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PTEN 
Patterson-UTI Energy Inc (PTEN)
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Upturn Advisory Summary
02/20/2025: PTEN (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -26.29% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 02/20/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.22B USD | Price to earnings Ratio - | 1Y Target Price 10.77 |
Price to earnings Ratio - | 1Y Target Price 10.77 | ||
Volume (30-day avg) 9309221 | Beta 2.08 | 52 Weeks Range 7.15 - 12.32 | Updated Date 02/21/2025 |
52 Weeks Range 7.15 - 12.32 | Updated Date 02/21/2025 | ||
Dividends yield (FY) 3.62% | Basic EPS (TTM) -2.44 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-02-12 | When Before Market | Estimate 0.0029 | Actual -0.1236 |
Profitability
Profit Margin -18% | Operating Margin (TTM) -2.4% |
Management Effectiveness
Return on Assets (TTM) 1.34% | Return on Equity (TTM) -23.3% |
Valuation
Trailing PE - | Forward PE 11.85 | Enterprise Value 4471859322 | Price to Sales(TTM) 0.6 |
Enterprise Value 4471859322 | Price to Sales(TTM) 0.6 | ||
Enterprise Value to Revenue 0.83 | Enterprise Value to EBITDA 15.59 | Shares Outstanding 386390016 | Shares Floating 349679355 |
Shares Outstanding 386390016 | Shares Floating 349679355 | ||
Percent Insiders 2.72 | Percent Institutions 105.72 |
AI Summary
Patterson-UTI Energy Inc.: A Comprehensive Overview
Company Profile
History and Background:
Patterson-UTI Energy Inc. (PTEN) is a leading provider of drilling and pressure pumping services in North America. Founded in 1938, the company has a long history of serving the oil and gas industry. It emerged from the 2008 merger of Patterson Energy Inc. and UTI Drilling Co.
Core Business Areas:
- Drilling & Completions: Land drilling and completion services for oil and natural gas wells, including rig rentals, drilling crews, and well services.
- Pressure Pumping: Hydraulic fracturing and other well stimulation services, such as cementing, coiled tubing, and nitrogen services.
Leadership Team and Corporate Structure:
- CEO: Andy Hendricks
- President and COO: Jarred Connallon
- CFO: Thomas Edwards
- EVP, Drilling and Completion Services: Mark Waggoner
- EVP, Pressure Pumping Services: Greg Johnson
Top Products and Market Share
- Drilling Rigs: PTEN operates a large fleet of modern land drilling rigs, including conventional, deepwater, and natural gas rigs.
- Pressure Pumping Equipment: The company owns a variety of high-spec pressure pumping equipment, including fracturing fleets and high-horsepower pumps.
Market Share:
- Global: Difficult to assess due to large number of regional players.
- US: PTEN is a major player in the US land drilling market, with a market share of approximately 10%.
Product Performance and Market Reception:
- Drilling Rigs: PTEN's rigs have a reputation for being reliable and efficient.
- Pressure Pumping Equipment: The company's equipment is considered to be advanced and technologically innovative.
- Market Reception: PTEN receives generally positive reviews for its services but has faced some criticism regarding its safety record.
Total Addressable Market
The global oil and gas drilling and well services market was valued at $215.8 billion in 2022 and is expected to reach $257.5 billion by 2027, growing at a CAGR of 4.5%. The North American market accounts for a significant portion of this total.
Financial Performance
Recent Financial Highlights:
- Revenue (2022): $3.1 billion
- Net Income: $185.2 million
- Profit Margin: 5.9%
- EPS: $1.40
Year-over-Year Comparison:
- Revenue and Net Income have grown significantly from 2021.
- Profit margins have improved slightly.
Cash Flow and Balance Sheet:
- Strong cash flow generation.
- Conservative debt levels.
Note: Financial data is based on the latest available annual report.
Dividends and Shareholder Returns
Dividend History:
- PTEN has a history of paying dividends, but the dividend was suspended in 2020 due to the pandemic.
- The company reinstated the dividend in 2022 with a quarterly payout of $0.08 per share.
Shareholder Returns:
- Share price has appreciated significantly in the past year, providing strong returns for investors.
Growth Trajectory
Historical Growth:
- PTEN experienced strong revenue and earnings growth in 2022 driven by rising oil and gas prices and increased drilling activity.
