Patterson-UTI Energy Inc (PTEN) Q3 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Total Revenue: $1,357 million for the third quarter.

  • Net Loss: $979 million or $2.50 per share, including special charges.

  • Adjusted Net Income: $2 million, excluding special items.

  • Adjusted EBITDA: $275 million, excluding special items.

  • Free Cash Flow: $322 million for the first nine months, with over $100 million in Q3.

  • Share Repurchases: $346 million used for repurchasing shares since the NexTier merger and Ulterra acquisition.

  • Drilling Services Revenue: $422 million with an adjusted gross profit of $171 million.

  • Completion Services Revenue: $832 million with an adjusted gross profit of $128 million.

  • Drilling Products Revenue: $89 million with an adjusted gross profit of $42 million.

  • SG&A Expenses: $65 million for the third quarter.

  • CapEx: $181 million for Q3; expected $150 million for Q4.

  • Cash on Hand: $115 million with no draw on the $615 million revolving credit facility.

  • 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

  • Patterson-UTI Energy Inc (NASDAQ:PTEN) successfully integrated NexTier and Ulterra, solidifying its position as a leading player in the oilfield services sector.

  • The company generated almost $570 million of free cash flow in the first four quarters since the NexTier and Ulterra transactions.

  • Patterson-UTI Energy Inc (NASDAQ:PTEN) returned 15% of its current market cap to shareholders through share repurchases and dividends.

  • The company has a strong balance sheet with an investment-grade credit rating, allowing for a lower cost of capital.

  • 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

  • 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.

  • The company experienced a decline in completion services adjusted gross profit due to unplanned gaps impacting fixed cost leverage.

  • There is a potential for the overall industry rig count to move somewhat lower, impacting Patterson-UTI Energy Inc (NASDAQ:PTEN)'s operations.

  • The company anticipates average activity in 2025 will be slightly below 2024, with a steady rig count, indicating potential challenges in maintaining growth.

  • 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.

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