HOUSTON, TX / ACCESS Newswire / September 7, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of August 2026, the Company had an average of 101 drilling rigs operating in the United States. For the two months ended August 31, 2026, the Company had an average of 100 drilling rigs operating in the United States.
Average drilling rigs operating reported in the Company's monthly announcements represent the average number of the Company's drilling rigs that were earning revenue under a drilling contract in the United States. The Company cautioned that numerous factors in addition to average drilling rigs operating can impact the Company's operating results and that a particular trend in the number of drilling rigs operating may or may not indicate a trend in or be indicative of the Company's financial performance. The Company intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized drill bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "predict," "project," "pursue," "see," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including, without limitation, statements regarding Patterson-UTI's future expectations, beliefs, plans, strategy, objectives, financial conditions, operations outlook, assumptions or future events or performance, activity levels, active rig count projections, contract terms, capex spending and budgets, future cash flow, future use of generated cash flow, customer demand, future commodity prices, outlook for international and domestic markets, and timing and amount of dividends, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. For information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and other disclosures in Patterson-UTI's SEC filings, including but not limited to its Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q.
Additional information concerning risks and uncertainties associated with Patterson-UTI's business is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
AXQ Capital LP grew its holdings in shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN – Free Report) by 523.3% in the second quarter, according to its most recent filing with the SEC. The firm owned 193,949 shares of the oil and gas company’s stock after acquiring an additional 162,832 shares during the quarter. AXQ Capital LP owned about 0.05% of Patterson-UTI Energy worth $1,780,000 as of its most recent SEC filing.
Other large investors also recently made changes to their positions in the company. Lazard Asset Management LLC increased its stake in Patterson-UTI Energy by 6.2% during the first quarter. Lazard Asset Management LLC now owns 21,339 shares of the oil and gas company’s stock valued at $231,000 after acquiring an additional 1,255 shares during the period. O Shaughnessy Asset Management LLC lifted its stake in Patterson-UTI Energy by 11.4% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 13,901 shares of the oil and gas company’s stock valued at $85,000 after acquiring an additional 1,420 shares in the last quarter. Aster Capital Management DIFC Ltd grew its holdings in Patterson-UTI Energy by 21.6% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 8,717 shares of the oil and gas company’s stock worth $53,000 after purchasing an additional 1,547 shares during the period. Assetmark Inc. raised its stake in Patterson-UTI Energy by 8.1% in the 1st quarter. Assetmark Inc. now owns 23,797 shares of the oil and gas company’s stock worth $258,000 after purchasing an additional 1,786 shares in the last quarter. Finally, The Manufacturers Life Insurance Company increased its position in shares of Patterson-UTI Energy by 0.5% in the second quarter. The Manufacturers Life Insurance Company now owns 370,476 shares of the oil and gas company’s stock worth $2,197,000 after purchasing an additional 1,915 shares during the period. Institutional investors own 97.91% of the company’s stock.
Key Headlines Impacting Patterson-UTI Energy Here are the key news stories impacting Patterson-UTI Energy this week:
Positive Sentiment: Citigroup raised its price target for PTEN from $10.50 to $13.50 while maintaining a “neutral” rating. The new target indicates additional potential upside from recent trading levels, improving the valuation outlook despite the cautious rating. Positive Sentiment: Patterson-UTI Energy declared its regular quarterly dividend of $0.10 per share, equivalent to $0.40 annually and a yield of approximately 3.2%. The dividend provides ongoing income support for shareholders, although the ex-dividend date has already passed. Patterson-UTI Energy insider trades and dividend information Neutral Sentiment: Analyst opinion remains mixed but generally favorable: PTEN has a consensus “Moderate Buy” rating and an average price target of $12.95, with nine Buy ratings, five Holds and one Sell rating. This suggests support for the stock, but limited consensus upside after its recent advance. Negative Sentiment: Several insiders sold shares. CEO William Hendricks, Jr. sold 250,000 shares for about $3.23 million, while EVP Seth Wexler sold 120,000 shares for approximately $1.53 million. Director Robert Drummond, Jr. also sold 198,395 shares for roughly $2.55 million, plus an additional 1,605 shares. Although each executive retained a sizable position, the scale of the sales—particularly the CEO and EVP transactions—may be weighing on investor sentiment. Patterson-UTI Energy executive insider filing Patterson-UTI Energy Trading Down 1.0% NASDAQ PTEN opened at $12.42 on Friday. Patterson-UTI Energy, Inc. has a twelve month low of $5.10 and a twelve month high of $13.31. The company has a market capitalization of $4.74 billion, a price-to-earnings ratio of -54.00 and a beta of 0.66. The company has a quick ratio of 1.57, a current ratio of 1.75 and a debt-to-equity ratio of 0.40. The stock’s 50-day simple moving average is $10.59 and its two-hundred day simple moving average is $10.61. Patterson-UTI Energy Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Tuesday, September 1st. Patterson-UTI Energy’s dividend payout ratio (DPR) is presently -173.91%.
Insider Transactions at Patterson-UTI Energy In related news, CEO William Hendricks, Jr. sold 250,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $12.93, for a total transaction of $3,232,500.00. Following the completion of the transaction, the chief executive officer owned 2,292,474 shares of the company’s stock, valued at $29,641,688.82. This trade represents a 9.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Seth Wexler sold 120,000 shares of the business’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $12.75, for a total value of $1,530,000.00. Following the completion of the sale, the executive vice president directly owned 404,582 shares in the company, valued at $5,158,420.50. This trade represents a 22.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 790,670 shares of company stock worth $9,885,457. Company insiders own 2.20% of the company’s stock.
Wall Street Analyst Weigh In PTEN has been the subject of several analyst reports. Citigroup boosted their target price on shares of Patterson-UTI Energy from $10.50 to $13.50 and gave the company a “neutral” rating in a research report on Friday. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Patterson-UTI Energy in a report on Friday, August 21st. The Goldman Sachs Group boosted their price target on Patterson-UTI Energy from $11.00 to $13.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. KeyCorp raised Patterson-UTI Energy to an “overweight” rating in a research note on Wednesday, May 27th. Finally, Stifel Nicolaus lifted their target price on Patterson-UTI Energy from $14.00 to $15.00 and gave the company a “buy” rating in a research report on Tuesday, June 16th. Nine analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $13.25.
View Our Latest Analysis on Patterson-UTI Energy
(Free Report)
Patterson-UTI Energy provides a comprehensive suite of onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company’s core offerings include land-based drilling rigs, directional drilling, hydraulic fracturing services, downhole tool rental and well-servicing equipment. By integrating drilling and completion capabilities, Patterson-UTI Energy offers operators a streamlined solution designed to improve operational efficiency and well performance.
Headquartered in Houston, Texas, Patterson-UTI Energy traces its origins to its founding in 1978 and was later incorporated in Delaware in 1996.
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Patterson-UTI Energy Inc (PTEN) Shares Surge 4.4% -- What GF Score of 60 Tells Investors
On August 27, 2026, Patterson-UTI Energy Inc PTEN shares rose 4.4% to $12.26, continuing a strong upward trend over the past month. The stock has seen significant price volatility, with a 52-week range between $5.10 and $13.08.
GF Value™ verdict: Current price $12.26 vs GF Value $8.19, 49.7% overvalued GF Score™: 60/100, indicating above-average performance Notable signal: Insiders sold $23.6M in shares over the past 12 months with no reported buying Is PTEN Overvalued or Undervalued? Patterson-UTI Energy Inc's current price of $12.26 suggests that the stock is significantly overvalued when compared to its GF Value™ of $8.19, indicating a 49.7% downside potential. The GF Value™ is GuruFocus' proprietary intrinsic value estimate, which takes into account historical trading multiples, past business growth, and projections for future performance. In this case, the substantial difference between the current price and the GF Value™ raises a caution flag for potential investors.
The GF Valuation label classifies PTEN as "Significantly Overvalued," warning that the stock may not offer a favorable risk-reward ratio at its current price point. Given that PTEN is currently unprofitable and cash-flow-negative, traditional earnings-based valuations, such as Price-to-Earnings (P/E) ratios, are not applicable. Instead, a Price-to-Sales (P/S) analysis would provide a more accurate reflection of the company's valuation relative to its historical performance.
How Does PTEN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) N/A 11.3x Forward P/E 614.0x N/A As seen in the table, Patterson-UTI Energy's current forward P/E ratio of 614.0x is an extreme outlier compared to its 5-year median P/E of 11.3x. This staggering difference supports the GF Value™ verdict of overvaluation, as it indicates that the market is pricing the stock far above its historical valuation norms.
What Does PTEN's GF Score™ Tell Us? The GF Score™ provides a comprehensive evaluation of a company's financial health and growth potential based on various metrics. Patterson-UTI Energy Inc's GF Score™ stands at 60/100, reflecting an above-average performance, though there are notable strengths and weaknesses within its sub-ranks.
Metric Rating GF Score™ 60 Financial Strength 5/10 Profitability 5/10 Growth 4/10 Valuation 3/10 Momentum 3/10 The strongest areas for PTEN are its Financial Strength and Profitability, both rated at 5/10. However, the weakest sub-ranks are in Valuation and Momentum, which are both rated at 3/10. This suggests that while the company has a solid financial foundation, its valuation metrics and momentum may not be favorable for prospective investors.
What Are Gurus and Insiders Doing with PTEN? Currently, six gurus hold positions in Patterson-UTI Energy Inc, with three increasing their stakes, while six have trimmed their positions in recent quarters. This mixed activity among gurus raises questions about the stock's future performance, especially as it reflects varying levels of confidence in the company.
Additionally, insider activity has been notably negative, with insiders selling $23.6 million worth of shares over the past 12 months and no reported purchases. This trend suggests a lack of confidence from those who are most familiar with the company’s operations, which could be a red flag for potential investors.
