Patterson-UTI (NASDAQ: PTEN ) reported its Q3 earnings last Thursday . The bad news is the company still isn't seeing a rebound in U.S. oil and gas drilling and completions activity, especially as a couple U.S. LNG export projects that would be Analyst's Disclosure: I/we have a beneficial long position in the shares of PTEN; NBR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ...

Patterson-UTI Energy, Inc. (PTEN) reported third-quarter 2024 breakeven earnings per share, which missed the Zacks Consensus Estimate of a cent. The bottom line declined from the year-ago quarter's level of 20 cents. This year-over-year deterioration was mainly due to poor contribution from the Drilling Services, Completion Services and Other Services segments.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Total revenues of $1357 million beat the Zacks Consensus Estimate of $1289 ...

Core Viewpoint - Patterson-UTI Energy, Inc. (PTEN) is expected to report third-quarter earnings on October 23, with earnings estimated at 1 cent per share and revenues at $1.29 billion, reflecting a significant year-over-year revenue increase despite a projected decline in earnings [1][2]. Group 1: Previous Quarter Performance - In the last reported quarter, PTEN's earnings were 5 cents per share, missing the consensus estimate by 4 cents, primarily due to poor performance in the Drilling Services segment [2]. - Revenues for the last quarter were $1.3 billion, which also fell short of the Zacks Consensus Estimate by 4.8% [2]. - PTEN has had mixed results in the past four quarters, beating estimates twice and missing twice, with an average negative surprise of 11.65% [2]. Group 2: Factors Influencing Current Quarter - PTEN's operating costs are projected to reach $1,271.7 million in the third quarter, a 27% increase from the previous year, impacting profitability [3]. - Direct operating costs are expected to rise from $691.5 million to $932.9 million, while selling, general, and administrative expenses are anticipated to increase from $45.1 million to $62.8 million [3]. - Depreciation, depletion, amortization, and impairment costs are projected to climb to $256.3 million, representing a 29.7% increase from the year-ago period [3]. Group 3: Revenue Expectations - Revenues for the upcoming quarter are expected to increase to $1,288.6 million from $1,011.5 million in the same quarter last year, driven by strong performance in the Completion Services and Drilling Products segments [4]. - Revenues from the Completion Services segment are projected to rise from $459.6 million to $814.0 million, while the Drilling Products segment is expected to grow from $46.57 million to $88 million [4]. Group 4: Earnings Prediction Model - The Zacks model does not predict an earnings beat for PTEN this quarter, as the Earnings ESP is -6.67% and the company holds a Zacks Rank of 4 (Sell) [5][6].

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Core Points - Universal Technical Institute's Dallas campus has been awarded the "School of Excellence" by the Accrediting Commission of Career Schools and Colleges (ACCSC) for the 2023-2024 period, marking its second recognition since 2017 [1][2][3] - The "School of Excellence" award is the highest distinction from ACCSC, recognizing institutions for their adherence to rigorous accreditation standards and student success [2][4] - UTI-Dallas offers programs in Automotive Technology, Diesel Technology, and Welding Technology, and has been operational since 2010 [3][5] Company Overview - Universal Technical Institute, Inc. is a leading provider of education programs in transportation, skilled trades, energy, and healthcare, operating 16 campuses across 9 states [5] - The company aims to provide quality education and support services for in-demand careers, addressing the skills gap in various industries [5][6] Accreditation Details - ACCSC is recognized by the U.S. Department of Education and accredits 575 postsecondary institutions, with only 19 schools receiving the "School of Excellence" award in the current cycle [4][6] - The award signifies a school's commitment to high-quality education and successful student outcomes [3][4]

