Core Insights - Patterson-UTI reported revenue of $1.15 billion for the quarter ended December 2025, a decrease of 1% year-over-year, with an EPS of -$0.02 compared to -$0.12 in the same quarter last year, exceeding the Zacks Consensus Estimate of $1.1 billion by 4.65% and delivering an EPS surprise of 81.82% [1] Financial Performance - The company’s shares have returned +15.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of -0.3% [3] - Operating days for contract drilling in the U.S. were reported at 8,596, slightly below the three-analyst average estimate of 8,603 [4] - Operating revenue from Other Operations was $4.7 million, below the five-analyst average estimate of $4.85 million [4] - Operating revenue from Drilling Services was $360.78 million, compared to the five-analyst average estimate of $365.1 million [4] - Revenues from Completion Services reached $701.56 million, exceeding the estimated $646.68 million by 7.8% year-over-year [4] - Revenues from Drilling Products were reported at $83.77 million, below the average estimate of $85.33 million, representing a year-over-year decline of 3.2% [4] Operating Income - Operating income from Other Operations was reported at -$0.95 million, worse than the estimated -$0.26 million [4] - Corporate operating income was -$45.44 million, compared to the average estimate of -$42.98 million [4] - Operating income from Drilling Products was $6.76 million, exceeding the average estimate of $4.59 million [4] - Operating income from Completion Services was -$3.6 million, significantly better than the estimated -$38.65 million [4] - Operating income from Drilling Services was $43 million, surpassing the average estimate of $37.72 million [4]

Oil and Gas Market Conditions - Average oil price per barrel for Q4 2025 was $59.62, with a closing price of $61.60 on February 2, 2026[30]. - Oil prices averaged $59.62 per barrel in Q4 2025, while natural gas prices averaged $3.73 per MMBtu during the same period[97]. - Global economic conditions and geopolitical tensions have contributed to uncertainty in energy markets, impacting share prices and future profitability[97]. - The company expects oil and natural gas prices to remain unpredictable, affecting financial condition and capital access[98]. - Demand for services is driven by customers' expectations of future oil and natural gas prices and their ability to deploy capital[98]. - The company is dependent on the oil and natural gas industry, with declines in prices adversely affecting operating results[91]. Drilling and Operational Activity - Average active rig count in the U.S. for Q4 2025 was 93 rigs, down from 95 rigs in Q3 2025 and 105 rigs in Q4 2024[31]. - The average number of rigs operating per day in the U.S. is projected to decline to 100 in 2025 from 112 in 2024 and 124 in 2023[45]. - The number of wells drilled in the U.S. for 2025 was 2,090, a decrease from 2,376 in 2024 and 2,530 in 2023[45]. - The company expects an average of 49 rigs operating under term contracts in Q1 2026 and 27 rigs for the entire year[31]. - The company reported a contract drilling backlog in the United States of approximately $291 million as of December 31, 2025, down from $426 million in 2024, with about 9% expected to remain after 2026[67]. Financial Performance and Expenditures - Capital expenditure forecast for 2026 is approximately $500 million on a gross basis, net of asset sales[34]. - The company spent approximately $237 million, $265 million, and $335 million on capital expenditures in drilling services operations for 2025, 2024, and 2023, respectively[37]. - As of December 31, 2025, the company had approximately $1.4 billion in gross U.S. federal net operating losses, $60.0 million in gross Canadian net operating losses, and $889 million in post-apportionment U.S. state net operating losses[185]. - The company’s ability to access capital markets may be limited by oil and natural gas prices, existing capital structure, and ESG-related regulatory requirements[179]. - The company may incur substantial indebtedness to finance future acquisitions and technology development, which could strain financial resources and affect cash flow[139]. Customer and Revenue Concentration - Approximately 57% of the company's consolidated operating revenues in 2025 came from its ten largest customers, with one customer accounting for approximately $597 million, or 12% of total revenues[66]. - In 2025, approximately 57% of consolidated operating revenues came from the company's ten largest customers, with 39% from the five largest and 12% from the largest customer[126]. Competitive Landscape and Challenges - The competitive landscape has led to a surplus of drilling services equipment, which may adversely affect profit margins and the carrying value of assets[102]. - The company faces challenges in maintaining pricing due to high competition and surplus equipment, which could lead to operating losses[107]. - The company faces risks related to supply chain disruptions, inflation, and geopolitical issues that could impact demand for its services[99]. - The company has invested in new technologies, including natural gas-powered equipment, to remain competitive, but future demand for these technologies is uncertain[120]. Environmental and Regulatory Risks - The company continues to pursue initiatives to mitigate climate change risk, utilizing technologies that reduce carbon and greenhouse gas emissions compared to traditional diesel equipment[70]. - The company is subject to numerous environmental laws and regulations, which could result in substantial compliance costs and adversely affect operating results[150]. - Legal and regulatory risks related to hydraulic fracturing could impose additional requirements or restrictions, adversely affecting operations and financial performance[144]. - Climate change and related regulatory pressures could increase operating costs and limit production areas, thereby reducing demand for the company's services[145]. Cybersecurity and Data Privacy - Cybersecurity risks are a growing concern, with threats including unauthorized access, theft, and various cyber incidents that could materially affect the company's operations and financial condition[129]. - The company has implemented a cybersecurity program aligned with the NIST Framework to protect information systems and manage cybersecurity risks[194]. - The Audit Committee oversees cybersecurity matters and receives quarterly updates from senior leadership on risk management and mitigation measures[196]. - The Senior Vice President and Chief Information Officer leads the cybersecurity team and reports directly to the Chief Financial Officer, ensuring effective implementation of cybersecurity practices[197]. Corporate Governance and Shareholder Returns - The Board of Directors approved a cash dividend of $0.10 per share to be paid on March 16, 2026, subject to future business conditions[219]. - The company repurchased a total of 35,684 shares in the fourth quarter of 2025, with an average price of $6.11 per share[221]. - The stock buyback program was increased to allow for an aggregate of $1.0 billion in future share repurchases, with no expiration date associated with the program[221]. - The company’s return of capital to stockholders, including dividends and stock repurchases, is at the discretion of the Board of Directors and may vary based on business conditions[184].

