One-glance verdict
Undervalued
$30.35 our estimate vs market $12.53
Wall Street consensus: $13.93 (-54.1% lower than our fair-value estimate)
59% below our estimate, below the bear case
Fundamentals snapshot
Patterson-UTI Energy, Inc.
PTEN · NMS · Energy · Oil & Gas Drilling
Current price
$12.53
52-week range
$5.24 - $13.39
Market cap
$4.78B
Balance sheet
Distressed
-0.56x Concerning
Net debt $1.08B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 8/10 years.
- Reward Dividend yield is 3.3% with 23-year payout history.
- Risk Net debt grew 20.0% over 3 years.
- Risk Operating margin compressed from 8.0% to -0.5% over 3 years.
What this company does
Patterson-UTI Energy, Inc.
Patterson-UTI Energy provides essential services like drilling and equipment for oil and gas companies, with most of their money coming from these contracts. This is important because when oil prices are good, these companies need more help exploring and extracting oil, which means more business for Patterson-UTI. They also sell specialized drilling tools, which adds another stream of revenue.
How the company got here
Patterson-UTI Energy, Inc. has a long history in the oil and gas industry, tracing its roots back to 1978. The company has grown and evolved over the decades, adapting to the changing landscape of energy exploration and production. A key part of its journey has involved strategic acquisitions and the development of new technologies to serve its clients more effectively in the demanding oilfield services sector. This evolution has positioned Patterson-UTI as a significant player in providing essential services for drilling and completing oil and gas wells.
What it actually does
Patterson-UTI provides critical services and equipment that help oil and gas companies find and extract energy resources. Think of them as the specialized contractors and tool providers that oil companies hire to do the heavy lifting of drilling wells. This includes everything from the actual drilling rigs and the people who operate them, to the advanced tools used to guide the drill bit precisely where it needs to go underground, and the equipment needed to complete the well so it can produce oil or gas. They operate in various regions, including the United States, Canada, and Colombia, supporting energy production efforts.
Drilling Services
This is the core of Patterson-UTI's business, focusing on the actual drilling of oil and gas wells. They provide contract drilling, meaning they operate drilling rigs for energy companies on a contractual basis. This segment also offers directional drilling, which is like steering the drill bit to follow a specific path underground, and measurement-while-drilling (MWD) services that provide real-time data about the drill bit's location and the surrounding rock formations. They also supply and rent specialized drilling motors and advanced software that helps analyze drilling data to improve efficiency and accuracy, essentially guiding the drill bit with precision.
Completion Services
Once a well is drilled, it needs to be 'completed' so that oil or gas can flow out. This segment handles those crucial steps. It includes services like hydraulic fracturing (often called 'fracking'), which uses high-pressure fluid to break up rock and release oil or gas, as well as wireline and pumping services. They also provide cementing to secure the wellbore and offer power solutions, including natural gas fueling for equipment, and logistics to support these operations. This part of the business ensures the well is ready for production after the initial drilling is done.
Drilling Products
This segment focuses on the tools that actually cut through the rock underground. Patterson-UTI designs, manufactures, sells, and rents drill bits, which are the specialized cutting heads attached to the drill string. They offer both matrix and steel-bodied bits, often embedded with polycrystalline diamond compacts (PDCs) for enhanced durability and cutting efficiency. Additionally, they rent out various oilfield tools and provide specialized services for land-based drilling and completion activities, supplying the essential hardware for the drilling process.
What management is betting on now
Patterson-UTI's management is focused on leveraging its strong position in the oilfield services market. A key priority is likely the efficient deployment of its modern drilling rig fleet, aiming to capture market share and maximize utilization. They are also investing in technology and services that enhance drilling efficiency and precision, such as advanced data analytics and directional drilling capabilities. The company aims to provide comprehensive solutions to its customers, from drilling to completion, while managing costs effectively to improve profitability in a cyclical industry.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$115.70M
FY2024 Q4
$175.48M
FY2025 Q1
$46.31M
FY2025 Q2
$-4.46M
FY2025 Q3
$71.32M
FY2025 Q4
$259.01M
FY2026 Q1
$-52.77M
FY2026 Q2
$-99.84M
Revenue
$1.23B
Net income
$-19.60M
Diluted EPS
-0.05
Operating cash flow
$56.08M
Free cash flow
$-99.84M
Fetching…
Sources
Revenue
$1.12B
Net income
$-24.63M
Diluted EPS
-0.06
Operating cash flow
$63.86M
Free cash flow
$-52.77M
Fetching…
Sources
Revenue
$1.15B
Net income
$-9.09M
Diluted EPS
-0.01
Operating cash flow
$397.53M
Free cash flow
$259.01M
Fetching…
Sources
Revenue
$1.18B
Net income
$-36.40M
Diluted EPS
-0.10
Operating cash flow
$215.80M
Free cash flow
$71.32M
Fetching…
Sources
Revenue
$1.22B
Net income
$-49.14M
Diluted EPS
-0.13
Operating cash flow
$139.75M
Free cash flow
$-4.46M
Fetching…
Sources
Revenue
$1.28B
Net income
$1.00M
Diluted EPS
0.00
Operating cash flow
$208.14M
Free cash flow
$46.31M
Fetching…
Sources
Revenue
$1.16B
Net income
$-51.58M
Diluted EPS
-0.10
Operating cash flow
$315.83M
Free cash flow
$175.48M
Fetching…
Sources
Revenue
$1.36B
Net income
$-978.76M
Diluted EPS
-2.50
Operating cash flow
$296.29M
Free cash flow
$115.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $30.35 vs current price $12.53
Wall Street consensus is the average analyst price target: $13.93 (-54.1% lower than our fair-value estimate).
Our most-likely fair value is $30.35 a share — about 142.3% above today's price of $12.53, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $1.1B. Interest coverage -0.6x.
Net debt
$1.08B
Interest coverage
-0.56x
Patterson-UTI Energy, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
PTEN
BASELINE
Patterson-UTI Energy, Inc.
Total debt $1.29B Interest coverage -0.56x This is the baseline the peer rows are being compared against.
Total debt $1.86B Interest coverage 2.15x This peer still has a real interest-payment cushion, while PTEN does not.
Total debt $1.60B Interest coverage 2.24x This peer still has a real interest-payment cushion, while PTEN does not.
Total debt $2.13B Interest coverage 1.22x This peer still has a real interest-payment cushion, while PTEN does not.
Total debt $496.55M Interest coverage 1.83x This peer still has a real interest-payment cushion, while PTEN does not.
What you should know
The case for and against PTEN
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 8/10 years.
-
Dividend yield is 3.3% with 23-year payout history.
Risks
-
Net debt grew 20.0% over 3 years.
-
Operating margin compressed from 8.0% to -0.5% over 3 years.
-
Return on equity was -2.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
34.41x
P/B
1.54x
P/S
1.02x
EV/EBITDA
6.89x
PEG ratio
0.73x
Profitability
How much profit each dollar creates
Gross margin
23.8%
Operating margin
-0.5%
Net margin
-1.9%
ROE
-2.8%
ROA
-0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.41x
Current ratio
1.75x
Quick ratio
1.48x
Total debt
$1.29B
Total cash
$201.02M
Growth
How the business has been compounding
Revenue TTM
$4.67B
Revenue 5Y CAGR
37.3%
EPS TTM
-0.24
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$733.27M
Free CF TTM
$372.19M
FCF margin
8.0%
Dividend
Shareholder payout
Yield
3.3%
Payout ratio
133.2%
Last ex-div date
2026-09-01