Patterson-Uti Energy (PTEN)
NASDAQ:PTEN
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Patterson-UTI
(NASDAQ:PTEN)
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Rating:66Neutral
Price Target:
$11.00
▲(11.34% Upside)
Action:ReiteratedDate:03/28/26
PTEN scores as a moderate-quality setup driven primarily by strong cash flow and solid balance-sheet flexibility despite ongoing earnings volatility and a 2025 revenue decline. Technicals are supportive but appear overbought, raising near-term risk. Valuation is harder to justify on earnings due to losses, partially offset by a ~3% dividend yield and management’s shareholder-return focus reinforced on the latest earnings call.
Positive Factors
Strong free cash flow generation
Adjusted FCF of $416M in 2025 demonstrates the company consistently converts cyclical operations into real liquidity. Durable free cash flow underpins dividend increases, buybacks, disciplined capex and fleet high‑grading, improving resilience through commodity cycles and enabling shareholder returns without relying on volatile GAAP profits.
Negative Factors
Persistent profitability volatility
Q4 GAAP net loss and negative ROE indicate earnings remain volatile despite healthy EBITDA. Inconsistent accounting profitability complicates long‑term capital allocation, increases reliance on cash metrics to justify dividends, and raises risk that sustained weak earnings could pressure reinvestment and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Adjusted FCF of $416M in 2025 demonstrates the company consistently converts cyclical operations into real liquidity. Durable free cash flow underpins dividend increases, buybacks, disciplined capex and fleet high‑grading, improving resilience through commodity cycles and enabling shareholder returns without relying on volatile GAAP profits.
Read all positive factors
Patterson-UTI (PTEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.01B
Dividend Yield5.42%
Average Volume (3M)11.22M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-16.59%
EPS Growth83.95%
CountryUS
Employees9,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.04
Shares Outstanding379,575,200
10 Day Avg. Volume10,131,487
30 Day Avg. Volume11,218,924
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 Cap1.15
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit20.06
Enterprise Value/Ebitda5.08
Forecast
1Y Price Target
$10.33Price Target Upside4.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)-0.33
Revenue Forecast (FY)$4.46B
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 makes money by contracting its equipment and crews to oil and gas producers under service agreements tied to customer drilling and completion activity. Its primary revenue streams include: (1) Drilling services: revenue earned by providing la...
Patterson-UTI Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call emphasized strong cash generation, disciplined cost control, and meaningful technological and international progress (e.g., Cortex adoption, eos launch, Saudi manufacturing, Argentina rig leases). Management increased shareholder returns and maintained liquidity while cutting gross CapEx to preserve free cash flow. Offsetting items included a small GAAP net loss, near-term weather-related headwinds (Q1), a sequential dip in Completion Services gross profit, regional softness in international product sales, and continued commodity/macro uncertainty. Overall, operational execution and cash generation were highlighted as dominant themes.Positive Updates
Strong Full-Year Free Cash Flow
Adjusted free cash flow of $416 million for 2025, with the fourth quarter marking the company's highest adjusted free cash flow quarter since the 2023 strategic transformation.
Negative Updates
Small Net Loss in the Quarter
Reported a net loss attributable to common shareholders of $9 million (loss of $0.02 per share) in Q4, despite positive adjusted EBITDA.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Free Cash Flow
Adjusted free cash flow of $416 million for 2025, with the fourth quarter marking the company's highest adjusted free cash flow quarter since the 2023 strategic transformation.
Read all positive updates
Company Guidance
The company guided 2026 gross CapEx of roughly $500 million (≈15% reduction year‑over‑year) and expects CapEx net of asset sales to be below $500M, with ~40% directed to Drilling, ~45% to Completion Services, just over 10% to Drilling Products and ~ $65M of Completions spend earmarked for new Emerald natural‑gas fleets; Q1 assumptions include a low‑to‑mid‑90s average U.S. rig count in Drilling Services with adjusted gross profit down by less than 5% from Q4 ($132M in Q4), Completion Services adjusted gross profit of ~ $95M in Q1 (vs. $111M in Q4, reflecting a ~$5–$10M estimated winter‑storm impact already in guidance), Drilling Products gross profit modestly higher in Q1 (Q4: $34M on $84M revenue), SG&A ≈ $65M in Q1 (Q4: $62M), DD&A ≈ $225M in Q1 (Q4: $221M), and they expect free cash flow to remain robust after 2025’s $416M adjusted free cash flow, supporting a 25% dividend increase to $0.10/share (payable Mar 16) while targeting at least 50% of adjusted FCF returned to shareholders; liquidity at Q4 was $421M cash with a $500M undrawn revolver and no senior note maturities until 2028.Patterson-UTI Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
63
Positive
Cash Flow
72
Positive
| 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
Neutral
9.88
Price Trends
9.44
Positive
7.89
Positive
6.77
Positive
Market Momentum
0.21
Positive
46.22
Neutral
39.66
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 9.88 is below the 20-day moving average (MA) of 10.69, above the 50-day MA of 9.44, and above the 200-day MA of 6.77, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 39.66 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.72B | 6.88 | 39.31% | ― | 8.71% | 72.09% | |
68 Neutral | $1.24B | 2.88 | 57.72% | ― | 6.52% | ― | |
66 Neutral | $4.01B | -25.02 | -2.83% | 5.42% | -16.59% | 83.95% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $7.35B | ― | -32.62% | ― | 16.93% | -335.82% | |
58 Neutral | $3.57B | -7.33 | -11.45% | 3.24% | 35.89% | -148.39% | |
56 Neutral | $3.00B | -54.06 | -2.68% | ― | -9.31% | -91.57% |
* Energy Sector Average
PTEN
Patterson-UTI
9.88
4.40
80.16%
HP
Helmerich & Payne
34.11
15.26
80.92%
NBR
Nabors Industries
79.33
50.81
178.16%
OII
Oceaneering International
35.93
18.98
111.98%
RIG
Transocean
6.17
3.98
181.74%
SDRL
Seadrill Limited
46.01
27.05
142.67%
Patterson-UTI Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Patterson-UTI posts Q4 loss, boosts dividend and outlook
Positive
Feb 5, 2026
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 ...
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.