Core Viewpoint - The article expresses personal opinions regarding investment positions in PTEN and NBR, highlighting a beneficial long position in these shares [1]. Group 1 - The author has a beneficial long position in PTEN and NBR, indicating a positive outlook on these companies [1]. - The article is based on personal opinions and does not constitute investment recommendations, emphasizing the need for individual due diligence [2]. - The author acknowledges the possibility of errors in the information presented, reinforcing the importance of verifying facts independently [2].

Core Insights - Patterson-UTI Energy, Inc. is a prominent player in the oil and gas sector, specializing in drilling and pressure pumping services with a significant fleet of land-based drilling rigs primarily in the United States [1] Group 1: Stock Performance and Price Target - Eddie Kim from Barclays has set a price target of $8 for PTEN, indicating a potential downside of approximately -7.62% from the current trading price of $8.66 [1][5] - PTEN's stock has experienced a 5.99% increase, with a change of $0.49, and has fluctuated between $8.14 and $8.68 during the trading day, reflecting market volatility [3] Group 2: Institutional Investor Activity - Principal Financial Group Inc. has reduced its stake in PTEN by 2.8%, selling 128,992 shares, which brings their total holdings to 4.42 million shares valued at $22.9 million [2][5] - American Century Companies Inc. has increased its stake in PTEN by 23.4%, acquiring an additional 2.75 million shares for a total of 14.46 million shares valued at $85.8 million [2] - Sourcerock Group LLC has significantly boosted its investment in PTEN by 109.2%, indicating growing confidence among some investors regarding the company's future prospects [3][5] Group 3: Market Capitalization and Trading Volume - PTEN's market capitalization is approximately $3.34 billion, highlighting its substantial presence in the industry [4] - The trading volume for PTEN today is at 11.49 million shares, suggesting a high level of investor interest and activity [4]