What This Means for Investors In conclusion, based on the substantial difference between the current price of $12.26 and the GF Value™ of $8.19, Patterson-UTI Energy Inc appears to be significantly overvalued. The lack of profitability and negative insider activity further supports caution for investors considering this stock. For those looking to explore more detailed information, visit the Patterson-UTI Energy Inc PTEN stock page for further insights.
Frequently Asked Questions What is PTEN's GF Score™?
PTEN's GF Score™ is 60/100, indicating that the company has above-average performance based on various financial metrics.
Is PTEN overvalued or undervalued?
PTEN is currently overvalued, with a GF Value™ of $8.19 compared to its current price of $12.26, suggesting a potential downside of 49.7%.
What is PTEN's P/E ratio?
Patterson-UTI Energy does not have a P/E ratio available, as it is currently unprofitable, making traditional earnings-based valuation methods inapplicable.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
It has been about a month since the last earnings report for Patterson-UTI (PTEN - Free Report) . Shares have added about 24.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Patterson-UTI due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Patterson-UTI Energy, Inc. before we dive into how investors and analysts have reacted as of late.
Patterson-UTI Energy Q2 Earnings & Revenues Beat EstimatesPatterson-UTI Energy (PTEN - Free Report) reported second-quarter 2026 adjusted earnings of break-even, outperforming the Zacks Consensus Estimate of a loss of 3 cents per share. The bottom line improved from the year-ago quarter's adjusted loss of 6 cents, primarily due to stronger performance in its Completion Services segment and year-over-year improvement in the Drilling Products and Other operations.
Houston, TX-based oil and gas drilling company’s total revenues of $1.23 billion beat the Zacks Consensus Estimate of $1.15 billion by 7%. The top line also increased about 0.7% year over year, driven by improved activity and pricing in the Completion Services segment, along with higher revenues from Drilling Products and Other operations.
PTEN’s board of directors declared a quarterly dividend of 10 cents per share, payable on Sept. 15, 2026, to shareholders of record as of Sept. 1.
PTEN’s Q2 Segmental PerformancesDrilling Services: Revenues in this segment totaled $373.5 million, down 7.5% from the year-ago quarter's $403.8 million, but beat our estimate of $350.7 million.
Operating income declined to $22.7 million from $40.6 million a year ago, primarily due to a non-cash charge related to the Colombia exit. The reported figure also missed our operating income estimate of $41.1 million.
Completion Services: Segment revenues increased 4.8% year over year to $753.6 million from $719.3 million and beat our estimate of $659.1 million.
Operating income totaled $8.2 million against an operating loss of $29.2 million in the prior-year quarter. This improvement was driven by high pressure pumping utilization, better pricing and continued growth in integrated completion services. The reported figure beat our expectation of an operating loss of $17.6 million.
Drilling Products: Revenues increased 3.3% year over year to $91.3 million from $88.4 million and beat our estimate of $80.4 million.
Operating income improved to $8.3 million from $6.8 million in the year-ago quarter. Record international revenues and stronger U.S. revenue per industry rig offset disruptions in the Middle East and seasonal weakness in Canada. However, the reported operating income beat our estimate of $2.7 million.
Other: Revenues amounted to $9.5 million, up 21.8% from the year-ago quarter’s $7.8 million and beat our estimate of $7.7 million.
Operating income improved to $5.1 million from a loss of $2 million in the second quarter of 2025, aided by higher oil prices. The reported figure beat our operating income estimate of $2.3 million.
PTEN’s Capital Expenditure & Financial PositionIn the reported quarter, PTEN spent $155.9 million on capital programs compared with $144.2 million in the prior-year period. As of June 30, 2026, this company had cash and cash equivalents of $203.2 million and long-term debt of $1.23 billion. Its debt-to-capitalization was 28.5%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 96.88% due to these changes.
VGM ScoresAt this time, Patterson-UTI has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Patterson-UTI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPatterson-UTI belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Noble Corporation PLC (NE - Free Report) , has gained 12.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Noble Corporation PLC reported revenues of $719.69 million in the last reported quarter, representing a year-over-year change of -15.2%. EPS of $0.01 for the same period compares with $0.13 a year ago.
Noble Corporation PLC is expected to post earnings of $0.13 per share for the current quarter, representing a year-over-year change of -31.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -45.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Noble Corporation PLC. Also, the stock has a VGM Score of D.
HOUSTON, TX / ACCESS Newswire / August 14, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of July 2026, the Company had an average of 98 drilling rigs operating in the United States.
Average drilling rigs operating reported in the Company's monthly announcements represent the average number of the Company's drilling rigs that were earning revenue under a drilling contract in the United States. The Company cautioned that numerous factors in addition to average drilling rigs operating can impact the Company's operating results and that a particular trend in the number of drilling rigs operating may or may not indicate a trend in or be indicative of the Company's financial performance. The Company intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized drill bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "potential," "project," "pursue," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: adverse oil and natural gas industry conditions; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI's services and their associated effect on rates; excess availability of land drilling rigs, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; the impact of the ongoing conflict in Ukraine; strength and financial resources of competitors; utilization, margins and planned capital expenditures; liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; our return of capital to stockholders; stock price volatility; and compliance with covenants under Patterson-UTI's debt agreements.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
Patterson-UTI (PTEN - Free Report) closed the last trading session at $10.05, gaining 6.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $13.86 indicates a 37.9% upside potential.
The average comprises 14 short-term price targets ranging from a low of $10.50 to a high of $19.00, with a standard deviation of $2.27. While the lowest estimate indicates an increase of 4.5% from the current price level, the most optimistic estimate points to a 89.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in PTEN. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why PTEN Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 68.8% over the past month, as eight estimates have gone higher compared to no negative revision.
Moreover, PTEN currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PTEN could gain, the direction of price movement it implies does appear to be a good guide.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is PattersonUTI Energy (PTEN - Free Report) . PTEN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is PTEN's P/B ratio of 0.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.72. Over the past year, PTEN's P/B has been as high as 1.06 and as low as 0.61, with a median of 0.80.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PTEN has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.16.
These are just a handful of the figures considered in PattersonUTI Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PTEN is an impressive value stock right now.
Key Takeaways BJRI, PTEN and BTSG cleared a screen requiring broker rating upgrades of at least 1% in four weeks.Broker ratings rose 8.3% for BJRI, 6.7% for PTEN and 5.3% for BTSG over the past four weeks.Projected 2026 earnings growth is 4% for BJRI, 69.2% for PTEN and 78% for BTSG year over year. Second-quarter 2026 earnings have been strong overall, marked by widespread beats and accelerating growth. However, investment decisions should not rest solely on near-term results. Investors should also consider the broader macroeconomic backdrop and assess how prevailing trends could influence a company’s fundamentals and long-term growth prospects.
One way to cut short this task is to follow brokers’ recommendations. Stocks like BJ's Restaurants, Inc. (BJRI - Free Report) , Patterson-UTI Energy, Inc. (PTEN - Free Report) and BrightSpring Health Services, Inc. (BTSG - Free Report) are worth considering.
Broker recommendations generally stem from a research process that includes interactions with company management, close examination of regulatory filings, earnings-call analysis, channel checks and industry research. This approach allows analysts to assess a company’s fundamentals within the context of macroeconomic conditions, sector trends, competitive standing and peer performance instead of viewing the business in isolation.
A broker upgrade usually indicates a notable improvement in an analyst’s view of a company. Such a revision may reflect developments that are not yet fully captured in consensus estimates or the stock’s current valuation. As a result, an upgrade can point to a possible turning point in earnings expectations and broader investor sentiment.
Still, broker upgrades should not be treated as stand-alone investment signals. They are most useful when evaluated alongside other fundamental, earnings and valuation metrics. Therefore, broker recommendations should form part of a broader, balanced and disciplined investment decision-making framework.
Selecting the Winning StrategyWe have a screening strategy that may help you identify potential winners.
Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the past four weeks.
Current Price Greater Than $5: The stocks must trade above $5.
Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.
Zacks Rank Equal to #1 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
3 Stocks With Upgraded Broker Ratings to Bet onOrange County, CA-based BJ's Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. The restaurants operate as BJ’s Restaurant & Brewery, BJ’s Restaurant & Brewhouse, BJ’s Pizza & Grill and BJ’s Grill.
BJRI’s 2026 earnings are expected to rise 4% year over year. BJ's Restaurants, which currently sports a Zacks Rank #1, has witnessed an 8.3% upward revision in broker ratings over the past four weeks.
Patterson-UTI Energy, based in Houston, TX, is an oilfield services company. PTEN is one of the largest onshore contract drillers in the United States and has a large fleet of pressure pumping equipment.
Patterson-UTI Energy’s 2026 earnings are projected to surge 69.2% on a year-over-year basis. PTEN, carrying a Zacks Rank #2 at present, has seen a 6.7% increase in broker ratings over the past four weeks.
Headquartered in Louisville, KY, BrightSpring Health Services is a national home and community-based healthcare services platform integrating pharmacy and provider care for medically complex patients across Medicare, Medicaid and commercial payors. BTSG serves all 50 states and focuses on seniors and specialty populations in lower-cost home and community settings.
BTSG’s 2026 earnings are expected to soar 78% year over year. BrightSpring Health Services, which currently sports a Zacks Rank #1, has witnessed a 5.3% upward revision in broker ratings over the past four weeks.
The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Patterson-UTI (PTEN - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
Patterson-UTI is one of 252 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Patterson-UTI is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PTEN's full-year earnings has moved 80.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, PTEN has gained about 56.1% so far this year. At the same time, Oils-Energy stocks have gained an average of 24%. This shows that Patterson-UTI is outperforming its peers so far this year.
