Core Viewpoint - Patterson-UTI reported mixed results in its Q3 2024 earnings, with breakeven earnings per share that missed estimates, while total revenues exceeded expectations, indicating a complex performance landscape for the company [2][3]. Financial Performance - The company reported total revenues of $1,357 million, surpassing the Zacks Consensus Estimate of $1,289 million, and reflecting a year-over-year increase of 34.2% [3]. - Adjusted EBITDA for the quarter was $275 million, excluding certain charges [3]. - Patterson-UTI returned $71 million to shareholders in Q3, including $40 million used for share repurchases [4]. Segment Performance - **Drilling Services**: Revenues were $422 million, down 13.7% from the previous year but above projections [6]. - **Completion Services**: Revenues increased by 81% year-over-year to $832 million, exceeding expectations [7]. - **Drilling Products**: Revenues rose by 91% to $89 million, slightly beating projections [8]. - **Other Services**: Revenues decreased by 13.2% to $15 million, missing projections [10]. Capital Expenditure and Financial Position - Capital expenditures for the quarter were $181 million, up from $160.4 million in the prior year [12]. - As of September 30, 2024, the company had cash and cash equivalents of $115 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 25% [12]. - The company generated $860 million in cash from operations and $321.7 million in free cash flow [13]. Market Position and Outlook - Following the Ulterra acquisition, Patterson-UTI increased its market share in U.S. Contract Drilling by over 10% [9]. - The consensus estimates for the company have trended downward, leading to a Zacks Rank of 4 (Sell) [17]. - The overall VGM Score for Patterson-UTI is A, indicating strong value but lagging in momentum [16].

Financial Performance - For Q3 2024, the company reported a net loss attributable to common shareholders of $979 million, or $2.50 per share, with adjusted net income of $2 million, or $0.00 per share [140]. - The company recorded an $885 million impairment charge to goodwill for the completion services reporting unit during Q3 2024 [138]. - The company reported an adjusted net loss of $978.3 million for the three months ended September 30, 2024 [223]. - For the three months ended September 30, 2024, the net income attributable to common stockholders was a loss of $978,761 thousand, compared to a profit of $11,077 thousand for the previous quarter [224]. - Adjusted net income attributable to common stockholders (Non-GAAP) for the nine months ended September 30, 2024, was $82,241 thousand, down from $249,926 thousand for the same period in 2023 [225]. Revenue and Segment Performance - Drilling services segment revenues decreased by 4.3% sequentially to $421,563,000, while adjusted gross profit fell by 4.5% to $170,686,000 [153]. - Completion services revenues increased by 3.3% sequentially to $831,567,000, but adjusted gross profit decreased by 16.0% to $127,758,000 due to disproportionately higher direct operating costs [159]. - Revenues for the completion services segment increased to $2,581,937 thousand for the nine months ended September 30, 2024, compared to $1,003,083 thousand for the same period in 2023, representing a 157.4% increase [177]. - Revenues for the drilling products segment surged to $265,129 thousand for the nine months ended September 30, 2024, a 469.3% increase from $46,570 thousand in the same period of 2023 [181]. - Revenues in the other segment decreased to $49,285 thousand, down 12.5% from 56,325 thousand for the nine months ended September 30, 2023 [184]. Capital Expenditures and Financial Position - The company expects total capital expenditures of approximately $150 million for Q4 2024 [137]. - Capital expenditures for drilling services increased by 18.3% sequentially to $69,127,000, while completion services capital expenditures surged by 78.0% to $86,755,000 [153][159]. - The company reported cash flow from operating activities of $860 million for the nine months ended September 30, 2024, with capital expenditures of $538 million during the same period [211]. - As of September 30, 2024, the company had approximately $444 million in working capital, including $115 million in cash and cash equivalents [193]. - The company had outstanding long-term debt of $1.2 billion, which included $483 million of 2028 Notes, $345 million of 2029 Notes, $400 million of 2033 Notes, and $9.5 million of Equipment Loans [205]. Market Conditions and Price Trends - Oil prices averaged $76.43 per barrel in Q3 2024, down from $81.81 per barrel in Q2 2024 [244]. - Natural gas prices averaged $2.11 per MMBtu in Q3 2024, slightly up from $2.07 per MMBtu in Q2 2024 [244]. - The company expects continued volatility in oil and natural gas prices, impacting financial condition and operations [245]. - A decline in demand for oil and natural gas could lead to reduced capital expenditures by customers, adversely affecting the company's operating results [245]. Mergers and Acquisitions - The company completed the merger with NexTier Oilfield Solutions Inc. on September 1, 2023, valued at approximately $2.8 billion [142]. - The acquisition of Ulterra Drilling Technologies was completed on August 14, 2023, valued at approximately $894 million [144]. Impairments and Charges - The company recorded an impairment charge of $885 million related to goodwill in the completion services reporting unit [162]. - A goodwill impairment charge of $885 million was recorded for the completion services reporting unit during the third quarter of 2024 due to a decline in fair value [238]. - The company identified 42 legacy, non-Tier-1 super-spec drilling rigs for abandonment, resulting in a $114 million abandonment charge during Q3 2024 [139]. Operational Metrics - The average active rig count in the United States for Q3 2024 was 107 rigs, down from 114 in Q2 2024, with an expected average of 106 rigs in Q4 2024 [134]. - The company experienced a 9.1% decrease in operating days in the U.S. for drilling services, reflecting industry-wide activity declines [173]. - Average revenue per operating day in the U.S. for drilling services was $36.04, a slight decrease of 1.1% from the previous quarter [153]. Tax and Compliance - The effective income tax rate for the nine months ended September 30, 2024, was (0.8)%, compared to 13.9% for the same period in 2023 [191]. - The company maintained compliance with its credit agreement covenants, including a total debt to capitalization ratio not exceeding 50% as of September 30, 2024 [199]. Shareholder Returns - The company paid cash dividends totaling $95.6 million during the nine months ended September 30, 2024, with a dividend of $0.08 per share approved for December 16, 2024 [212]. - The company had remaining authorization to purchase approximately $780 million of its outstanding common stock under the stock buyback program as of September 30, 2024 [214].