Financial Data and Key Metrics Changes - Total reported revenue for Q4 2025 was $1.151 billion, with a net loss attributable to common shareholders of $9 million, or $0.02 per share [23] - Adjusted EBITDA for the quarter totaled $221 million, and adjusted free cash flow for the year was $416 million, marking the strongest cash-generating quarter of the year [23][5] - The company increased its quarterly dividend by 25% to $0.10 per share, reflecting confidence in free cash flow exceeding dividend commitments [8][31] Business Line Data and Key Metrics Changes - In the drilling services segment, Q4 revenue was $361 million with an adjusted gross profit of $132 million, maintaining a steady average operating rig count of 93 rigs [25] - The completion services segment generated $702 million in revenue with an adjusted gross profit of $111 million, showing steady activity and pricing compared to Q3 [26] - The drilling products segment reported $84 million in revenue with an adjusted gross profit of $34 million, with revenue per industry rig remaining near record levels [27] Market Data and Key Metrics Changes - The U.S. oil market remains resilient despite macroeconomic uncertainties, with crude prices around $60 per barrel [7][32] - Internationally, revenue experienced a slight decline in the Middle East but growth was noted in Latin America and Asia Pacific [20][21] - The company anticipates improved international revenue in the drilling products segment as activity increases, particularly in Saudi Arabia [21] Company Strategy and Development Direction - The company is focused on delivering safe and efficient execution, investing in differentiated technologies, and maximizing returns while generating substantial free cash flow [7][8] - A reduction in gross CapEx budget by around 15% to approximately $500 million for 2026, with a focus on high-return projects [10] - The company is expanding its presence in Argentina by leasing high-spec rigs for the Vaca Muerta field, which is expected to reduce U.S. rig supply [13][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term prospects for natural gas and expects increased drilling activity to meet future demand [9] - The company remains committed to capital discipline and is adapting to changing market conditions while maintaining operational excellence [5][32] - Management noted that uncertainties regarding U.S. oil production sustainability may require increased drilling activity to maintain production trends [8][9] Other Important Information - The company has successfully implemented new digital processes to improve maintenance and operational efficiency [10][12] - The EOS digital platform was launched to enhance real-time decision-making for customers, integrating various data sources [18][19] - The company plans to continue returning at least 50% of adjusted free cash flow to shareholders through dividends and buybacks [30][35] Q&A Session Summary Question: How do you see the U.S. frac supply-demand balance today? - Management noted that while fleet count appears to be decreasing, the amount of horsepower deployed has been increasing, indicating a tighter market balance [40][41] Question: Can you provide color on the Current Power business and energy storage systems? - Management mentioned that Current Power is exploring opportunities in energy storage for data centers, but it is still in early stages [44] Question: What is the outlook for pricing power in the market? - Management indicated that pricing power may return with increased activity in natural gas basins, which would necessitate adding to the asset base [56][58] Question: What actions are being taken to reduce costs? - Management highlighted efforts in maintenance CapEx and operational efficiency to control costs across both drilling and completion services [68][70] Question: What is the philosophy regarding share buybacks? - Management stated that the focus remains on maximizing free cash flow, and share buybacks will be evaluated based on cash flow per share accretion opportunities [72][75]

