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]

Financial Data and Key Metrics Changes - Total reported revenue for Q4 2024 was $1.162 billion, with a net loss attributable to common shareholders of $52 million or $0.13 per share [37] - Adjusted EBITDA for the quarter totaled $225 million, and the company generated $523 million of adjusted free cash flow during 2024 [37][38] - The company returned $52 million to shareholders in Q4, including a $0.08 per share dividend and $20 million used for share repurchases [38] - Net debt, including leases, was reduced by nearly $100 million during the year [38] Business Line Data and Key Metrics Changes - In the drilling services segment, Q4 revenue was $408 million with an adjusted gross profit of $163 million [39] - The US contract drilling segment had 9,617 operating days, with average rig revenue per day at $35,300 and average rig operating cost per day at $19,600 [39] - Completion services segment revenue totaled $651 million with an adjusted gross profit of $95 million, showing a slowdown in completion activities [42] - Drilling products revenue for Q4 was $87 million with an adjusted gross profit of $37 million, outperforming the overall rig count [46] Market Data and Key Metrics Changes - The company operated 107 rigs in the US, with activity expected to remain steady across oil and natural gas basins [24] - The drilling product segment saw revenue improve year-over-year in international markets, despite a decline in the US industry rig count [31] - The company expects natural gas activity to potentially increase late this year and into 2026 due to growing demand [20] Company Strategy and Development Direction - The company aims to differentiate itself by providing value-accretive solutions rather than just competing on price [10] - The long-term strategy focuses on three pillars: monetizing value-based solutions, managing cost structures, and capital allocation [12] - The company is transitioning to more integrated and performance-based agreements to enhance margins [18] - The strategy includes expanding the Emerald line of natural gas-powered equipment and investing in next-generation upgrades [51][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver industry-leading performance and improving returns for shareholders, even with steady US onshore activity [10] - The macro environment is expected to remain supportive, with steady drilling activity anticipated through most of 2025 [18] - There is a bullish outlook on natural gas production growth, with estimates suggesting a need for an increase of 28 Bcf per day by 2030 [72] Other Important Information - The company closed Q4 with $241 million in cash and has no senior note maturities until 2028 [52] - Capital expenditures for 2025 are expected to be approximately $600 million, lower than 2024 [51] - The company is exploring opportunities in the off-grid power market, particularly in the Permian [68] Q&A Session Summary Question: Can you provide insight on performance-based contracts and their financial benefits? - Management noted that performance-based contracts have been gaining traction and could represent 10-20% of operations in the coming years, with potential for improved profitability and service pull-through [111] Question: What is the outlook for natural gas activity and customer engagement? - Management indicated that while 2025 is expected to be steady, there is potential for upside in natural gas demand driven by LNG and midstream companies [90] Question: How will capital expenditures be allocated across business lines in 2025? - Approximately 35% of CapEx is expected to go to drilling, 50% to completions, with the remainder allocated to products and other areas [94] Question: What are the expectations for pricing in the completions business? - Pricing is currently under pressure, but with equipment sold out in the second and third quarters, any uptick in activity could lead to improved pricing later in the year [128] Question: What is the company's approach to the mobile power market? - The company is taking a cautious approach to capital deployment in the power market, focusing on returns and exploring organic investments rather than acquisitions [130]

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]

