Group 1 - The article expresses a beneficial long position in the shares of PTEN and NBR, indicating a positive outlook on these companies [1] - The author emphasizes that the content is based on personal opinions and does not constitute investment advice, highlighting the importance of individual due diligence [2] - It is noted that past performance is not indicative of future results, and the views expressed may not reflect those of the platform as a whole [3]

Company Overview - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is an oilfield services company that provides drilling and completion services to oil and natural gas exploration and production companies [2][3] - As of February 13, 2026, Patterson-UTI Energy, Inc. stock closed at $8.10 per share, with a market capitalization of $3.075 billion [2] Performance Summary - In the fourth quarter of 2025, Patterson-UTI Energy, Inc. experienced a one-month return of 13.29%, but its shares are down 9.19% over the past twelve months [2] - The position in Patterson-UTI Energy, Inc. was liquidated due to a weakening energy market outlook, which negatively impacted its fundamental performance [3] Investment Insights - The company is not included in the list of 30 Most Popular Stocks Among Hedge Funds, with 42 hedge fund portfolios holding Patterson-UTI Energy, Inc. at the end of the third quarter, unchanged from the previous quarter [3] - While acknowledging the potential of Patterson-UTI Energy, Inc. as an investment, the company believes that certain AI stocks present greater upside potential and carry less downside risk [3]

Core Insights - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) experienced a significant share price increase of 14.62% from February 2 to February 9, 2026, ranking among the top energy stocks for the week [1] - The company is a prominent provider of drilling and completion services for oil and natural gas exploration and production in the U.S. and select international markets [2] Financial Performance - In Q4 2025, Patterson-UTI reported earnings and revenue that exceeded market expectations, generating $416 million in adjusted free cash flow for the full year, with Q4 being the highest quarter since its strategic transformation in 2023 [3] - The strong free cash flow enabled the company to increase its quarterly dividend by 25% to $0.10 per share, with the payment scheduled for March 16 to shareholders of record as of March 2, 2026 [3] Analyst Ratings and Price Targets - On February 6, Susquehanna raised its price target for PTEN from $8 to $10, indicating a 15% upside potential, while maintaining a 'Positive' rating [4] - Following the Q4 results, several analysts, including those from Piper Sandler, Citi, Barclays, and Stifel, have also increased their price targets for PTEN [4]

Core Insights - Patterson-UTI reported revenue of $1.15 billion for the quarter ended December 2025, a decrease of 1% year-over-year, with an EPS of -$0.02 compared to -$0.12 in the same quarter last year, exceeding the Zacks Consensus Estimate of $1.1 billion by 4.65% and delivering an EPS surprise of 81.82% [1] Financial Performance - The company’s shares have returned +15.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of -0.3% [3] - Operating days for contract drilling in the U.S. were reported at 8,596, slightly below the three-analyst average estimate of 8,603 [4] - Operating revenue from Other Operations was $4.7 million, below the five-analyst average estimate of $4.85 million [4] - Operating revenue from Drilling Services was $360.78 million, compared to the five-analyst average estimate of $365.1 million [4] - Revenues from Completion Services reached $701.56 million, exceeding the estimated $646.68 million by 7.8% year-over-year [4] - Revenues from Drilling Products were reported at $83.77 million, below the average estimate of $85.33 million, representing a year-over-year decline of 3.2% [4] Operating Income - Operating income from Other Operations was reported at -$0.95 million, worse than the estimated -$0.26 million [4] - Corporate operating income was -$45.44 million, compared to the average estimate of -$42.98 million [4] - Operating income from Drilling Products was $6.76 million, exceeding the average estimate of $4.59 million [4] - Operating income from Completion Services was -$3.6 million, significantly better than the estimated -$38.65 million [4] - Operating income from Drilling Services was $43 million, surpassing the average estimate of $37.72 million [4]

