Patterson-UTI (PTEN) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: 5.73%
• Average Volume (3M): 7.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -7.98%
• EPS Growth: -1011.04%
• Country: US
• Employees: 9,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.13
• Shares Outstanding: 385,167,500
• 10 Day Avg. Volume: 7,870,450
• 30 Day Avg. Volume: 7,742,564
• PEG Ratio: <0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 25.34
• Enterprise Value/Ebitda: 37.21
• 1Y Price Target: $6.92
• Price Target Upside: 24.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $6.00 ▲(7.53% Upside)

Patterson-UTI's overall stock score reflects significant financial challenges, including declining revenues and negative profitability. However, the company shows resilience through its strong financial position and growth in digital solutions. Technical indicators are mixed, and valuation metrics are weak due to unprofitability, but the dividend yield offers some investor appeal. Recent corporate events and earnings call sentiment provide a cautiously optimistic outlook.

Positive Factors

Operational Efficiency

Investments in digital and automation technologies are enhancing operational efficiencies and customer satisfaction, positioning the company for long-term growth.

Strong Financial Position

A strong cash position and low leverage provide financial flexibility, supporting future investments and shareholder returns, essential for long-term stability.

Leadership Strength

The promotion of an experienced leader to COO is expected to strengthen operational capabilities, enhancing the company's competitive positioning in the industry.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in maintaining market share and demand, which could impact long-term growth prospects if not addressed.

Negative Profitability

Negative profitability margins highlight operational challenges and the need for strategic improvements to achieve sustainable financial health.

Reduced Drilling Activity

Reduced drilling activity suggests decreased demand for services, potentially affecting revenue and market position if the trend continues.

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 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 faces significant financial challenges with declining revenues and negative profitability. The balance sheet shows moderate leverage, but the negative return on equity is concerning. Cash flow metrics indicate potential liquidity issues, although operating cash flows remain positive. The company needs to address its profitability and revenue growth to improve its financial health.

Income Statement

Patterson-UTI's income statement shows a challenging financial position with declining revenue and negative profitability margins. The TTM data indicates a gross profit margin of 2.67% and a net profit margin of -21.49%, reflecting significant operational challenges. Revenue has decreased by 2.5% compared to the previous period, indicating a contraction in business activity. The EBIT and EBITDA margins are also negative, highlighting ongoing profitability issues.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio of 0.38, which is relatively stable compared to industry norms. However, the return on equity is negative at -31.23%, indicating that the company is not generating positive returns for shareholders. The equity ratio stands at 60.06%, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 17.67% in the TTM period, indicating potential liquidity challenges. The operating cash flow to net income ratio is 1.34, suggesting that operating cash flows are sufficient to cover net losses. However, the free cash flow to net income ratio is 0.35, reflecting limited free cash flow relative to net losses.

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	91.18M	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	1.29B	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: Neutral
• Last Price: 5.58
• 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 Neutral. The current price of 5.58 is above the 20-day moving average (MA) of 5.55, below the 50-day MA of 5.59, and below the 200-day MA of 6.61, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 57.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PTEN.

Patterson-UTI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OII	79 Outperform	2.57B	12.94	23.84%	―	8.14%	62.72%
HP	69 Neutral	2.25B	-68.41	-1.08%	4.42%	25.92%	-109.50%
SDRL	67 Neutral	1.95B	26.91	15.28%	―	-13.36%	-82.21%
RIG	58 Neutral	3.01B	-1.73	-16.08%	―	23.26%	-284.22%
NBR	56 Neutral	655.76M	-2.96	-16.78%	―	3.49%	18.16%
PTEN	54 Neutral	$2.15B	―	-27.16%	5.73%	-7.98%	-1011.04%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

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.