A month has gone by since the last earnings report for Patterson-UTI (PTEN) . Shares have lost about 11.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Patterson-UTI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.Patterson-UTI Ene ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ Form 10-Q ______________________ þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39270 ______________________ Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) ______________________ (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1 ...

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported a second-quarter 2025 adjusted net loss of $0.06 per share, which was wider than the Zacks Consensus Estimate of a $0.04 loss, and a decline from a profit of $0.05 in the same quarter last year [1][9] - Total revenues reached $1.2 billion, exceeding the Zacks Consensus Estimate by 0.3%, but decreased by 9.6% year over year due to weaker contributions from various segments [2][9] Financial Performance - **Drilling Services**: Revenues totaled $403.8 million, down 8.3% from $440.3 million in the prior year, but exceeded the estimate of $365.1 million. Operating income was $40.6 million, down from $76.1 million year over year, yet above the estimate of $24.1 million [4] - **Completion Services**: Revenues were $719.3 million, a drop of 10.7% from $805.4 million year over year, and missed the estimate of $762.4 million. The operating loss was $29.2 million compared to a profit of $10.7 million in the previous year, but was narrower than the estimated loss of $43.4 million [5] - **Drilling Products**: Revenues increased by 2.7% to $88.4 million from $86.1 million year over year, beating the estimate of $85.8 million. Operating profit was $6.8 million, down 21.1% from the previous year, and missed the estimate of $20.6 million [6] - **Other Services**: Revenues fell 52.7% to $7.8 million from $16.5 million year over year, but exceeded the estimate of $5.6 million. The operating loss was $2 million compared to a profit of $0.4 million in the prior year, missing the estimated operating income of $0.1 million [7] Capital Expenditure & Financial Position - PTEN spent $144.2 million on capital programs in the reported quarter, up from $130.5 million in the prior year [8] - As of June 30, 2025, the company had cash and cash equivalents of $185.9 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 26.7% [8] Shareholder Returns - The board declared a quarterly dividend of $0.08 per share, unchanged from the previous quarter, to be paid on September 15, 2025 [3][9] - The company returned $56 million to shareholders in Q2 2025, including $20 million in share repurchases [10] Q3 Outlook - PTEN anticipates an average rig count of approximately 90 for its Drilling Services segment in Q3 2025, with expected adjusted gross profit of around $130 million [11] - The company expects adjusted gross profit for Completion Services to remain steady, while Drilling Products is anticipated to improve slightly [12] - Total depreciation, depletion, amortization, and impairment expense is expected to be approximately $230 million for Q3 [13] - Net capital expenditures for full-year 2025 are anticipated to be less than $600 million, with a reduction in maintenance capital expenditures due to lower activity [14]

Financial Data and Key Metrics Changes - Total reported revenue for the quarter was $1,219 million, with a net loss attributable to common shareholders of $49 million or $0.13 per share, which included a $28 million impairment related to drilling operations in Colombia [21] - Adjusted EBITDA for the quarter totaled $231 million, and the company generated $70 million of adjusted free cash flow in the first half of the year [21][22] - The company closed the quarter with $186 million in cash and an undrawn $500 million revolving credit facility, with expectations for free cash flow in the second half of the year to significantly exceed dividends [14][29] Business Line Data and Key Metrics Changes - In the Drilling Services segment, revenue was $404 million with an adjusted gross profit of $149 million, operating an average of 104 rigs [23] - Completion Services segment revenue totaled $719 million with an adjusted gross profit of $100 million, despite some calendar gaps in dedicated fleets [24] - Drilling Products segment revenue was $88 million with an adjusted gross profit of $39 million, showing improvements in both U.S. and international markets [25] Market Data and Key Metrics Changes - The U.S. market saw revenue improve compared to the prior quarter, delivering a record U.S. revenue per industry rig, while international revenue remained steady with increases in key markets like the Middle East [18] - Canadian markets performed well despite seasonal impacts, with significant traction for the Maverick drill bit in the market [19] - The company expects an average rig count in the mid-90s for the third quarter, with potential stabilization in the fourth quarter [24][65] Company Strategy and Development Direction - The company is focused on leveraging its differentiated commercial strategy, operational footprint, and growing technology portfolio to create long-term value for shareholders [11][12] - Investments in