Patterson-UTI Energy(US:PTEN)2025-10-28 20:23Financial Performance - Total operating revenues for Q3 2025 were $1,175,954, a decrease of 13.4% compared to $1,357,222 in Q3 2024[13] - Net loss attributable to common stockholders for Q3 2025 was $36,402, compared to a net loss of $978,761 in Q3 2024[13] - Operating income for Q3 2025 was a loss of $28,054, compared to a loss of $990,629 in Q3 2024, indicating an improvement in operational performance[13] - The company reported a comprehensive loss of $37,250 for Q3 2025, compared to a comprehensive loss of $977,737 in Q3 2024[14] - Basic net income (loss) per common share for Q3 2025 was $(0.10), compared to $(2.50) for Q3 2024, showing a significant reduction in losses per share[13] - Net income for the nine months ended September 30, 2025, was a loss of $83,857,000 compared to a loss of $915,007,000 for the same period in 2024[20] - Revenues for the three months ended September 30, 2025, were $4,599, a decrease of 41.0% compared to $7,793 for the three months ended June 30, 2025[152] - For the nine months ended September 30, 2025, total revenues from external customers reached $3,647,485, a decrease from $4,166,491 in the same period of 2024, representing a decline of approximately 12.5%[1] Assets and Liabilities - Total assets decreased to $5,533,110 as of September 30, 2025, down from $5,833,466 at December 31, 2024, representing a decline of 5.2%[10] - Current liabilities decreased to $777,773 as of September 30, 2025, from $841,993 at December 31, 2024, a reduction of 7.6%[10] - Total liabilities decreased to $2,278,025 as of September 30, 2025, from $2,357,622 at December 31, 2024, a decrease of 3.4%[10] - Cash and cash equivalents decreased to $186,913 as of September 30, 2025, down from $241,293 at December 31, 2024, a decline of 22.5%[10] - As of September 30, 2025, total accrued liabilities amounted to $283.9 million, a decrease from $385.8 million as of December 31, 2024[61] - The company's long-term debt as of September 30, 2025, was $1.22 billion, slightly down from $1.22 billion at the end of 2024[62] Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended September 30, 2025, were $563,693,000, down from $859,702,000 in 2024, reflecting a decrease of approximately 34.5%[20] - Capital expenditures for the nine months ended September 30, 2025, totaled $450,516, down from $538,036 in 2024, indicating a reduction of about 16.2%[2] - Capital expenditures for the nine months ended September 30, 2025, were $175,323, down 16.7% from $210,346 for the same period in 2024[155] - The company anticipates $17.4 million of capital expenditures for the remainder of 2025 related to various contractual obligations[191] Dividends and Stock Buybacks - The company declared cash dividends of $0.08 per common share for both Q3 2025 and Q3 2024, maintaining dividend consistency[13] - The company paid cash dividends of $0.08 per share, totaling $92,114,000 for the nine months ended September 30, 2025, compared to $95,593,000 in 2024[20] - The company has remaining authorization to purchase approximately $694 million of its outstanding common stock under the stock buyback program as of September 30, 2025[197] - The stock buyback program has an authorization of $1.0 billion, with approximately $694 million remaining as of September 30, 2025[91] Segment Performance - Segment operating income for Drilling Services was $37.124 million for the three months ended September 30, 2025, while Completion Services reported an operating loss of $27.722 million[114] - Revenues for Drilling Services in Q3 2025 were $380.2 million, a decrease of 5.8% from $403.8 million in Q2 2025, with adjusted gross profit declining by 10.2%[142] - Completion Services revenues were $705.3 million in Q3 2025, down 2.0% from $719.3 million in Q2 2025, but adjusted gross profit increased by 10.9%[145] - Revenues from Completion Services for the nine months ended September 30, 2025, were $2,190,687, a decrease of 15.2% from $2,581,937 for the same period in 2024[158] Impairments and Adjustments - An impairment charge of $27.8 million was recorded for Latin American drilling equipment during the second quarter of 2025 due to estimated undiscounted cash flows not exceeding its carrying value[48] - The company has not reported any impairment of goodwill for the current period, while it recorded an impairment of $885,240,000 in the previous year[204] Tax and Legal Matters - The effective income tax rate for the three months ended September 30, 2025, was 15.3%, significantly higher than 3.0% for the same period in 2024[103] - The company is involved in ongoing legal proceedings, including a claim related to a license agreement with NOV Inc., which it is vigorously defending[84] Market Conditions and Future Outlook - The company anticipates continued volatility in oil and natural gas prices, which may impact demand for its services and overall financial performance[4] - The ongoing geopolitical conflicts and economic conditions are expected to influence the company's operational environment and financial outlook[4] - The company plans to adopt new accounting standards related to income tax disclosure with its Annual Report for the year ending December 31, 2025[26]