Core Points - Universal Technical Institute's Sacramento campus has been awarded the "School of Excellence" by the Accrediting Commission of Career Schools and Colleges (ACCSC) for the 2023-2024 period, marking it as one of only 19 schools to receive this distinction [1][4] - The "School of Excellence" award recognizes institutions for their adherence to rigorous accreditation standards and their record of student success [2][3] - UTI-Sacramento, which opened in October 2005, offers various programs including Associate degrees in Automotive Technology and diplomas in Diesel Technology and Welding Technology, with plans to add HVACR programs pending regulatory approvals [3][5] Company Overview - Universal Technical Institute, Inc. is a leading provider of education programs in transportation, skilled trades, energy, and healthcare, operating 16 campuses across 9 states [5] - The company aims to provide quality education and support services for in-demand careers, addressing the needs of employers in various skilled fields [5] Accrediting Body Information - The ACCSC is recognized by the U.S. Department of Education and accredits 575 postsecondary, trade, and technical schools, serving over 150,000 students annually [4][6] - The commission focuses on enhancing educational quality and bridging the skills gap in the United States [6]

The School of Excellence Award is the highest institutional distinction awarded by the ACCSC. It celebrates accredited member institutions for their steadfast adherence to ACCSC's rigorous accreditation standards and outstanding record of student accomplishment. According to ACCSC Executive Director Dr. Michale McComis, "The School of Excellence Award highlights a school's efforts and its success in offering high-quality education that benefits students—it is a distinction that a school earns through meetin ...

Core Viewpoint - Patterson-UTI Energy Inc (PTEN) is positioned to benefit from a potential rebound in natural gas prices, which could enhance its operational performance and shareholder returns in the coming years [4][11][14]. Company Overview - Patterson-UTI is a U.S. land-focused oilfield services company that provides drilling and completion services, having expanded its portfolio through mergers and acquisitions [1]. - The company has underperformed compared to other U.S. drillers due to its limited international exposure, while international oilfield activities remain robust [2][3]. Industry Context - The U.S. oilfield services sector is currently experiencing a cyclical downturn, primarily influenced by natural gas market dynamics rather than oil prices [1][2]. - U.S. natural gas production has seen significant growth, but the expansion of export capacity is not expected until 2025 or later, potentially impacting market conditions [2]. Financial Performance - PTEN has shown positive free cash flow (FCF) despite the current low activity levels, with levered FCF of $81.9 million and unlevered FCF of $93.1 million as of June 2024 [6][14]. - The company plans to return approximately 40% of its adjusted EBITDA as free cash flow in 2024, with a total dividend payment of about $125 million and $275 million allocated for share buybacks [15][14]. Shareholder Returns - Management has committed to a dividend of $0.08 per share for Q3 and has been actively repurchasing shares, reducing the share count by 6% since the NexTier merger [8][9]. - The remaining buyback authorization as of June 30 is $819 million, which could potentially buy back 23% of the current share count [9]. Market Outlook - A recovery in U.S. shale activity is anticipated in 2025, driven by steady oil markets and growth in natural gas markets [11][12]. - The demand for high-spec equipment that can utilize natural gas is expected to increase, creating a favorable environment for PTEN as it operates a fleet that is largely compatible with these requirements [13]. Valuation and Price Targets - Current enterprise value is approximately 3.6x forward EBITDA, with potential upside to 50% if the market conditions improve [16][17]. - Analysts have set an average price target of $13.92 for PTEN, indicating a potential upside of 55.18% from current levels [17]. Investment Thesis - The investment thesis for PTEN hinges on the anticipated recovery in natural gas prices and the company's strong capital return program, which could provide support for the stock price and yield for investors [18].

th n sasacvetkovic33 What bothers me most by the soft-landing talk on Wall Street is the fact commodity cycles require a downside. If you skip downturns to cool demand and rebalance supply, you will find yourself in an endless mathentatical loop of shortages, where prices climb or are flat, year after year. I don't think the average Wall Street analyst small retail investor understands the "need" for recessions. At the same time, everyone likes to complain about nising inflation. Well, you cannot have your ...

