Washington, D.C. 20549 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39270 Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) Delaware 75-2504748 (State or other jurisdiction of in ...

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q2 2023 Results Conference Call July 27, 2023 10:00 AM ET Company Participants Mike Drickamer - VP, IR Andy Hendricks - President, CEO & Director Andrew Smith - EVP & CFO Mike Holcomb - Chief Operating Officer Conference Call Participants Arun Jayaram - JPMorgan Kurt Hallead - Benchmark Derek Podhaizer - Barclays Keith MacKey - RBC Capital Markets Saurabh Pant - Bank of America Jim Rollyson - Raymond James John Daniel - Daniel Energy Partners Dan Kutz - Morgan Stanle ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39270 Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) Delaware 75-2504748 (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - The company reported a net income of $99.7 million or $0.46 per share for the first quarter [32] - Adjusted EBITDA improved to $256 million for the first quarter from $239 million in the fourth quarter of 2022 [32] - Average adjusted rig margin per day in the U.S. increased by $2,430 to $15,880, driven by higher average rig revenue per day [32] Business Line Data and Key Metrics Changes - In contract drilling, revenues from Colombia were $10.6 million with an adjusted gross margin of $2.1 million for the first quarter [33] - Pressure pumping revenues were $293 million with an adjusted gross margin of $73.2 million, expected to decline to approximately $277 million with a gross margin of $61 million in the second quarter due to increased white space in the calendar [30][32] - Directional drilling revenues were $56.3 million with an adjusted gross margin of $8.2 million, expected to increase by approximately $1 million in the second quarter [34] Market Data and Key Metrics Changes - The overall rig count has declined, primarily affecting lower-spec rigs, while demand for Tier 1 super-spec rigs remains strong [17][18] - The company expects a modest reduction in rig count due to current natural gas prices but anticipates an increase in the second half of the year driven by activity in oil basins [21][22] Company Strategy and Development Direction - The company aims to capitalize on its position as a leading provider of Tier 1 super-spec rigs, focusing on profitability and cash flow over activity levels [19][40] - The strategy includes maintaining capital discipline and prioritizing cash flow and margin over activity levels, with a target to return 50% of free cash flow to shareholders [41] - The company plans to continue upgrading rigs to dual fuel capabilities, with expectations to have 9 out of 12 frac spreads dual fuel capable by the end of the year [23][76] Management's Comments on Operating Environment and Future Outlook - Management noted a transitory pause in activity due to softness in natural gas prices but expects stability in rig counts for Tier 1 super-spec rigs [17][21] - The company anticipates that improving market fundamentals for oil will positively impact drilling activity levels, despite near-term challenges in natural gas basins [19][22] - Management expressed confidence in the ability to improve drilling economics through operational excellence and technology integration [20][39] Other Important Information - The company repurchased 5.6 million shares for $73.6 million and $9 million of long-term debt for $7.8 million, indicating a strong belief in the undervaluation of its shares [16] - The effective tax rate for 2023 is expected to be approximately 17%, with no significant U.S. federal cash taxes anticipated [36] Q&A Session Summary Question: Can you speak to the timing and cost of bringing rigs back out when the market recovers? - Management indicated that the timing is relatively short and costs are low, with minimal budget growth CapEx required for rigs down for only a few months [8][12] Question: What are the dynamics in different basins? - Management noted stability in the Northeast and long-term growth in the Permian, with near-term challenges in Mid-Con and South Texas [48][70] Question: How does the company view pricing dynamics in the current market? - Management stated that they do not see a need to reduce rates on rigs, emphasizing the quality of their rigs and the ongoing demand in oil basins [56][75] Question: What is the company's outlook for rig count in the second half of the year? - Management expressed confidence in an increase in rig count driven by customer discussions and expected demand in oil basins [81][94] Question: Are there any changes in cost inputs like steel or labor? - Management noted that while labor remains tight, there are some cost savings in materials like sand, but no significant changes in service rates [92][100]

