Patterson UTI Energy : First Quarter 2025 Latest Earnings Release

Published: 2025-04-23 20:29:05 ET PTEN

NEWS RELEASE

Patterson-UTI Energy Reports Financial Results for

the Quarter Ended March 31, 2025

2025-04-23

HOUSTON, TX / ACCESS Newswire / April 23, 2025 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported

First Quarter 2025 Financial Results

Total revenue of $1.3 billion

Net income attributable to common stockholders of $1 million

Adjusted EBITDA of $251 million

Returned $51 million to shareholders in the

Repurchased $20 million of shares in the

$741 million in remaining share repurchase authorization as of March 31, 2025

Declared a quarterly dividend on its common stock of $0.08 per share, payable on June 16, 2025 to

holders of record as of June 2, 2025

Management Commentary

"The

completion demand," said Andy Hendricks, Chief Executive O

drive e

returns for that segment. In Completion Services, utilization across our entire

of 100% natural gas-powered assets continuing to grow as a proportion of our completion activity during the

quarter. Our Drilling Products segment continues to perform well, with results driven by steady activity in our

largest markets as well as growing revenue from new product sales. Overall, we are pleased with our

performance and remain focused on execution and outperforming the market."

"Current activity remains steady relative to

customer plans" continued Mr. Hendricks. "If oil prices remain at current levels for an extended period, we could

see some customers reduce activity in oil basins, although customers are so far communicating a steady outlook.

On the natural gas side, activity began to recover late in the

anticipated. We continue to believe that increased drilling and completion activity in natural gas basins will be

necessary over the next several years to meet growing domestic demand and global demand for U.S. LNG. Absent a

shift in the broader outlook, this trend should support increased natural gas-directed activity into 2026."

"Our balanced approach to capital allocation has positioned us well for a range of market conditions," said Andy

Smith, Chief Financial O

maintain signi

our capital deployment with the goal to grow our returns over the long-term."

Drilling Services

During the

$165 million during the quarter compared to $163 million during the prior quarter.

Within the Drilling Services segment for the

average rig revenue per operating day in U.S. Contract Drilling was $35,720 in the quarter, and the adjusted gross

pro

to strong customer adoption of our APEX ® rig technology as well as the bene

agreements.

As of March 31, 2025, the Company had term contracts for drilling rigs in the United States providing for future

dayrate drilling revenue of approximately $407 million. Based on contracts currently in place, the Company expects

an average of 62 rigs operating under term contracts during the second quarter of 2025 and an average of 35 rigs

operating under term contracts over the four quarters ending March 31, 2026.

For the

Directional Drilling, was $71 million, with adjusted gross pro

Our U.S. Contract Drilling business is the majority of our Drilling Services segment, and historically we have

disclosed revenue per day and adjusted gross pro

will continue to report U.S. Contract Drilling operating days, we will no longer report revenue per day or adjusted

gross pro

agreements, we no longer plan to isolate and report individual components of the segment. Instead, we will focus

on providing details at the segment level to better re

Completion Services

First quarter Completion Services revenue totaled $766 million, with adjusted gross pro

activity improve o

customer completion schedules reset. Pricing was slightly lower relative to the fourth quarter, although we o

portion of the lower pricing with cost controls. In addition to higher revenue in our hydraulic fracturing business,

we saw higher revenue from integrated services and products, which supported higher e

for the segment.

As the quarter progressed, we saw demand begin to improve in natural gas basins, primarily in the Haynesville.

Currently, including our Emerald™ line of 100% natural gas-powered assets and our dual fuel assets, approximately

80% of our active

2025.

Drilling Products

First quarter Drilling Products revenue totaled $86 million, with adjusted gross pro

relatively steady across all geographies compared to the fourth quarter, with better adjusted gross pro

the segment on slightly lower direct operating costs driven by operational e

New product innovation continues to drive growth at strong returns within the overall Drilling Products segment,

with the team demonstrating the ability to innovate and anticipate market needs.

Other

During the

Outlook

Within the Drilling Services segment for the second quarter, we expect a relatively steady rig count compared to the

sequential change driven by a reduction in average contracted revenue as legacy contracts roll, as well as some

normal seasonal increase in costs.

In our Completion Services segment for the second quarter, we currently see steady activity compared to the run

rate towards the end of the

later in the quarter. We expect second quarter Completion Services adjusted gross pro

sequentially, which anticipates some potential white space later in the quarter.

In our Drilling Products segment for the second quarter, we expect relatively

with steady activity in the U.S. We expect normal seasonal spring breakup in Canada to be mostly o

International revenue in the rest of the world.

Subsequent to the close of the

business into our other business units and divested the remainder of the business. Great Plains comprised roughly

two-thirds of the revenue and adjusted gross pro

gross pro

For the second quarter, we expect selling, general and administrative expense of approximately $65 million, and

depreciation, depletion, amortization, and impairment expense of approximately $230 million.

For purposes of the shareholder return target, the Company de

by operating activities less capital expenditures plus proceeds from the sale of assets.The shareholder return

target, including the amount and timing of any dividend payments and/or share repurchases are subject to the

discretion of the Company's Board of Directors and will depend upon business conditions, results of operations,

All references to "per share" in this press release are diluted earnings per common share as de

Accounting Standards Codi

First Quarter Earnings Conference Call

The Company's quarterly conference call to discuss the operating results for the quarter ended March 31, 2025, is

scheduled for April 24, 2025, at 9:00 a.m. Central Time. The dial-in information for participants is (800) 715-9871

(Domestic) and (646) 307-1963 (International).The conference ID for both numbers is 2545909. The call is also being

webcast and can be accessed through the Investor Relations section of the Company's website at

investor.patenergy.com. A replay of the conference call will be on the Company's website for two weeks.