digital technology and automation are expected to enhance operational efficiency and customer relationships, positioning the company as a leader in the oilfield services market [12][35] - The strategic vision post-merger includes deeper integration and automation, aiming to deliver value beyond capital equipment [13] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions remain unsettled, with oil prices stabilizing in the mid-sixties, which is encouraging for future drilling activity [7][8] - There are expectations for increased natural gas activity as LNG facilities come online, with a positive long-term outlook for U.S. LNG volumes [10][34] - The company remains optimistic about the future, believing that investments made in technology and digital services will yield significant benefits [35] Other Important Information - The company returned $46 million to shareholders during the quarter, including dividends and share repurchases, and has reduced its share count by 8% since the merger [22] - Capital expenditures for the second quarter were $144 million, with expectations for less than $600 million in total capital expenditures for 2025 [27][28] - The company is exploring ways to best utilize cash to create long-term value for shareholders [29] Q&A Session Summary Question: What is the outlook for completion activity in Q4? - Management indicated that while there may be some moderation in Q4, it is too early to predict a steep decline, and they are encouraged by the current activity levels [41][42] Question: Can you provide more details on the third quarter outlook for completion services? - Management stated that completion activity is expected to remain steady, with no significant commentary on specific basins at this time [50] Question: What are the expectations for gas-directed activity in 2026? - Management anticipates an increase in gas activity next year based on discussions with customers and the demand for LNG volumes [57][58] Question: How is the pricing dynamic for low-emission gas-burning assets? - Management noted that their Emerald fleet, which burns 100% natural gas, is in high demand and continues to command premium pricing [67][68] Question: What is the company's strategy regarding technology investments and potential M&A? - Management emphasized ongoing investments in digital platforms and automation, with potential for future acquisitions to enhance technology offerings [52][53]

Financial Data and Key Metrics Changes - Total reported revenue for the quarter was $1,219 million, with a net loss attributable to common shareholders of $49 million or $0.13 per share, which included a $28 million impairment related to drilling operations in Colombia [22] - Adjusted EBITDA for the quarter totaled $231 million, and the company generated $70 million of adjusted free cash flow in the first half of the year [22][31] - The company closed the quarter with $186 million in cash and an undrawn $500 million revolving credit facility, with low leverage and an investment-grade credit rating [14][31] Business Line Data and Key Metrics Changes - In the Drilling Services segment, revenue was $404 million with an adjusted gross profit of $149 million, and the average operating rig count was 104 rigs [24] - Completion Services segment revenue totaled $719 million with an adjusted gross profit of $100 million, despite some calendar gaps in dedicated fleets [25] - Drilling Products revenue was $88 million with an adjusted gross profit of $39 million, showing improvement in the U.S. market despite overall industry activity moderation [26] Market Data and Key Metrics Changes - The U.S. market saw revenue improve compared to the prior quarter, delivering another quarter of record U.S. revenue per industry rig [18] - International revenue remained steady, with higher revenue in key markets including the Middle East [19] - The Canadian market, representing just under 10% of segment revenue, performed well despite seasonal impacts [20] Company Strategy and Development Direction - The company is focused on creating long-term value for shareholders through differentiated commercial strategies and investments in technology [10][12] - The integration of Patterson UTI and NexTier is expected to yield benefits beyond cost synergies, with a focus on automation and data-driven solutions [13] - The company aims to capitalize on the growing demand for digital and automation services in the oilfield services market [30] Management's Comments on Operating Environment and Future Outlook - Management noted that the oil market remains unsettled, with volatility impacting customer decision-making [6][7] - There are expectations for increased natural gas activity as LNG facilities come online, leading to incremental demand for drilling and completions in natural gas basins [9][35] - The company is optimistic about its long-term outlook, believing that current market conditions will lead to opportunities for top-tier service providers [34] Other Important Information - The company returned $46 million to shareholders during the quarter, including dividends and share repurchases, and has reduced its share count by 8% since the merger [23] - Capital expenditures for the second quarter were $144 million, with expectations