Financial Performance - Total revenue for Q4 2024 was $1.2 billion, with a net loss of $52 million, or $0.13 per share[4] - Adjusted EBITDA for Q4 2024 was $225 million, excluding merger and integration expenses[4] - Full year 2024 cash from operations was $1.2 billion, with adjusted free cash flow of $523 million[4] - Total revenues for the twelve months ended December 31, 2024, were $5,377,911, an increase of 30% compared to $4,146,456 for the same period in 2023[28] - Net loss attributable to common stockholders for the twelve months ended December 31, 2024, was $968,031, compared to a net income of $246,292 for the same period in 2023[28] - Operating income for the twelve months ended December 31, 2024, was a loss of $889,737, compared to an operating income of $351,954 for the same period in 2023[28] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $1.199 billion, compared to $1.183 billion for the same period in 2023, reflecting a slight increase of 1.4%[34] - The company reported a net loss of $51.392 million in Q4 2024, compared to a net loss of $978.334 million in Q3 2024[34] Revenue Breakdown - U.S. Contract Drilling revenue in Q4 2024 was $339 million, with adjusted gross profit of $151 million and average rig revenue per operating day of $35,290[6] - Completion Services revenue for Q4 2024 totaled $651 million, with adjusted gross profit of $95 million[9] - Revenues for Drilling Services decreased to $408.385 million in Q4 2024 from $463.598 million in Q4 2023, a decline of 11.9%[32] - Completion Services revenues increased significantly to $650.848 million in Q4 2024 from $1.014 billion in Q4 2023, a decrease of 35.8%[32] - Total revenues for the twelve months ended December 31, 2024, were $1.73 billion, a decrease of 10% compared to $1.92 billion for the same period in 2023[38] Cash Flow and Capital Expenditures - The company expects capital expenditures of approximately $600 million for 2025, focusing on strategic investments in technology[3] - Cash flows from operating activities for the twelve months ended December 31, 2024, were $1,175,536, an increase from $1,005,914 in 2023[30] - Total capital expenditures for the twelve months ended December 31, 2024, were $678.386 million, compared to $615.690 million in 2023, an increase of 10.2%[36] Shareholder Returns - The company returned $52 million to shareholders in Q4 2024 and $417 million for the full year, including $290 million for share repurchases[4] - The company paid cash dividends of $0.32 per common share for the twelve months ended December 31, 2024, consistent with the previous year[28] Asset and Liability Management - Total assets decreased to $5,833,466 as of December 31, 2024, down from $7,420,031 as of December 31, 2023[26] - Total liabilities decreased to $2,357,622 as of December 31, 2024, compared to $2,599,350 as of December 31, 2023[26] - Cash, cash equivalents, and restricted cash at the end of the period increased to $241,293 from $192,680 at the beginning of the period[30] Operational Insights - The company anticipates an average of 64 rigs operating under term contracts in Q1 2025, with future dayrate drilling revenue of approximately $426 million[7] - The company expects first quarter Completion Services adjusted gross profit of approximately $100 million, with a seasonal uptick in activity[16] - The company plans to continue expanding its 100% natural gas-powered Emerald™ line of completion equipment, expecting to surpass 200,000 horsepower by mid-2025[11] - Operating days for U.S. Contract Drilling in Q4 2024 were 9,617, down from 9,870 in Q3 2024[40] Impairments and Losses - The company incurred an impairment of goodwill of $885,240 during the twelve months ended December 31, 2024[28] - Basic net income (loss) per common share for the twelve months ended December 31, 2024, was $(2.44), compared to $0.88 for the same period in 2023[28]

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].

Company Performance - Patterson-UTI reported break-even quarterly earnings per share, compared to the Zacks Consensus Estimate of $0.01, and earnings of $0.20 per share a year ago, indicating a -100% earnings surprise [1] - The company posted revenues of $1.36 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.32%, and up from $1.01 billion year-over-year [1] - Over the last four quarters, Patterson-UTI has surpassed consensus revenue estimates three times [1] Earnings Outlook - The current consensus EPS estimate for the coming quarter is -$0.02 on revenues of $1.28 billion, and $0.18 on revenues of $5.37 billion for the current fiscal year [4] - The estimate revisions trend for Patterson-UTI is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Industry Context - The Oil and Gas - Drilling industry, to which Patterson-UTI belongs, is currently in the bottom 19% of over 250 Zacks industries, suggesting a challenging environment [5] - Precision Drilling, another company in the same industry, is expected to report quarterly earnings of $1.55 per share, reflecting a year-over-year change of +43.5%, with revenues expected to be $367.26 million, up 10.3% from the year-ago quarter [5]

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 ...