Oil and Gas Market Conditions - Average oil price per barrel for Q4 2025 was $59.62, with a closing price of $61.60 on February 2, 2026[30]. - Oil prices averaged $59.62 per barrel in Q4 2025, while natural gas prices averaged $3.73 per MMBtu during the same period[97]. - Global economic conditions and geopolitical tensions have contributed to uncertainty in energy markets, impacting share prices and future profitability[97]. - The company expects oil and natural gas prices to remain unpredictable, affecting financial condition and capital access[98]. - Demand for services is driven by customers' expectations of future oil and natural gas prices and their ability to deploy capital[98]. - The company is dependent on the oil and natural gas industry, with declines in prices adversely affecting operating results[91]. Drilling and Operational Activity - Average active rig count in the U.S. for Q4 2025 was 93 rigs, down from 95 rigs in Q3 2025 and 105 rigs in Q4 2024[31]. - The average number of rigs operating per day in the U.S. is projected to decline to 100 in 2025 from 112 in 2024 and 124 in 2023[45]. - The number of wells drilled in the U.S. for 2025 was 2,090, a decrease from 2,376 in 2024 and 2,530 in 2023[45]. - The company expects an average of 49 rigs operating under term contracts in Q1 2026 and 27 rigs for the entire year[31]. - The company reported a contract drilling backlog in the United States of approximately $291 million as of December 31, 2025, down from $426 million in 2024, with about 9% expected to remain after 2026[67]. Financial Performance and Expenditures - Capital expenditure forecast for 2026 is approximately $500 million on a gross basis, net of asset sales[34]. - The company spent approximately $237 million, $265 million, and $335 million on capital expenditures in drilling services operations for 2025, 2024, and 2023, respectively[37]. - As of December 31, 2025, the company had approximately $1.4 billion in gross U.S. federal net operating losses, $60.0 million in gross Canadian net operating losses, and $889 million in post-apportionment U.S. state net operating losses[185]. - The company’s ability to access capital markets may be limited by oil and natural gas prices, existing capital structure, and ESG-related regulatory requirements[179]. - The company may incur substantial indebtedness to finance future acquisitions and technology development, which could strain financial resources and affect cash flow[139]. Customer and Revenue Concentration - Approximately 57% of the company's consolidated operating revenues in 2025 came from its ten largest customers, with one customer accounting for approximately $597 million, or 12% of total revenues[66]. - In 2025, approximately 57% of consolidated operating revenues came from the company's ten largest customers, with 39% from the five largest and 12% from the largest customer[126]. Competitive Landscape and Challenges - The competitive landscape has led to a surplus of drilling services equipment, which may adversely affect profit margins and the carrying value of assets[102]. - The company faces challenges in maintaining pricing due to high competition and surplus equipment, which could lead to operating losses[107]. - The company faces risks related to supply chain disruptions, inflation, and geopolitical issues that could impact demand for its services[99]. - The company has invested in new technologies, including natural gas-powered equipment, to remain competitive, but future demand for these technologies is uncertain[120]. Environmental and Regulatory Risks - The company continues to pursue initiatives to mitigate climate change risk, utilizing technologies that reduce carbon and greenhouse gas emissions compared to traditional diesel equipment[70]. - The company is subject to numerous environmental laws and regulations, which could result in substantial compliance costs and adversely affect operating results[150]. - Legal and regulatory risks related to hydraulic fracturing could impose additional requirements or restrictions, adversely affecting operations and financial performance[144]. - Climate change and related regulatory pressures could increase operating costs and limit production areas, thereby reducing demand for the company's services[145]. Cybersecurity and Data Privacy - Cybersecurity risks are a growing concern, with threats including unauthorized access, theft, and various cyber incidents that could materially affect the company's operations and financial condition[129]. - The company has implemented a cybersecurity program aligned with the NIST Framework to protect information systems and manage cybersecurity risks[194]. - The Audit Committee oversees cybersecurity matters and receives quarterly updates from senior leadership on risk management and mitigation measures[196]. - The Senior Vice President and Chief Information Officer leads the cybersecurity team and reports directly to the Chief Financial Officer, ensuring effective implementation of cybersecurity practices[197]. Corporate Governance and Shareholder Returns - The Board of Directors approved a cash dividend of $0.10 per share to be paid on March 16, 2026, subject to future business conditions[219]. - The company repurchased a total of 35,684 shares in the fourth quarter of 2025, with an average price of $6.11 per share[221]. - The stock buyback program was increased to allow for an aggregate of $1.0 billion in future share repurchases, with no expiration date associated with the program[221]. - The company’s return of capital to stockholders, including dividends and stock repurchases, is at the discretion of the Board of Directors and may vary based on business conditions[184].

Group 1: Helmerich & Payne (H&P) Overview - H&P views the Middle East as a primary growth driver, particularly for international shale development and increased rig demand [1] - The company is investing heavily in the Middle East to offset stagnation in the U.S. market, with plans to operate 24 rigs in Saudi Arabia by mid-2026 [1] - H&P reported mixed financial results for Q1 2026, with revenue of $1.02 billion exceeding expectations but a GAAP EPS of -$0.98 due to a $103 million non-cash impairment charge [2] Group 2: Industry Trends and Competitors - Major oilfield-service providers are increasingly focusing on the Middle East to hedge against volatility in the U.S. market, as the region can sustain production at lower oil prices [3] - The U.S. shale revolution has significantly increased production, but growth is now declining, with active oil-directed rigs dropping over 30% from late 2022 to October 2025 [4] - Companies like Patterson-UTI Energy and SLB are also targeting the Middle East for growth, leveraging their U.S. expertise and securing major contracts in the region [6][8] Group 3: Regional Opportunities - The Middle East is identified as a primary growth engine for several companies, including Weatherford and Halliburton, with strong opportunities in Saudi Arabia, UAE, Kuwait, and Oman [10][12] - Halliburton emphasizes the importance of mature field development and enhanced oil recovery (EOR) in the region, viewing it as a stable market for services [12] - SLB has secured a $1.5 billion contract with Kuwait Oil Company and is investing in local manufacturing and talent development in Oman [9]

