Core Viewpoint - Patterson-UTI Energy has reported a wider-than-expected adjusted net loss for Q2 2025, raising concerns about its performance leading up to the next earnings release [2][3]. Financial Performance - The company reported a second-quarter adjusted net loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a $0.04 loss, and a decline from a profit of $0.05 per share in the same quarter last year [2]. - Total revenues for the quarter were $1.2 billion, exceeding the Zacks Consensus Estimate by 0.3%, but down 9.6% year-over-year [3]. - The company returned $56 million to shareholders in Q2 2025, including $20 million in share repurchases [10]. Segmental Performance - **Drilling Services**: Revenues were $403.8 million, down 8.3% from $440.3 million in the prior year, but above the estimate of $365.1 million. Operating income was $40.6 million, down from $76.1 million year-over-year, yet above the estimate of $24.1 million [5]. - **Completion Services**: Revenues fell to $719.3 million, a decrease of 10.7% from $805.4 million year-over-year, and missed the estimate of $762.4 million. The operating loss was $29.2 million, compared to a profit of $10.7 million in the previous year [6]. - **Drilling Products**: Revenues increased by 2.7% to $88.4 million, surpassing the estimate of $85.8 million. Operating profit was $6.8 million, down 21.1% from the previous year, and below the estimate of $20.6 million [7]. - **Other Services**: Revenues dropped 52.7% to $7.8 million, but exceeded the estimate of $5.6 million. The operating loss was $2 million, compared to a profit of $0.4 million in the prior year [8]. Capital Expenditure & Financial Position - Capital expenditures for the quarter were $144.2 million, up from $130.5 million in the prior year [9]. - As of June 30, 2025, the company had cash and cash equivalents of $185.9 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 26.7% [9]. Market Outlook - Estimates for Patterson-UTI have trended downward, with a consensus estimate shift of -33.33% over the past month [11]. - The company currently holds a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [13].

Core Insights - Patterson-UTI reported $1.22 billion in revenue for Q2 2025, a year-over-year decline of 9.6%, with an EPS of -$0.06 compared to $0.05 a year ago, indicating a significant drop in profitability [1] - The revenue exceeded the Zacks Consensus Estimate of $1.21 billion by 1.02%, while the EPS fell short of the consensus estimate of -$0.04 by 50% [1] Revenue Breakdown - Drilling Services generated $403.81 million, surpassing the average estimate of $395.63 million, but reflecting a year-over-year decline of 8.3% [4] - Other Operations reported $7.79 million, exceeding the estimated $6.94 million [4] - Drilling Products revenues were $88.39 million, slightly above the $85.03 million estimate, marking a year-over-year increase of 2.7% [4] - Completion Services revenues were $719.33 million, below the average estimate of $728.5 million, showing a year-over-year decline of 10.7% [4] Operating Income Analysis - Operating income for Drilling Services was $40.6 million, significantly lower than the average estimate of $58.85 million [4] - Completion Services reported an operating income of -$29.25 million, better than the estimated -$31.88 million [4] - Corporate operating income was -$45.66 million, slightly worse than the average estimate of -$43.57 million [4] - Other operations had an operating income of -$2 million, close to the estimated -$2.49 million [4] - Drilling Products reported an operating income of $6.82 million, below the average estimate of $9.59 million [4] Stock Performance - Patterson-UTI shares returned +4.1% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported a second-quarter 2025 adjusted net loss of $0.06 per share, which was wider than the Zacks Consensus Estimate of a $0.04 loss, and a decline from a profit of $0.05 in the same quarter last year [1][9] - Total revenues reached $1.2 billion, exceeding the Zacks Consensus Estimate by 0.3%, but decreased by 9.6% year over year due to weaker contributions from various segments [2][9] Financial Performance - **Drilling Services**: Revenues totaled $403.8 million, down 8.3% from $440.3 million in the prior year, but exceeded the estimate of $365.1 million. Operating income was $40.6 million, down from $76.1 million year over year, yet above the estimate of $24.1 million [4] - **Completion Services**: Revenues were $719.3 million, a drop of 10.7% from $805.4 million year over year, and missed the estimate of $762.4 million. The operating loss was $29.2 million compared to a profit of $10.7 million in the previous year, but was narrower than the estimated loss of $43.4 million [5] - **Drilling Products**: Revenues increased by 2.7% to $88.4 million from $86.1 million year over year, beating the estimate of $85.8 million. Operating profit was $6.8 million, down 21.1% from the previous year, and missed the estimate of $20.6 million [6] - **Other Services**: Revenues fell 52.7% to $7.8 million from $16.5 million year over year, but exceeded the estimate of $5.6 million. The operating loss was $2 million compared to a profit of $0.4 million in the prior year, missing the estimated operating income of $0.1 million [7] Capital Expenditure & Financial Position - PTEN spent $144.2 million on capital programs in the reported quarter, up from $130.5 million in the prior year [8] - As of June 30, 2025, the company had cash and cash equivalents of $185.9 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 26.7% [8] Shareholder Returns - The board declared a quarterly dividend of $0.08 per share, unchanged from the previous quarter, to be paid on September 15, 2025 [3][9] - The company returned $56 million to shareholders in Q2 2025, including $20 million in share repurchases [10] Q3 Outlook - PTEN anticipates an average rig count of approximately 90 for its Drilling Services segment in Q3 2025, with expected adjusted gross profit of around $130 million [11] - The company expects adjusted gross profit for Completion Services to remain steady, while Drilling Products is anticipated to improve slightly [12] - Total depreciation, depletion, amortization, and impairment expense is expected to be approximately $230 million for Q3 [13] - Net capital expenditures for full-year 2025 are anticipated to be less than $600 million, with a reduction in maintenance capital expenditures due to lower activity [14]