for less than $600 million in total capital expenditures for 2025 [29][30] - The company is exploring ways to best utilize its cash to create long-term value for shareholders [31] Q&A Session Summary Question: What is the outlook for completion activity in Q4? - Management indicated that while there may be some moderation in Q4, it is too early to predict a steep decline, and they are encouraged by the current activity levels [41][43] Question: Can you provide more detail on the third quarter outlook for completion services? - The company expects steady activity in completions, with no significant commentary on one basin over another, and is working with solid customers in both gas and oil basins [50][51] Question: What are the expectations for gas-directed activity in 2026? - Management anticipates an increase in gas activity next year based on discussions with customers and the expected demand for LNG volumes [59][60] Question: How is the pricing dynamic for low-emission gas-burning assets? - The company noted that their Emerald fleet, which burns 100% natural gas, is in high demand and continues to receive premium pricing compared to lower-tier services [69][70] Question: What are the thoughts on the rig count and its impact on completion services? - Management acknowledged that while the overall rig count is declining, their exposure to higher technology rigs keeps their completion services relatively steady [108]

Core Insights - Patterson-UTI reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -50.00% [1] - The company generated revenues of $1.22 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.02%, but down from $1.35 billion year-over-year [2] - The stock has underperformed, losing approximately 29.1% since the beginning of the year, while the S&P 500 has gained 7.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $1.18 billion, and for the current fiscal year, it is -$0.20 on revenues of $4.78 billion [7] - The estimate revisions trend for Patterson-UTI was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Drilling industry, to which Patterson-UTI belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting a challenging environment [8] - Another company in the same industry, Nabors Industries, is expected to report a quarterly loss of $2.05 per share, with a significant downward revision of the consensus EPS estimate by 67.7% over the last 30 days [9]

[Financial and Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20and%20Other%20Key%20Items) Patterson-UTI reported a Q2 2025 net loss of $49 million, with $1.2 billion revenue and $231 million Adjusted EBITDA Q2 2025 Financial Highlights | Metric | Value (Q2 2025) | | :--- | :--- | | Total Revenue | $1.2 billion | | Net Loss Attributable to Common Stockholders | $49 million | | Non-cash Asset Impairment (Colombia) | $28 million | | Adjusted EBITDA | $231 million | | Shareholder Returns | $46 million ($0.08/share dividend + $16M buybacks) | - The company declared a quarterly dividend of **$0.08 per share**, payable on September 15, 2025[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted Q2 activity aligned with market trends, emphasizing technology and a positive long-term natural gas outlook - The company is focused on leveraging its technology portfolio, including automation and digital services, to deliver differentiated value and improve its market position in both drilling and completions[3](index=3&type=chunk) - Customer caution persists due to oil market volatility and macroeconomic uncertainties, however, management sees long-term upside for natural gas activity driven by rising domestic and global LNG demand[3](index=3&type=chunk) - The company's strong balance sheet is a key strategic advantage, providing flexibility for capital allocation, with free cash flow expected to accelerate in the second half of 2025[3](index=3&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Q2 2025 saw Completion Services lead revenue at $719 million, with all segments advancing technology for efficiency and value [Drilling Services](index=1&type=section&id=Drilling%20Services) Drilling Services generated $404 million revenue and $149 million adjusted gross profit, with growing automation demand Drilling Services Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $404 million | | Adjusted Gross Profit | $149 million | | U.S. Operating Days | 9,465 | | Average Rigs Working | 104 | - Demand is growing for proprietary technologies like the Cortex® Automation Platform and the cloud-based REX® monitoring system, which enhance drilling processes and customer relationships[6](index=6&type=chunk)[7](index=7&type=chunk) - As of June 30, 2025, the company had term contracts for drilling rigs in the U.S. providing for approximately **$312 million** in future dayrate drilling revenue[7](index=7&type=chunk) [Completion Services](index=3&type=section&id=Completion%20Services) Completion Services reported $719 million revenue and $100 million adjusted gross profit, with fully utilized natural gas fleets Completion Services Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $719 million | | Adjusted Gross Profit | $100 million | - The fleet of Emerald™ 100% natural gas-powered assets and Tier IV dual fuel assets are fully utilized