Key Takeaways EXE posted Q4 EPS of $2, topping estimates as revenues climbed to $2.3B from $1.6B a year ago.Natural gas output rose 17% and realized prices jumped 33.9%, lifting cash flow to $956M.EXE guides 2026 production up to 7,600 MMcfe/day and plans debt cuts while funding dividends.Expand Energy Corporation (EXE) reported fourth-quarter 2025 adjusted earnings per share of $2, beating the Zacks Consensus Estimate of $1.89. The company’s bottom line increased from the year-ago adjusted profit of 55 cen ...

Group 1 - The article expresses a beneficial long position in the shares of PTEN and NBR, indicating a positive outlook on these companies [1] - The author emphasizes that the content is based on personal opinions and does not constitute investment advice, highlighting the importance of individual due diligence [2] - It is noted that past performance is not indicative of future results, and the views expressed may not reflect those of the platform as a whole [3]

Company Overview - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is an oilfield services company that provides drilling and completion services to oil and natural gas exploration and production companies [2][3] - As of February 13, 2026, Patterson-UTI Energy, Inc. stock closed at $8.10 per share, with a market capitalization of $3.075 billion [2] Performance Summary - In the fourth quarter of 2025, Patterson-UTI Energy, Inc. experienced a one-month return of 13.29%, but its shares are down 9.19% over the past twelve months [2] - The position in Patterson-UTI Energy, Inc. was liquidated due to a weakening energy market outlook, which negatively impacted its fundamental performance [3] Investment Insights - The company is not included in the list of 30 Most Popular Stocks Among Hedge Funds, with 42 hedge fund portfolios holding Patterson-UTI Energy, Inc. at the end of the third quarter, unchanged from the previous quarter [3] - While acknowledging the potential of Patterson-UTI Energy, Inc. as an investment, the company believes that certain AI stocks present greater upside potential and carry less downside risk [3]

Core Insights - Nabors Industries Ltd. (NBR) reported a fourth-quarter 2025 adjusted profit of 17 cents per share, significantly surpassing the Zacks Consensus Estimate of a loss of $2.93 and improving from a loss of $6.67 per share in the prior-year quarter [1][8] - The company's operating revenues reached $797.5 million, exceeding the Zacks Consensus Estimate of $797 million and up from $729.8 million in the year-ago quarter, driven by stronger contributions from the International Drilling and Drilling Solutions segments [2] Financial Performance - Adjusted EBITDA for the quarter increased to $221.6 million from $220.5 million a year ago, surpassing the model estimate of $211 million [2] - U.S. Drilling generated operating revenues of $240.6 million, slightly down from $241.6 million in the prior-year quarter but above the estimated $225.4 million [3] - International Drilling's operating revenues rose to $423.8 million from $371.4 million a year ago, beating the estimate of $411.4 million [3] - The Drilling Solutions segment reported revenues of $107.9 million, a 42% increase from $76 million in the prior-year quarter, although it missed the estimate of $138.5 million [4] Cost and Debt Management - Total costs and expenses increased to $780.7 million from $756.3 million in the year-ago quarter, but were lower than the predicted $820 million [6] - Long-term debt stood at approximately $2.1 billion, with a debt-to-capitalization ratio of 78.2% [7] Future Guidance - For Q1 2026, NBR anticipates a U.S. Drilling average rig count of 64 to 65 rigs and a daily adjusted gross margin of about $13,200 [9] - The company expects the average rig count for its International operations to be around 91-92 rigs, with a daily adjusted gross margin of approximately $17,500-$17,600 [10] - Capital expenditures for Q1 2026 are projected to be between $170 million and $180 million, with $85 million allocated for new builds in Saudi Arabia [11] - For the full year of 2026, NBR expects U.S. Drilling operations to have an average rig count of 61 to 64 rigs and adjusted free cash flow to be around $80-$90 million, excluding SANAD [14]

Core Insights - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) experienced a significant share price increase of 14.62% from February 2 to February 9, 2026, ranking among the top energy stocks for the week [1] - The company is a prominent provider of drilling and completion services for oil and natural gas exploration and production in the U.S. and select international markets [2] Financial Performance - In Q4 2025, Patterson-UTI reported earnings and revenue that exceeded market expectations, generating $416 million in adjusted free cash flow for the full year, with Q4 being the highest quarter since its strategic transformation in 2023 [3] - The strong free cash flow enabled the company to increase its quarterly dividend by 25% to $0.10 per share, with the payment scheduled for March 16 to shareholders of record as of March 2, 2026 [3] Analyst Ratings and Price Targets - On February 6, Susquehanna raised its price target for PTEN from $8 to $10, indicating a 15% upside potential, while maintaining a 'Positive' rating [4] - Following the Q4 results, several analysts, including those from Piper Sandler, Citi, Barclays, and Stifel, have also increased their price targets for PTEN [4]