Core Viewpoint - Patterson-UTI Energy, Inc. (PTEN) is expected to report a second-quarter loss of 4 cents per share with revenues of $1.21 billion, reflecting a year-over-year decline in both earnings and revenues [1][10]. Group 1: Financial Performance - In the first quarter of 2025, PTEN achieved breakeven adjusted earnings per share, outperforming the Zacks Consensus Estimate of a loss of 4 cents per share, driven by an 11.2% year-over-year reduction in costs and expenses [3]. - Total revenues for Q1 2025 were $1.3 billion, exceeding the Zacks Consensus Estimate by 7.7% [3]. - The Zacks Consensus Estimate for second-quarter 2025 earnings indicates a 180% year-over-year decline, while revenues are expected to decrease by 10.09% from the previous year [4][10]. Group 2: Cost Management - PTEN's operating costs and expenses are projected to reach $1.26 billion in the second quarter, a 3.4% decrease from the same period last year, reflecting the company's focus on streamlining operations [6]. - Direct operating costs are expected to decline from $971.2 million to $961.2 million, and depreciation, depletion, amortization, and impairment costs are anticipated to decrease from $267.6 million to $230 million [7]. Group 3: Revenue Challenges - The Zacks Consensus Estimate for second-quarter revenues is $1.21 billion, down from $1.35 billion in the year-ago quarter, attributed to poor performance in Completion Services, Drilling Services, and Drilling Products segments [8][10]. - Despite expected revenue declines across several segments, PTEN's cost management efforts are likely to mitigate the financial impact [9].

Core Viewpoint - Patterson-UTI reported a decline in revenue and earnings for the quarter ended March 2025, with a revenue of $1.28 billion, down 15.2% year-over-year, and an EPS of $0.00 compared to $0.15 in the previous year, although it exceeded Wall Street expectations for revenue and EPS [1]. Financial Performance - Revenue of $1.28 billion represents a surprise of +7.67% over the Zacks Consensus Estimate of $1.19 billion [1]. - EPS surprise was +100.00%, with the consensus EPS estimate being -$0.04 [1]. - Shares of Patterson-UTI returned +6.5% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3]. Key Metrics - Average direct operating costs per operating day were $19.55, slightly above the estimated $19.47 [4]. - Average adjusted gross profit per operating day was $16.17, exceeding the estimate of $15.25 [4]. - Operating revenue from Other Operations was $15.93 million, below the average estimate of $28.05 million [4]. - Operating revenue from Drilling Services was $412.86 million, slightly above the estimate of $402.03 million [4]. - Revenues from Completion Services were $766.08 million, significantly above the average estimate of $686.10 million, but represented a year-over-year decline of -18.9% [4]. - Revenues from Drilling Products were $85.66 million, slightly below the estimate of $87.29 million, reflecting a -4.8% year-over-year change [4]. - Operating income from Other was $0.23 million, below the estimate of $2 million [4]. - Operating income from Corporate was -$47.49 million, slightly better than the estimate of -$48.99 million [4]. - Operating income from Drilling Products was $6.73 million, exceeding the estimate of $5.69 million [4]. - Operating income from Completion Services was -$18.84 million, better than the estimate of -$34.08 million [4]. - Operating income from Drilling Services was $76.31 million, above the estimate of $70.39 million [4].