and expected to remain so through the rest of 2025[9](index=9&type=chunk) - The company is advancing its EOS Completions Platform™, successfully deploying its proprietary Vertex™ frac automation with fleet-wide deployment expected by the end of 2025[10](index=10&type=chunk) [Drilling Products](index=3&type=section&id=Drilling%20Products) Drilling Products achieved $88 million revenue and $39 million adjusted gross profit, with record U.S. revenue per rig Drilling Products Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $88 million | | Adjusted Gross Profit | $39 million | - Achieved a record U.S. revenue per U.S. industry rig, benefiting from an increase in performance-based agreements[12](index=12&type=chunk) - International business saw steady revenue with gains in the Middle East and continued penetration into offshore markets including the North Sea, Gulf of America, and Guyana[13](index=13&type=chunk)[14](index=14&type=chunk) [Other](index=3&type=section&id=Other) The 'Other' segment generated $8 million revenue and $2 million adjusted gross profit, including divested oilfield rentals Other Segment Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $8 million | | Adjusted Gross Profit | $2 million | [Business Outlook](index=3&type=section&id=Outlook) Q3 2025 outlook anticipates moderate drilling decline, steady completion services, and reduced full-year capital expenditures Q3 2025 Business Outlook | Segment | Q3 2025 Outlook | | :--- | :--- | | Drilling Services | Average rig count in the mid-90s; Adjusted gross profit of ~$130 million. | | Completion Services | Activity and adjusted gross profit to remain steady with Q2. | | Drilling Products | Adjusted gross profit to improve slightly sequentially. | - Full-year 2025 capital expenditures, net of asset sales, are now expected to be **less than $600 million**, a reduction from prior guidance[21](index=21&type=chunk) - For Q3, selling, general and administrative (SG&A) expense is expected to decline slightly, while depreciation, depletion, amortization, and impairment expense is projected to be approximately **$230 million**[20](index=20&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) Financial statements show total assets of $5.58 billion as of June 30, 2025, with a Q2 2025 net loss of $49.1 million [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $5.58 billion, total liabilities $2.23 billion, and cash $185.9 million Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $185,891 | $241,293 | | Total current assets | $1,241,123 | $1,295,315 | | Total assets | $5,575,620 | $5,833,466 | | Total current liabilities | $716,472 | $841,993 | | Total liabilities | $2,226,947 | $2,357,622 | | Total equity | $3,348,673 | $3,475,844 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenues were $1.22 billion, resulting in a net loss of $49.1 million or ($0.13) per diluted share Condensed Consolidated Statements of Operations (in thousands) | Income Statement Item (in thousands, except per share data) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $1,219,320 | $1,348,194 | | Operating Income (Loss) | $(29,486) | $45,228 | | Net Loss Attributable to Common Stockholders | $(49,144) | $11,077 | | Diluted EPS | $(0.13) | $0.03 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash from operations was $347.9 million, with a $55.4 million net decrease in cash Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Item (Six Months Ended June 30, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $347,890 | $563,413 | | Net cash used in investing activities | $(289,207) | $(349,504) | | Net cash used in financing activities | $(112,720) | $(332,538) | | Net decrease in cash | $(55,402) | $(117,644) | [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Q2 2025 Adjusted EBITDA at $231.2 million and H1 2025 adjusted free cash flow [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA) Q2 2025 Adjusted EBITDA was $231.2 million, reconciled from a net loss of $48.7 million, a decrease from Q2 2024 Adjusted EBITDA Reconciliation (in thousands) | Adjusted EBITDA Reconciliation (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $(48,697) | $11,621 | | Income tax expense | $1,194 | $17,785 | | Net interest expense | $16,373 | $16,046 | | Depreciation, depletion, amortization and impairment | $261,858 | $267,638 | | **Adjusted EBITDA** | **$231,216** | **$323,735** | [Adjusted Free Cash Flow Reconciliation](index=12&type=section&id=Adjusted%20Free%20Cash%20Flow) For H1 2025, adjusted free cash flow was $70.2 million, derived from net cash from operations and capital expenditures Adjusted Free Cash Flow (Six Months Ended June 30, in thousands) | Adjusted Free Cash Flow (Six Months Ended June 30, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $347,890 | $563,413 | | Less capital expenditures | $(306,037) | $(357,449) | | Plus proceeds from disposal of assets | $28,344 | $9,321 | | **Adjusted free cash flow** | **$70,197** | **$215,285** | [Adjusted Gross Profit Reconciliation](index=13&type=section&id=Adjusted%20Gross%20Profit) Q2 2025 total adjusted gross profit was $289.9 million, with Drilling Services contributing $149.0 million Adjusted Gross Profit by Segment (Q2 2025, in thousands) | Adjusted Gross Profit by Segment (Q2 2025, in thousands) | GAAP Gross Profit (Loss) | Depreciation, Amortization & Impairment | Adjusted Gross Profit | | :--- | :--- | :--- | :--- | | Drilling Services | $36,386 | $112,647 | $149,033 | | Completion Services | $(19,525) | $119,774 | $100,249 | | Drilling Products | $15,471 | $23,584 | $39,055 | | Other | $(1,918) | $3,538 | $1,620 |

