HOUSTON, TX – Patterson-UTI (NASDAQ:PTEN) Energy Inc. (NASDAQ:PTEN) disclosed an agreement on Monday that will retain James M. Holcomb, the company's Executive Vice President and Chief Business Officer, in his current role until at least the end of 2026. Following this period, Holcomb will transition to a non-executive advisory role through September 2030.
The agreement, dated August 27, 2024, stipulates that Holcomb may choose to remain in his executive position until December 31, 2026, or extend his tenure to December 31, 2027, by providing a three-month notice to the company.
After his executive service concludes, he will serve as an advisor to the company, offering transition and advisory services as requested by Patterson-UTI’s CEO or a designated representative.
During his advisory period, Holcomb's base salary will be reduced to 55% of his current salary, and he will no longer be eligible for bonuses or equity-based incentive grants. The agreement also clarifies that due to the company's merger with NexTier Oilfield Solutions Inc., changes in Holcomb's role will not constitute a "good reason" for him to terminate his employment.
Furthermore, the agreement outlines that Holcomb will not receive severance payments or benefits upon the end of his employment on September 30, 2030.
If he chooses to resign voluntarily before this date, he will not be entitled to benefits under the Patterson-UTI Energy Inc. Qualified Retiree Program or accelerated vesting of any performance-based equity awards due to retirement.
InvestingPro Insights
In light of Patterson-UTI Energy Inc.'s recent executive agreement, investors may find additional context in the company's financial health and market performance. According to real-time data from InvestingPro, Patterson-UTI boasts a market capitalization of $3.43 billion, with a notable revenue growth of 77.86% over the last twelve months as of Q2 2024. This growth is underscored by a gross profit margin of 29.25%, reflecting the company's efficiency in managing its operations amidst industry challenges.
InvestingPro Tips highlight that the management's confidence is evident through aggressive share buybacks, while the company's ability to maintain dividend payments for 21 consecutive years signals a commitment to shareholder returns. Moreover, the stock is currently trading near its 52-week low, which may present an opportunity for investors considering the company's profitability over the last twelve months and analysts' predictions for continued profitability this year.
For those interested in more in-depth analysis, InvestingPro offers additional tips on Patterson-UTI Energy, providing a comprehensive view of the company's potential in the context of the energy sector's dynamics. With a P/E ratio adjusted to 15.62, the company's valuation metrics can be further explored through the InvestingPro platform, which includes further insights into the company's performance and projections.
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