HOUSTON - Patterson-UTI (NASDAQ:PTEN) Energy, Inc. (NASDAQ:PTEN) has reported that its average number of drilling rigs operating in the United States for August 2024 remained stable at 107. This figure is in line with the company's average of 108 rigs for the two-month period ending on August 31, 2024.
The company, a prominent provider of drilling and completion services to the oil and natural gas sectors, emphasized that the average number of drilling rigs is a measure of rigs that were earning revenue under a drilling contract. Patterson-UTI also noted that this metric is not necessarily indicative of the company's overall financial performance, as many factors can impact operating results.
The monthly update on drilling rigs operating is part of Patterson-UTI's commitment to providing timely operational information, which the company plans to continue releasing shortly after each month's end.
Patterson-UTI operates not only in the United States but also in other select countries, offering services that include contract drilling, integrated well completion, and directional drilling. Additionally, the company provides specialized drill bit solutions across various regions, including the Middle East.
In its press release, Patterson-UTI included a cautionary statement regarding forward-looking statements, reminding readers that such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from expressed or implied outcomes.
These risks encompass a wide range of factors, from adverse conditions in the oil and natural gas industry and global economic pressures to competition, operational hazards, and regulatory changes. The company also acknowledged the potential impact of the ongoing conflict in Ukraine and other geopolitical risks.
Investors are advised that the information in this article is based on a press release statement from Patterson-UTI. The company's filings with the SEC provide additional details about risks and uncertainties that could affect financial results and business operations. Patterson-UTI does not undertake any obligation to publicly update or revise any forward-looking statements.
In other recent news, Patterson-UTI Energy has been the subject of multiple price target revisions. ATB Capital Markets lowered its target from $12.00 to $11.00, maintaining an Outperform rating, while both JPMorgan (NYSE:JPM) and RBC Capital Markets reduced their targets from $15.00 to $14.00. These adjustments come on the heels of Patterson-UTI Energy's Q2 2024 earnings report, which revealed a total revenue of $1.348 billion, a net income of $11 million, and adjusted EBITDA of $324 million.
The company also announced an agreement to retain James M. Holcomb, the Executive Vice President and Chief Business Officer, through 2026, with a transition to an advisory role planned until 2030. Furthermore, the firm maintained an average of 108 drilling rigs in operation throughout July 2024.
Recent developments include a potential decrease in expected U.S. rig activity and Completion Services gross profits for Q3 of 2024. This has prompted ATB Capital Markets to revise its EBITDA forecasts for the company, decreasing them by 3% for 2024 and 8% for 2025. Despite the downward revisions, Patterson-UTI Energy continues to anticipate increased activity in gas-related drilling in 2025.
InvestingPro Insights
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has shown resilience by maintaining its average number of drilling rigs operating in the U.S. amidst a challenging industry landscape. To provide further context to the company's performance, InvestingPro insights reveal several key metrics and strategic moves that investors might consider.
InvestingPro Data indicates that Patterson-UTI boasts a robust market capitalization of $3.2 billion, reflecting a significant presence in the sector. The company's revenue has experienced substantial growth over the last twelve months as of Q2 2024, with a reported increase of nearly 77.86%, showcasing the company's ability to expand its earnings potential in a volatile market.
Despite recent market turbulence, Patterson-UTI has managed to maintain dividend payments for 21 consecutive years, which could be a testament to its commitment to shareholder returns. This, coupled with a dividend yield of 3.9% as of the end of 2024, might appeal to income-focused investors. Moreover, the firm's liquid assets surpass its short-term obligations, indicating a solid liquidity position that can support ongoing operations and strategic initiatives.
InvestingPro Tips highlight that management's aggressive share buyback strategy may reflect confidence in the company's intrinsic value and future prospects. Additionally, analysts have predicted that Patterson-UTI will be profitable this year, which could signal a positive outlook for the company's financial health.
It is worth noting that the stock has experienced significant price volatility and is currently trading near its 52-week low, which could present a potential entry point for value investors. However, it is also important to consider that four analysts have revised their earnings estimates downwards for the upcoming period, suggesting that investors should closely monitor the company's performance and market conditions.
For those seeking a deeper analysis, InvestingPro offers additional tips on Patterson-UTI, which can be found at https://www.investing.com/pro/PTEN.
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