Financial Data and Key Metrics Changes - Total reported revenue for Q4 2025 was $1.151 billion, with a net loss attributable to common shareholders of $9 million, or $0.02 per share [23] - Adjusted EBITDA for the quarter totaled $221 million, and adjusted free cash flow for the year was $416 million, marking the highest adjusted free cash flow quarter since the strategic transformation in 2023 [5][23] - The company closed Q4 with $421 million in cash on hand and did not have any drawn amounts on its $500 million revolving credit facility [30] Business Line Data and Key Metrics Changes - In the drilling services segment, Q4 revenue was $361 million with an adjusted gross profit of $132 million, and the average operating rig count was 93 rigs [25] - Completion services segment revenue for Q4 was $702 million, with an adjusted gross profit of $111 million, and activity and pricing remained steady compared to Q3 [26] - Drilling products segment revenue totaled $84 million with an adjusted gross profit of $34 million, maintaining near record levels per industry rig in the U.S. [27] Market Data and Key Metrics Changes - The company noted a decrease in revenue from international operations, primarily due to lower-than-expected sales in the Middle East, but revenue growth was observed in Latin America and Asia Pacific [20][21] - The U.S. oil market remains resilient, with crude prices around $60 per barrel, and the company expects steady activity in oil basins [7][32] Company Strategy and Development Direction - The company plans to reduce its gross CapEx budget by around 15% to approximately $500 million in 2026, focusing on high-return projects and technology investments [10] - Patterson-UTI is committed to maximizing returns while generating substantial adjusted free cash flow for investors, with a focus on differentiated technologies and operational excellence [7][8] - The company is expanding its presence in Argentina by leasing two high-spec rigs for work in the Vaca Muerta field, which is expected to reduce U.S. rig supply [13][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for natural gas and anticipates increased drilling and completion activity to meet future demand [9] - The company acknowledged macroeconomic uncertainties and the need for the industry to balance production volumes with drilling activity to maintain trends [8][9] - Management highlighted the importance of technology in maintaining competitive advantages and sustaining margins despite market fluctuations [12][54] Other Important Information - The company announced a 25% increase in its quarterly dividend to $0.10 per share, reflecting confidence in its free cash flow generation [8][31] - The impact of severe winter weather in January 2026 is expected to negatively affect Q1 adjusted gross profit, particularly in the completion services segment, estimated at $5 million to $10 million [25][59] Q&A Session Summary Question: How do you see the U.S. frac supply-demand balance today? - Management noted that while public data shows a reduction in fleet count, the size of fleets and horsepower on location has been increasing, indicating a tighter market balance [40][41] Question: Can you provide color on the Current Power business and energy storage systems? - Management mentioned that Current Power is exploring opportunities in energy storage for data centers, but it is still early to determine the potential [44] Question: What is the outlook for pricing power in the market? - Management indicated that increased activity in natural gas basins could drive pricing power, especially as demand for natural gas equipment rises [56][58] Question: What actions are being taken to reduce costs? - Management highlighted efforts to control spending in both OpEx and CapEx, including maintenance strategies and operational efficiencies [68][70] Question: What is the philosophy on share buybacks given the recent dividend increase? - Management reiterated that the focus remains on maximizing free cash flow and evaluating capital allocation based on cash flow per share accretion [72][75]

Financial Data and Key Metrics Changes - Total reported revenue for Q4 2025 was $1.151 billion, with a net loss attributable to common shareholders of $9 million, or $0.02 per share [20] - Adjusted EBITDA for the quarter totaled $221 million, and adjusted free cash flow for the year was $416 million, marking the strongest cash-generating quarter of the year [20][4] - The company increased its quarterly dividend by 25% to $0.10 per share, reflecting confidence in free cash flow exceeding dividend commitments [6][27] Business Line Data and Key Metrics Changes - In the drilling services segment, Q4 revenue was $361 million with an adjusted gross profit of $132 million, maintaining a steady average operating rig count of 93 rigs [22] - The completion services segment generated $702 million in revenue with an adjusted gross profit of $111 million, with activity and pricing remaining steady compared to Q3 [23] - The drilling products segment reported Q4 revenue of $84 million and an adjusted gross profit of $34 million, with revenue per industry rig in the U.S. near record levels [24] Market Data and Key Metrics Changes - The company noted a decrease in revenue from international operations, particularly in the Middle East, but experienced growth in Latin America and Asia Pacific [24][18] - The U.S. oil market remains resilient, with crude prices around $60 per barrel, while natural gas markets are expected to see increased demand in the second half of 2026 [5][29] Company Strategy and Development Direction - The company is focused on maintaining operational excellence and investing in differentiated technologies to maximize returns and free cash flow [5][4] - A reduction in gross CapEx budget by approximately 15% to around $500 million for 2026, with a focus on high-return projects [8] - The company is expanding its presence in Argentina by leasing high-spec rigs for the Vaca Muerta field, which is expected to reduce U.S. rig supply [11][77] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term prospects for natural gas and anticipated a multi-year increase in drilling activity to meet future demand [7] - The company acknowledged ongoing macroeconomic uncertainties and the need for the industry to balance production volumes with drilling activity [6][5] - Management highlighted the importance of technology in maintaining competitive advantages and sustaining margins in a fluctuating market [10][48] Other Important Information - The company successfully launched the EOS Completions digital platform, enhancing real-time decision-making for customers [16] - The company plans to continue returning at least 50% of adjusted free cash flow to shareholders through dividends and buybacks [27][19] Q&A Session Summary Question: What is the current supply-demand balance in the U.S. frac market? - Management noted that while fleet counts appear to be decreasing, the size and horsepower of fleets are increasing, leading to a tighter supply in the frac market [36][38] Question: Can you provide insights on the Current Power business and energy storage systems? - Management mentioned that Current Power is exploring opportunities in energy storage for data centers, but it is still in early stages [39] Question: How does the company view pricing power and differentiation in the market? - Management indicated that differentiation among top players is increasing, which should support pricing power in the market [45][48] Question: What is the expected impact of winter weather on first-quarter guidance? - The estimated impact from winter weather is included in guidance and is expected to be in the range of $5 million to $10 million [53][54] Question: What are the company's thoughts on international expansion, particularly in Argentina and the UAE? - Management expressed confidence in the growth of the Argentine market and the potential for further international opportunities [75][77]