Group 1: Helmerich & Payne (H&P) Overview - H&P views the Middle East as a primary growth driver, particularly for international shale development and increased rig demand [1] - The company is investing heavily in the Middle East to offset stagnation in the U.S. market, with plans to operate 24 rigs in Saudi Arabia by mid-2026 [1] - H&P reported mixed financial results for Q1 2026, with revenue of $1.02 billion exceeding expectations but a GAAP EPS of -$0.98 due to a $103 million non-cash impairment charge [2] Group 2: Industry Trends and Competitors - Major oilfield-service providers are increasingly focusing on the Middle East to hedge against volatility in the U.S. market, as the region can sustain production at lower oil prices [3] - The U.S. shale revolution has significantly increased production, but growth is now declining, with active oil-directed rigs dropping over 30% from late 2022 to October 2025 [4] - Companies like Patterson-UTI Energy and SLB are also targeting the Middle East for growth, leveraging their U.S. expertise and securing major contracts in the region [6][8] Group 3: Regional Opportunities - The Middle East is identified as a primary growth engine for several companies, including Weatherford and Halliburton, with strong opportunities in Saudi Arabia, UAE, Kuwait, and Oman [10][12] - Halliburton emphasizes the importance of mature field development and enhanced oil recovery (EOR) in the region, viewing it as a stable market for services [12] - SLB has secured a $1.5 billion contract with Kuwait Oil Company and is investing in local manufacturing and talent development in Oman [9]

Core Viewpoint - Patterson-UTI Energy, Inc. reported an average of 94 drilling rigs operating in the United States for January 2026 [1] Company Summary - The company is actively engaged in drilling operations, with a specific focus on the U.S. market [1]

Core Insights - Magnolia Oil & Gas Corporation (MGY) reported a fourth-quarter 2025 net profit of 37 cents per share, exceeding the Zacks Consensus Estimate of 36 cents, although it decreased from 49 cents in the same quarter last year [1] - The company's total revenues were $318 million, surpassing the Zacks Consensus Estimate of $312 million, but down 2.7% from $327 million in the previous year due to lower oil and natural gas liquids revenues [2] Revenue Breakdown - Revenues from oil amounted to $215.6 million, a 12.5% decrease from $246.5 million in the year-ago quarter, but slightly above the consensus estimate of $215 million [3] - Natural gas revenues increased significantly to $52.9 million from $28.4 million year-over-year, beating the consensus estimate of $49.6 million [3] - Natural gas liquids revenues were $49.1 million, down from $51.7 million in the previous year, but above the consensus estimate of $47.4 million [3] Cash Flow and Dividends - The company generated $208.4 million in net cash from operating activities and achieved a free cash flow of $74.7 million [4] - Magnolia declared a cash dividend of 16.5 cents per share for Class A Common stock and 15 cents per Class B unit, marking a 10% increase in the quarterly dividend rate, resulting in an annualized dividend of 66 cents per share [4] Share Repurchase and Returns - In the fourth quarter, Magnolia repurchased 2.4 million Class A Common shares for $53.4 million and increased its share repurchase authorization by an additional 10 million shares, totaling 12.9 million shares remaining for repurchase [5] - The company returned 110% of free cash flow to shareholders through dividends and buybacks [5] Production and Prices - Average daily total output was 103,799 barrels of oil equivalent per day (boe/d), an 11.5% increase from 93,096 boe/d in the year-ago quarter, exceeding the Zacks Consensus Estimate of 101,173 boe/d [6] - Oil volumes were 40,730 barrels per day (bpd), up 4.9% from the previous year, surpassing the estimate of 40,262 bpd [6] - Natural gas volumes reached 196,618 thousand cubic feet per day (Mcf/d), a 17.7% increase from the previous year, exceeding the estimate of 192,400 Mcf/d [7] - The average realized crude oil price was $57.54 per barrel, a 16.6% decrease from $69.01 in the year-ago period [7] Price Realizations - The average realized natural gas price was $2.92 per Mcf, significantly up from $1.85 year-over-year, beating the estimate of $2.83 [9] - The average realized natural gas liquids price was $17.63 per barrel, down 17.1% from the previous year, missing the estimate of $18 [9] - The average sales price was $33.26 per boe compared to $38.13 a year ago [9] Financial Position - As of December 31, 2025, Magnolia had cash and cash equivalents of $266.8 million and long-term debt of $393.2 million, resulting in a debt-to-capitalization ratio of 16.8% [10] - The company spent $116.5 million on its capital program in the reported quarter, with operating expenses increasing to $223.5 million from $202.5 million in the previous year [10] Guidance - For Q1 2026, Magnolia expects D&C capital spending to be about $125 million, with total production estimated at roughly 102 Mboe/d [11] - For the full year of 2026, total D&C capital spending is estimated to range between $440 million and $480 million, supporting approximately 5% total production growth [12]