SunCoke Energy (SXC - Free Report) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 33.6%.
Over the past three months, SunCoke Energy's consensus EPS estimate for the current year has increased 60%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Patterson-UTI belongs to the Oil and Gas - Drilling industry, which includes 9 individual stocks and currently sits at #184 in the Zacks Industry Rank. This group has gained an average of 31.7% so far this year, so PTEN is performing better in this area.
SunCoke Energy, however, belongs to the Coal industry. Currently, this 8-stock industry is ranked #30. The industry has moved -8.5% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Patterson-UTI and SunCoke Energy as they could maintain their solid performance.
For the quarter ended June 2026, Patterson-UTI (PTEN - Free Report) reported revenue of $1.23 billion, up 0.7% over the same period last year. EPS came in at $0, compared to -$0.06 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.15 billion, representing a surprise of +6.97%. The company delivered an EPS surprise of +100%, with the consensus EPS estimate being -$0.03.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Patterson-UTI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating days - Contract drilling - U.S.: 8,361 compared to the 8,357 average estimate based on three analysts.Average active rig count - Contract Drilling - U.S.: 92 versus the three-analyst average estimate of 92.Operating revenue- Other Operations: $9.49 million versus the five-analyst average estimate of $6.92 million. The reported number represents a year-over-year change of +21.8%.Operating revenue- Drilling Services: $373.5 million compared to the $358.89 million average estimate based on five analysts. The reported number represents a change of -7.5% year over year.Revenues- Completion Services: $753.64 million compared to the $691.46 million average estimate based on five analysts. The reported number represents a change of +4.8% year over year.Revenues- Drilling Products: $91.33 million versus the five-analyst average estimate of $78.79 million. The reported number represents a year-over-year change of +3.3%.Operating income- Other: $5.05 million compared to the $3 million average estimate based on five analysts.Operating income- Corporate: $-51.25 million versus the five-analyst average estimate of $-45.16 million.Operating income- Drilling Products: $8.32 million versus $3.55 million estimated by five analysts on average.Operating income- Completion Services: $8.19 million versus $-5.5 million estimated by five analysts on average.Operating income- Drilling Services: $22.74 million compared to the $42.24 million average estimate based on five analysts.View all Key Company Metrics for Patterson-UTI here>>>
Shares of Patterson-UTI have returned +10.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways Patterson-UTI beat estimates as quarterly revenues hit $1.2 billion and adjusted earnings broke even.PTEN secured 10%-15% price increases on new rig contracts and expects its U.S. rig count above 100.PTEN sees Q3 Completion Services profit near $140 million, while 2026 revenues are set to decline. Patterson-UTI Energy, Inc. (PTEN - Free Report) shares have gained 20% in the past month as U.S. drilling activity, equipment utilization and service pricing improve. The advance follows a weaker 12-week stretch, making the reversal notable.
Image Source: Zacks Investment Research
The operating backdrop is strengthening, but the rally raises a valuation question. Investors must weigh better contract economics and rising activity against continued losses, commodity sensitivity and the possibility that some of the expected 2027 recovery is already reflected in the stock.
Why PTEN’s One-Month Rally Stands OutPTEN’s impressive four-week gain contrasts with a 17% decline over the past 12 weeks. The 57.1% increase in the current-year earnings estimate over four weeks adds fundamental context to the shift.
The latest quarter provided firmer operating evidence. Adjusted earnings were break-even versus the Zacks Consensus Estimate of a 3-cent loss, while revenues of $1.2 billion beat the consensus mark by 7%. Helmerich & Payne, Inc. (HP - Free Report) is a relevant land-drilling peer with a global drilling platform. Nabors Industries Ltd. (NBR - Free Report) also competes through drilling services and technology, making both useful industry reference points.
Image Source: Zacks Investment Research
PTEN’s Rig Pricing Supports the MomentumU.S. land activity strengthened during the second quarter as private operators reacted to better commodity economics. Patterson-UTI expects its average U.S. rig count to reach about 100 in the third quarter and finish above that level.
Tight availability helped PTEN secure pricing increases of roughly 10% to 15% on newly awarded contracts versus first-quarter levels. Upgraded rigs are earning several thousand dollars more per day than standard super-spec units, while contracts extending into 2027 improve revenue visibility.
Patterson-UTI’s Frac Fleet Adds Another TailwindNatural gas-powered frac equipment is nearly fully utilized across the industry, while much of the remaining capacity consists of older diesel units that customers prefer to avoid. PTEN’s frac calendar remained largely full in the second quarter as pricing improved.
Completion Services adjusted gross profit is expected to reach about $140 million in the third quarter, up from $123 million in the second quarter. Completion work tied to recent drilling gains could tighten capable equipment supply into 2027.
PTEN Still Faces Earnings and Commodity RisksThe better operating picture has not eliminated earnings pressure. Patterson-UTI posted a second-quarter net loss attributable to common shareholders of $20 million, and the Zacks Consensus Estimate calls for a loss of 6 cents per share in 2026.
Revenues are projected to decline to about $4.6 billion in 2026 from $4.8 billion in 2025. A renewed drop in oil or natural gas prices could slow U.S. shale spending, weakening demand and pricing across drilling and completion operations.
Can Patterson-UTI Extend the Rally?Rising utilization, firmer pricing and longer contracts give PTEN a path to better earnings and cash generation. Management expects 2026 adjusted free cash flow to more than cover dividends and sees meaningful improvement in 2027.
The stock has already rebounded sharply. Further upside may depend on whether higher dayrates, completion margins and activity translate into sustained net income rather than only better segment-level results.
PTEN’s Buy Signal Gets Support From Style ScoresPTEN’s operating momentum supports a constructive stance, but the rally must be judged against execution risk and the cyclicality of U.S. shale spending. Better utilization and contract visibility are encouraging, yet losses and commodity exposure still require discipline.
The stock currently carries a Zacks Rank #2 (Buy). It also has a Value Score of A and VGM Score of A, along with a Growth Score of B and Momentum Score of B. This combination indicates favorable value, growth and momentum characteristics for a top-ranked stock, without removing the company’s earnings and industry risks.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Patterson-UTI Energy posted Q2 revenues of $1.23B, ahead of consensus estimates.PTEN declared a quarterly dividend of 10 cents per share payable in September.Patterson-UTI Energy expects stronger drilling activity and pricing to support Q3 results. Patterson-UTI Energy (PTEN - Free Report) reported second-quarter 2026 adjusted earnings of break-even, outperforming the Zacks Consensus Estimate of a loss of 3 cents per share. The bottom line improved from the year-ago quarter's adjusted loss of 6 cents, primarily due to stronger performance in its Completion Services segment and year-over-year improvement in the Drilling Products and Other operations.
Houston, TX-based oil and gas drilling company’s total revenues of $1.23 billion beat the Zacks Consensus Estimate of $1.15 billion by 7%. The top line also increased about 0.7% year over year, driven by improved activity and pricing in the Completion Services segment, along with higher revenues from Drilling Products and Other operations.
PTEN’s board of directors declared a quarterly dividend of 10 cents per share, payable on Sept. 15, 2026, to shareholders of record as of Sept. 1.
PTEN’s Q2 Segmental PerformancesDrilling Services: Revenues in this segment totaled $373.5 million, down 7.5% from the year-ago quarter's $403.8 million, but beat our estimate of $350.7 million.
Operating income declined to $22.7 million from $40.6 million a year ago, primarily due to a non-cash charge related to the Colombia exit. The reported figure also missed our operating income estimate of $41.1 million.
Completion Services: Segment revenues increased 4.8% year over year to $753.6 million from $719.3 million and beat our estimate of $659.1 million.
Operating income totaled $8.2 million against an operating loss of $29.2 million in the prior-year quarter. This improvement was driven by high pressure pumping utilization, better pricing and continued growth in integrated completion services. The reported figure beat our expectation of an operating loss of $17.6 million.
Drilling Products: Revenues increased 3.3% year over year to $91.3 million from $88.4 million and beat our estimate of $80.4 million.
Operating income improved to $8.3 million from $6.8 million in the year-ago quarter. Record international revenues and stronger U.S. revenue per industry rig offset disruptions in the Middle East and seasonal weakness in Canada. However, the reported operating income beat our estimate of $2.7 million.
Other: Revenues amounted to $9.5 million, up 21.8% from the year-ago quarter’s $7.8 million and beat our estimate of $7.7 million.
Operating income improved to $5.1 million from a loss of $2 million in the second quarter of 2025, aided by higher oil prices. The reported figure beat our operating income estimate of $2.3 million.
PTEN’s Capital Expenditure & Financial PositionIn the reported quarter, PTEN spent $155.9 million on capital programs compared with $144.2 million in the prior-year period. As of June 30, 2026, this Zacks Rank #2 (Buy) company had cash and cash equivalents of $203.2 million and long-term debt of $1.23 billion. Its debt-to-capitalization was 28.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Patterson-UTI Energy’s Q3 OutlookFor the third quarter, the Drilling Services segment is expected to operate at an average U.S. rig count of approximately 100 rigs, with adjusted gross profit projected at around $145 million, supported by higher pricing and increased activity. Completion Services' adjusted gross profit is expected to be roughly $140 million on near-full utilization and additional pricing gains. Drilling Products' adjusted gross profit is forecasted at about $40 million, benefiting from stronger U.S. drilling activity and seasonal recovery in Canada.
Other operations are expected to generate an adjusted gross profit of approximately $5 million. The company projects third-quarter G&A expenses of about $70 million, depreciation and amortization expense of around $225 million and continues to expect approximately $600 million of capital expenditures for full-year 2026.