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q3 2024 Earnings Call October 24, 2024 10:00 AM ET Company Participants Michael Sabella - Investor Relations Andy Hendricks - President and Chief Executive Officer Andy Smith - Chief Financial Officer Conference Call Participants Scott Gruber - Citigroup Stephen Gengaro - Stifel Keith MacKey - RBC Capital Markets Ati Modak - Goldman Sachs Arun Jayaram - JPMorgan Waqar Syed - ATB Connor Jensen - Raymond James Saurabh Pant - Bank of America Kurt Hallead - Benchmark Com ...

Patterson-UTI (PTEN) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.01. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this provider of onshore contract drilling services would post earnings of $0.09 per share when it actually produced earnings of $0.05, delivering a surprise of -44.44%.Over the last four ...

Exhibit 99.1 Contact: Michael Sabella Vice President, Investor Relations (281) 885-7589 Patterson-UTI Energy Reports Financial Results for the Quarter Ended September 30, 2024 HOUSTON, Texas – October 23, 2024 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the quarter ended September 30, 2024. Third Quarter 2024 Financial Results • Total revenue of $1.4 billion • Net loss attributable to common stockholders of $979 million, or $2.50 per share ◦ Includes an $885 million good ...

Core Viewpoint - Patterson-UTI has experienced a decline in share price by approximately 13.6% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Financial Performance - The company reported an adjusted net profit of 5 cents per share for Q2 2024, missing the Zacks Consensus Estimate of 9 cents, primarily due to poor performance in the Drilling Services segment [2] - Total revenues reached $1.3 billion, falling short of the Zacks Consensus Estimate of $1.4 billion, but reflecting a year-over-year increase of 77.7%, driven by higher revenue from the Completion Services segment [3] Shareholder Returns - Patterson-UTI will pay a quarterly dividend of 8 cents per share on September 16, 2024, to shareholders of record as of September 3 [4] - The company returned $164 million to shareholders in Q2 and $295 million in the first half of the year, including the repurchase of 12 million shares for $132 million in Q2 [4] - Since the completion of the NexTier merger and Ulterra acquisition, Patterson-UTI has returned a total of $407 million to shareholders, with $819 million remaining in its share repurchase authorization as of June 30, 2024 [5] Segment Performance - Drilling Services segment revenues totaled $440.3 million, down 10.1% from the prior year and below projections [6] - Completion Services segment revenues increased by 221.8% year-over-year to $805.4 million, but missed projections [7] - Drilling Products revenues were $86.1 million, missing estimates, while operating profit exceeded expectations [8] - Other Services revenues were $16.5 million, down 13.2% year-over-year, but operating profit improved compared to the previous year [9] Capital Expenditure & Financial Position - Capital expenditures for the quarter were $130.5 million, slightly lower than the prior year [10] - As of June 30, 2024, the company had cash and cash equivalents of $75 million and long-term debt of $1,219.2 million, with a debt-to-capitalization ratio of 20.9% [10] Outlook - The company anticipates generating free cash flow from adjusted EBITDA at a rate of 40% by 2024 [12] - Management expects steady industry drilling activity for the remainder of the year, with customers managing budgets through completion activity, potentially impacting frac activity [13] - Estimates for the company have trended downward, with a consensus estimate shift of -54% [14][16]

Patterson-UTI Energy, Inc. (PTEN) reported second-quarter 2024 adjusted net profit of 3 cents per share, down from the prior-year quarter's level of 40 cents. This year-over-year deterioration was mainly due to poor contribution from the Drilling Services segment. Drilling Services: Revenues in this segment totaled $440.3 million, down 10.1% from the prior-year quarter's figure of $489.7 million. Additionally, the top line was also below our projection of $441.5 million. Operating profit amounted to $0.4 mi ...

We had $48.0 million of outstanding letters of credit at June 30, 2024, which was comprised of $43.8 million outstanding under the Reimbursement Agreement, $2.3 million outstanding under the Credit Agreement, and $1.9 million outstanding with financial institutions providing for short-term borrowing capacity, overdraft protection and bonding requirements. We maintain these letters of credit primarily for the benefit of various insurance companies as collateral for retrospective premiums and retained losses ...

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q2 2024 Earnings Conference Call July 25, 2024 10:00 AM ET Company Participants Michael Sabella - VP, IR William Hendricks - President, CEO & Director Andy Smith - CFO & EVP Conference Call Participants Jim Rollyson - Raymond James Arun Jayaram - JPMorgan Derek Podhaizer - Barclays Scott Gruber - Citigroup Luke Lemoine - Piper Sandler Stephen Gengaro - Stifel Jeffrey LeBlanc - TPH Keith MacKey - RBC Capital Markets Saurabh Pant - Bank of America Sean Mitchell - Danie ...

Management Commentary • Total revenue of $1.3 billion Within the Drilling Services segment for the second quarter, U.S. Contract Drilling revenue was $378 million, and adjusted gross profit was $168 million, with the segment beating our expectations on a slight increase in revenue per day and adjusted gross profit per operating day. U.S. operating days totaled 10,388, with activity in line with our expectation. The average rig revenue per operating day in U.S. Contract Drilling was $36,430 in the quarter, a ...