Operational Overview - As of December 31, 2022, the company operated a fleet of 192 marketed land-based drilling rigs in the U.S. and 8 in Colombia, with 172 of these being super-spec rigs[34]. - The average number of rigs operating per day in the U.S. was 131, an increase from 128 in Q3 2022[21][22]. - The company expects an average of 130 rigs operating in the U.S. in Q1 2023, with a projected average of 87 rigs under term contracts during the same period[21][22]. - The average active spread count was 12 in Q4 2022, with expectations to activate a 13th spread towards the end of 2023[23]. - Average rigs operating per day in the U.S. increased to 124 in 2022 from 82 in both 2021 and 2020, with a total of 2,489 wells drilled in 2022 compared to 1,662 in 2021 and 1,324 in 2020[42]. Financial Performance - Capital expenditures for 2023 are forecasted to be approximately $550 million[26]. - The company recorded gains on the extinguishment of debt totaling $2.4 million during Q4 2022[33]. - The contract drilling backlog in the U.S. was approximately $830 million as of December 31, 2022, up from $325 million in 2021, with 32% expected to remain after 2023[56]. - Approximately 49% of consolidated operating revenues in 2022 came from the company's ten largest customers, with one customer accounting for approximately $476 million, or 18% of total revenues[55]. Capital Expenditures and Investments - The company spent approximately $471 million on capital expenditures over the last three years to modify, upgrade, and extend the lives of its drilling fleet, with $256 million in 2022, $110 million in 2021, and $105 million in 2020[36]. - The acquisition of Pioneer Energy Services Corp. was completed on October 1, 2021, valued at approximately $278 million, enhancing the company's service capabilities[27][28]. Market Conditions - The average oil price per barrel in Q4 2022 was $82.79[21][22]. - Pricing for drilling and completion services increased in 2022 due to limited supply of high-quality equipment[25]. - The company experienced general oilfield cost inflation across segments due to supply chain disruptions and labor market challenges[24]. Employee and Operational Management - The company has approximately 6,500 full-time employees as of January 31, 2023, with employee relations considered satisfactory[62]. - The company prioritizes employee safety with robust training programs, ensuring compliance with applicable laws and industry standards[64]. - The company emphasizes diversity and inclusion, requiring annual training for all employees and biannual training for supervisors and managers[66]. Environmental and Regulatory Compliance - The company maintains a rigorous focus on environmental sustainability, utilizing technologies to reduce carbon emissions and improve air quality[59]. - The company has not incurred significant capital expenditures for environmental compliance and does not anticipate material costs in the foreseeable future[69]. - Legislative and regulatory changes could increase operational costs and impact oil and gas production activities, potentially affecting the company's financial condition[70]. - The company is subject to strict liability under various environmental laws, which could lead to significant remediation costs if regulations change[73]. - The company monitors greenhouse gas emissions regulations and climate change policies, which may impose additional costs and operational limitations[85]. Risk Management - The company faces inherent operational hazards that could result in substantial liabilities, including personal injury and environmental damage[86]. - Indemnification agreements with customers may not fully protect the company from liabilities, potentially impacting its financial condition[87]. - The company maintains various types of insurance coverage, including a $1.5 million deductible for workers' compensation and a $10 million deductible for general liability[88]. - The company self-insures several risks, including loss of earnings and most cybersecurity risks[88]. - The company retains the risk for any loss in excess of insurance limits or exclusions, which could materially affect its financial condition[89]. Financial Position and Borrowing - The company had no borrowings outstanding under its revolving credit facility as of December 31, 2022, with available borrowing capacity of $600 million[32]. - As of December 31, 2022, the applicable margin on SOFR rate loans was 1.75% and on base rate loans was 0.75%[284]. - The company has no outstanding borrowings or letters of credit under the Credit Agreement as of December 31, 2022[284]. - The company is obligated to pay Scotiabank interest at the LIBOR rate plus 2.25% per annum for any amounts not paid on demand under the Reimbursement Agreement[285]. - The company has exposure to interest rate market risk associated with outstanding borrowings and letters of credit under the Credit Agreement[283]. Operational Trends - Seasonality has not significantly impacted overall operations, although there is slower activity toward the end of the calendar year[91]. - The carrying values of cash and cash equivalents, trade receivables, and accounts payable approximate fair value due to their short-term maturity[286]. - The company utilizes numerous independent subcontractors and suppliers for raw materials and services, with no assurance of continued favorable terms[92].

