A month has gone by since the last earnings report for Patterson-UTI (PTEN) . Shares have lost about 11.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Patterson-UTI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.Patterson-UTI Ene ...

Core Insights - Helmerich & Payne, Inc. (HP) reported a fiscal third-quarter 2025 adjusted net income of 22 cents per share, exceeding the Zacks Consensus Estimate of 20 cents, but down significantly from 92 cents in the same quarter last year due to weakness in the International Solutions segment [1][10] Financial Performance - Operating revenues reached $1 billion, surpassing the Zacks Consensus Estimate by $42 million, with Drilling Services sales increasing by 49.1% year-over-year [2][10] - The company distributed approximately $25 million to shareholders as part of its ongoing dividend program [2] Debt and Capital Management - As of the end of July, the company repaid $120 million of its $400 million term loan and expects to repay an additional $200 million by the end of calendar year 2025, an increase from the previous expectation of $175 million [3] - In the reported quarter, HP spent $362.2 million on capital programs, with cash and cash equivalents totaling $166.1 million and long-term debt at $2.2 billion, resulting in a debt-to-capitalization ratio of 43.3% [8] Segment Performance - North America Solutions reported operating revenues of $592.2 million, down 4.5% year-over-year, with an operating profit of $157.6 million, which beat estimates [5] - International Solutions saw operating revenues of $265.8 million, a 455.1% increase from the previous year, but incurred an operating loss of $166.5 million, impacted by a one-time goodwill impairment loss of $128 million [6] - Offshore Solutions revenues increased by 494.4% to $161.8 million, with an operating profit of $8.8 million, although it missed estimates [7] Synergies and Future Guidance - The quarter marked the first full impact of the KCA Deutag acquisition, with HP identifying about $50 million in cost synergies towards a goal of $50-$75 million [4][10] - For fiscal Q4 2025, the company expects direct margins for North America Solutions to be between $230 million and $250 million, while International Solutions is projected to have direct margins between $22 million and $32 million [11][12]

Core Insights - Nabors Industries Ltd. (NBR) reported a second-quarter 2025 adjusted loss of $2.71 per share, which was wider than the Zacks Consensus Estimate of a loss of $2.05, but narrower than the prior-year loss of $4.29 per share [2][8] - The company's operating revenues reached $832.8 million, slightly exceeding the Zacks Consensus Estimate of $831 million and up from $734.8 million in the previous year [3][8] - Adjusted EBITDA increased to $248.5 million from $218.1 million year-over-year, although it fell short of the model estimate of $306.5 million [3] Segment Performance - U.S. Drilling generated operating revenues of $255.4 million, down 1.6% from $259.7 million a year ago, and missed the estimated $312.7 million [4] - International Drilling's operational revenues rose to $385 million from $356.7 million year-over-year, but also missed the estimate of $394.8 million [5] - Revenues from the Drilling Solutions segment surged 105.3% to $170.3 million from $83 million in the prior-year quarter, exceeding the estimate of $91.1 million [5] Financial Position - Total costs and expenses increased to $818 million from $740.5 million in the previous year, slightly above the prediction of $816.1 million [7] - As of June 30, 2025, the company had $387.4 million in cash and short-term investments, with long-term debt around $2.7 billion and a total debt-to-total capital ratio of 80.7% [9] Guidance - For Q3 2025, NBR anticipates a lower average rig count in U.S. Drilling, ranging between 57 and 59 rigs, with a daily adjusted gross margin of approximately $13,300 [10] - The company expects an average rig count of 87 to 88 rigs in its International operations, with a daily adjusted gross margin estimated at approximately $17,900 [11] - Capital expenditures for Q3 are projected to be between $200 million and $210 million, with a total expected for the year ranging from $700 million to $710 million [12]

Core Viewpoint - Transocean Ltd. (RIG) is expected to report a loss of 1 cent per share with revenues of $968.1 million for Q2 2025, reflecting a year-over-year growth of 12.44% from the previous year's $861 million in revenues [1][3]. Group 1: Q1 Performance and Surprise History - In the last reported quarter, RIG had an adjusted net loss of 10 cents per share, which was better than the Zacks Consensus Estimate of a loss of 12 cents. Adjusted revenues were $906 million, surpassing the estimate of $886 million [2]. - RIG has beaten the Zacks Consensus Estimate in two of the last four quarters, with an average negative surprise of 242.7% [2]. Group 2: Revenue and Cost Projections - RIG's revenues are projected to improve due to strong performance in its segments, particularly the Ultra-Deepwater Floaters segment, which is expected to grow by 16.1% year-over-year to $703.5 million, and the Harsh Environment Floaters segment, anticipated to rise by 5.1% to $267.9 million [5]. - Total costs and expenses for RIG are expected to increase by 11% year-over-year to $862.7 million, driven by a 15% rise in Operating and Maintenance (O&M) costs to $614.3 million and a 10.5% increase in depreciation and amortization expenses to $203.3 million [6][7]. Group 3: Earnings Expectations - The Zacks Consensus Estimate for RIG's second-quarter earnings has remained unchanged over the past 30 days, indicating a significant year-over-year growth of 93.33% [3]. - RIG's Earnings ESP is 0.00%, suggesting that the model does not predict an earnings beat for this quarter [10].

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].

Core Insights - Precision Drilling Corporation reported its first quarter results for 2025, highlighting a decrease in revenue and adjusted EBITDA compared to the same period in 2024, while maintaining a commitment to shareholder returns and debt reduction [2][8][18]. Financial Highlights - Revenue for Q1 2025 was $496 million, down 6% from $528 million in Q1 2024 [8][13]. - Adjusted EBITDA decreased to $137 million from $143 million year-over-year, reflecting a 3.9% decline [8][13]. - Net earnings attributable to shareholders were $35 million, or $2.52 per share, compared to $37 million, or $2.53 per share in the previous year [8][13][18]. - Cash provided by operations was $63 million, enabling the company to repurchase $31 million in shares and reduce debt by $17 million [8][18][27]. Operational Highlights - Canadian drilling activity averaged 74 active rigs, slightly up from 73 in 2024, while U.S. activity averaged 30 rigs, down from 38 [6][14]. - Revenue per utilization day in Canada was $35,601, consistent with the previous year, while U.S. revenue per utilization day was $33,157, a 0.9% increase [8][14]. - Service rig operating hours decreased by 10% due to project deferrals and an earlier spring breakup [8][15]. Strategic Initiatives - The company has reduced its 2025 capital budget to $200 million from the previously announced $225 million, reflecting a cautious approach amid market uncertainty [9][26]. - Precision aims to allocate 35% to 45% of free cash flow before debt repayments to share buybacks, with a commitment to repaying at least $100 million of debt in 2025 [8][27]. - The company is focused on maximizing free cash flow through disciplined capital deployment and strict cost management [20][27]. Industry Outlook - Near-term expectations for global energy demand growth are tempered by geopolitical events, but long-term fundamentals remain positive due to economic growth and increasing demand from emerging economies [21][22]. - In Canada, the operationalization of the Trans Mountain pipeline and LNG Canada is expected to support drilling activity [22][23]. - The U.S. is anticipated to see increased natural gas drilling activity due to significant LNG export capacity expansion [24][25].