Financial Data and Key Metrics Changes - Total reported revenue for Q4 2025 was $1.151 billion, with a net loss attributable to common shareholders of $9 million, or $0.02 per share [23] - Adjusted EBITDA for the quarter totaled $221 million, and adjusted free cash flow for the year was $416 million, marking the highest adjusted free cash flow quarter since the strategic transformation in 2023 [5][23] - The company closed Q4 with $421 million in cash on hand and did not have any drawn amounts on its $500 million revolving credit facility [30] Business Line Data and Key Metrics Changes - In the drilling services segment, Q4 revenue was $361 million with an adjusted gross profit of $132 million, and the average operating rig count was 93 rigs [25] - Completion services segment revenue for Q4 was $702 million, with an adjusted gross profit of $111 million, and activity and pricing remained steady compared to Q3 [26] - Drilling products segment revenue totaled $84 million with an adjusted gross profit of $34 million, maintaining near record levels per industry rig in the U.S. [27] Market Data and Key Metrics Changes - The company noted a decrease in revenue from international operations, primarily due to lower-than-expected sales in the Middle East, but revenue growth was observed in Latin America and Asia Pacific [20][21] - The U.S. oil market remains resilient, with crude prices around $60 per barrel, and the company expects steady activity in oil basins [7][32] Company Strategy and Development Direction - The company plans to reduce its gross CapEx budget by around 15% to approximately $500 million in 2026, focusing on high-return projects and technology investments [10] - Patterson-UTI is committed to maximizing returns while generating substantial adjusted free cash flow for investors, with a focus on differentiated technologies and operational excellence [7][8] - The company is expanding its presence in Argentina by leasing two high-spec rigs for work in the Vaca Muerta field, which is expected to reduce U.S. rig supply [13][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for natural gas and anticipates increased drilling and completion activity to meet future demand [9] - The company acknowledged macroeconomic uncertainties and the need for the industry to balance production volumes with drilling activity to maintain trends [8][9] - Management highlighted the importance of technology in maintaining competitive advantages and sustaining margins despite market fluctuations [12][54] Other Important Information - The company announced a 25% increase in its quarterly dividend to $0.10 per share, reflecting confidence in its free cash flow generation [8][31] - The impact of severe winter weather in January 2026 is expected to negatively affect Q1 adjusted gross profit, particularly in the completion services segment, estimated at $5 million to $10 million [25][59] Q&A Session Summary Question: How do you see the U.S. frac supply-demand balance today? - Management noted that while public data shows a reduction in fleet count, the size of fleets and horsepower on location has been increasing, indicating a tighter market balance [40][41] Question: Can you provide color on the Current Power business and energy storage systems? - Management mentioned that Current Power is exploring opportunities in energy storage for data centers, but it is still early to determine the potential [44] Question: What is the outlook for pricing power in the market? - Management indicated that increased activity in natural gas basins could drive pricing power, especially as demand for natural gas equipment rises [56][58] Question: What actions are being taken to reduce costs? - Management highlighted efforts to control spending in both OpEx and CapEx, including maintenance strategies and operational efficiencies [68][70] Question: What is the philosophy on share buybacks given the recent dividend increase? - Management reiterated that the focus remains on maximizing free cash flow and evaluating capital allocation based on cash flow per share accretion [72][75]