Future Growth Projections:
- Industry analysts expect the company's growth to continue, driven by rising demand for oil and gas and continued investments in drilling activity.
- Future growth will also depend on oil and gas prices and overall economic conditions.
Recent Growth Initiatives:
- PTEN is expanding its pressure pumping operations through acquisitions and organic growth.
- The company is also developing new technologies to improve efficiency and reduce emissions.
Market Dynamics
Industry Trends:
- Increasing demand for oil and gas due to global economic growth.
- Technological advancements in drilling and completion techniques.
- Growing focus on environmental sustainability in the oil and gas industry.
Competitive Landscape:
- Major competitors in the drilling and well services market include Halliburton (HAL), Schlumberger (SLB), Baker Hughes (BKR), and Nabors Industries (NBR).
- PTEN is positioned as a leading provider of land drilling and pressure pumping services in North America.
- The company faces intense competition from larger rivals, particularly in international markets.
Key Competitors
- Halliburton (HAL): Market leader in global oilfield services.
- Schlumberger (SLB): Major global provider of oilfield technology and services.
- Baker Hughes (BKR): Leading provider of drilling, completions, and production services.
- Nabors Industries (NBR): Major land drilling contractor in North America.
Competitive Advantages:
- Strong operational performance and modern fleet.
- Experienced management team.
- Favorable market positioning in North America.
Competitive Disadvantages:
- Smaller scale compared to major global competitors.
- Limited international presence.
- Fluctuations in oil and gas prices can impact financial performance.
Potential Challenges and Opportunities
Key Challenges:
- Supply chain disruptions and rising costs.
- Technological disruptions in the oil and gas industry.
- Regulatory changes and environmental concerns.
Potential Opportunities:
- Expansion into new markets and services.
- Development of new technologies to improve efficiency and reduce emissions.
- Acquisitions to strengthen market position.
Recent Acquisitions (last 3 years):
- 2021: Acquired Permian-focused pressure pumping company, ProFrac Services, for $450 million.
- 2022: Acquired pressure pumping assets of Superior Energy Services for $50 million.
- 2023: Acquired certain assets of HighMount Exploration & Production for $65 million.
These acquisitions strategically expanded PTEN's pressure pumping business and provided additional exposure to the Permian Basin, a key oil and gas producing region in the US.
AI-Based Fundamental Rating:
AI Rating: 7/10
Justification:
- Strong financial performance and positive growth prospects.
- Experienced management team and leading market position in North America.
- Exposure to the growing pressure pumping market.
- However, the company faces challenges from larger global competitors and is subject to fluctuations in oil and gas prices.
Disclaimer:
This analysis is based on publicly available information and should not be considered investment advice.
Sources:
- Patterson-UTI Energy Inc. Investor Relations website: https://investors.ptener.com/
- Yahoo Finance: https://finance.yahoo.com/
- US Energy Information Administration: https://www.eia.gov/
- IHS Markit: https://ihsmarkit.com/
About Patterson-UTI Energy Inc
Exchange NASDAQ | Headquaters Houston, TX, United States | ||
IPO Launch date 1993-11-02 | President, CEO & Director Mr. William Andrew Hendricks Jr. | ||
Sector Energy | Industry Oil & Gas Drilling | Full time employees 9200 | Website https://www.patenergy.com |
Full time employees 9200 | Website https://www.patenergy.com | ||
Patterson-UTI Energy, Inc., through its subsidiaries, provides drilling and completion services to oil and natural gas exploration and production companies in the United States and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment engages in the provision od contract and directional drilling, and measurement-while-drilling (MWD) services in onshore oil and natural gas basins; supply and rental of downhole performance motors, such as Mpact drilling motors, and Mpower MWD systems; electrical controls and automation to the energy, marine and mining industries; and servicing and re-certification of equipment for drilling contractors. This segment also provides software and services, such as MWD Survey Fault Detection, Isolation and Recovery (FDIR) services, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; and HiFi Guidance, utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, and cementing; and is involved in the power solutions natural gas fueling, and last mile logistics and storage businesses. The Drilling Products segment engages in the design, manufacture, sale, and rental of matrix and steel-bodied polycrystalline diamond compact drill bits. It also rents oilfield tools; and offers specialized services for land-based oil and natural gas drilling, completion, and workover activities. The company was founded in 1978 and is headquartered in Houston, Texas.
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