Important Earnings at a GlanceWhile we have discussed PTEN’s second-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider Halliburton (HAL - Free Report) posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.
As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation (RRC - Free Report) reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.
The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter.
Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.
Oil Shorts Are Crowded, 3 Names That Could Bring on a SqueezePatterson-UTI Energy NASDAQ: PTEN reported second-quarter revenue of $1.228 billion, up 10% from the first quarter, as stronger drilling activity, higher pricing and near-full utilization of completion equipment lifted results across its operating segments.
The company posted a net loss attributable to common shareholders of $20 million, or $0.05 per share, including $21 million in non-cash charges related to its exit from Contract Drilling operations in Colombia and $5 million in non-cash charges tied to the write-down of minority interests in non-controlled entities. Adjusted EBITDA totaled $232 million.
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Why Goldman Sachs Just Upgraded These 3 Stocks and What It MeansChief Executive Officer Andy Hendricks said activity and pricing improved faster than the company anticipated during the quarter, including relative to guidance provided in a mid-quarter update. He said the momentum continued into the third quarter, driven by demand for higher-specification drilling rigs and natural-gas-powered hydraulic fracturing equipment.
Drilling Activity and Pricing Improve In Drilling Services, Patterson-UTI generated second-quarter revenue of $374 million and adjusted gross profit of $114 million. Excluding approximately $20 million in Colombia-related non-cash charges, adjusted gross profit would have been $134 million, Chief Financial Officer Andy Smith said.
Is NexTier-Patterson UTI Deal A Sign Of More Consolidation Ahead?U.S. Contract Drilling recorded 8,361 operating days and averaged 92 operating rigs in the quarter. Revenue per day increased from the first quarter, while the company’s directional drilling operation also posted a “meaningful” sequential improvement, according to Smith.
For the third quarter, Patterson-UTI expects its drilling-services rig count to average about 100 rigs and to exit the period above that level. The company forecast adjusted gross profit of roughly $145 million for the segment.
Hendricks said pricing on new drilling contracts rose about 10% to 15% from first-quarter levels. Upgraded rigs are being deployed at day rates several thousand dollars above those for standard super-spec rigs, he said. Outside the Permian Basin, high-quality rigs are effectively sold out, according to Hendricks, while increasing Permian demand has also supported pricing.
The company is investing in upgrades that increase rig capacity for deeper wells and longer laterals, including larger structures, expanded circulating systems, more pipe-racking capacity, and digital and automation capabilities. Hendricks said many upgrades cost in the low-single-digit millions of dollars, or about $2 million in some cases, and can achieve payback within a year under term contracts. Patterson-UTI expects to upgrade roughly 10 to 15 rigs through this year and early next year, alongside larger projects supported by contracts lasting more than three years.
Hendricks said roughly half of recent wells drilled had laterals longer than two miles, compared with about one-third a year earlier. Wells with laterals exceeding four miles accounted for more than 10% of recent wells, about four times the prior-year average, while drilling targeting deeper shale intervals more than doubled year over year.
Completion Fleet Utilization Supports Margin Outlook Completion Services reported $754 million in second-quarter revenue and $123 million in adjusted gross profit. The segment benefited from a largely full frac calendar and improved pricing across part of its fleet.
Smith said pressure-pumping utilization was very high during the quarter and that even a modest improvement in demand supported meaningful pricing gains. Natural-gas-powered equipment is nearly fully utilized, he said, while much of the remaining available industry capacity consists of older diesel equipment.
Patterson-UTI expects Completion Services adjusted gross profit of approximately $140 million in the third quarter, supported by near-full utilization and additional price increases. Hendricks said the company expects third-quarter schedules to contain less idle time than in prior periods and cited higher pricing and the increasing mix of newer gas-powered equipment as the main drivers of margin improvement.
The company is retiring older diesel assets and adding direct-drive Emerald frac equipment powered entirely by natural gas. While it had expected available horsepower to decline as diesel retirements outpaced additions, capital spending announced in May is expected to keep second-half available horsepower broadly in line with the first half. By year-end, Patterson-UTI expects about 90% of active horsepower to be powered substantially by natural gas.
Hendricks said the company estimates average completion pricing had fallen about 30%, or potentially more, over the prior three years. He said the company sees an opportunity for substantial pricing recovery as increased drilling activity creates demand for frac capacity later this year and into 2027. Patterson-UTI has not decided to increase total fleet horsepower, instead prioritizing price recovery and fleet quality.
Drilling Products Reaches Post-Acquisition Revenue High Drilling Products recorded second-quarter revenue of $91 million and adjusted gross profit of $37 million. Revenue increased 14% from the first quarter despite Middle East disruptions and Canada’s seasonal spring breakup. The quarter marked the segment’s highest revenue since Patterson-UTI acquired Ulterra in 2023.
Hendricks said the business achieved record international revenue, with growth across key geographies despite conflict-related disruptions in the Middle East. The U.S. business represented approximately 70% of segment revenue, while downhole tools grew to about 5% of segment revenue after increasing significantly since the end of 2025.
The company expects Drilling Products adjusted gross profit of about $40 million in the third quarter, citing Canada’s seasonal recovery and higher U.S. activity. Hendricks also cited growing geothermal demand, saying bit runs had doubled from the end of 2025.
Capital Spending, Cash Flow and Colombia Exit Patterson-UTI invested $156 million in capital expenditures during the second quarter and continues to expect 2026 capital expenditures, net of asset-sale proceeds, of approximately $600 million. Spending includes drilling-rig upgrades and additional gas-powered Emerald frac fleets.
The company ended the quarter with $203 million in cash and no borrowings under its $500 million revolving credit facility. It refinanced its 2028 senior unsecured notes, extending the maturity to 2036, and now has no senior-note maturities until 2029. Smith said the company expects interest expense of about $20 million per quarter.
Management expects adjusted free cash flow in 2026 to exceed dividend payments despite higher capital spending and working-capital needs. The board approved a quarterly dividend of $0.10 per share, payable Sept. 15 to shareholders of record on Sept. 1.
The company also confirmed it is exiting Colombia, citing aging assets, a less favorable political environment and the capital required to remain competitive. Smith said approximately 75% of the value written off in the quarter related to assets acquired through the Pioneer Energy Services transaction.
Looking ahead, management said it expects free cash flow to improve in the second half of 2026 and increase meaningfully in 2027 as investments in upgraded rigs and completion equipment begin contributing more fully to results.
About Patterson-UTI Energy (NASDAQ:PTEN)Patterson-UTI Energy provides a comprehensive suite of onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company's core offerings include land-based drilling rigs, directional drilling, hydraulic fracturing services, downhole tool rental and well-servicing equipment. By integrating drilling and completion capabilities, Patterson-UTI Energy offers operators a streamlined solution designed to improve operational efficiency and well performance.
Headquartered in Houston, Texas, Patterson-UTI Energy traces its origins to its founding in 1978 and was later incorporated in Delaware in 1996.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Patterson-UTI (PTEN - Free Report) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this provider of onshore contract drilling services would post a loss of $0.1 per share when it actually produced a loss of $0.06, delivering a surprise of +40%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Patterson-UTI, which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $1.23 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.97%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Patterson-UTI shares have added about 50.1% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Patterson-UTI?While Patterson-UTI has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Patterson-UTI was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $1.2 billion in revenues for the coming quarter and -$0.06 on $4.64 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Helmerich & Payne (HP - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This oil and gas well-drilling contractor is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level.
Helmerich & Payne's revenues are expected to be $988.44 million, down 5% from the year-ago quarter.
For the quarter ended June 2026, Patterson-UTI (PTEN - Free Report) reported revenue of $1.23 billion, up 0.7% over the same period last year. EPS came in at $0, compared to -$0.06 in the year-ago quarter.
The reported revenue represents a surprise of +6.97% over the Zacks Consensus Estimate of $1.15 billion. With the consensus EPS estimate being -$0.03, the EPS surprise was +100%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Patterson-UTI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating days - Contract drilling - U.S.: 8,361 versus 8,357 estimated by three analysts on average.Operating revenue- Other Operations: $9.49 million versus $6.92 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +21.8% change.Operating revenue- Drilling Services: $373.5 million versus the five-analyst average estimate of $358.89 million. The reported number represents a year-over-year change of -7.5%.Revenues- Completion Services: $753.64 million versus the five-analyst average estimate of $691.46 million. The reported number represents a year-over-year change of +4.8%.Revenues- Drilling Products: $91.33 million versus the five-analyst average estimate of $78.79 million. The reported number represents a year-over-year change of +3.3%.Operating income- Other: $5.05 million compared to the $3 million average estimate based on five analysts.Operating income- Drilling Products: $8.32 million compared to the $3.55 million average estimate based on five analysts.Operating income- Completion Services: $8.19 million versus $-5.5 million estimated by five analysts on average.Operating income- Drilling Services: $22.74 million compared to the $42.24 million average estimate based on five analysts.View all Key Company Metrics for Patterson-UTI here>>>
Shares of Patterson-UTI have returned -0.1% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Earnings HOUSTON, TX / ACCESS Newswire / July 29, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported financial results for the quarter ended June 30, 2026.
