Patterson-UTI Energy (PTEN)
NASDAQ:PTEN
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Patterson-UTI
(NASDAQ:PTEN)
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Rating:65Neutral
Price Target:
$13.00
▲(38.00% Upside)
Action:Reiterated
Date:05/27/26
The score is held back primarily by weakened financial performance (losses and thinner margins) despite solid cash generation and manageable leverage. Technicals are a key offset with a clear uptrend and positive momentum. Valuation is constrained by negative earnings, while the earnings call and recent financing/liquidity actions provide a supportive, cautiously improving outlook.
Positive Factors
Cash generation
Consistent operating cash flow and positive trailing‑12‑month free cash flow provide durable internal funding for capex, fleet upgrades, dividends and debt reduction. This steady cash generation cushions cyclical volatility and supports strategic investments over the next several quarters.
Negative Factors
Profitability deterioration
The company moved from healthy profitability in 2022–23 to net losses and compressed margins in the latest TTM. Persistent negative earnings hamper return on capital, limit reinvestment capacity and require a sustained recovery in activity or pricing to restore long‑term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and positive trailing‑12‑month free cash flow provide durable internal funding for capex, fleet upgrades, dividends and debt reduction. This steady cash generation cushions cyclical volatility and supports strategic investments over the next several quarters.
Read all positive factors
Patterson-UTI (PTEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.36B
Dividend Yield5.42%
Average Volume (3M)8.79M
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-9.41%
EPS Growth88.02%
CountryUS
Employees9,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.31
Shares Outstanding379,617,650
10 Day Avg. Volume7,174,395
30 Day Avg. Volume8,787,653
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 Cap0.92
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit9.74
Enterprise Value/Ebitda4.65
Forecast
1Y Price Target
$12.59Price Target Upside33.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$4.58B
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 P...
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:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presents a constructive and cautiously optimistic outlook: the company reported solid segment performance and healthy liquidity while highlighting clear signs of demand and early pricing recovery across drilling and completion services. Management emphasized disciplined capital allocation, fleet high-grading toward higher‑return natural-gas-powered equipment, and targeted technology investments tied to term contracts. Offsetting positives are a Q1 net loss, seasonal working-capital-driven negative free cash flow, weather-related disruption in completions (~$9M EBITDA impact), international disruption and input cost inflation (notably tungsten and diesel), and a deliberate choice not to reactivate older diesel fleets given questionable long-term returns. Overall, the positives around utilization, pricing momentum, balance sheet strength, and a clear plan to capture upside from rising U.S. shale activity outweigh the near-term headwinds.Positive Updates
Consolidated Revenue and Adjusted EBITDA
Total reported revenue of $1.117 billion for Q1 2026 and Adjusted EBITDA of $205 million (includes $3 million early contract termination revenue), demonstrating strong cash-generating operations despite seasonality.
Negative Updates
Net Loss and Seasonal Working Capital Headwind
Reported net loss attributable to common shareholders of $25 million (loss of $0.06 per share) in Q1. Seasonal working capital headwinds negatively impacted free cash flow for the quarter, with management noting FCF should be judged on a full-year basis due to seasonality.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue and Adjusted EBITDA
Total reported revenue of $1.117 billion for Q1 2026 and Adjusted EBITDA of $205 million (includes $3 million early contract termination revenue), demonstrating strong cash-generating operations despite seasonality.
