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Patterson-UTI Q3 revenue beats on strong US drilling demand

By Reuters News


Overview

  • US drilling services firm's Q3 revenue up 9% sequentially, beating analyst expectations

  • Net income attributable to common stockholders was $28 mln for the quarter

  • Company declared a quarterly dividend of $0.10 per share


Outlook

  • Company expects to operate an average of 104 rigs in the US in Q4

  • Company sees Q4 Drilling Services adjusted gross profit of $150 mln

  • Company expects Q4 Completion Services adjusted gross profit of $140 mln


Result Drivers

  • STRONG US DRILLING DEMAND - Co said increased US onshore drilling and completion demand supported higher pricing and returns

  • UPGRADED RIGS - Co said demand was particularly strong for rigs returning to service following structural upgrades, supporting premium pricing for highest specification rigs

  • NATURAL GAS ASSETS - Co said completion services results improved as demand was robust for equipment capable of using natural gas as fuel, with positive pricing momentum


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$1.34 bln

$1.31 bln (12 Analysts)

Q3 Net Income

$28.6 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas drilling peer group is "buy"

  • Wall Street's median 12-month price target for Patterson-UTI Energy Inc is $13.50, about 7.1% above its October 28 closing price of $12.60

  • The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 188 three months ago


Reuters Recommended Reads

  • Oct 27 - Baker Hughes rounds out oilfield services earnings with lower quarterly profit

  • Oct 28 - ProPetro Q3 revenue rises 16%, beats analyst estimates

  • Oct 27 - NOV Q3 revenue beats estimates on Middle East demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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