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.


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

0.8%

PTEN

4.3%

US Energy Services

3.4%

US Market


1 Year Return

-53.0%

PTEN

-47.0%

US Energy Services

5.4%

US Market

Return vs Industry: PTEN underperformed the US Energy Services industry which returned -47% over the past year.

Return vs Market: PTEN underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

PTENIndustryMarket
7 Day0.8%4.3%3.4%
30 Day-12.5%-12.2%-1.0%
90 Day-24.8%-14.1%-0.4%
1 Year-52.3%-53.0%-45.5%-47.0%7.7%5.4%
3 Year-66.2%-67.0%-53.7%-59.4%46.2%36.8%
5 Year-67.7%-69.7%-65.4%-70.5%65.6%47.5%

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?

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PTEN ($7.98) is trading below our estimate of fair value ($11.06)

Significantly Undervalued: PTEN is trading below fair value, but not by a significant amount.


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

Low 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 22 analysts?

6.6%

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 (4.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PTEN's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PTEN is unprofitable, and losses have increased over the past 5 years at a rate of -24.4% 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 (-13.1%).


Return on Equity

High ROE: PTEN has a negative Return on Equity (-10.81%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PTEN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PTEN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Patterson-UTI Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PTEN's short term assets ($897.7M) exceeds its short term liabilities ($470.0M)

Long Term Liabilities: PTEN's short term assets (897.7M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: PTEN's debt to equity ratio (34.2%) is considered satisfactory

Reducing Debt: PTEN's debt to equity ratio has increased from 24.1% to 34.2% 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 0.8x 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.

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, even with free cash flow being positive and shrinking by -12% per year.


Next Steps

Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PTEN's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: PTEN's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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

7.8yrs

Average management tenure


CEO

Andy Hendricks (54yo)

7yrs

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 ($USD9.76M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

7.8yrs

Average Tenure

55yo

Average Age

Experienced Management: PTEN's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: PTEN's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: PTEN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$45,27206 Sep 19
Janeen Judah
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$9.05
BuyUS$202,07524 Aug 19
Curtis Huff
EntityIndividual
Role
Lead Director
Lead Director
Shares25,000
Max PriceUS$8.08
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: 18.4yrs
    • Compensation: US$7.31m
  • Kenneth Berns (59yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 16.5yrs
    • Compensation: US$3.79m
  • Mike Drickamer

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Seth Wexler (47yo)

    Senior VP

    • Tenure: 10.2yrs
    • Compensation: US$1.09m
  • Andy Smith (48yo)

    Executive VP & CFO

    • Tenure: 2.1yrs
    • Compensation: US$2.80m
  • James Holcomb (56yo)

    President of UTI Drilling Company LLC

    • Tenure: 7.8yrs
    • Compensation: US$2.58m
  • Andy Hendricks (54yo)

    President

    • Tenure: 7yrs
    • Compensation: US$9.76m

Board Members

  • Mark Siegel (68yo)

    Executive Chairman

    • Tenure: 18.4yrs
    • Compensation: US$7.31m
  • Chris Huff (61yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$289.99k
  • Terry Hunt (70yo)

    Director

    • Tenure: 16.5yrs
    • Compensation: US$274.99k
  • Mike Conlon (72yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: US$269.99k
  • Chuck Buckner (74yo)

    Director

    • Tenure: 12.7yrs
    • Compensation: US$265.53k
  • TJ Thom Cepak (46yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$269.45k
  • Andy Hendricks (54yo)

    President

    • Tenure: 7yrs
    • Compensation: US$9.76m
  • Janeen Judah (59yo)

    Director

    • Tenure: 1.5yrs
    • 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$1.615b
  • 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 Analysis2019/10/15 23:38
End of Day Share Price2019/10/15 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.