Core Viewpoint - The article expresses personal opinions regarding investment positions in PTEN and NBR, highlighting a beneficial long position in these shares [1]. Group 1 - The author has a beneficial long position in PTEN and NBR, indicating a positive outlook on these companies [1]. - The article is based on personal opinions and does not constitute investment recommendations, emphasizing the need for individual due diligence [2]. - The author acknowledges the possibility of errors in the information presented, reinforcing the importance of verifying facts independently [2].

Core Insights - Patterson-UTI Energy, Inc. is a prominent player in the oil and gas sector, specializing in drilling and pressure pumping services with a significant fleet of land-based drilling rigs primarily in the United States [1] Group 1: Stock Performance and Price Target - Eddie Kim from Barclays has set a price target of $8 for PTEN, indicating a potential downside of approximately -7.62% from the current trading price of $8.66 [1][5] - PTEN's stock has experienced a 5.99% increase, with a change of $0.49, and has fluctuated between $8.14 and $8.68 during the trading day, reflecting market volatility [3] Group 2: Institutional Investor Activity - Principal Financial Group Inc. has reduced its stake in PTEN by 2.8%, selling 128,992 shares, which brings their total holdings to 4.42 million shares valued at $22.9 million [2][5] - American Century Companies Inc. has increased its stake in PTEN by 23.4%, acquiring an additional 2.75 million shares for a total of 14.46 million shares valued at $85.8 million [2] - Sourcerock Group LLC has significantly boosted its investment in PTEN by 109.2%, indicating growing confidence among some investors regarding the company's future prospects [3][5] Group 3: Market Capitalization and Trading Volume - PTEN's market capitalization is approximately $3.34 billion, highlighting its substantial presence in the industry [4] - The trading volume for PTEN today is at 11.49 million shares, suggesting a high level of investor interest and activity [4]

Core Viewpoint - Patterson-UTI Energy, Inc. reported an average of 94 drilling rigs operating in the United States for January 2026 [1] Company Summary - The company is actively engaged in drilling operations, with a specific focus on the U.S. market [1]

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported a narrower adjusted net loss of 2 cents per share for Q4 2025, better than the Zacks Consensus Estimate of an 11-cent loss and an improvement from a 12-cent loss in the same quarter last year [1][9] - Total revenues reached $1.2 billion, exceeding the Zacks Consensus Estimate by 5%, primarily driven by strong performance in the Completion Services segment [2][9] - The board of directors increased the quarterly dividend by 25% to 10 cents per share, payable on March 16, 2026 [3] Segment Performance - **Drilling Services**: Revenues were $360.8 million, down 11.6% year-over-year, missing the estimate of $365 million. Operating income was $43 million, beating the estimate of $37.7 million [4] - **Completion Services**: Revenues increased by 7.8% year-over-year to $701.6 million, surpassing the estimate of $647 million. The operating loss narrowed to $3.6 million from a loss of $50.2 million in the previous year [5] - **Drilling Products**: Revenues decreased by 3.2% year-over-year to $83.8 million, missing the estimate of $85 million. Operating profit was $6.8 million, compared to a loss of $0.2 million in the prior year [6] - **Other Services**: Revenues fell by 71.3% year-over-year to $4.7 million, missing the estimate of $4.8 million [6] Financial Position - Capital expenditures for the quarter were $138.5 million, slightly down from $140.3 million in the prior year. As of December 31, 2025, cash and cash equivalents were $420.6 million, with long-term debt of $1.2 billion and a debt-to-capitalization ratio of 27.5% [8] - Total operating costs and expenses were $1.151 billion, down from $1.1935 billion in Q4 2024 [8] Q1 2026 Outlook - The company expects an average rig count in the low-to-mid 90s for the Drilling Services segment in Q1 2026, with adjusted gross profit anticipated to decline by less than 5% from Q4 2025 [11] - For Completion Services, adjusted gross profit is expected to be around $95 million, while Drilling Products segment's adjusted gross profit is anticipated to improve slightly [12] - Selling, general and administrative (SG&A) expenses are projected to be about $65 million, with total depreciation, depletion, amortization, and impairment expenses expected to be approximately $225 million for the upcoming quarter [13]