Core Viewpoint - Patterson-UTI Energy, Inc. (PTEN) is expected to report a second-quarter loss of 4 cents per share with revenues of $1.21 billion, reflecting a year-over-year decline in both earnings and revenues [1][10]. Group 1: Financial Performance - In the first quarter of 2025, PTEN achieved breakeven adjusted earnings per share, outperforming the Zacks Consensus Estimate of a loss of 4 cents per share, driven by an 11.2% year-over-year reduction in costs and expenses [3]. - Total revenues for Q1 2025 were $1.3 billion, exceeding the Zacks Consensus Estimate by 7.7% [3]. - The Zacks Consensus Estimate for second-quarter 2025 earnings indicates a 180% year-over-year decline, while revenues are expected to decrease by 10.09% from the previous year [4][10]. Group 2: Cost Management - PTEN's operating costs and expenses are projected to reach $1.26 billion in the second quarter, a 3.4% decrease from the same period last year, reflecting the company's focus on streamlining operations [6]. - Direct operating costs are expected to decline from $971.2 million to $961.2 million, and depreciation, depletion, amortization, and impairment costs are anticipated to decrease from $267.6 million to $230 million [7]. Group 3: Revenue Challenges - The Zacks Consensus Estimate for second-quarter revenues is $1.21 billion, down from $1.35 billion in the year-ago quarter, attributed to poor performance in Completion Services, Drilling Services, and Drilling Products segments [8][10]. - Despite expected revenue declines across several segments, PTEN's cost management efforts are likely to mitigate the financial impact [9].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Patterson-UTI due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Patterson-UTI is expected to report a quarterly loss of $0.04 per share, reflecting a year-over-year change of -180% [3]. - Revenue is projected to be $1.21 billion, down 10% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 32.87% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Patterson-UTI is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.23% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Patterson-UTI was expected to post a loss of $0.04 per share but delivered break-even earnings, resulting in a surprise of +100.00% [13]. - Over the last four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - Patterson-UTI does not appear to be a compelling earnings-beat candidate, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [17].

Industry Overview - The Zacks Oil and Gas - Drilling industry includes companies providing rigs and services for oil and natural gas exploration and development, with operations both onshore and offshore [2] - Drilling for hydrocarbons is capital-intensive and technically challenging, primarily influenced by contracting activity rather than oil or gas prices [2] - Offshore drilling companies exhibit higher volatility compared to onshore counterparts, with their share prices more closely correlated to oil and gas prices [2] Current Challenges - The industry is facing significant challenges due to contracting delays, soft gas prices, and macroeconomic uncertainty, leading to a Zacks Industry Rank of 235, placing it in the bottom 4% of 245 Zacks industries [1][7] - Earnings estimates for the industry have declined sharply, with a drop of 85.2% for 2025 and 51.7% for 2026 over the past year, indicating a negative outlook [9] - The industry has underperformed compared to the broader Zacks Oil - Energy sector and the S&P 500, with a decline of 38.6% over the past year versus a 2.1% increase in the sector and a 9.1% gain in the S&P 500 [11] Market Trends - Macroeconomic uncertainty is causing hesitation in customer decision-making, slowing the pace of tenders and contract awards, and making near-term earnings visibility difficult for drillers [3] - There are concerns about premature rig reactivation leading to oversupply, particularly in deepwater segments, which could undermine pricing power and margins [4] - Despite short-term challenges, long-term demand for deepwater drilling is expected to grow, with forecasts indicating a 40% increase in investment by 2030, supported by large undeveloped reserves and major project approvals [5] Company Highlights - **Transocean Ltd. (RIG)**: Reported contract drilling revenues of $906 million in Q1 2025, an 18.7% increase year-over-year, with a market capitalization of $2.9 billion and a projected earnings growth of 123.1% for 2025 [18] - **Patterson-UTI Energy (PTEN)**: Generated $51 million in adjusted free cash flow in Q1 2025, with a market capitalization of $2.5 billion and a dividend yield of nearly 5% [21] - **Precision Drilling Corporation (PDS)**: Canada’s largest drilling rig contractor, with a market capitalization of $687.3 million, has seen its earnings estimate for 2025 increase from $3.84 to $4.13 per share in the past 60 days [24]