Financial Data and Key Metrics Changes - Net income for Q4 2022 was $100 million or $0.46 per share, up from $61.5 million or $0.28 per share in Q3 2022 [12] - Adjusted EBITDA for Q4 2022 was almost 5 times that of Q4 2021, indicating significant profitability improvement [5] - Average rig revenue per day in the U.S. increased by $9,800 or 44% year-over-year from Q4 2021 to Q4 2022 [12] - The debt to adjusted EBITDA metric improved to 1.2x for 2022, with a fourth quarter annualized basis of less than 0.9x gross or approximately 0.7x net of cash [18] Business Line Data and Key Metrics Changes - In contract drilling, average adjusted rig margin per day in the U.S. increased by $2,970, driven by successful contract renewals at favorable pricing [12] - Pressure pumping revenues increased to $307 million in Q4 2022, with an adjusted gross margin of $86 million [38] - Directional drilling revenues improved to $59.5 million in Q4 2022 from $58.9 million in Q3 2022, with adjusted gross margin rising to $11.2 million [14] Market Data and Key Metrics Changes - The average rig count in the U.S. rose by 3 rigs to 131 rigs in Q4 2022 [8] - In Colombia, contract drilling revenues for Q4 2022 were $15.1 million, with an adjusted gross margin of $4.9 million [13] - The company anticipates an average rig count in the U.S. of 130 rigs for Q1 2023, with an expected increase in average rig margin per day by approximately $1,000 [13] Company Strategy and Development Direction - The company remains optimistic about being in a multiyear up-cycle, with high demand for Tier 1 super-spec rigs and premium pressure pumping equipment [6] - The strategic focus includes converting engines to Tier 4 dual fuel to reduce operational costs and emissions, and enhancing technology in directional drilling [10] - The company is shifting towards higher-margin rotary steerable work, with revenues from this segment increasing to approximately 20% of directional drilling revenues in 2022 [35] Management's Comments on Operating Environment and Future Outlook - Management expects continued high utilization of Tier 1 super-spec rigs to support current leading-edge rates, despite potential softness in gas markets outside the Northeast [31] - The company anticipates significant increases in earnings and cash flow during 2023, driven by repricing drilling rig contracts to current leading-edge rates [31] - Management acknowledges potential downside risks in gas markets but believes the Northeast remains stable due to long-term contracts with well-hedged customers [83] Other Important Information - The company plans to return 50% of free cash flow to shareholders through dividends and share buybacks [44] - Capital expenditures for 2023 are expected to be approximately $550 million, with a focus on maintenance and reactivation CapEx [16] - The company ended 2022 with $836 million of long-term debt and a cash balance of $138 million, reflecting improved profitability [18] Q&A Session Summary Question: Outlook on rig count and market demand - Management noted that while there may be a decline in gas rig counts, demand for oil rigs is expected to offset this, maintaining a tight market for high-spec rigs [23][31] Question: Reactivation of rigs and market conditions - Management confirmed plans for eight rig reactivations in 2023, with sufficient demand to support these actions despite potential softness in gas markets [82][87] Question: Pricing and operational costs - Management indicated that they expect to reprice around 30 contracts in the first half of 2023, with significant increases in revenue per day anticipated [66][88] Question: Pressure pumping market dynamics - Management highlighted that pressure pumping services remain robust, with supply constraints limiting equipment availability [34][38] Question: Hydrogen blending project - The trial for blending hydrogen with natural gas was successful, and the company is excited about the potential for reducing emissions in the future [121][100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39270 Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) 10713 W. Sam Houston Pkwy N, Suite 800 Houston, T ...

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q3 2022 Earnings Conference Call October 27, 2022 10:00 AM ET Company Participants Mike Drickamer – Vice President-Investor Relations Andy Hendricks – Chief Executive Officer Andy Smith – Chief Financial Officer Conference Call Participants Scott Gruber – Citi Luke Lemoine – Piper Sandler Derek Podhaizer – Barclays Don Crist – Johnson Rice Saurabh Pant – Bank of America Keith Mackey – RBC Sean Mitchell – Daniel Energy David Smith – Pickering Energy Partners Dan Kutz ...

Patterson-UTI Energy, Inc. Barclays CEO Energy-Power Conference September 6-7, 2022 Forward Looking Statements 2 This material and any oral statements made in connection with this material include "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Statements made which provide the Company's or management's intentions, beliefs, expectations or predictions for the future are forward-looking statements and are inherently uncertain. The opinion ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39270 Patterson-UTI Energy, Inc. (Exact name of registrant as specified in its charter) Delaware 75-2504748 (State or other jurisdiction of in ...