Second Quarter 2026 Financial Results and Other Key Items
Second Quarter 2026 Total Revenue of $1.2 billion, a 10% sequential increase
Second Quarter 2026 Net Loss Attributable to Common Stockholders of $20 million
Adjusted Net Income(1) Attributable to Common Stockholders of $1 million; excludes a $21 million non-cash charge associated with the exit of our Contract Drilling operations in Colombia and a $5 million non-cash write down of other noncontrolling investments
Second Quarter 2026 Adjusted EBITDA(2) of $232 million
Expecting further growth in Drilling and Completion activity and pricing in the third quarter
Declared a quarterly dividend of $0.10 per share, payable on September 15, 2026 to holders of record as of September 1, 2026
Management Commentary
"We delivered a strong quarter, with a positive inflection in activity and momentum building across each of our businesses as we moved through the second quarter and into the third," said Andy Hendricks, Chief Executive Officer. "Our team executed very well, customer activity is growing, and the U.S. onshore market is responding to a more constructive commodity price environment. These results reflect the strategic investments we have made to position Patterson-UTI as a premier oilfield services company across each of our core businesses. Importantly, this second quarter performance was achieved without the benefit of the additional growth capital investments announced during the quarter. We expect those investments to support continued growth into 2027 and beyond, while further strengthening our technology leadership."
"Commodity volatility has continued into the third quarter amid ongoing geopolitical uncertainty, but the broader market backdrop has become increasingly constructive," continued Mr. Hendricks. "Higher commodity prices contributed to increased U.S. onshore drilling activity during the second quarter, and that momentum has carried into the third. As the quarter progresses, we expect both drilling and completion activity to continue building. In Drilling Services, we have already signed contracts for additional rigs and are advancing the reactivation and upgrade work needed to activate those rigs. In Completion Services, our fleet was effectively sold out prior to industry activity increasing, and customer discussions around price increases remain very constructive, along with growing interest in our new Emerald natural gas direct drive technology and the added value of our integrated completion services. Taken together, these trends reinforce our confidence in the trajectory of our businesses and our ability to deliver additional returns for investors."
"Activity is ramping faster than we initially expected, and we are moving decisively to capture opportunities that should create meaningful long-term value for Patterson-UTI," said Andy Smith, Chief Financial Officer. "Seasonally, working capital in the first half is typically a use of cash for the company, and the stronger pace of activity required a larger working capital investment in the first half of the year as we supported higher customer demand. Working capital typically reverses somewhat in the second half. Importantly, even as we fund working capital and capital investments that strengthen earnings power over time, we still expect full-year 2026 free cash flow to more than cover our 2026 dividend payments, and we expect free cash flow to improve in 2027."
Drilling Services
Second quarter Drilling Services revenue was $374 million, and adjusted gross profit(3) was $114 million. During the quarter, we made the decision to exit our Contract Drilling operations in Colombia, where we operated less than one rig on average during the period. In connection with this decision, our Direct Operating Costs include a non-cash charge of approximately $20 million, primarily related to the write-down of inventory that supported older rig technology in Colombia and the write-down of other assets in the country. Excluding these items, Drilling Services adjusted gross profit would have been $134 million.
U.S. Contract Drilling operating days totaled 8,361 during the second quarter, with an average of 92 rigs operating during the period. Activity strengthened as the quarter progressed, and we exited the quarter with 96 rigs operating. Higher demand, together with growing customer interest in structural rig upgrades, supported approximately 10-15% pricing increases on recently awarded term contracts compared to levels at the start of the year. Directional Drilling also delivered a strong quarter, driven in part by continued growth in our downhole motor rental business.
Completion Services
Second quarter Completion Services revenue totaled $754 million, with adjusted gross profit of $123 million.
Completion Services delivered stronger second quarter results, driven by high pressure pumping utilization, improved pricing, and continued growth in our integrated service offering. Industry capacity remained tight throughout the quarter, and the recent increase in rig count has not yet fully flowed through to completion demand, which typically follows drilling activity with a three- to six-month lag. Against this strengthening backdrop, revenue per pump hour increased by a mid-single digit percentage sequentially, on average, supported by improved core pressure pumping pricing and a higher contribution from integrated completion services. Adjusted gross profit increased across all service lines, with the strongest percentage increase coming from our Power Solutions natural gas fueling business.
Drilling Products
Second quarter Drilling Products revenue totaled $91 million, with adjusted gross profit of $37 million.
Drilling Products delivered its strongest quarterly revenue since Patterson-UTI completed the Ulterra acquisition in 2023, overcoming challenges in the Middle East, our largest international market, and the seasonal spring breakup in Canada. International revenue reached a company record, while U.S. revenue per industry rig approached record levels, reflecting strong execution across multiple points in the rig-count cycle.
Other
Second quarter Other revenue totaled $9 million, with adjusted gross profit of $7 million.
Outlook
In Drilling Services, we expect our average U.S. rig count to be approximately 100 in the third quarter, and we expect to exit the quarter higher than the quarterly average. Results should also benefit from a full quarter of the higher pricing achieved during the second quarter as well as additional pricing improvements in the third quarter. Overall, we expect Drilling Services adjusted gross profit to be approximately $145 million in the third quarter.
In Completion Services, we expect third quarter adjusted gross profit to be approximately $140 million, supported by near-full utilization across our active frac equipment and additional pricing improvement compared to the second quarter. While we increased our capital expenditure budget during the second quarter, our strategy remains focused on high-return, 100% natural gas, Emerald investments and disciplined fleet management. We will continue decommissioning diesel assets over time, and we do not expect active horsepower to increase during the second half of 2026.
In Drilling Products, we expect third quarter adjusted gross profit to be approximately $40 million, driven by higher drilling activity in the United States, and the seasonal recovery from spring breakup in Canada.
We expect Other adjusted gross profit in the third quarter to be approximately $5 million.
For the third quarter, we expect general and administrative expense to be approximately $70 million and depreciation, depletion, amortization, and impairment expense to be approximately $225 million.
Consistent with our update during the second quarter, total capital expenditures, net of asset sales, are still expected to be approximately $600 million in 2026.
Except for cash dividends per common share, all references to "per share" in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260.
Second Quarter Earnings Conference Call
The Company's quarterly conference call to discuss the operating results for the quarter ended June 30, 2026, is scheduled for July 30, 2026, at 9:00 a.m. Central Time. The dial-in information for participants is (833) 461-5787 (Domestic) and (585) 542-9983 (International). The Meeting ID for both numbers is 227633549. The call is also being webcast and can be accessed through the Investor Relations section of the Company's website at investor.patenergy.com. A webcast replay of the conference call will be on the Company's website for one year.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "predict," "project," "pursue," "see," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including, without limitation, statements regarding Patterson-UTI's future expectations, beliefs, plans, strategy, objectives, financial conditions, operations outlook, assumptions or future events or performance, activity levels, active rig count projections, contract terms, capex spending and budgets, future cash flow, future use of generated cash flow, customer demand, future commodity prices, outlook for international and domestic markets, and timing and amount of dividends, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. For information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and other disclosures in Patterson-UTI's SEC filings, including but not limited to its Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q.
Additional information concerning risks and uncertainties associated with Patterson-UTI's business is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Non-GAAP Financial Measures
(1) Adjusted net income (loss) is considered a Non-GAAP Financial Measure. See non-GAAP Financial Measures below for a reconciliation of GAAP Net income (loss) to Adjusted net income (loss).
(2) Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not defined by GAAP. See Non-GAAP Financial Measures below for a reconciliation of net income to Adjusted EBITDA.