Read all positive updates
Company Guidance
Patterson-UTI guided to a Q2 drilling-services cadence of roughly a 90-rig average with an expected exit above that average — targeting about 92–95 rigs depending on timing — and Drilling Services adjusted gross profit of ~ $130 million (which assumes ~$5 million of rig reactivation/mobilization OpEx and minimal revenue from those reactivations); Completion Services adjusted gross profit is expected to be ~ $105 million with near-full utilization (Q1 saw $680 million revenue and $98 million adj. gross profit, and a ~5‑day winter-storm impact that reduced results by ~$9 million); Drilling Products is forecast to have a slight QoQ decline in adj. gross profit (Q1 rev $80M, adj. gross profit $33M); Other adj. gross profit ~ $5 million; consolidated G&A ~ $67 million and DDA&I ~ $220 million in Q2; Q1 CapEx was $117 million (Drilling Services $54M, Completion Services $45M, Drilling Products $16M, Other/Corp $1M); Q1 cash was $337 million with $500 million revolver undrawn and no senior note maturities until 2028; board approved a $0.10/share quarterly dividend payable June 15 (record June 1); Q1 results included reported revenue $1.117 billion, adj. EBITDA $205 million, and a net loss of $25 million ($0.06/share) on a 380 million share weighted average, and management reiterated expectations for improving utilization/pricing, continued fleet high‑grading (nameplate horsepower declining this year with >15% of active HP 100% gas‑powered and ~90% at least partially gas‑powered by year‑end), and that working capital seasonality weighed on Q1 free cash flow but should turn into a tailwind in H2.Patterson-UTI Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.66B | 4.83B | 5.38B | 4.15B | 2.65B | 1.36B |
| Gross Profit | 410.78M | 229.86M | 286.17M | 603.72M | 317.10M | -574.04M |
| EBITDA | 859.62M | 907.78M | 286.89M | 1.09B | 692.06M | 171.38M |
| Net Income | -119.27M | -93.64M | -968.03M | 246.29M | 154.66M | -654.54M |
Balance Sheet | ||||||
| Total Assets | 5.36B | 5.57B | 5.83B | 7.42B | 3.14B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 337.24M | 420.64M | 239.18M | 192.68M | 137.55M | 117.52M |
| Total Debt | 47.51M | 1.28B | 1.30B | 1.35B | 855.65M | 877.32M |
| Total Liabilities | 2.19B | 2.35B | 2.36B | 2.60B | 1.48B | 1.35B |
| Stockholders Equity | 3.17B | 3.22B | 3.47B | 4.81B | 1.67B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 273.11M | 372.19M | 497.15M | 390.22M | 129.39M | -70.82M |
| Operating Cash Flow | 816.94M | 961.22M | 1.18B | 1.01B | 566.19M | 95.50M |
| Investing Cash Flow | -508.68M | -567.15M | -654.74M | -1.02B | -413.23M | -131.59M |
| Financing Cash Flow | -192.13M | -210.73M | -474.99M | 65.57M | -133.38M | -71.93M |
Patterson-UTI Technical Analysis
Positive
9.42
Price Trends
11.26
Positive
9.66
Positive
7.67
Positive
Market Momentum
0.21
Positive
44.19
Neutral
10.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTEN, the sentiment is Positive. The current price of 9.42 is below the 20-day moving average (MA) of 12.05, below the 50-day MA of 11.26, and above the 200-day MA of 7.67, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 10.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.87B | 11.23 | 34.53% | ― | 2.39% | 88.22% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $4.36B | -35.96 | -3.67% | 5.42% | -9.41% | 88.02% | |
64 Neutral | $6.90B | -2.49 | -32.79% | ― | 12.90% | -274.70% | |
64 Neutral | $2.96B | -124.06 | -0.84% | ― | 7.91% | -120.67% | |
61 Neutral | $1.44B | 6.37 | 40.63% | ― | 10.21% | ― | |
60 Neutral | $3.85B | -10.12 | -14.16% | 3.24% | 29.73% | -272.28% |
* Energy Sector Average
PTEN
Patterson-UTI
11.30
6.07
116.10%
HP
Helmerich & Payne
38.07
23.37
159.00%
NBR
Nabors Industries
93.28
67.47
261.41%
OII
Oceaneering International
38.29
19.22
100.79%
RIG
Transocean
6.22
3.73
149.80%
SDRL
Seadrill Limited
47.95
24.75
106.68%
Patterson-UTI Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Patterson-UTI Extends Revolving Credit Facility, Bolstering Liquidity
Positive
Apr 28, 2026
On April 24, 2026, Patterson-UTI Energy, Inc. amended its existing revolving credit facility, extending the maturity date for $450 million of revolving credit commitments from January 31, 2030, to January 31, 2031. The amendment also reallocated $...
Business Operations and StrategyDividendsFinancial Disclosures
Patterson-UTI Reports Q1 2026 Results, Sees Activity Rebound
Positive
Apr 23, 2026
Patterson-UTI Energy reported first-quarter 2026 revenue of $1.1 billion, a net loss attributable to common stockholders of $25 million and adjusted EBITDA of $205 million, and declared a $0.10 per share dividend payable June 15, 2026 to sharehold...
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.