Financial Performance - Revenues for the three months ended June 30, 2024, increased to $177,458 thousand, up 15.7% from $153,286 thousand for the same period in 2023[13]. - Net income for the three months ended June 30, 2024, was $4,985 thousand, compared to a net loss of $509 thousand for the same period in 2023[13]. - Income from operations for the three months ended June 30, 2024, was $7,446 thousand, significantly higher than $663 thousand for the same period in 2023[13]. - Earnings per share for the three months ended June 30, 2024, were $0.09, compared to a loss of $0.05 per share for the same period in 2023[13]. - Comprehensive income for the three months ended June 30, 2024, was $4,979 thousand, compared to $4 thousand for the same period in 2023[15]. - Net income for the nine months ended June 30, 2024, was $23,161,000, compared to $5,619,000 for the same period in 2023, representing a significant increase[19]. - Revenues for the nine months ended June 30, 2024, were $536.3 million, an increase of $99.2 million, or 22.7%, compared to $437.1 million for the same period in 2023[159]. - EBITDA for the nine months ended June 30, 2024, was $54.8 million, compared to $30.2 million for the same period in 2023, representing an increase of 81.6%[185]. Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled $170,012 thousand, an increase of 11.3% from $152,623 thousand in the prior year[13]. - Total operating expenses for the nine months ended June 30, 2024, were $503,460 thousand, up from $426,050 thousand in the same period of 2023[13]. - Selling, general and administrative expenses for the three months ended June 30, 2024, were $74.7 million, an increase from $64.2 million for the same period in 2023, primarily due to business strategy costs[141]. - Total educational services and facilities expense for the nine months ended June 30, 2024, was $285.2 million, an increase from $236.7 million for the same period in 2023, representing a 20.5% increase[165]. - Compensation and related costs increased by $3.1 million for the three months ended June 30, 2024, primarily due to additional headcount to support program expansions and overall student growth[138]. Cash Flow and Debt - Net cash provided by operating activities was $18,361,000 for the nine months ended June 30, 2024, compared to a cash outflow of $4,733,000 in the same period last year[19]. - Cash paid for acquisition was $0 in the current period, while it was $16,381,000 in the prior year[19]. - The company made payments of $59,000,000 on the revolving credit facility during the nine months ended June 30, 2024, with remaining availability of $33,000,000 as of that date[76]. - The company had $137.7 million in long-term debt outstanding as of June 30, 2024, which includes two term loans and a revolving credit facility[192]. - Cash used in financing activities for the nine months ended June 30, 2024, was $39.7 million, mainly related to net payments on the revolving credit facility and repurchase of Series A Preferred Stock[200]. Student Enrollment and Programs - Total new student starts for the consolidated entity were 5,567 for the three months ended June 30, 2024, representing a 5.0% increase compared to 5,300 in the prior year[120]. - The average undergraduate full-time active students increased by 13.4% to 21,079 for the three months ended June 30, 2024, compared to 18,594 in the same period last year[130]. - The company launched 14 new programs across nine campuses during the fourth quarter of fiscal 2023 and into fiscal 2024, contributing to increased student demand[122]. - Concorde rolled out seven new programs at three campuses and introduced new cash pay "short courses," which also contributed to the increase in student starts[122]. Acquisition and Integration - The acquisition of Concorde was completed on December 1, 2022, for a total cash consideration of $48.1 million after adjustments[35]. - The total assets acquired from Concorde were valued at $163.8 million, while total liabilities assumed were $115.7 million, resulting in net assets acquired of $48.1 million[38]. - Goodwill recognized from the acquisition was $11.6 million, reflecting the strategic fit into the company's growth and diversification strategy[40]. - An internal reorganization was executed to support a multi-divisional business model following the integration of Concorde[30]. - The acquisition expands the company's portfolio into the higher-growth healthcare education sector, enhancing workforce educational solutions[24]. Tax and Compliance - The company reported an income tax expense of $1,772 thousand for the three months ended June 30, 2024, compared to a tax benefit of $64 thousand for the same period in 2023[13]. - The effective income tax rate for the nine months ended June 30, 2024, was 24.9%, compared to 36.5% for the same period in 2023[90]. - As of June 30, 2024, the company was in compliance with all Credit Facility and term loan debt covenants[81]. Assets and Liabilities - Total assets as of June 30, 2024, were $706,041,000, compared to $740,685,000 as of September 30, 2023[109]. - Cash and cash equivalents at the end of the period were $115,505,000, compared to $110,511,000 at the end of the previous year[19]. - The company’s total liabilities at fair value on a recurring basis were $132.7 million as of June 30, 2024[53]. - Accounts payable and accrued expenses totaled $79,846,000 as of June 30, 2024, compared to $69,941,000 as of September 30, 2023, marking an increase of 14.2%[72].