(3) Adjusted gross profit is considered a non-GAAP financial measure. See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
June 30,
2026
December 31,
2025
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
$
203,169
$
420,642
Accounts receivable, net
919,665
723,277
Inventory
140,750
160,280
Other current assets
108,603
113,892
Total current assets
1,372,187
1,418,091
Property and equipment, net
2,598,413
2,711,037
Goodwill
487,388
487,388
Intangible assets, net
755,241
814,810
Other assets
159,445
139,140
Total assets
$
5,372,674
$
5,570,466
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
513,173
$
470,782
Accrued liabilities
248,334
366,488
Other current liabilities
22,639
26,372
Total current liabilities
784,146
863,642
Long-term debt, net
1,234,173
1,221,038
Deferred tax liabilities, net
203,228
215,818
Other liabilities
44,596
45,253
Total liabilities
2,266,143
2,345,751
Stockholders' equity:
Stockholders' equity attributable to controlling interests
3,099,876
3,218,538
Noncontrolling interest
6,655
6,177
Total equity
3,106,531
3,224,715
Total liabilities and stockholders' equity
$
5,372,674
$
5,570,466
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
REVENUES
$
1,227,967
$
1,117,331
$
1,219,320
$
2,345,298
$
2,499,857
COSTS AND EXPENSES:
Direct operating costs
947,329
849,155
929,363
1,796,484
1,890,777
Depreciation, depletion, amortization and impairment
217,781
218,394
261,858
436,175
493,724
General and administrative
67,505
68,763
64,108
136,268
131,038
Other operating expense (income), net
2,314
(4,664
)
(6,523
)
(2,350
)
(3,141
)
Total operating costs and expenses
1,234,929
1,131,648
1,248,806
2,366,577
2,512,398
OPERATING INCOME (LOSS)
(6,962
)
(14,317
)
(29,486
)
(21,279
)
(12,541
)
OTHER INCOME (EXPENSE):
Interest income
2,902
2,765
1,272
5,667
2,736
Interest expense, net of amount capitalized
(20,398
)
(17,485
)
(17,645
)
(37,883
)
(35,342
)
Other income (expense)
(3,464
)
965
(1,644
)
(2,499
)
324
Total other income (expense)
(20,960
)
(13,755
)
(18,017
)
(34,715
)
(32,282
)
INCOME (LOSS) BEFORE INCOME TAXES
(27,922
)
(28,072
)
(47,503
)
(55,994
)
(44,823
)
INCOME TAX EXPENSE (BENEFIT)
(8,647
)
(3,596
)
1,194
(12,243
)
2,584
NET INCOME (LOSS)
(19,275
)
(24,476
)
(48,697
)
(43,751
)
(47,407
)
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST
327
151
447
478
732
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
(19,602
)
$
(24,627
)
$
(49,144
)
$
(44,229
)
$
(48,139
)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER COMMON SHARE:
Basic
$
(0.05
)
$
(0.06
)
$
(0.13
)
$
(0.12
)
$
(0.12
)
Diluted
$
(0.05
)
$
(0.06
)
$
(0.13
)
$
(0.12
)
$
(0.12
)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic
380,192
379,587
385,365
379,891
385,940
Diluted
380,192
379,587
385,365
379,891
385,940
CASH DIVIDENDS PER COMMON SHARE
$
0.10
$
0.10
$
0.08
$
0.20
$
0.16
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Six Months Ended
June 30,
2026
2025
Cash flows from operating activities:
Net income (loss)
$
(43,751
)
$
(47,407
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization and impairment
436,175
493,724
Deferred income tax expense (benefit)
(12,577
)
1,704
Stock-based compensation
12,937
21,867
Net (gain) loss on asset disposals
3,643
(973
)
Colombia contract drilling exit costs
20,011
-
Other
61
(1,972
)
Changes in operating assets and liabilities
(296,559
)
(119,053
)
Net cash provided by operating activities
119,940
347,890
Cash flows from investing activities:
Purchases of property and equipment
(272,552
)
(306,037
)
Proceeds from disposal of assets, including insurance recoveries
14,879
28,344
Other
(1,597
)
(11,514
)
Net cash used in investing activities
(259,270
)
(289,207
)
Cash flows from financing activities:
Purchases of treasury stock
(9,478
)
(35,849
)
Dividends paid
(76,016
)
(61,619
)
Net proceeds from issuance of senior notes
496,015
-
Repayment of senior notes
(482,505
)
-
Payments of finance leases
(3,250
)
(4,432
)
Other
(1,936
)
(10,820
)
Net cash used in financing activities
(77,170
)
(112,720
)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
(973
)
(1,365
)
Net change in cash, cash equivalents and restricted cash
(217,473
)
(55,402
)
Cash, cash equivalents and restricted cash at beginning of period
420,642
241,293
Cash, cash equivalents and restricted cash at end of period
$
203,169
$
185,891
PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
Drilling Services
Revenues
$
373,501
$
351,717
$
403,805
$
725,218
$
816,665
Direct operating costs
$
259,619
$
217,861
$
254,772
$
477,480
$
502,401
Adjusted gross profit (1)
$
113,882
$
133,856
$
149,033
$
247,738
$
314,264
Depreciation, amortization and impairment
$
85,490
$
83,944
$
112,647
$
169,434
$
197,619
General and administrative
$
6,617
$
7,097
$
4,152
$
13,714
$
8,097
Other operating expense (income), net
$
(962
)
$
(1,488
)
$
(8,368
)
$
(2,450
)
$
(8,368
)
Operating income (loss)
$
22,737
$
44,303
$
40,602
$
67,040
$
116,916
Operating days - U.S. (2)
8,361
8,301
9,465
16,662
19,038
Capital expenditures
$
60,148
$
54,421
$
55,174
$
114,569
$
128,632
Completion Services
Revenues
$
753,641
$
679,587
$
719,332
$
1,433,228
$
1,485,412
Direct operating costs
$
630,716
$
581,486
$
619,083
$
1,212,202
$
1,276,764
Adjusted gross profit (1)
$
122,925
$
98,101
$
100,249
$
221,026
$
208,648
Depreciation, amortization and impairment
$
108,838
$
111,472
$
119,774
$
220,310
$
235,600
General and administrative
$
7,230
$
7,330
$
9,723
$
14,560
$
21,132
Other operating expense (income), net
$
(1,328
)
$
-
$
-
$
(1,328
)
$
-
Operating income (loss)
$
8,185
$
(20,701
)
$
(29,248
)
$
(12,516
)
$
(48,084
)
Capital expenditures
$
75,023
$
45,101
$
68,985
$
120,124
$
131,158
Drilling Products
Revenues
$
91,333
$
79,797
$
88,390
$
171,130
$
174,053
Direct operating costs
$
54,194
$
46,924
$
49,335
$
101,118
$
96,275
Adjusted gross profit (1)
$
37,139
$
32,873
$
39,055
$
70,012
$
77,778
Depreciation, amortization and impairment
$
20,478
$
19,846
$
23,584
$
40,324
$
46,460
General and administrative
$
8,344
$
7,923
$
8,651
$
16,267
$
17,770
Operating income (loss)
$
8,317
$
5,104
$
6,820
$
13,421
$
13,548
Capital expenditures
$
18,711
$
15,842
$
15,252
$
34,553
$
33,474
Other (3)
Revenues
$
9,492
$
6,230
$
7,793
$
15,722
$
23,727
Direct operating costs
$
2,800
$
2,884
$
6,173
$
5,684
$
15,337
Adjusted gross profit (1)
$
6,692
$
3,346
$
1,620
$
10,038
$
8,390
Depreciation, depletion, amortization and impairment
$
1,639
$
1,269
$
3,538
$
2,908
$
9,874
General and administrative
$
-
$
2
$
82
$
2
$
286
Operating income (loss)
$
5,053
$
2,075
$
(2,000
)
$
7,128
$
(1,770
)
Capital expenditures
$
1,910
$
1,111
$
1,802
$
3,021
$
5,398
Corporate
Depreciation
$
1,336
$
1,863
$
2,315
$
3,199
$
4,171
General and administrative
$
45,314
$
46,411
$
41,500
$
91,725
$
83,753
Other operating expense (income), net
$
4,604
$
(3,176
)
$
1,845
$
1,428
$
5,227
Capital expenditures
$
132
$
153
$
2,993
$
285
$
7,375
Total Capital Expenditures
$
155,924
$
116,628
$
144,206
$
272,552
$
306,037
Adjusted gross profit, which is considered a non-GAAP financial measure, is defined as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
Operational data relates to our contract drilling business. A rig is considered to be operating if it is earning revenue pursuant to a contract on a given day.
Other includes our oilfield rentals business, prior to its divestiture in April 2025, and oil and natural gas working interests.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted EBITDA Reconciliations
(unaudited, dollars in thousands)
The following table reconciles Net income (loss) per the information below to Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as reported on the unaudited Condensed Consolidated Statements of Operations:
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
Net income (loss)
$
(19,275
)
$
(24,476
)
$
(48,697
)
$
(43,751
)
$
(47,407
)
Income tax expense (benefit)
(8,647
)
(3,596
)
1,194
(12,243
)
2,584
Net interest expense
17,496
14,720
16,373
32,216
32,606
Depreciation, depletion, amortization and impairment
217,781
218,394
261,858
436,175
493,724
Colombia contract drilling exit costs
20,011
-
-
20,011
-
Noncontrolling investment write-down
4,520
-
-
4,520
-
Legal accruals and settlements
-
-
(4,585
)
-
(4,585
)
Merger and integration expense
-
-
488
-
920
Adjusted EBITDA(1)
$
231,886
$
205,042
$
226,631
$
436,928
$
477,842
Total revenues
$
1,227,967
$
1,117,331
$
1,219,320
$
2,345,298
$
2,499,857
Adjusted EBITDA by Operating Segment:
Drilling Services
$
128,238
$
128,247
$
148,664
$
256,485
$
309,950
Completion Services
117,023
90,771
90,526
207,794
187,516
Drilling Products
28,795
24,950
30,404
53,745
60,008
Other
6,692
3,344
1,538
10,036
8,104
Corporate
(48,862
)
(42,270
)
(44,501
)
(91,132
)
(87,736
)
Adjusted EBITDA
$
231,886
$
205,042
$
226,631
$
436,928
$
477,842
Adjusted EBITDA is not defined by accounting principles generally accepted in the United States of America ("GAAP"). We define Adjusted EBITDA as net income (loss) plus income tax expense (benefit), net interest expense, depreciation, depletion, amortization and impairment expense, exit costs, noncontrolling investment write-down, legal accruals and settlements, impairment of goodwill and merger and integration expense. We present Adjusted EBITDA as a supplemental disclosure because we believe it provides to both management and investors additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit Reconciliations
(unaudited, dollars in thousands)
The following table reconciles Adjusted gross profit to gross profit, which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted gross profit:
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
Drilling Services
Revenues
$
373,501
$
351,717
$
403,805
$
725,218
$
816,665
Less direct operating costs
(259,619
)
(217,861
)
(254,772
)
(477,480
)
(502,401
)
Less depreciation, amortization and impairment
(85,490
)
(83,944
)
(112,647
)
(169,434
)
(197,619
)
GAAP gross profit (loss)
28,392
49,912
36,386
78,304
116,645
Depreciation, amortization and impairment
85,490
83,944
112,647
169,434
197,619
Adjusted gross profit (1)
$
113,882
$
133,856
$
149,033
$
247,738
$
314,264
Completion Services
Revenues
$
753,641
$
679,587
$
719,332
$
1,433,228
$
1,485,412
Less direct operating costs
(630,716
)
(581,486
)
(619,083
)
(1,212,202
)
(1,276,764
)
Less depreciation, amortization and impairment
(108,838
)
(111,472
)
(119,774
)
(220,310
)
(235,600
)
GAAP gross profit (loss)
14,087
(13,371
)
(19,525
)
716
(26,952
)
Depreciation, amortization and impairment
108,838
111,472
119,774
220,310
235,600
Adjusted gross profit (1)
$
122,925
$
98,101
$
100,249
$
221,026
$
208,648
Drilling Products
Revenues
$
91,333
$
79,797
$
88,390
$
171,130
$
174,053
Less direct operating costs
(54,194
)
(46,924
)
(49,335
)
(101,118
)
(96,275
)
Less depreciation, amortization and impairment
(20,478
)
(19,846
)
(23,584
)
(40,324
)
(46,460
)
GAAP gross profit (loss)
16,661
13,027
15,471
29,688
31,318
Depreciation, amortization and impairment
20,478
19,846
23,584
40,324
46,460
Adjusted gross profit (1)
$
37,139
$
32,873
$
39,055
$
70,012
$
77,778
Other
Revenues
$
9,492
$
6,230
$
7,793
$
15,722
$
23,727
Less direct operating costs
(2,800
)
(2,884
)
(6,173
)
(5,684
)
(15,337
)
Less depreciation, depletion, amortization and impairment
(1,639
)
(1,269
)
(3,538
)
(2,908
)
(9,874
)
GAAP gross profit (loss)
5,053
2,077
(1,918
)
7,130
(1,484
)
Depreciation, depletion, amortization and impairment
1,639
1,269
3,538
2,908
9,874
Adjusted gross profit (1)
$
6,692
$
3,346
$
1,620
$
10,038
$
8,390
Adjusted gross profit is considered a non-GAAP financial measure. We define "Adjusted gross profit" as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Adjusted gross profit is included as a supplemental disclosure because it is a useful indicator of our operating performance.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit Reconciliations
(unaudited, dollars in thousands)
Three Months Ended
June 30,
2026
Drilling Services
Adjusted gross profit
$
113,882
Colombia contract drilling exit costs
20,011
Adjusted gross profit, net of Colombia contract drilling exit costs
$
133,893
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Net Income (Loss) and Adjusted Earnings Per Share
(unaudited, in thousands, except per share data)
Three Months Ended June 30, 2026
As Reported
Adjusted (1)
Total
Per Share
Total
Per Share
Net income (loss) attributable to common stockholders as reported
$
(19,602
)
$
(0.05
)
$
(19,602
)
$
(0.05
)
Reverse certain items:
Colombia contract drilling exit costs (included in direct operating costs)
20,011
Colombia contract drilling exit costs (included in depreciation, amortization
and impairment)
995
Noncontrolling investment write-down
4,520
Income tax expense (benefit)
(5,360
)
Adjusted net income (loss) (1)
$
(19,602
)
$
(0.05
)
$
564
$
0.00
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock
380,192
380,192
Add dilutive effect of potential common shares
-
4,607
Weighted average number of diluted common shares outstanding
380,192
384,799
Federal statutory tax rate
21.0
%
We define adjusted net income (loss) as net income (loss) attributable to common stockholders as reported, excluding exit costs and noncontrolling investment write-down. We present adjusted net income (loss) in order to convey to investors our performance on a basis that, by excluding the items listed above, is more comparable to our net income (loss) reported in previous periods. Adjusted net income (loss) should not be construed as an alternative to GAAP net income (loss).
