Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Michael Sabella - Vice President of Investor Relations William Hendricks - President and Chief Executive Officer Andrew Smith - Chief Financial Officer Conference Call Participants Arun Jayaram - JPMorgan Scott Gruber - Citigroup Atidrip Modak - Goldman Sachs Saurabh Pant - Bank of America Eddie Kim - Barclays Keith Mackey - RBC Capital Markets Stephen Gengaro - Stifel Dan Kutz - Morgan ...

Financial Performance - Patterson-UTI reported break-even quarterly earnings per share, compared to a Zacks Consensus Estimate of a loss of $0.04, and earnings of $0.15 per share a year ago, indicating an earnings surprise of 100% [1] - The company posted revenues of $1.28 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.67%, but down from $1.51 billion year-over-year [2] - Over the last four quarters, Patterson-UTI has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - Patterson-UTI shares have lost about 28.8% since the beginning of the year, while the S&P 500 has declined by 10.1% [3] - The current consensus EPS estimate for the coming quarter is -$0.03 on $1.23 billion in revenues, and -$0.09 on $4.83 billion in revenues for the current fiscal year [7] Industry Outlook - The Oil and Gas - Drilling industry, to which Patterson-UTI belongs, is currently in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Patterson-UTI's stock performance [5][6] Future Expectations - The estimate revisions trend for Patterson-UTI is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - The upcoming earnings call will be crucial for understanding management's commentary on future earnings expectations [3][4] Competitor Insights - Noble Corporation PLC, another company in the same industry, is expected to report quarterly earnings of $0.31 per share, reflecting a year-over-year change of -31.1%, with revenues expected to be $853.91 million, up 34% from the year-ago quarter [9][10]

Contact: Michael Sabella Vice President, Investor Relations (281) 885-7589 Patterson-UTI Energy Reports Financial Results for the Quarter Ended March 31, 2025 HOUSTON, Texas – April 23, 2025 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the quarter ended March 31, 2025. First Quarter 2025 Financial Results Management Commentary "The first quarter unfolded largely as we anticipated, with steady drilling activity and a strong sequential rebound in completion demand," said An ...

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Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 1: Momentum Investing Strategy - Investing in bargain stocks that have recently shown price momentum can be a safer approach [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 2: Patterson-UTI (PTEN) Analysis - Patterson-UTI (PTEN) has shown a price increase of 4.7% over the past four weeks, indicating growing investor interest [3] - PTEN gained 2.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.99, suggesting it moves 99% higher than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - PTEN has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [6] - PTEN is trading at a Price-to-Sales ratio of 0.61, indicating it is relatively cheap at 61 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - PTEN is not the only stock that meets the 'Fast-Paced Momentum at a Bargain' criteria; there are several other candidates worth considering [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Viewpoint - Patterson-UTI Energy reported a wider-than-expected loss in Q4 2024, with significant declines in revenue and operating income across its segments, raising concerns about its future performance [2][3][6][7]. Financial Performance - The adjusted net loss for Q4 2024 was 12 cents per share, worse than the expected 10-cent loss, and a decline from a profit of 19 cents in the same quarter last year [2]. - Total revenues were $1.2 billion, missing the Zacks Consensus Estimate by 4.2% and down 26.6% year-over-year [3]. - Adjusted EBITDA for the quarter was $225 million, excluding certain charges [3]. Segmental Performances - **Drilling Services**: Revenues totaled $408 million, down 12% from $463.6 million a year ago, but exceeded estimates of $364.4 million. Operating income was $73 million, down from $92.7 million [6]. - **Completion Services**: Revenues dropped 35.8% to $651 million from $1,014.4 million year-over-year, missing estimates of $736.5 million. The segment reported an operating loss of $50.2 million compared to a profit of $70.3 million in Q4 2023 [7]. - **Drilling Products**: Revenues were $86.5 million, a decline of 1.8% from $88.1 million a year ago, missing estimates of $89.4 million. Operating profit was $0.3 million, down 23% year-over-year [8]. - **Other Services**: Revenues were $16.4 million, down 10.4% from $18.3 million year-over-year, but exceeded estimates of $15.1 million. Operating income was $2.1 million, up from $1 million in Q4 2023 [9]. Capital Expenditure & Financial Position - Capital expenditures in the reported quarter were $140.4 million, down from $205.3 million in the prior year [11]. - As of December 31, 2024, the company had cash and cash equivalents of $241 million and long-term debt of $1,219 million, with a debt-to-capitalization ratio of 26% [11]. - The company generated $1.2 billion in cash from operations and $525 million in free cash flow [11]. Shareholder Returns - The board declared a quarterly dividend of 8 cents per share, unchanged from the previous quarter, to be paid on March 20 [4]. - In Q4, the company returned $52 million to shareholders, with $20 million used for share repurchases [5]. Outlook - There has been an upward trend in estimates revisions, with a consensus shift of 34.54% [12]. - Patterson-UTI holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14].