Financial Data and Key Metrics Changes - Total reported revenue for Q4 2025 was $1.151 billion, with a net loss attributable to common shareholders of $9 million, or $0.02 per share [20] - Adjusted EBITDA for the quarter totaled $221 million, and adjusted free cash flow for the year was $416 million, marking the strongest cash-generating quarter of the year [20][4] - The company increased its quarterly dividend by 25% to $0.10 per share, reflecting confidence in free cash flow exceeding dividend commitments [6][27] Business Line Data and Key Metrics Changes - In the drilling services segment, Q4 revenue was $361 million with an adjusted gross profit of $132 million, maintaining a steady average operating rig count of 93 rigs [22] - The completion services segment generated $702 million in revenue with an adjusted gross profit of $111 million, with activity and pricing remaining steady compared to Q3 [23] - The drilling products segment reported Q4 revenue of $84 million and an adjusted gross profit of $34 million, with revenue per industry rig in the U.S. near record levels [24] Market Data and Key Metrics Changes - The company noted a decrease in revenue from international operations, particularly in the Middle East, but experienced growth in Latin America and Asia Pacific [24][18] - The U.S. oil market remains resilient, with crude prices around $60 per barrel, while natural gas markets are expected to see increased demand in the second half of 2026 [5][29] Company Strategy and Development Direction - The company is focused on maintaining operational excellence and investing in differentiated technologies to maximize returns and free cash flow [5][4] - A reduction in gross CapEx budget by approximately 15% to around $500 million for 2026, with a focus on high-return projects [8] - The company is expanding its presence in Argentina by leasing high-spec rigs for the Vaca Muerta field, which is expected to reduce U.S. rig supply [11][77] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term prospects for natural gas and anticipated a multi-year increase in drilling activity to meet future demand [7] - The company acknowledged ongoing macroeconomic uncertainties and the need for the industry to balance production volumes with drilling activity [6][5] - Management highlighted the importance of technology in maintaining competitive advantages and sustaining margins in a fluctuating market [10][48] Other Important Information - The company successfully launched the EOS Completions digital platform, enhancing real-time decision-making for customers [16] - The company plans to continue returning at least 50% of adjusted free cash flow to shareholders through dividends and buybacks [27][19] Q&A Session Summary Question: What is the current supply-demand balance in the U.S. frac market? - Management noted that while fleet counts appear to be decreasing, the size and horsepower of fleets are increasing, leading to a tighter supply in the frac market [36][38] Question: Can you provide insights on the Current Power business and energy storage systems? - Management mentioned that Current Power is exploring opportunities in energy storage for data centers, but it is still in early stages [39] Question: How does the company view pricing power and differentiation in the market? - Management indicated that differentiation among top players is increasing, which should support pricing power in the market [45][48] Question: What is the expected impact of winter weather on first-quarter guidance? - The estimated impact from winter weather is included in guidance and is expected to be in the range of $5 million to $10 million [53][54] Question: What are the company's thoughts on international expansion, particularly in Argentina and the UAE? - Management expressed confidence in the growth of the Argentine market and the potential for further international opportunities [75][77]

分组1 - Patterson-UTI reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.11, representing an earnings surprise of +81.82% [1] - The company posted revenues of $1.15 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.65%, although this is a slight decrease from year-ago revenues of $1.16 billion [2] - Patterson-UTI shares have increased by approximately 27.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.1% [3] 分组2 - The earnings outlook for Patterson-UTI is mixed, with the current consensus EPS estimate for the coming quarter at -$0.12 on revenues of $1.1 billion, and -$0.39 on revenues of $4.46 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Oil and Gas - Drilling sector is currently in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Another company in the same industry, Nabors Industries, is expected to report a quarterly loss of $3.60 per share, with revenues projected at $799.42 million, reflecting a year-over-year increase of 9.5% [9][10]

Core Viewpoint - Patterson-UTI Energy, Inc. reported its financial results for the quarter ending December 31, 2025, indicating significant developments in its operational performance and financial metrics [1]. Financial Performance - The company disclosed its earnings for the fourth quarter of 2025, highlighting key financial metrics that reflect its operational efficiency and market positioning [1]. - Specific figures regarding revenue, net income, and other financial indicators were provided, showcasing the company's performance relative to previous quarters [1]. Operational Highlights - The report included insights into the company's operational activities, including drilling and completion services, which are critical to its business model [1]. - The company emphasized its strategic initiatives aimed at enhancing operational capabilities and market share within the energy sector [1].

Core Viewpoint - Wall Street anticipates flat earnings for Patterson-UTI (PTEN) in the upcoming quarter, with a consensus estimate of a loss of $0.12 per share and revenues expected to decline by 5.7% to $1.1 billion compared to the previous year [1][3]. Earnings Expectations - The earnings report is scheduled for release on February 4, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. - The consensus EPS estimate has been revised 3.57% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +19.15% for Patterson-UTI, suggesting analysts have become more bullish on the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, indicating a neutral outlook, but the positive Earnings ESP suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Patterson-UTI was expected to post a loss of $0.10 per share but actually reported a loss of $0.06, resulting in a positive surprise of +40.00% [13]. - Over the past four quarters, the company has exceeded consensus EPS estimates in two instances [14]. Conclusion - Patterson-UTI is viewed as a strong candidate for an earnings beat, but investors should consider additional factors before making investment decisions [17].

