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

Fundamentals

Adequate balance sheet and slightly overvalued.

Risks

  • Patterson-UTI Energy has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

0.1%

NasdaqGS:PTEN

3.9%

US Energy Services

2.9%

US Market


1 Year Return

-51.9%

NasdaqGS:PTEN

-48.3%

US Energy Services

0.2%

US Market

PTEN underperformed the Energy Services industry which returned -47.9% over the past year.

PTEN underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

PTENIndustryMarket
7 Day0.1%3.9%2.9%
30 Day-21.8%-16.0%-2.3%
90 Day-25.1%-14.1%3.1%
1 Year-51.4%-51.9%-47.0%-48.3%2.4%0.2%
3 Year-58.1%-58.9%-52.1%-57.8%41.7%32.4%
5 Year-73.1%-74.7%-70.9%-75.2%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Patterson-UTI Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Patterson-UTI Energy's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Patterson-UTI Energy is loss making, we can't compare its value to the US Energy Services industry average.

Patterson-UTI Energy is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Patterson-UTI Energy, we can't assess if its growth is good value.


Price Based on Value of Assets

Patterson-UTI Energy is good value based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

How is Patterson-UTI Energy expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Patterson-UTI Energy's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Patterson-UTI Energy is not considered high growth as it is expected to be loss making for the next 1-3 years.

Patterson-UTI Energy's revenue growth is positive but not above the United States of America market average.

Unable to compare Patterson-UTI Energy's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Patterson-UTI Energy's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Patterson-UTI Energy will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

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

-24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Patterson-UTI Energy does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Patterson-UTI Energy's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Patterson-UTI Energy's 1-year growth to the US Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Patterson-UTI Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Patterson-UTI Energy has efficiently used its assets last year compared to the US Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Patterson-UTI Energy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Patterson-UTI Energy's financial position?


Financial Position Analysis

Patterson-UTI Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Patterson-UTI Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Patterson-UTI Energy's level of debt (34.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (24.1% vs 34.2% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x 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.

Whilst loss making Patterson-UTI Energy has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Patterson-UTI Energy has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12% per year.


Next Steps

Dividend

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

1.88%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Patterson-UTI Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Patterson-UTI Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Patterson-UTI Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.


Next Steps

Management

What is the CEO of Patterson-UTI Energy's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Andy Hendricks (54yo)

6.8yrs

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

Andy's remuneration is higher than average for companies of similar size in United States of America.

Andy's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.6yrs

Average Tenure

55yo

Average Age

The average tenure for the Patterson-UTI Energy management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.9yrs

Average Tenure

64.5yo

Average Age

The tenure for the Patterson-UTI Energy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$202,80027 Dec 18
Curtis Huff
EntityIndividual
Role
Lead Director
Lead Director
Shares20,000
Max PriceUS$10.14

Ownership Breakdown


Management Team

  • Mark Siegel (68yo)

    Executive Chairman

    • Tenure: 18.3yrs
    • Compensation: US$7.31m
  • Kenneth Berns (59yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 16.3yrs
    • Compensation: US$3.79m
  • Mike Drickamer

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Seth Wexler (47yo)

    Senior VP

    • Tenure: 10.0yrs
    • Compensation: US$1.09m
  • Andy Smith (48yo)

    Executive VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$2.80m
  • James Holcomb (56yo)

    President of UTI Drilling Company LLC

    • Tenure: 7.6yrs
    • Compensation: US$2.58m
  • Andy Hendricks (54yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$9.76m

Board Members

  • Mark Siegel (68yo)

    Executive Chairman

    • Tenure: 18.3yrs
    • Compensation: US$7.31m
  • Chris Huff (61yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$289.99k
  • Terry Hunt (70yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$274.99k
  • Mike Conlon (72yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$269.99k
  • Chuck Buckner (74yo)

    Director

    • Tenure: 12.5yrs
    • Compensation: US$265.53k
  • TJ Thom Cepak (46yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: US$269.45k
  • Andy Hendricks (54yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$9.76m
  • Janeen Judah (59yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$243.38k

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$1.731b
  • Shares outstanding: 202.45m
  • 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: Contr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:43
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.