Patterson-UTI (PTEN) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 5.04%
• Average Volume (3M): 13.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 5.82%
• EPS Growth: -481.39%
• Country: US
• Employees: 9,200
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Drilling
• EPS (TTM): <0.01
• Shares Outstanding: 385,987,030
• 10 Day Avg. Volume: 15,010,614
• 30 Day Avg. Volume: 13,237,038
• PEG Ratio: -0.19
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.10
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 20.24
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $8.32
• Price Target Upside: 31.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 59 Neutral
• Price Target: $6.50 ▲(2.36%Upside)

Patterson-UTI's overall stock score reflects its financial stability and potential for recovery, bolstered by a strong balance sheet and positive cash flows. While the technical indicators are moderately positive, valuation concerns due to profitability issues weigh on the score. The earnings call and corporate events provide a cautiously optimistic outlook, but commodity price volatility remains a risk.

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 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

The financial performance of Patterson-UTI is mixed, with significant profitability challenges as indicated by negative net income and EBIT margins. However, the balance sheet is solid, with no current debt and positive cash flows, which provide a basis for potential 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.15B	5.38B	4.15B	2.65B	1.36B	1.12B
Gross Profit	215.16M	286.17M	603.72M	317.10M	-574.04M	-348.58M
EBITDA	182.69M	286.89M	1.09B	684.97M	171.38M	-214.46M
Net Income	-1.02B	-968.03M	246.29M	154.66M	-657.08M	-803.69M
Balance Sheet
Total Assets	5.77B	5.83B	7.42B	3.14B	2.96B	3.30B
Cash, Cash Equivalents and Short-Term Investments	225.20M	241.29M	192.68M	137.55M	117.52M	224.91M
Total Debt	1.29B	1.30B	1.35B	855.65M	877.32M	927.70M
Total Liabilities	2.33B	2.36B	2.60B	1.48B	1.35B	1.28B
Stockholders Equity	3.43B	3.47B	4.81B	1.67B	1.61B	2.02B
Cash Flow
Free Cash Flow	404.51M	497.15M	390.22M	129.39M	-70.82M	133.38M
Operating Cash Flow	1.02B	1.18B	1.01B	566.19M	95.50M	278.86M
Investing Cash Flow	-591.76M	-654.74M	-1.02B	-413.23M	-131.59M	-124.98M
Financing Cash Flow	-372.28M	-474.99M	65.57M	-133.38M	-71.93M	-103.15M

Patterson-UTI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.35
• 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 Positive. The current price of 6.35 is above the 20-day moving average (MA) of 6.10, above the 50-day MA of 5.91, and below the 200-day MA of 7.33, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 47.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.69B	5.43	12.75%	―	-15.60%	32.51%
HP	69 Neutral	$1.65B	7.55	7.57%	6.04%	12.23%	-37.06%
Sector *	68 Neutral	$15.14B	9.91	6.38%	5.21%	4.16%	-67.19%
BORR	65 Neutral	$504.94M	10.49	5.17%	3.79%	19.15%	15.37%
RIG	60 Neutral	$2.47B	―	-6.65%	―	24.47%	-55.45%
PTEN	59 Neutral	$2.35B	―	-24.93%	5.04%	5.82%	-481.39%
NBR	51 Neutral	$492.34M	―	-44.00%	―	-0.94%	-19.18%

Patterson-UTI Corporate Events

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.

Patterson-UTI Appoints New Chief Accounting Officer

On April 3, 2025, Patterson-UTI Energy, Inc. announced the appointment of Forrest Robinson as the new Chief Accounting Officer. Robinson, who previously served as the company’s corporate controller, brings extensive experience from his roles at Callon Petroleum Company and Newfield Exploration Company, as well as his background in audit practice at BDO USA, LLP. This strategic appointment is expected to strengthen the company’s financial leadership and enhance its operational efficiency.