Trump signs order raising Canada tariffs to 35% from 25%
HOUSTON - Patterson-UTI (NASDAQ:PTEN) Energy, Inc. (NASDAQ:PTEN) has maintained an average of 105 drilling rigs operating in the United States for the month of November 2024, consistent with its performance over the two-month period ending November 30, 2024. The company's monthly operational updates reflect the number of drilling rigs that were earning revenue under contract, which is a direct indicator of its active market participation. With revenue growth of 73% in the last twelve months and a "GOOD" overall financial health rating according to InvestingPro analysis, the company maintains a strong market position despite industry challenges.
However, Patterson-UTI cautions stakeholders that the average number of drilling rigs in operation is just one of many factors that influence the company's operating results. The company emphasized that this operational metric should not be taken as a definitive indicator of financial performance trends. Despite this, the company has committed to providing these monthly updates shortly after the end of each month to maintain transparency with its investors and the market. The company has maintained dividend payments for 21 consecutive years, currently offering a 3.9% dividend yield, though InvestingPro data indicates the stock is currently undervalued based on its Fair Value assessment.
Patterson-UTI operates as a major provider of drilling and completion services to the oil and natural gas exploration and production sectors. Its services include contract drilling, integrated well completion, and directional drilling in the United States, along with specialized drill bit solutions in the U.S., Middle East, and other global regions.
The announcement also included a cautionary note regarding forward-looking statements, reminding readers that such statements are not guarantees of future performance and are subject to various risks and uncertainties. These risks include fluctuations in the oil and natural gas industry, global economic conditions, customer spending volatility, competition, operational risks, regulatory changes, and other factors that could impact the company's business and financial results.
Investors are advised that this information is based on a press release statement and that Patterson-UTI's SEC filings provide additional context for assessing the company's performance and prospects. Patterson-UTI does not undertake any obligation to update forward-looking statements publicly.
In other recent news, Patterson-UTI Energy Inc. faced a tough third quarter in 2024, recording a hefty net loss of $979 million, largely due to an $885 million goodwill impairment related to the NexTier merger. Despite this setback, the company posted a steady revenue of $1,357 million and generated substantial free cash flow. Adjusted net income was reported at $2 million, with adjusted EBITDA reaching $275 million.
CapitalOne maintained its neutral rating on Patterson-UTI Energy, noting that the company's performance was slightly better than the Oil Services ETF, despite falling short of adjusted EBITDA expectations. The firm also pointed out that Patterson-UTI Energy's fourth quarter adjusted EBITDA guidance of approximately $225 million, which is 14% lower than the consensus, reflects a cautious outlook.
The company's management expressed confidence in the recovery of fourth quarter completion activity, which they consider to be unusually weak, by early 2025. In line with this, Patterson-UTI Energy's Completion Services segment aims to achieve margins similar to those seen in mid-2024.
The company also reported a stable rig count for 2025, despite anticipating slightly lower activity levels compared to 2024. These recent developments underscore Patterson-UTI's focus on leveraging its integrated services model and strong cash flow to enhance shareholder value amid market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.