Oil and Gas Prices - Average oil price per barrel in Q4 2024 was $70.73, with a closing price of $73.52 on February 3, 2025[27] - Oil prices averaged $70.73 per barrel in Q4 2024 and closed at $73.52 per barrel on February 3, 2025[103] - Natural gas prices averaged $2.45 per MMBtu in Q4 2024 and closed at $3.30 per MMBtu on February 3, 2025[103] - The company expects oil and natural gas prices to remain unpredictable, affecting financial condition and operations[104] - A decline in demand for oil and natural gas could lead to reduced capital expenditures by customers, adversely impacting the company's operating results[105] Rig Activity and Operations - Average active rig count in the U.S. for Q4 2024 was 105 rigs, down from 107 rigs in Q3 2024[28] - The company expects an average of 106 rigs operating in the U.S. in Q1 2025, with 64 rigs under term contracts[28] - Average rigs operating per day in the U.S. decreased from 124 in 2023 to 112 in 2024, while the number of wells drilled also declined from 2,530 in 2023 to 2,376 in 2024[48] - A total of 40,899 operating days were recorded in the U.S. for 2024, down from 45,270 in 2023[48] - The contract drilling backlog in the U.S. decreased from approximately $700 million in 2023 to $426 million in 2024, with only 7.1% expected to remain after 2025[73] Mergers and Acquisitions - The company completed a merger with NexTier Oilfield Solutions valued at approximately $2.8 billion, including debt assumption[34] - The acquisition of Ulterra Drilling Technologies was valued at approximately $894 million, including cash payment of $373 million[35] - The company expanded its completions business significantly through the NexTier merger and added a specialized drill bit solutions business via the Ulterra acquisition in 2023[136] Financial Performance and Expenditures - Capital expenditure forecast for 2025 is approximately $600 million[31] - The company spent approximately $265 million, $335 million, and $272 million on capital expenditures in its Drilling Services operations for fiscal years 2024, 2023, and 2022, respectively[43] - The company recognized impairment charges of $3.8 million, $7.0 million, and $4.5 million in 2024, 2023, and 2022, respectively[115] - Approximately 53% of consolidated operating revenues in 2024 came from the ten largest customers, with one customer accounting for about $605 million, or 11% of total revenues[72] - The company may incur substantial indebtedness to finance future acquisitions and technology development, affecting cash available for operations[138] Technology and Innovation - The company continues to enhance its technology offerings, including the Cortex® operating system and EcoCell® lithium battery hybrid energy management system, aimed at reducing fuel consumption and emissions[50][77] - The company has invested in natural gas-powered equipment, including the Emerald™ line of hydraulic fracturing equipment, to meet evolving customer preferences for emissions-reducing technology[56] - Development and acquisition of new technology is critical for maintaining competitiveness, with risks of obsolescence affecting business and financial condition[126] - The company is investing in natural gas-powered equipment to replace legacy diesel completion services equipment[125] Environmental and Regulatory Compliance - The company maintains a rigorous focus on environmental sustainability, utilizing technologies that reduce carbon emissions compared to traditional diesel-only equipment[76] - The company’s operations are subject to environmental regulations that could materially affect operating results[87] - The company faces potential increased operating and capital costs due to climate change regulations, which could limit oil and natural gas production areas and reduce demand for services[144] - The Glasgow Climate Pact aims to reduce methane emissions by 30% by 2030, which may impact the company's operations[147] - Compliance with environmental laws and regulations could result in substantial costs, including civil, criminal, or administrative penalties[152] Employee Relations and Corporate Governance - The company employs approximately 9,200 full-time employees as of January 31, 2025, with employee relations considered satisfactory[79] - The company is committed to diversity and inclusion, focusing on recruiting and retaining high-caliber talent[82] - The company has implemented robust safety training programs for all U.S. field-based employees, requiring annual safety education[81] Cybersecurity and Operational Risks - Cybersecurity risks are growing, with potential material adverse effects on business and financial condition due to evolving threats[134] - The company has implemented a cybersecurity program aligned with the NIST Framework to manage risks from cybersecurity threats[195] - The Audit Committee oversees cybersecurity matters and receives regular reports from senior leadership regarding information security risks[196] - The company has adopted a cybersecurity incident reporting process to standardize responses to threats or incidents[200] Market and Economic Conditions - Global economic conditions, including inflation and geopolitical issues, may contribute to increased economic uncertainty and affect demand for services[106] - The company faces a highly competitive oil service industry, which may affect utilization and profit margins[107] - The company may not be able to maintain or increase service prices due to competitive pressures, which could adversely affect financial performance[113] - The company’s ability to access capital markets may be limited by various external factors, including oil prices and market perceptions[180] Legal and Compliance Issues - The company is involved in legal proceedings related to a breach of a license agreement, which could materially impact financial results if resolved unfavorably[210] - Intellectual property disputes could negatively impact the company's operations and competitiveness, potentially leading to significant legal costs[161] - The company is susceptible to legal proceedings and governmental investigations, which could materially adversely affect its business and financial condition[165] Stockholder Returns and Financial Flexibility - The Board of Directors approved a cash dividend of $0.08 per share, to be paid on March 17, 2025, subject to future business conditions and financial flexibility[220] - 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[184] - The market price of the company's common stock may be highly volatile, influenced by various factors including investor perception and changes in capital structure[190]