分组1 - Patterson-UTI reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.11, representing an earnings surprise of +81.82% [1] - The company posted revenues of $1.15 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.65%, although this is a slight decrease from year-ago revenues of $1.16 billion [2] - Patterson-UTI shares have increased by approximately 27.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.1% [3] 分组2 - The earnings outlook for Patterson-UTI is mixed, with the current consensus EPS estimate for the coming quarter at -$0.12 on revenues of $1.1 billion, and -$0.39 on revenues of $4.46 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Oil and Gas - Drilling sector is currently in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Another company in the same industry, Nabors Industries, is expected to report a quarterly loss of $3.60 per share, with revenues projected at $799.42 million, reflecting a year-over-year increase of 9.5% [9][10]

Core Viewpoint - Wall Street anticipates flat earnings for Patterson-UTI (PTEN) in the upcoming quarter, with a consensus estimate of a loss of $0.12 per share and revenues expected to decline by 5.7% to $1.1 billion compared to the previous year [1][3]. Earnings Expectations - The earnings report is scheduled for release on February 4, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. - The consensus EPS estimate has been revised 3.57% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +19.15% for Patterson-UTI, suggesting analysts have become more bullish on the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, indicating a neutral outlook, but the positive Earnings ESP suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Patterson-UTI was expected to post a loss of $0.10 per share but actually reported a loss of $0.06, resulting in a positive surprise of +40.00% [13]. - Over the past four quarters, the company has exceeded consensus EPS estimates in two instances [14]. Conclusion - Patterson-UTI is viewed as a strong candidate for an earnings beat, but investors should consider additional factors before making investment decisions [17].

Core Viewpoint - Patterson-UTI's share price surged by 6.4% to $7.03, driven by strong operational and cash flow outlook, alongside impressive trading volume [1][2] Group 1: Operational and Financial Outlook - The company presented a strong operational and cash flow outlook in its January 2026 investor presentation, highlighting better-than-expected cost controls in drilling and resilient completion activity [2] - Adjusted free cash flow for the upcoming quarter is expected to be the strongest of the year, with capital expenditure guidance set under $500 million [2] - The company plans to return at least 50% of adjusted free cash flow to shareholders, reinforcing investor confidence in earnings stability and capital discipline [2] Group 2: Earnings and Revenue Expectations - Patterson-UTI is expected to report a quarterly loss of $0.12 per share, unchanged from the year-ago quarter, with revenues projected at $1.09 billion, down 6.2% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating a lack of upward momentum in earnings estimates [4] Group 3: Market Position and Comparisons - Patterson-UTI holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [5] - In comparison, Valaris Limited, another company in the same industry, closed 3.8% higher at $53.3 but has seen a -10.9% return over the past month [5][6]