senior Notes Offering and Redemption Plan
Positive
May 6, 2026
On May 5, 2026, Patterson-UTI Energy, Inc. entered into an underwriting agreement with a syndicate of banks to issue $500 million of 6.050% Senior Notes due 2036, with closing expected on May 19, 2026. The company plans to use the net proceeds, al...
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.