Patterson-UTI Energy(PTEN) - 2025 Q2 - Quarterly Results

Financial and Operational Highlights Patterson-UTI reported a Q2 2025 net loss of $49 million, with $1.2 billion revenue and $231 million Adjusted EBITDA Q2 2025 Financial Highlights | Metric | Value (Q2 2025) | | :--- | :--- | | Total Revenue | $1.2 billion | | Net Loss Attributable to Common Stockholders | $49 million | | Non-cash Asset Impairment (Colombia) | $28 million | | Adjusted EBITDA | $231 million | | Shareholder Returns | $46 million ($0.08/share dividend + $16M buybacks) | - The company declared a quarterly dividend of $0.08 per share, payable on September 15, 2025[6] Management Commentary Management noted Q2 activity aligned with market trends, emphasizing technology and a positive long-term natural gas outlook - The company is focused on leveraging its technology portfolio, including automation and digital services, to deliver differentiated value and improve its market position in both drilling and completions[3] - Customer caution persists due to oil market volatility and macroeconomic uncertainties, however, management sees long-term upside for natural gas activity driven by rising domestic and global LNG demand[3] - The company's strong balance sheet is a key strategic advantage, providing flexibility for capital allocation, with free cash flow expected to accelerate in the second half of 2025[3] Segment Performance Q2 2025 saw Completion Services lead revenue at $719 million, with all segments advancing technology for efficiency and value Drilling Services Drilling Services generated $404 million revenue and $149 million adjusted gross profit, with growing automation demand Drilling Services Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $404 million | | Adjusted Gross Profit | $149 million | | U.S. Operating Days | 9,465 | | Average Rigs Working | 104 | - Demand is growing for proprietary technologies like the Cortex® Automation Platform and the cloud-based REX® monitoring system, which enhance drilling processes and customer relationships[6][7] - As of June 30, 2025, the company had term contracts for drilling rigs in the U.S. providing for approximately $312 million in future dayrate drilling revenue[7] Completion Services Completion Services reported $719 million revenue and $100 million adjusted gross profit, with fully utilized natural gas fleets Completion Services Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $719 million | | Adjusted Gross Profit | $100 million | - The fleet of Emerald™ 100% natural gas-powered assets and Tier IV dual fuel assets are fully utilized and expected to remain so through the rest of 2025[9] - The company is advancing its EOS Completions Platform™, successfully deploying its proprietary Vertex™ frac automation with fleet-wide deployment expected by the end of 2025[10] Drilling Products Drilling Products achieved $88 million revenue and $39 million adjusted gross profit, with record U.S. revenue per rig Drilling Products Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $88 million | | Adjusted Gross Profit | $39 million | - Achieved a record U.S. revenue per U.S. industry rig, benefiting from an increase in performance-based agreements[12] - International business saw steady revenue with gains in the Middle East and continued penetration into offshore markets including the North Sea, Gulf of America, and Guyana[13][14] Other The 'Other' segment generated $8 million revenue and $2 million adjusted gross profit, including divested oilfield rentals Other Segment Q2 2025 Metrics | Metric (Q2 2025) | Value | | :--- | :--- | | Revenue | $8 million | | Adjusted Gross Profit | $2 million | Business Outlook Q3 2025 outlook anticipates moderate drilling decline, steady completion services, and reduced full-year capital expenditures Q3 2025 Business Outlook | Segment | Q3 2025 Outlook | | :--- | :--- | | Drilling Services | Average rig count in the mid-90s; Adjusted gross profit of ~$130 million. | | Completion Services | Activity and adjusted gross profit to remain steady with Q2. | | Drilling Products | Adjusted gross profit to improve slightly sequentially. | - Full-year 2025 capital expenditures, net of asset sales, are now expected to be less than $600 million, a reduction from prior guidance[21] - For Q3, selling, general and administrative (SG&A) expense is expected to decline slightly, while depreciation, depletion, amortization, and impairment expense is projected to be approximately $230 million[20] Financial Statements Financial statements show total assets of $5.58 billion as of June 30, 2025, with a Q2 2025 net loss of $49.1 million Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $5.58 billion, total liabilities $2.23 billion, and cash $185.9 million Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $185,891 | $241,293 | | Total current assets | $1,241,123 | $1,295,315 | | Total assets | $5,575,620 | $5,833,466 | | Total current liabilities | $716,472 | $841,993 | | Total liabilities | $2,226,947 | $2,357,622 | | Total equity | $3,348,673 | $3,475,844 | Condensed Consolidated Statements of Operations Q2 2025 revenues were $1.22 billion, resulting in a net loss of $49.1 million or ($0.13) per diluted share Condensed Consolidated Statements of Operations (in thousands) | Income Statement Item (in thousands, except per share data) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $1,219,320 | $1,348,194 | | Operating Income (Loss) | $(29,486) | $45,228 | | Net Loss Attributable to Common Stockholders | $(49,144) | $11,077 | | Diluted EPS | $(0.13) | $0.03 | Condensed Consolidated Statements of Cash Flows For H1 2025, net cash from operations was $347.9 million, with a $55.4 million net decrease in cash Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Item (Six Months Ended June 30, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $347,890 | $563,413 | | Net cash used in investing activities | $(289,207) | $(349,504) | | Net cash used in financing activities | $(112,720) | $(332,538) | | Net decrease in cash | $(55,402) | $(117,644) | Non-GAAP Financial Measures Non-GAAP measures show Q2 2025 Adjusted EBITDA at $231.2 million and H1 2025 adjusted free cash flow Adjusted EBITDA Reconciliation Q2 2025 Adjusted EBITDA was $231.2 million, reconciled from a net loss of $48.7 million, a decrease from Q2 2024 Adjusted EBITDA Reconciliation (in thousands) | Adjusted EBITDA Reconciliation (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $(48,697) | $11,621 | | Income tax expense | $1,194 | $17,785 | | Net interest expense | $16,373 | $16,046 | | Depreciation, depletion, amortization and impairment | $261,858 | $267,638 | | Adjusted EBITDA | $231,216 | $323,735 | Adjusted Free Cash Flow Reconciliation For H1 2025, adjusted free cash flow was $70.2 million, derived from net cash from operations and capital expenditures Adjusted Free Cash Flow (Six Months Ended June 30, in thousands) | Adjusted Free Cash Flow (Six Months Ended June 30, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $347,890 | $563,413 | | Less capital expenditures | $(306,037) | $(357,449) | | Plus proceeds from disposal of assets | $28,344 | $9,321 | | Adjusted free cash flow | $70,197 | $215,285 | Adjusted Gross Profit Reconciliation Q2 2025 total adjusted gross profit was $289.9 million, with Drilling Services contributing $149.0 million Adjusted Gross Profit by Segment (Q2 2025, in thousands) | Adjusted Gross Profit by Segment (Q2 2025, in thousands) | GAAP Gross Profit (Loss) | Depreciation, Amortization & Impairment | Adjusted Gross Profit | | :--- | :--- | :--- | :--- | | Drilling Services | $36,386 | $112,647 | $149,033 | | Completion Services | $(19,525) | $119,774 | $100,249 | | Drilling Products | $15,471 | $23,584 | $39,055 | | Other | $(1,918) | $3,538 | $1,620 |