CONTACT:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
Key Takeaways Patterson-UTI Energy reports Q2 2026 earnings on July 29, with estimates calling for a 3-cent per-share loss.PTEN's lower direct operating costs and reduced depreciation may have contributed to its Q2 results.PTEN carries a negative Earnings ESP despite beating earnings estimates in three of the past four quarters. Patterson-UTI Energy, Inc. (PTEN - Free Report) is set to report second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 3 cents per share on revenues of $1.15 billion.
Let’s delve into the factors that might have influenced PTEN’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.
Highlights of PTEN’s Q1 Earnings & Surprise HistoryIn the last reported quarter, the Houston, TX-based oil and gas drilling company’s earnings beat the consensus mark. Patterson-UTI Energy reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. This was due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments. Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%.
PTEN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average surprise of 27.96%
This is depicted in the graph below:
Trend in PTEN’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2026 earnings has not experienced any upward or downward movements in the past seven days. The estimated figure indicates a 5.85% year-over-year decline. However, the Zacks Consensus Estimate for revenues indicates an increase of about 5.85% from the year-ago period’s actual.
Factors to Consider Ahead of PTEN’s Q2 ReleasePTEN generates revenues by providing drilling, completion and related services to oil and gas producers. The company supports customers throughout the well lifecycle by drilling wells, completing them and supplying the equipment and technologies required for these operations. The reduction in PTEN's costs is likely to have supported its bottom line. The company’s operating costs and expenses are projected to reach $1.11 billion in the second quarter, which is 11% up from the year-ago period’s level. Direct operating costs are projected to be $825.6 million, down 11.2% year over year, while depreciation, depletion, amortization and impairment expenses are estimated to be $220.1 million, representing a 15.9% decline from the prior-year period.
On the bearish side, PTEN’s revenues are likely to have come under pressure in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is expected to be down from the year-ago quarter’s $1.22 billion. The decline is likely to have reflected weaker year-over-year performance across the company’s Drilling Services, Completion Services, Drilling Products and Other segments.
What Does Our Model Say About PTEN Stock?The proven Zacks model does not conclusively predict an earnings beat for Patterson-UTI Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, that is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PTEN’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -10.77%.
PTEN’s Zacks Rank: PTEN currently carries a Zacks Rank #2.
Stocks With the Favorable CombinationHere are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy (LNG - Free Report) has an Earnings ESP of +20.97% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug. 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy is valued at $56.03 billion. It is a leading U.S.-based liquefied natural gas (“LNG”) company that produces, exports and markets LNG to customers around the world from the major facilities in Louisiana and Texas. Cheniere Energy's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average surprise of 74.97%
Murphy Oil (MUR - Free Report) has an Earnings ESP of +10.92% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5. Murphy Oil is an independent oil and natural gas exploration and production company with operations in the United States, Canada and offshore international markets, focusing on the development of conventional and unconventional hydrocarbon resources.
The company is valued at $5.56 billion. Murphy Oil’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 117.54%.
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +2.08% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5.
Helmerich & Payne is valued at $3.52 billion. The company is a leading provider of drilling solutions, offering land and offshore contract drilling services and advanced drilling technologies to oil and natural gas exploration and production companies.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
PattersonUTI Energy (PTEN - Free Report) is a stock many investors are watching right now. PTEN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors should also recognize that PTEN has a P/B ratio of 0.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PTEN's current P/B looks attractive when compared to its industry's average P/B of 1.74. Over the past year, PTEN's P/B has been as high as 1.06 and as low as 0.61, with a median of 0.80.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PTEN has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.41.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PattersonUTI Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PTEN feels like a great value stock at the moment.
Shares of Patterson-UTI (PTEN - Free Report) have gained 4.6% over the past four weeks to close the last trading session at $10.53, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $13.25 indicates a potential upside of 25.8%.
The mean estimate comprises 14 short-term price targets with a standard deviation of $2.56. While the lowest estimate of $10.00 indicates a 5% decline from the current price level, the most optimistic analyst expects the stock to surge 80.4% to reach $19.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for PTEN, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in PTENAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, four estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 42%.
Moreover, PTEN currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PTEN could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways WTI trades above $80 as Middle East conflicts intensify, supporting upstream activity.Patterson-UTI could benefit as producers increase drilling and completion work.TechnipFMC may gain from rising demand across Subsea and Surface Technologies. Oil prices are climbing again as the Iran war intensifies. This is creating opportunities for investors willing to allocate capital to the oil-energy space that has witnessed a strong rally of 30.6% over the past year, outperforming the Zacks S&P 500 composite’s increase of 21%. Given the favorable backdrop, should investors bet on Patterson-UTI (PTEN - Free Report) and TechnipFMC (FTI - Free Report) ? Let’s dive in.
Image Source: Zacks Investment Research
High Oil PriceWest Texas Intermediate (“WTI”) oil is currently trading above $80 per barrel, according to data from Oilprice.com, significantly higher than the shut-in prices for existing wells in key resources. The escalation of Middle East conflicts has been aiding the rally in commodity prices.
In its latest short-term energy outlook, the EIA projects the WTI spot price to average $76.26 per barrel this year, a level that should remain supportive of upstream operations, as many producers have considerably lower breakeven costs. With higher exploration and production activities, demand for oilfield services and drilling activities is also expected to improve.
2 Energy Stocks to Bet on: PTEN, FTIPatterson-UTI is expected to continue to gain from the prevailing crude-price scenario. This is because demand for the company’s drilling and completion services will likely remain robust, as the supportive commodity-price backdrop is expected to continue to bolster exploration and production operations. In other words, with increased exploration and production activities, upstream players will hire more drilling and completion services that will boost the bottom line of PTEN, which currently carries a Zacks Rank #2 (Buy).
TechnipFMC, being a leading provider of technology, equipment and services to the upstream players for extracting resources efficiently while reducing costs, is well-positioned to capitalize on the high oil prices. With exploration and production activities remaining favorable, demand for FTI’s services is likely to continue growing. With its activities spreading across Subsea and Surface Technologies, the company, with a Zacks Rank of 2, is strongly positioned to gain from both onshore and offshore operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The market expects Patterson-UTI (PTEN - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis provider of onshore contract drilling services is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +33.3%.
Revenues are expected to be $1.14 billion, down 6.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 150% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Patterson-UTI?For Patterson-UTI, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +12.50%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Patterson-UTI will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Patterson-UTI would post a loss of$0.1 per share when it actually produced a loss of -$0.06, delivering a surprise of +40.00%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Patterson-UTI appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways U.S.-Iran tensions have pushed WTI above $80, supporting continued momentum in oil-energy stocks.HAL trades at 8.40x trailing EV/EBITDA, below its broader industry average of 8.85x.PTEN trades at 5.08x trailing EV/EBITDA, below its broader industry average of 11.80x. Another escalation in U.S.-Iran conflicts has pushed oil prices higher once again. This environment could help sustain the oil-energy sector’s upward momentum, making bargain opportunities increasingly difficult to find. However, our proprietary stock screener has identified two attractively valued names: large-cap Halliburton (HAL - Free Report) and mid-cap Patterson-UTI (PTEN - Free Report) .
