Patterson-UTI Q3 revenue beats on strong US drilling demand

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

*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

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(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.)