Patterson-UTI Energy(US:PTEN)2025-04-29 20:10Financial Performance - Total operating revenues for Q1 2025 were $1,280,537, a decrease of 15.2% compared to $1,510,360 in Q1 2024[13]. - Net income attributable to common stockholders for Q1 2025 was $1,005, down 98.0% from $51,235 in Q1 2024[13]. - The company reported a comprehensive income of $1,001 for Q1 2025, compared to $50,713 in Q1 2024, indicating a significant drop[15]. - Operating income for Q1 2025 was $16,945, down 80.5% from $86,999 in Q1 2024[13]. - Net income for the three months ended March 31, 2025, was $1,290 million, a decrease from $51,706 million in the same period of 2024[20]. - For Q1 2025, total consolidated revenues were $1,280,537, a decrease of 14.1% from $1,510,360 in Q1 2024[116]. Assets and Liabilities - Total assets decreased to $5,765,426 as of March 31, 2025, from $5,833,466 at December 31, 2024, representing a decline of 1.2%[10]. - Current liabilities decreased slightly to $818,288 from $841,993, a reduction of 2.8%[10]. - Total liabilities decreased to $2,330,021 as of March 31, 2025, from $2,357,622 at December 31, 2024, a decrease of 1.2%[10]. - The weighted average number of common shares outstanding decreased to 386,521 in Q1 2025 from 408,182 in Q1 2024, a reduction of 5.3%[13]. - The company’s total current assets, including other current assets, were $124,148 thousand as of March 31, 2025, compared to $123,193 thousand at the end of 2024, showing a slight increase of about 0.77%[41]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $208,141 million, down from $365,891 million year-over-year[20]. - Capital expenditures for Q1 2025 totaled $161,831, down 28.7% from $226,941 in Q1 2024[117]. - The company anticipates $44.7 million in capital expenditures for the remainder of 2025 related to various contractual obligations[189]. - Cash dividends paid during the three months ended March 31, 2025, totaled $30.9 million, with a declared dividend of $0.08 per share[191]. Debt and Financing - Long-term debt as of March 31, 2025, was $1,220,083 thousand, slightly up from $1,219,770 thousand at December 31, 2024, reflecting a marginal increase of about 0.03%[64]. - The company issued $400 million in 7.15% Senior Notes due 2033, with net proceeds of approximately $396 million used to repay prior credit obligations[74]. - The total debt to capitalization ratio must not exceed 50%, and the company was in compliance with this covenant as of March 31, 2025[68]. - As of March 31, 2025, the company had no borrowings outstanding under the Credit Agreement and approximately $498 million in available borrowing capacity[69]. Segment Performance - Segment operating income for Drilling Services was $76,314, while Completion Services reported an operating loss of $18,836, resulting in total segment operating income of $64,206 for Q1 2025[116]. - The Completion Services segment generated revenues of $766.1 million in Q1 2025, accounting for 59.8% of total revenues, compared to 62.6% in Q1 2024[145]. - Adjusted gross profit for the Drilling Services segment in Q1 2025 was $165.2 million, reflecting a year-over-year decline of 11.1%[146]. - Revenues for drilling products were $85,663,000, a 1.0% sequential decrease and a 4.8% year-over-year decrease[157]. Market Conditions and Risks - The company anticipates potential risks including commodity price volatility, competition, and operational hazards in the oil and natural gas industry[122]. - The company’s revenues, profitability, and cash flows are highly dependent on prevailing oil and natural gas prices and customer capital deployment[207]. - Global economic conditions deteriorated post-March 31, 2025, due to new trade policies and tariffs, impacting market stability[207]. - Customer consolidation and focus on capital returns by exploration and production companies are impacting demand for services[207]. Legal and Regulatory Matters - The company is involved in ongoing legal proceedings that may impact financial results, with a trial scheduled for October 27, 2025[89]. - The effective income tax rate for the three months ended March 31, 2025, was 51.9%, compared to 27.9% for the same period in 2024, primarily due to permanent differences against earnings[107].