Patterson-UTI (PTEN) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: 5.42%
• Average Volume (3M): 9.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -16.59%
• EPS Growth: 83.95%
• Country: US
• Employees: 9,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.04
• Shares Outstanding: 379,575,200
• 10 Day Avg. Volume: 8,683,719
• 30 Day Avg. Volume: 9,900,370
• PEG Ratio: 0.28
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 6.30
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 17.79
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $8.61
• Price Target Upside: 1.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -0.35
• Revenue Forecast (FY): $4.48B

• Rating: 65 Neutral
• Price Target: $9.50 ▲(11.63% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

PTEN scores mid-range primarily due to strong operating/free cash flow and a supportive earnings-call outlook focused on disciplined CapEx and higher shareholder returns, partially offset by volatile/negative net profitability and a notable 2025 revenue decline. Technically the stock is in a strong uptrend, but overbought momentum signals reduce the near-term technical score, while valuation is mixed due to a negative P/E despite an attractive dividend yield.

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

Overall fundamentals are mixed: income statement profitability is volatile with losses in 2024 and still slightly negative in 2025 alongside a sharp 2025 revenue decline, but the balance sheet leverage appears manageable and cash generation is a clear strength with strong operating cash flow and solid positive free cash flow.

Income Statement

Profitability has been volatile. After solid profitability in 2022–2023 (positive net margins ~6%), results swung back to losses in 2024 and remained slightly negative in 2025 (net margin ~-2%) despite a strong improvement from 2024’s much deeper loss. Revenue momentum also weakened: strong growth in 2022–2024 was followed by a meaningful decline in 2025 (about -23%), indicating a softer operating environment. A key positive is that cash-style earnings remained relatively strong in 2025 (EBITDA margin ~19%), but thin gross margin (~5%) and negative operating profit keep overall earnings quality mixed.

Balance Sheet

Leverage looks manageable for the industry, with debt-to-equity generally in the ~0.28–0.55 range and around ~0.38 in 2025, suggesting the company is not overly debt-loaded. Equity remains sizable, supporting balance-sheet resilience. The main weakness is returns: return on equity turned negative in 2024 and stayed slightly negative in 2025, reflecting that capital is not currently generating accounting profits consistently. Overall, the balance sheet is reasonably positioned, but profitability needs to stabilize to improve returns.

Cash Flow

Cash generation is a clear strength. Operating cash flow was strong in both 2024 and 2025 (about $1.18B and $0.96B), and free cash flow remained solidly positive in 2025 (~$372M). While free cash flow was lower than 2024, growth in 2025 is reported as very strong, and cash flow has been consistently healthier than net income in the down years—helpful during cyclical pressure. The key watch item is variability: free cash flow has moved around year-to-year, consistent with a cyclical drilling business.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.83B	5.38B	4.15B	2.65B	1.36B
Gross Profit	229.86M	286.17M	603.72M	317.10M	-574.04M
EBITDA	907.78M	286.89M	1.09B	692.06M	171.38M
Net Income	-93.64M	-968.03M	246.29M	154.66M	-654.54M
Balance Sheet
Total Assets	5.57B	5.83B	7.42B	3.14B	2.96B
Cash, Cash Equivalents and Short-Term Investments	420.64M	239.18M	192.68M	137.55M	117.52M
Total Debt	1.28B	1.30B	1.35B	855.65M	877.32M
Total Liabilities	2.35B	2.36B	2.60B	1.48B	1.35B
Stockholders Equity	3.22B	3.47B	4.81B	1.67B	1.61B
Cash Flow
Free Cash Flow	372.19M	497.15M	390.22M	129.39M	-70.82M
Operating Cash Flow	961.22M	1.18B	1.01B	566.19M	95.50M
Investing Cash Flow	-567.15M	-654.74M	-1.02B	-413.23M	-131.59M
Financing Cash Flow	-210.73M	-474.99M	65.57M	-133.38M	-71.93M

Patterson-UTI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 8.51 is above the 20-day moving average (MA) of 8.22, above the 50-day MA of 7.28, and above the 200-day MA of 6.14, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 82.43 is Negative, 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
OII	77 Outperform	$3.53B	10.14	39.64%	―	8.71%	72.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PTEN	65 Neutral	$3.23B	-34.88	-2.80%	5.42%	-16.59%	83.95%
RIG	65 Neutral	$7.15B	-2.07	-31.70%	―	16.93%	-335.82%
NBR	64 Neutral	$1.15B	4.74	68.44%	―	6.52%	―
SDRL	58 Neutral	$2.73B	-35.36	-2.67%	―	-9.31%	-91.57%
HP	54 Neutral	$3.52B	-11.06	-11.41%	3.24%	35.89%	-148.39%

Patterson-UTI Corporate Events

Patterson-UTI posts Q4 loss, boosts dividend and outlook

On February 4, 2026, Patterson-UTI Energy reported that for the fourth quarter ended December 31, 2025, it generated $1.2 billion in revenue, a net loss attributable to common shareholders of $9 million, and adjusted EBITDA of $221 million, while full-year 2025 cash from operations reached $961 million and adjusted free cash flow totaled $416 million. Despite a challenging commodity environment and seasonally soft period, management highlighted resilient margins across its diversified drilling, completion and drilling products businesses, supported by cost controls and stable customer activity, and rewarded shareholders by raising the quarterly dividend by 25% to $0.10 per share. Segment results underscored solid U.S. rig utilization in Drilling Services, strong near-full utilization and steady pricing in Completion Services, and robust U.S. revenue per industry rig in Drilling Products, complemented by strategic investments in digital platforms such as the eos completions system and Vertex frac automation, as well as a new drill bit manufacturing facility in Saudi Arabia. Looking ahead, the company signaled modest near-term softness in completions due to winter weather but expects relatively stable drilling activity, slightly improved Drilling Products profitability driven by international growth, and disciplined 2026 capital spending below $500 million, reinforcing its focus on cash generation, fleet high-grading and maintaining significant capital returns to shareholders.

The most recent analyst rating on (PTEN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.

Patterson-UTI outlines 2026 growth, capex and cash returns

In an investor presentation dated January 2026, Patterson-UTI reported that in the fourth quarter of 2025 it averaged 93 active U.S. rigs in its drilling services segment and achieved better-than-expected cost control, while its completion services business experienced less seasonal downtime than anticipated and operated near full utilization of its natural gas-powered fracturing assets. The company signaled that it expects to deploy roughly 2 million hydraulic horsepower in the first quarter of 2026 with minimal spare capacity, to continue decommissioning older Tier II equipment through 2026, to keep 2026 capital expenditures net of asset sales below $500 million, and to deliver another year of strong adjusted free cash flow while maintaining its policy of returning at least 50% of adjusted free cash flow to shareholders, underpinned by scalable capex, a strong balance sheet with no senior note maturities until 2028, and an investment-grade credit rating.

The most recent analyst rating on (PTEN) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Patterson-UTI stock, see the PTEN Stock Forecast page.