Patterson-UTI (PTEN) AI Stock Analysis

• Market Cap: $2.18B
• Dividend Yield: 5.64%
• Average Volume (3M): 7.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -7.98%
• EPS Growth: -1011.04%
• Country: US
• Employees: 9,200
• Sector: Energy
• Sector Strength: 59
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.13
• Shares Outstanding: 385,167,500
• 10 Day Avg. Volume: 6,795,918
• 30 Day Avg. Volume: 7,728,935
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 25.34
• Enterprise Value/Ebitda: 169.19
• 1Y Price Target: $7.22
• Price Target Upside: 27.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 54 Neutral
• Price Target: $6.00 ▲(5.82% Upside)

Patterson-UTI's overall stock score reflects a company with significant challenges in profitability and valuation, offset by a strong balance sheet and positive cash flows. Technical indicators and corporate events provide some support, but market volatility and operational challenges remain key risks.

Positive Factors

Earnings

PTEN's 2Q Adjusted EBITDA of $231mm beat consensus by 3%, led by Completion Services, indicating strong operational performance.

Profitability

3Q guidance for Completion Services gross profit is better than most had expected, indicating resilience in profitability.

Shareholder Returns

PTEN returned $46mm to shareholders in 2Q, including a $0.08 per share dividend and $16mm in share repurchases, reflecting strong cash returns.

Negative Factors

Drilling Services

Drilling Services appears modestly weaker in both activity and margins, suggesting potential challenges in this segment.

Free Cash Flow

Patterson-UTI Energy's Free Cash Flow in 2Q missed consensus primarily due to higher working capital build, which could be a concern for investors.

Patterson-UTI Business Overview & Revenue Model

Company Description

Patterson-UTI Energy, Inc. (PTEN) is a leading provider of drilling and pressure pumping services in the oil and natural gas industry. Headquartered in Houston, Texas, the company operates primarily in the United States and provides a range of drilling services, including land drilling and pressure pumping for both exploration and production companies. With a fleet of advanced drilling rigs and a focus on operational efficiency, Patterson-UTI serves the growing demands of oil and gas exploration in various shale plays across the country.

How the Company Makes Money

Patterson-UTI generates revenue primarily through its two main business segments: drilling services and pressure pumping services. The drilling segment earns income by providing contract drilling services to oil and gas exploration companies, often through long-term contracts that ensure steady cash flow. The pressure pumping segment generates revenue by offering hydraulic fracturing services, which are essential for enhancing oil and gas production. Additionally, the company benefits from economies of scale and operational efficiencies, which help maintain competitive pricing. Key revenue streams also come from the demand for energy services in response to market conditions, oil prices, and the overall activity level in the shale oil and gas sector. Partnerships with major exploration and production companies further bolster its revenue potential, while investments in technology and equipment contribute to improved service offerings and profitability.

Patterson-UTI Financial Statement Overview

Summary

Patterson-UTI's financial statements indicate profitability challenges with negative net income and EBIT margins. However, the company has a solid balance sheet with no current debt and positive cash flows. Stability in cash flow generation offers potential for recovery, but the volatility in revenue and ongoing losses are concerns that need addressing for long-term sustainability.

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	5.02B	5.38B	4.15B	2.65B	1.36B	1.12B
Gross Profit	133.87M	286.17M	603.72M	317.10M	-574.04M	-348.58M
EBITDA	20.05M	286.89M	1.09B	684.97M	171.38M	-214.46M
Net Income	-1.08B	-968.03M	246.29M	154.66M	-657.08M	-803.69M
Balance Sheet
Total Assets	5.58B	5.83B	7.42B	3.14B	2.96B	3.30B
Cash, Cash Equivalents and Short-Term Investments	185.89M	241.29M	192.68M	137.55M	117.52M	224.91M
Total Debt	0.00	1.30B	1.35B	855.65M	877.32M	927.70M
Total Liabilities	2.23B	2.36B	2.60B	1.48B	1.35B	1.28B
Stockholders Equity	3.35B	3.47B	4.81B	1.67B	1.61B	2.02B
Cash Flow
Free Cash Flow	333.04M	497.15M	390.22M	129.39M	-70.82M	133.38M
Operating Cash Flow	960.01M	1.18B	1.01B	566.19M	95.50M	278.86M
Investing Cash Flow	-594.45M	-654.74M	-1.02B	-413.23M	-131.59M	-124.98M
Financing Cash Flow	-255.17M	-474.99M	65.57M	-133.38M	-71.93M	-103.15M

Patterson-UTI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.67 is above the 20-day moving average (MA) of 5.52, below the 50-day MA of 5.78, and below the 200-day MA of 6.79, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 64.06 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BORR	67 Neutral	$801.34M	13.56	5.39%	7.89%	7.73%	-25.36%
HP	67 Neutral	$2.07B	7.12	-1.19%	4.95%	25.92%	-109.50%
SDRL	67 Neutral	$2.03B	28.08	2.60%	―	-13.36%	-82.21%
Sector *	65 Neutral	$15.01B	7.39	3.19%	5.33%	4.10%	-61.80%
RIG	58 Neutral	$2.92B	―	-14.99%	―	23.26%	-284.22%
PTEN	54 Neutral	$2.18B	―	-27.16%	5.64%	-7.98%	-1011.04%
NBR	54 Neutral	$594.54M	―	-49.08%	―	3.49%	18.16%

Patterson-UTI Corporate Events

Patterson-UTI Highlights Steady Operations and Share Repurchase

In September 2025, Patterson-UTI Energy, Inc. presented an investor update highlighting its steady operational activities and financial strategies for the remainder of the year. The company reported operating 93 rigs in the U.S. and anticipates stable activity levels into the fourth quarter. Despite activity reductions in the Permian Basin, other areas have remained steady or increased. Patterson-UTI aims to enhance shareholder returns by prioritizing cost reduction, strategic technology investments, and maximizing free cash flow. The company has repurchased $22 million in shares this quarter and expects stronger cash flow in the latter half of 2025.

Patterson-UTI Promotes James Holcomb to COO

Patterson-UTI Energy, Inc. announced the promotion of James M. Holcomb to Chief Operating Officer, effective August 8, 2025. With over 35 years of experience in contract drilling operations, Holcomb’s leadership is expected to strengthen the company’s operational capabilities and industry positioning.

Patterson-UTI Reports Q2 2025 Net Loss Amid Impairment

Patterson-UTI Energy reported a net loss of $49 million for the second quarter of 2025, impacted by a $28 million non-cash asset impairment related to its Colombian drilling operations. Despite the loss, the company returned $46 million to shareholders and highlighted its strategic focus on technology and digital solutions to improve market positioning. The company noted increased oil market volatility and cautious customer behavior due to macroeconomic uncertainties but remains optimistic about long-term opportunities, particularly in natural gas basins. Patterson-UTI’s technological advancements, such as the Cortex® Automation Platform and Vertex™ frac automation, are expected to enhance customer relationships and drive future growth.