HOUSTON - Patterson-UTI (NASDAQ:PTEN) Energy, Inc. (NASDAQ:PTEN) disclosed its average drilling rig count for May 2024, maintaining a consistent level of activity in the United States. The company reported an average of 114 drilling rigs operating throughout the month. This figure is part of a two-month trend ending May 31, 2024, during which the company averaged 115 drilling rigs in operation.
The average number of drilling rigs is a metric representing those rigs that were actively earning revenue under contract, providing a snapshot of the company's operational status. Patterson-UTI, however, has advised stakeholders that this number should not be viewed in isolation as an indicator of financial performance, as multiple factors can influence the company's results.
Patterson-UTI Energy is recognized for its drilling and completion services, catering to the oil and natural gas sectors primarily in the United States. Their offerings include contract drilling, integrated well completion, and directional drilling services. Additionally, the company delivers specialized drill bit solutions not only domestically but also in the Middle East and other global markets.
In line with its practice, Patterson-UTI plans to continue issuing monthly updates on drilling rig operations shortly after each month's end. These updates serve as a regular touchpoint for investors and analysts monitoring the company's operational developments.
Investors are reminded that such forward-looking statements, including predictions of future events or performance, are subject to various factors that could cause actual outcomes to differ materially from those anticipated. These factors range from oil and natural gas industry conditions to broader economic trends and geopolitical events.
In other recent news, Patterson-UTI Energy has garnered attention due to its robust financial performance and strategic initiatives. The company met its first-quarter earnings guidance across all operating segments, generating $139 million in free cash flow. Patterson-UTI Energy plans to return at least $400 million to shareholders in 2024, including approximately $130 million in dividends and at least $270 million in buybacks.
Evercore ISI lowered its price target for the company to $17.00 from $18.00, but maintained an Outperform rating. The firm noted Patterson-UTI Energy's ability to generate significant free cash flow and its commitment to returning a substantial portion to shareholders. Meanwhile, JPMorgan retained a Neutral stance on the company with a set price target of $10.80. The firm highlighted Patterson-UTI Energy's commitment to returning substantial cash to shareholders despite a decline in North American spending.
Piper Sandler adjusted its outlook on Patterson-UTI Energy, reducing the price target to $14 from $17 while sustaining an Overweight rating. The revision reflects a lowered expectation for the company's 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA). Patterson-UTI Energy's performance has seen fluctuations, with a downward trend in quarter-over-quarter activity, contrasting with other industry peers' expectations.
InvestingPro Insights
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has demonstrated resilience in its drilling operations, maintaining an average rig count that showcases the company's operational stability. To provide a more comprehensive view of Patterson-UTI's financial health and market position, here are some key insights from InvestingPro:
InvestingPro Data shows a robust revenue growth for Patterson-UTI, with a notable increase of 66.04% in the last twelve months as of Q1 2024. This impressive growth is further accentuated by the company's quarterly revenue growth of 90.75% in Q1 2024, indicating a strong upward trajectory in its financial performance. Additionally, the company's gross profit margin stands at a healthy 30.61%, reflecting efficient operations and cost management.
An InvestingPro Tip that may interest investors is the company's history of consistent dividend payments, which spans 21 consecutive years, signaling a commitment to shareholder returns. Moreover, Patterson-UTI's liquid assets surpassing short-term obligations suggests financial stability and the ability to meet its immediate financial responsibilities.
For those looking to delve deeper into Patterson-UTI's financial metrics and future outlook, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available, which can be accessed through the dedicated InvestingPro page for Patterson-UTI at https://www.investing.com/pro/PTEN. These tips can provide valuable guidance for investors weighing the potential risks and opportunities associated with the company.
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