NasdaqGS:PTEN

Stock Analysis Report

Executive Summary

Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and Canada.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Patterson-UTI Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PTEN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

PTEN

-1.6%

US Energy Services

0.06%

US Market


1 Year Return

-47.6%

PTEN

-30.5%

US Energy Services

19.3%

US Market

Return vs Industry: PTEN underperformed the US Energy Services industry which returned -30.5% over the past year.

Return vs Market: PTEN underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

PTENIndustryMarket
7 Day-2.3%-1.6%0.06%
30 Day-18.2%-7.9%1.7%
90 Day-18.8%-4.0%9.0%
1 Year-46.8%-47.6%-28.3%-30.5%21.8%19.3%
3 Year-71.8%-72.6%-54.3%-60.3%49.5%39.9%
5 Year-58.4%-60.8%-56.5%-63.9%73.1%54.1%

Price Volatility Vs. Market

How volatile is Patterson-UTI Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Patterson-UTI Energy undervalued compared to its fair value and its price relative to the market?

0.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PTEN ($7.53) is trading above our estimate of fair value ($4.12)

Significantly Below Fair Value: PTEN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PTEN is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: PTEN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PTEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PTEN is good value based on its PB Ratio (0.5x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Patterson-UTI Energy forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

35.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTEN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PTEN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PTEN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PTEN's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: PTEN's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTEN is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Patterson-UTI Energy performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTEN is currently unprofitable.

Growing Profit Margin: PTEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PTEN is unprofitable, and losses have increased over the past 5 years at a rate of -21.1% per year.

Accelerating Growth: Unable to compare PTEN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PTEN is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-32.9%).


Return on Equity

High ROE: PTEN has a negative Return on Equity (-15.02%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Patterson-UTI Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PTEN's short term assets ($631.8M) exceed its short term liabilities ($400.6M).

Long Term Liabilities: PTEN's short term assets ($631.8M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: PTEN's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: PTEN's debt to equity ratio has increased from 33.9% to 34.1% over the past 5 years.


Balance Sheet

Inventory Level: PTEN has a high level of physical assets or inventory.

Debt Coverage by Assets: PTEN's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PTEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PTEN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 10.9% per year.


Next Steps

Dividend

What is Patterson-UTI Energy's current dividend yield, its reliability and sustainability?

2.19%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 22 2020Ex Dividend DateMar 04 2020Dividend Pay DateMar 19 202015 days from Ex DividendBuy in the next 11 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: PTEN's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PTEN's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: PTEN's dividend payments have been volatile in the past 10 years.

Growing Dividend: PTEN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: PTEN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PTEN is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Andy Hendricks (54yo)

7.3yrs

Tenure

US$9,764,924

Compensation

Mr. William Andrew Hendricks, Jr., also known as Andy, has been Chief Executive Officer and President at Seventy Seven Energy Inc. since April 20, 2017. Mr. Hendricks has been the Chief Executive Officer a ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD9.76M) is above average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Siegel
Executive Chairman18.8yrsUS$7.31m0.70% $10.1m
William Hendricks
President7.3yrsUS$9.76m0.39% $5.7m
C. Smith
Executive VP & CFO2.4yrsUS$2.80m0.061% $887.8k
Kenneth Berns
Executive VP & Chief Commercial Officer16.8yrsUS$3.79m0.38% $5.5m
James Holcomb
President of UTI Drilling Company LLC8.1yrsUS$2.58m0.15% $2.2m
James Drickamer
Vice President of Investor Relations0yrsno datano data
Seth Wexler
Senior VP10.5yrsUS$1.09m0.11% $1.6m

8.1yrs

Average Tenure

55yo

Average Age

Experienced Management: PTEN's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Siegel
Executive Chairman18.8yrsUS$7.31m0.70% $10.1m
William Hendricks
President7.3yrsUS$9.76m0.39% $5.7m
Curtis Huff
Lead Director0yrsUS$289.99k0.085% $1.2m
Terry Hunt
Independent Director16.8yrsUS$274.99k0.036% $520.4k
Michael Conlon
Independent Director7.4yrsUS$269.99k0.027% $391.7k
Charles Buckner
Independent Director13yrsUS$265.53k0.029% $423.3k
Tiffany Thom Cepak
Independent Director5.5yrsUS$269.45k0.019% $281.9k
Janeen Judah
Independent Director1.8yrsUS$243.38k0.014% $203.5k

7.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: PTEN's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PTEN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Patterson-UTI Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Patterson-UTI Energy, Inc.
  • Ticker: PTEN
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$1.446b
  • Shares outstanding: 192.08m
  • Website: https://www.patenergy.com

Number of Employees


Location

  • Patterson-UTI Energy, Inc.
  • 10713 West Sam Houston Parkway North
  • Suite 800
  • Houston
  • Texas
  • 77064
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTENNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1993
PE1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1993

Biography

Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. It operates through three segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. The Contract Drilling segment markets its contract drilling services primarily in west Texas and southeastern New Mexico, north central and east Texas, northern Louisiana, Colorado, Wyoming, North Dakota, south Texas, western Oklahoma, Pennsylvania, Ohio, West Virginia, and western Canada. As of December 31, 2019, this segment had a drilling fleet of 216 marketable land-based drilling rigs. The Pressure Pumping segment offers pressure pumping services that consist of well stimulation and cementing for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, cementing, and acid pumping services in Texas, the Mid-Continent, and the Appalachian region. The Directional Drilling Services segment provides a suite of directional drilling services, including directional drilling, downhole performance motors, measurement-while-drilling, wireline steering tools, and services that enhance the accuracy of horizontal wellbore placement. It also service equipment to drilling contractors, as well as provides electrical controls and automation to the energy, marine, and mining industries in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. The company was founded in 1978 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:44
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.