Financial Performance - Total revenue for the first quarter of 2025 was $1.3 billion, with a net income attributable to common stockholders of $1 million[7]. - Revenues for the three months ended March 31, 2025, were $1,280,537, an increase of 10.2% compared to $1,162,135 for the same period in 2024[28]. - Operating income for the same period was $16,945, a significant recovery from a loss of $31,335 in the previous quarter[28]. - Net income attributable to common stockholders was $1,005 for Q1 2025, compared to a loss of $51,582 in Q1 2024[28]. - Adjusted EBITDA for Q1 2025 was $251,211, up from $225,391 in Q4 2024, but down from $375,038 in Q1 2024[34]. - Cash flows from operating activities decreased to $208,141 in Q1 2025 from $365,891 in Q1 2024[30]. - Adjusted free cash flow for Q1 2025 was $50,652, down from $141,339 in Q1 2024[36]. - Total capital expenditures for Q1 2025 were $161,831, compared to $226,941 in Q1 2024[32]. - The company experienced a net income of $1.29 million in Q1 2025, a significant recovery from a net loss of $966.40 million in Q4 2024[43]. Revenue Breakdown - Drilling Services revenue reached $413 million, with adjusted gross profit of $165 million, showing a slight increase from $163 million in the previous quarter[4]. - Completion Services revenue totaled $766 million, with adjusted gross profit of $108 million, reflecting strong customer demand in oil and natural gas basins[9]. - Revenues from Drilling Services were $412,860 in Q1 2025, slightly up from $408,385 in Q4 2024[32]. - Completion Services revenues increased to $766,080 in Q1 2025 from $650,848 in Q4 2024[32]. - Drilling Services revenues for Q1 2025 were $412.86 million, a slight increase from $408.39 million in Q4 2024 but a decrease from $457.57 million in Q1 2024[38]. - Completion Services revenues increased significantly to $766.08 million in Q1 2025 from $650.85 million in Q4 2024, but decreased from $944.99 million in Q1 2024[38]. - U.S. Contract Drilling revenues were $341.99 million in Q1 2025, up from $339.36 million in Q4 2024[40]. Shareholder Returns - The company returned $51 million to shareholders in the first quarter, including $20 million in share repurchases and a declared quarterly dividend of $0.08 per share[7]. - The company paid cash dividends of $0.08 per common share for both Q1 2025 and Q1 2024[28]. Future Expectations - The company expects adjusted gross profit in the Drilling Services segment to decline slightly in the second quarter due to reduced average contracted revenue as legacy contracts roll[14]. - The company anticipates selling, general and administrative expenses of approximately $65 million and depreciation, depletion, amortization, and impairment expenses of approximately $230 million for the second quarter[18]. - Following the first quarter, the company absorbed a portion of the Great Plains Oilfield Rental business into other units, expecting a proportional decline in adjusted gross profit for Other businesses in the second quarter[17]. Operational Metrics - The average rig revenue per operating day in U.S. Contract Drilling was $35,720, with adjusted gross profit per operating day at $16,170, benefiting from APEX rig technology[5]. - Average revenue per operating day in the U.S. increased to $35.72 in Q1 2025 from $35.29 in Q4 2024[40]. - Approximately 80% of the active fleet is capable of being powered by natural gas, with expectations for this proportion to increase in 2025[10]. Debt Metrics - The company reported a Debt-to-Adjusted EBITDA ratio of 1.21x and a Net Debt-to-Adjusted EBITDA ratio of 1.00x as of March 31, 2025[43]. Other Financial Metrics - Adjusted gross profit for Drilling Services was $165.23 million in Q1 2025, compared to $162.91 million in Q4 2024 and $185.84 million in Q1 2024[38]. - Adjusted gross profit for Other Drilling Services was $10.41 million in Q1 2025, down from $11.76 million in Q4 2024[40]. - Total revenues for Drilling Products were $85.66 million in Q1 2025, slightly down from $86.52 million in Q4 2024[38].

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, focusing on undervalued stocks for potential profits [2][3]. Group 1: Investment Strategy - The Zacks ranking system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1]. - The Style Scores system allows investors to find stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are highlighted as top value stocks [3]. Group 2: Company Analysis - PattersonUTI Energy (PTEN) - PattersonUTI Energy (PTEN) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [3]. - PTEN has a Price-to-Sales (P/S) ratio of 0.61, significantly lower than the industry average of 0.92, suggesting it may be undervalued [4]. - The Price-to-Cash Flow (P/CF) ratio for PTEN is 3.03, compared to the industry's average of 9.79, indicating a favorable cash outlook [5]. - Over the past 52 weeks, PTEN's P/CF has fluctuated between 2.32 and 5.16, with a median of 3.10, further supporting its valuation [5]. - The combination of these metrics suggests that PTEN is likely undervalued, bolstered by a strong earnings outlook, making it an impressive value stock at present [6].

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]

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]