Patterson-UTI Energy
Market Cap
US$1.4b
Last Updated
2020/02/22 00:44 UTC
Data Sources
Company Financials +
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.
Risk Analysis
Dividend of 2.12% is not well covered by earnings or forecast to be in the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| PTEN | Industry | Market | |
|---|---|---|---|
| 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
4 days ago | Simply Wall St
How Much Are Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Insiders Spending On Buying Shares?3 weeks ago | Simply Wall St
The Patterson-UTI Energy (NASDAQ:PTEN) Share Price Is Down 71% So Some Shareholders Are Rather Upset1 month ago | Simply Wall St
Does Patterson-UTI Energy, Inc.'s (NASDAQ:PTEN) CEO Pay Matter?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 18.8yrs | US$7.31m | 0.70% $10.1m | |
| President | 7.3yrs | US$9.76m | 0.39% $5.7m | |
| Executive VP & CFO | 2.4yrs | US$2.80m | 0.061% $887.8k | |
| Executive VP & Chief Commercial Officer | 16.8yrs | US$3.79m | 0.38% $5.5m | |
| President of UTI Drilling Company LLC | 8.1yrs | US$2.58m | 0.15% $2.2m | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior VP | 10.5yrs | US$1.09m | 0.11% $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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 18.8yrs | US$7.31m | 0.70% $10.1m | |
| President | 7.3yrs | US$9.76m | 0.39% $5.7m | |
| Lead Director | 0yrs | US$289.99k | 0.085% $1.2m | |
| Independent Director | 16.8yrs | US$274.99k | 0.036% $520.4k | |
| Independent Director | 7.4yrs | US$269.99k | 0.027% $391.7k | |
| Independent Director | 13yrs | US$265.53k | 0.029% $423.3k | |
| Independent Director | 5.5yrs | US$269.45k | 0.019% $281.9k | |
| Independent Director | 1.8yrs | US$243.38k | 0.014% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PTEN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Nov 1993 |
| PE1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:44 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.