Patterson-UTI Energy(PTEN) - 2025 Q4 - Annual Results

Financial Performance - In Q4 2025, the company averaged 93 active rigs in the United States, with cost controls exceeding expectations[3] - The company anticipates capital expenditures for 2026 to be less than $500 million, with strong adjusted free cash flow (FCF) expected for the year[3] - Adjusted EBITDA per active U.S. rig remained steady at approximately $3.6 million from 2023 to LTM Q3 2025[10] - The company has seen a 40% increase in revenue per U.S. industry rig since the beginning of 2023, following the acquisition of Ulterra Drilling Technologies[14] - Adjusted free cash flow for the last twelve months ended September 30, 2025, was $332.963 million, with a conversion rate of 36%[29] - Adjusted EBITDA for the last twelve months ended September 30, 2025, was $921.887 million[30] - Revenues for Drilling Services, Completion Services, Drilling Products, and Other for the last twelve months ended September 30, 2025, were $1.605 billion, $2.842 billion, $346.455 million, and $44.706 million, respectively[27] - The adjusted gross profit for Drilling Services, Completion Services, Drilling Products, and Other for the last twelve months ended September 30, 2025, was $610.962 million, $415.126 million, $150.729 million, and $16.860 million, respectively[27] Shareholder Returns - The company aims to return at least 50% of adjusted FCF to shareholders annually through dividends and share repurchases[3] - Since the beginning of 2024 through Q3 2025, the company has returned more than 85% of its adjusted free cash flow (FCF) to investors through dividends and share repurchases[23] - The company commits to return at least 50% of its adjusted FCF to shareholders annually through the cycle[23] - The company has paid a quarterly dividend of $0.08 per share for thirteen consecutive quarters, including the December 2025 dividend[23] - The company has a flexible distribution method to maximize shareholder value over time[23] Liquidity and Debt Management - Total liquidity as of September 30, 2025, was $682 million, including a cash balance of $187 million[22] - The company maintains a low leverage ratio of approximately 1x net debt to LTM adjusted EBITDA as of September 30, 2025[22] - The company reported a net debt of $1.108 billion as of September 30, 2025, with a debt-to-adjusted EBITDA ratio of 1.40x[30] - The company has no senior note maturities until 2028, maintaining an investment-grade credit rating from all three major rating agencies[5] Technology and Sustainability - The company is focused on advancing technologies and efficiencies to drive improved returns in core markets[5] - The company has demonstrated a commitment to sustainability with innovations such as the deployment of the first electric frac spread in 2023 and the launch of iFGS Intelligent Field Gas Solutions in 2024[25]