Core Insights - NOV Inc. reported fourth-quarter 2025 adjusted earnings of 2 cents per share, missing the Zacks Consensus Estimate of 25 cents, and a significant decrease from 41 cents in the prior year due to underperformance in the Energy Products and Services segment [1][8] Financial Performance - Total revenues for NOV reached $2.3 billion, exceeding the Zacks Consensus Estimate by 4.9%, driven by strong performance in the Energy Equipment segment, although revenues fell 1.3% year-over-year due to a 6% decline in global drilling activity [2][8] - The company repurchased approximately 5.7 million shares for $85 million and paid a dividend of 7.5 cents per share, returning a total of $112 million to shareholders during the quarter [3][8] Segmental Performance - **Energy Products and Services**: Reported revenues of $989 million, beating estimates but down 6.7% from the prior year, with adjusted EBITDA of $140 million, also above estimates but lower than $173 million from the previous year [4] - **Energy Equipment**: Revenues increased 3.6% year-over-year to $1.3 billion, surpassing estimates, with adjusted EBITDA of $180 million, slightly down from $185 million year-over-year but above estimates. The segment secured $532 million in new orders and had a backlog of $4.3 billion [5][6] Balance Sheet and Cash Flow - As of December 31, 2025, NOV had cash and cash equivalents of $1.6 billion and long-term debt of $1.7 billion, with a debt-to-capitalization ratio of 21.1%. The company generated $573 million in operating cash flow and $472 million in free cash flow during the quarter [7][8] Strategic Developments - NOV made significant advancements in technology commercialization and digital capabilities, achieving record deployment of Downhole Broadband Solutions™ and enhancing drilling efficiency through automation and AI-driven systems [8][9] - The company strengthened its offshore presence with major equipment awards and secured various contracts in production and processing, demonstrating innovation in artificial lift and increasing recurring digital revenues [10][8] Outlook - For Q1 2026, NOV projects a 1% to 3% decrease in consolidated revenues year-over-year, with adjusted EBITDA expected between $200 million and $225 million. The Energy Equipment segment is anticipated to see a revenue increase of 3%-5%, while the Energy Products and Services segment is expected to decline by 6%-8% [11][13] - Cost-reduction initiatives are expected to generate over $100 million in annualized savings by the end of 2026, while the company maintains a constructive outlook on bookings with a full-year 2026 book-to-bill ratio expected to be close to 100% [12][14]

Core Insights - Helmerich & Payne, Inc. (HP) reported a first-quarter fiscal 2026 adjusted net loss of 15 cents per share, significantly missing the Zacks Consensus Estimate of adjusted net income of 12 cents, and a sharp decline from the previous year's profit of 71 cents due to weakness in the North America Solutions segment and a non-cash impairment charge of $103 million [1][9] Financial Performance - Operating revenues reached $1 billion, surpassing the Zacks Consensus Estimate of $986 million, with Drilling Services sales increasing by 50.2% year-over-year [2][9] - The company distributed approximately $25 million to shareholders as part of its ongoing dividend program [2] Segment Performance - **North America Solutions**: Operating revenues were $563.9 million, down 5.7% year-over-year, with an operating profit of $36.2 million, significantly lower than the prior year's $152.2 million due to a one-time impairment of $98 million [4] - **International Solutions**: Operating revenues surged 393.4% to $234.3 million, but the operating loss widened to $55.3 million compared to a loss of $14.5 million in the prior year [5] - **Offshore Solutions**: Revenues increased 554.6% to $188.3 million, with an operating profit of $16.4 million, although it missed the estimate of $20.3 million [6] Debt and Financial Position - As of the end of January, HP repaid $260 million of its existing $400 million term loan, expecting to repay the entire loan by the end of the third quarter of fiscal 2026 [3] - The company had $247.2 million in cash and cash equivalents, with long-term debt totaling $2 billion and a debt-to-capitalization ratio of 42.8% [7] Guidance - For the second quarter of fiscal 2026, North America Solutions is projected to deliver direct margins between $205 million and $230 million, while International Solutions is expected to generate direct margins of $12 million to $22 million [8][10]