About Patterson-UTI

Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and

production companies in the United States and other select countries, including contract drilling services,

integrated well completion services and directional drilling services in the United States, and specialized bit

solutions in the United States, Middle East and many other regions around the world. For more information, visit

www.patenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements which are protected as forward-looking statements under

the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but re

current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe,"

"budgeted," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project,"

"pursue," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-

looking statements. The statements in this press release that are not historical statements, including statements

regarding Patterson-UTI's future expectations, beliefs, plans, objectives,

events or performance that are not historical facts, are forward-looking statements within the meaning of the

federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are

beyond Patterson-UTI's control, which could cause actual results to di

implied by the statements. These risks and uncertainties include, but are not limited to: adverse oil and natural gas

industry conditions, including the impact of commodity price volatility on industry outlook; global economic

conditions, including in

elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely a

Patterson-UTI's services and their associated e

including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's

services; the impact of the ongoing Ukraine/Russia and Middle East con

regions; strength and

ability to obtain insurance coverage on commercially reasonable terms and liabilities from operational risks for

which Patterson-UTI does not have and receive full indemni

the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with

respect to

and new technologies, including the ability to develop and obtain satisfactory returns from new technology and the

risk of obsolescence of existing technologies; the ability to attract and retain management and

of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials;

cybersecurity events; di

implementation of Patterson-UTI's new enterprise resource planning system; governmental regulation, including

climate legislation, regulation and other related risks; environmental, social and governance practices, including the

perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related

disputes; legal proceedings and actions by governmental or other regulatory agencies; changes to tax, tari

import/export regulations and sanctions by the United States or other countries, including the impacts of any

sustained escalation or changes in tari

new markets or pursue strategic acquisitions; public health crises, pandemics and epidemics; weather; operating

costs; expansion and development trends of the oil and natural gas industry;

availability of capital and the ability to repay indebtedness when due; adverse credit and equity market conditions;

our return of capital to stockholders, including timing and amounts (including any plans or commitments in respect

thereof) of any dividends and share repurchases; stock price volatility; and compliance with covenants under

Patterson-UTI's debt agreements.

Additional information concerning factors that could cause actual results to di

forward-looking statements is contained from time to time in Patterson-UTI's SEC

be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at

http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR)

at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking

statement.

PATTERSON-UTI ENERGY, INC.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

March 31,

December 31,

2025

2024

ASSETS

Current assets:

225,204

241,293

Cash, cash equivalents and restricted cash

800,291763,806

Accounts receivable, net

167,767167,023

Inventory

124,148123,193

Other current assets

1,317,4101,295,315

Total current assets

2,937,0633,010,342

Property and equipment, net

487,388487,388

Goodwill

900,959929,610

Intangible assets, net

122,606110,811

Other assets

$ 5,765,426 $ 5,833,466

Total assets

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

513,963

421,318

Accounts payable

273,678385,751

Accrued liabilities

30,64734,924

Other current liabilities

818,288841,993

Total current liabilities

1,220,0831,219,770

Long-term debt, net

238,512238,097

Deferred tax liabilities, net

53,13857,762

Other liabilities

2,330,0212,357,622

Total liabilities

Stockholders' equity:

3,426,9913,465,823

Stockholders' equity attributable to controlling interests

8,41410,021

Noncontrolling interest

3,435,4053,475,844

Total equity

$ 5,765,426 $ 5,833,466

Total liabilities and stockholders' equity

PATTERSON-UTI ENERGY, INC.

Condensed Consolidated Statements of Operations

(unaudited, in thousands, except per share data)

Three Months Ended

March 31,

December 31,

March 31,

2025

2024

1,280,537

1,162,135

1,510,360

REVENUES

COSTS AND EXPENSES:

961,414

859,659

1,077,139

Direct operating costs

231,866

254,599

274,956

Depreciation, depletion, amortization and impairment

66,930

73,079

64,984

Selling, general and administrative

432

3,460

12,233

Merger and integration expense

2,950

2,673

(5,951)

Other operating expense (income), net

1,263,592

1,193,470

1,423,361

Total operating costs and expenses

16,945

(31,335)

86,999

OPERATING INCOME (LOSS)

OTHER INCOME (EXPENSE):

1,464

928

2,189

Interest income

(17,697)

(17,725)

(18,335)

Interest expense, net of amount capitalized

1,968

(1,333)

850

Other income (expense)

(14,265)

(18,130)

(15,296)

Total other expense

2,680

(49,465)

71,703

INCOME (LOSS) BEFORE INCOME TAXES

1,390

1,927

19,997

INCOME TAX EXPENSE

1,290

(51,392)

51,706

NET INCOME (LOSS)

285

190

471

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST

1,005

(51,582)

51,235

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER COMMON SHARE:

0.00

(0.13)

0.13

Basic

0.00

(0.13)

0.13

Diluted

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:

386,521

389,450

408,182

Basic

387,044

389,450

409,819

Diluted

0.08

CASH DIVIDENDS PER COMMON SHARE

Disclaimer

Patterson-UTI Energy Inc. published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 00:28 UTC.