Core Insights - The fourth-quarter 2025 earnings season is underway, with a focus on the oil and energy sector facing macroeconomic uncertainty and commodity price volatility [1] - A few energy companies are positioned to exceed earnings expectations, potentially leading to stock price boosts and investment opportunities [1] Oil and Gas Price Movements - West Texas Intermediate crude oil prices averaged $59.64 per barrel in Q4 2025, down from $70.69 the previous year, due to global oversupply and sluggish demand growth [3] - OPEC+ nations began unwinding production cuts in September, increasing output alongside steady non-OPEC supply, resulting in inventory builds of up to 2 million barrels per day [3] - Natural gas prices at Henry Hub averaged $3.75 per million British thermal units, up from $2.44 the previous year, driven by colder winter weather, high LNG exports, and increased consumption from data centers [5] Identifying Potential Market Beaters - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have a 70% chance of beating earnings expectations [7] - Earnings ESP is a proprietary tool that measures the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate [7] Company Highlights - **Imperial Oil Limited (IMO)**: Expected to report earnings of $1.40 per share, a 17.16% decrease from the prior year, but has a 1.79% Earnings ESP and a strong track record of exceeding estimates [10] - **ExxonMobil Corporation (XOM)**: Anticipated to post earnings of $1.64 per share, down 1.8% year over year, with a 2.29% Earnings ESP and a history of 5.71% average earnings surprises [12] - **Patterson-UTI Energy, Inc. (PTEN)**: Set to report earnings of 12 cents per share, flat year over year, with a notable 19.15% Earnings ESP and an average surprise of 17.5% [13] - **Helmerich & Payne, Inc. (HP)**: Expected to report earnings of 51 cents per share, a 15% drop from the prior year, but with a 14.85% Earnings ESP and a history of positive earnings surprises [14]

Core Insights - Patterson-UTI Energy, Inc. has secured a multi-year agreement to lease two APEX 1500 drilling rigs to DLS Archer Ltd. S.A, enhancing its international presence in the oil and gas sector [1][12][14] - The APEX 1500 rigs will support Archer's operations in the Vaca Muerta formation, a significant unconventional oil and gas reserve in Argentina [1][3][6] Expansion of International Footprint - The APEX 1500 rigs are part of Patterson-UTI's high-spec rig fleet in the U.S., designed for high-performance unconventional drilling projects [2][10] - The rigs will be mobilized to Argentina to assist Archer's contract with YPF S.A., the largest oil and gas company in Argentina [2][6] Vaca Muerta Formation - The Vaca Muerta formation is recognized for its vast reserves, attracting major oil and gas operators [3][7] - Patterson-UTI's provision of APEX 1500 rigs demonstrates its commitment to meeting the demand for advanced drilling solutions in Argentina's energy sector [3][5] Rig Mobilization and Operations Timeline - The APEX 1500 rigs are expected to begin operations by mid-2026, with Archer responsible for all costs related to rig preparation and mobilization [4][9] Strengthening Partnerships - The collaboration between Patterson-UTI and Archer aims to maximize operational efficiency and productivity in drilling operations [6][14] - The rigs will be part of Archer's broader seven-rig contract with YPF, marking a significant milestone for both companies [6][12] Technological Advancements - The APEX 1500 rigs are engineered for demanding drilling environments, featuring advanced automation systems that enhance safety and operational efficiency [10][11] - These technological advancements provide a competitive edge in drilling efficiency and cost management [11][15] Strategic Focus on International Growth - The agreement with Archer represents a strategic expansion of Patterson-UTI's international operations, prioritizing markets like Argentina [12][13] - This move aligns with Patterson-UTI's strategy to diversify revenue streams and enhance its global reach [13][15]

Group 1 - Patterson-UTI Energy, Inc. will host a conference call on February 5, 2026, at 9:00 a.m. [1]

Core Viewpoint - Patterson-UTI's share price surged by 6.4% to $7.03, driven by strong operational and cash flow outlook, alongside impressive trading volume [1][2] Group 1: Operational and Financial Outlook - The company presented a strong operational and cash flow outlook in its January 2026 investor presentation, highlighting better-than-expected cost controls in drilling and resilient completion activity [2] - Adjusted free cash flow for the upcoming quarter is expected to be the strongest of the year, with capital expenditure guidance set under $500 million [2] - The company plans to return at least 50% of adjusted free cash flow to shareholders, reinforcing investor confidence in earnings stability and capital discipline [2] Group 2: Earnings and Revenue Expectations - Patterson-UTI is expected to report a quarterly loss of $0.12 per share, unchanged from the year-ago quarter, with revenues projected at $1.09 billion, down 6.2% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating a lack of upward momentum in earnings estimates [4] Group 3: Market Position and Comparisons - Patterson-UTI holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [5] - In comparison, Valaris Limited, another company in the same industry, closed 3.8% higher at $53.3 but has seen a -10.9% return over the past month [5][6]

Core Viewpoint - Patterson-UTI Energy, Inc. reported an average of 93 drilling rigs operating in the United States for December 2025 [1] Company Summary - The company is actively engaged in drilling operations, with a specific focus on the U.S. market [1]