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q4 2024 Earnings Conference Call February 6, 2025 10:00 AM ET Company Participants Michael Sabella - Vice President of Investor Relations William Hendricks - President and Chief Executive Officer Andrew Smith - Executive Vice President and Chief Financial Officer Conference Call Participants Jim Rollyson - Raymond James Waqar Syed - ATB Capital Markets Keith Mackey - RBC Capital Markets Sareeb Pant - Bank of America Eddie Kim - Barclays Kirk Hallead - Benchmark Jeff ...

分组1 - Patterson-UTI reported a quarterly loss of $0.12 per share, missing the Zacks Consensus Estimate of a loss of $0.10, and compared to earnings of $0.19 per share a year ago, representing an earnings surprise of -20% [1] - The company posted revenues of $1.16 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.19%, and down from $1.58 billion year-over-year [2] - Over the last four quarters, Patterson-UTI has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] 分组2 - The stock has lost about 0.6% since the beginning of the year, while the S&P 500 has gained 2.7% [3] - The current consensus EPS estimate for the coming quarter is -$0.08 on $1.24 billion in revenues, and -$0.17 on $5.1 billion in revenues for the current fiscal year [7] - The Oil and Gas - Drilling industry is currently in the bottom 42% of the Zacks industries, indicating potential challenges for stock performance [8]

Contact: Michael Sabella Vice President, Investor Relations (281) 885-7589 Patterson-UTI Energy Reports Financial Results for the Quarter Ended December 31, 2024 HOUSTON, Texas – February 5, 2025 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the quarter ended December 31, 2024. Fourth Quarter 2024 Financial Results Other Key Items Management Commentary "We are proud of our success during 2024 in leveraging our differentiated operating footprint to deliver high-end drilling ...