In This Article:
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Total Revenue: $1,357 million for the third quarter.
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Net Loss: $979 million or $2.50 per share, including special charges.
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Adjusted Net Income: $2 million, excluding special items.
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Adjusted EBITDA: $275 million, excluding special items.
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Free Cash Flow: $322 million for the first nine months, with over $100 million in Q3.
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Share Repurchases: $346 million used for repurchasing shares since the NexTier merger and Ulterra acquisition.
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Drilling Services Revenue: $422 million with an adjusted gross profit of $171 million.
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Completion Services Revenue: $832 million with an adjusted gross profit of $128 million.
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Drilling Products Revenue: $89 million with an adjusted gross profit of $42 million.
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SG&A Expenses: $65 million for the third quarter.
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CapEx: $181 million for Q3; expected $150 million for Q4.
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Cash on Hand: $115 million with no draw on the $615 million revolving credit facility.
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Dividend: $0.08 per share approved for Q4.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Patterson-UTI Energy Inc (NASDAQ:PTEN) successfully integrated NexTier and Ulterra, solidifying its position as a leading player in the oilfield services sector.
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The company generated almost $570 million of free cash flow in the first four quarters since the NexTier and Ulterra transactions.
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Patterson-UTI Energy Inc (NASDAQ:PTEN) returned 15% of its current market cap to shareholders through share repurchases and dividends.
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The company has a strong balance sheet with an investment-grade credit rating, allowing for a lower cost of capital.
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Patterson-UTI Energy Inc (NASDAQ:PTEN) is seeing strong financial results from its electric fleets, which are delivering higher-than-average returns compared to the completion services segment average.
Negative Points
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Patterson-UTI Energy Inc (NASDAQ:PTEN) reported a net loss attributable to common shareholders of $979 million in the third quarter, including an $885 million impairment of goodwill.
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The company experienced a decline in completion services adjusted gross profit due to unplanned gaps impacting fixed cost leverage.
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There is a potential for the overall industry rig count to move somewhat lower, impacting Patterson-UTI Energy Inc (NASDAQ:PTEN)'s operations.
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The company anticipates average activity in 2025 will be slightly below 2024, with a steady rig count, indicating potential challenges in maintaining growth.
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Patterson-UTI Energy Inc (NASDAQ:PTEN) is retiring and decommissioning nearly 400,000 horsepower of older Tier 2 diesel frac equipment, reflecting challenges in maintaining competitiveness in an oversupplied market.