Oil Sector’s Rally to Continue?
The oil-energy space has seen a strong rally of 20.7% year to date, outperforming the Zacks S&P 500 composite’s increase of 10.7%. Geopolitical conflicts in the Middle East have remained an important driver of oil prices, providing continued support to energy stocks.
Image Source: Zacks Investment Research
With the conflicts between the United States and Iran escalating further, West Texas Intermediate (“WTI”) oil is once again hovering around the $80-per-barrel mark, according to data from Oilprice.com. The U.S. Energy Information Administration (“EIA”) estimates the WTI spot price to average $76.26 per barrel this year, a level that should remain supportive of upstream operations, as many producers have considerably lower breakeven costs.
Amid these constructive backdrops, the rally in the oil-energy sector is likely to continue.
2 Undervalued Energy Stocks to Bet on: HAL, PTEN
Halliburton is a leading oilfield service player providing technologies, products and services to the exploration and production companies across the entire well life cycle. The current oil prices, which are much higher than the shut-in and break-even prices, are likely to aid upstream activities, which are expected to have a positive impact on demand for Halliburton’s services encompassing Completion and Production & Drilling and Evaluation. The large-cap oilfield service company, currently carrying a Zacks Rank #2 (Buy), is thus well-positioned to sustain its upward momentum after skyrocketing 64.6% over the past year.
Even after the rally, HAL is undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.40x, which is below the broader industry average of 8.85x.
Image Source: Zacks Investment Research
Patterson-UTI is also expected to continue gaining on the prevailing crude-price scenario. This is because demand for the company’s drilling and completion services will likely remain robust, as the supportive commodity-price backdrop is expected to continue bolstering exploration and production operations. In other words, with increased exploration and production activities, upstream players will hire more drilling and completion services that will, in turn, boost the bottom line of PTEN. Thus, the stock is likely to have more room to run, even after surging 53.6% over the past year.
Despite the momentum-driven run-up, the #2 Ranked mid-cap stock remains undervalued, with a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) of 5.08x, below the broader industry average of 11.80x. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- Caris Life Sciences® (NASDAQ: CAI), a leading patient-centric next-generation AI TechBio company and precision medicine pioneer, today announced it will offer in-house PTEN immunohistochemistry (IHC) testing following the recent FDA approval of a biomarker-guided therapy and companion diagnostic assay. This testing is designed to help identify patients with PTEN-deficient metastatic androgen pathway modulation-naïve or -sensitive (mAPMN/S) prostate cancer (previously known as metastatic hormone-sensitive prostate cancer) who are eligible for the newly approved biomarker-guided therapy, representing a significant advancement in precision oncology for this disease.
Prostate cancer remains one of the most prevalent malignancies in men, with more than 300,000 new cases diagnosed annually in the United States. The FDA approval of capivasertib, in combination with abiraterone and prednisone, for adults with PTEN-deficient mAPMN/S prostate cancer marks a critical turning point for this disease, enabling a more personalized approach to treatment. Historically, therapy selection in mAPMN/S prostate cancer has relied primarily on clinical characteristics rather than changes in protein expression.
Caris' PTEN IHC testing expands the company's already extensive menu of IHC assays and will enable oncologists to identify patients whose tumors exhibit PTEN protein loss, a key molecular alteration associated with activation of the PI3K/AKT pathway and potential therapeutic relevance. One in four patients with mAPMN/S prostate cancer have PTEN-deficient tumors, which are associated with faster progression and worse outcomes.
"For patients with metastatic hormone-sensitive prostate cancer, treatment decisions have historically been driven largely by clinical factors rather than biomarker-defined molecular alterations," said George W. Sledge, Jr., MD, EVP and Chief Medical Officer at Caris. "The ability to identify PTEN loss through IHC testing brings a new level of precision to treatment selection, helping ensure that the right patients can be matched with biomarker-driven therapies at a critical point in their disease."
Key Highlights of Caris PTEN IHC Testing:
Expanded IHC Capabilities: Caris continues to build one of the most comprehensive IHC testing portfolios in the industry, supporting critical biomarker identification across tumor types.
Support for Biomarker-Driven Therapy Selection: PTEN IHC testing enables identification of PTEN-deficient tumors, supporting treatment decisions in mAPMN/S prostate cancer where FDA-approved biomarker-targeted therapy is now available.
In-House Testing for Faster Results: By performing testing within Caris' CAP-accredited, CLIA-certified laboratories, results can be delivered efficiently to help inform timely clinical decision-making.
Advancing Personalized Care: Integration of PTEN IHC with Caris' broader multi-platform molecular profiling approach including next-generation sequencing (NGS) provides a more complete understanding of tumor biology to guide therapy selection.
The introduction of PTEN IHC testing reflects a broader evolution in prostate cancer care, as the field transitions toward biomarker-driven treatment strategies that align therapy with the molecular drivers of disease. By enabling identification of patients who are eligible for these therapies, Caris is helping advance more precise, individualized treatment decisions that may improve clinical outcomes.
Caris' comprehensive molecular profiling portfolio includes MI Cancer Seek®, Caris Assure®, Caris MI Clarity™, Caris Chromoseq™ and Caris Detect™. MI Cancer Seek is a tissue-based assay with FDA-approved companion diagnostic indications for molecular profiling of solid tumors, while Caris Assure is a blood-based assay designed to identify tumor-derived alterations through comprehensive sequencing approaches. Caris MI Clarity is the first prognostic test designed to deliver insight into both early and late distant recurrence risk for postmenopausal patients with HR-positive/HER2-negative, node-negative early-stage breast cancer at the time of diagnosis. Caris Chromoseq is a Whole Genome Sequencing (WGS) assay designed to support the comprehensive clinical genomic evaluation of myeloid malignancies. Caris Detect™, is a groundbreaking multi-cancer early detection blood test designed to accurately find cancer signals early, at stage I and stage II, when treatment is more effective.
Caris remains committed to advancing precision medicine through innovative diagnostics, robust molecular data and clinically actionable insights that help transform cancer care.
About Caris Life Sciences
Caris Life Sciences® (Caris) is a leading, patient-centric, next-generation AI TechBio company and precision medicine pioneer actively developing and commercializing innovative solutions to transform healthcare. Through comprehensive molecular profiling (Whole Genome, Whole Exome and Whole Transcriptome Sequencing), advanced AI and machine learning, Caris has created the large-scale, multimodal clinico-genomic database and computing capability needed to analyze and further unravel the molecular complexity of disease. This convergence of next-generation sequencing, AI and machine learning technologies and high-performance computing provides a differentiated platform for developing the latest generation of advanced precision medicine diagnostic solutions for early detection, diagnosis, monitoring, therapy selection and drug development.
Caris was founded with a vision to realize the potential of precision medicine to improve the human condition. Headquartered in Irving, Texas, Caris has offices in Phoenix, New York, Cambridge (MA), Tokyo, Japan and Basel, Switzerland. Caris or its distributor partners provide services in the U.S. and other international markets.
Forward Looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements other than statements of historical facts contained in this press release are forward-looking statements, including statements regarding our business, solutions, plans, objectives, goals, industry trends, financial outlook and guidance. In some cases forward-looking statements can be identified by words such as "may," "will," "should," "would," "expect," "plan," "anticipate," "could," "intend," "target," "project," "potential," "contemplate," "believe," "estimate," "predict," or "continue" or similar expressions.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in these forward-looking statements are reasonable based on information currently available to us, we cannot guarantee that the future results, discoveries, levels of activity, performance or events and circumstances reflected in forward-looking statements will be achieved or occur. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond our control. Risks and uncertainties that could cause our actual results to differ materially from those indicated or implied by the forward-looking statements in this press release include, among other things: our future financial performance, results of operations or other operational results or metrics; development, analytical and clinical validation, timing and performance of future solutions by us and our competitors; commercial market acceptance for our solutions, including acceptance of preventive as well as diagnostic testing paradigms, and our ability to meet resulting demand; the rapidly evolving competitive environment in which we operate; third-party payer reimbursement and coverage decisions related to our solutions; risks related to data management, storage, and processing capabilities and our ability to integrate and deploy artificial intelligence and advanced data analytics technologies; our ability to protect and enhance our intellectual property; regulatory requirements, decisions or approvals (including the timing and conditions thereof) related to our solutions, including our application for New York State Department of Health approval for Caris Assure; reliance on third-party suppliers; risks related to data security, patient privacy, and compliance with healthcare data protection regulations as well as potential cybersecurity threats to our data platforms; our compliance with laws and regulations; the outcome of government investigations and litigation; risks related to our indebtedness; and our ability to hire and retain key personnel as well as risks, uncertainties; and other factors described in the section titled "Risk Factors" and elsewhere in our Annual Report on Form 10-K filed on March 3, 2026, and in our other filings we make with the SEC from time to time. We undertake no obligation to update any forward-looking statements to reflect changes in events, circumstances or our beliefs after the date of this press release, except as required by law.
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HOUSTON, TX / ACCESS Newswire / July 9, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) will host a conference call on Thursday, July 30, 2026, at 9:00 a.m. Central Time to discuss results for the second quarter ended June 30, 2026.
Participants can access the call by dialing (833) 461-5787 in North America or (585) 542-9983 if International and referencing Meeting ID 227633549. The call will also be webcast and can be accessed through a link in the Investors section of the Company's website at investor.patenergy.com. A webcast replay of the conference call will be available on the Company's website for one year.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized bit solutions in the United States, Middle East and many other regions around the world. For more information, visit https://www.patenergy.com/.
Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Patterson-UTI (PTEN - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.
Patterson-UTI is one of 252 companies in the Oils-Energy group. The Oils-Energy group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Patterson-UTI is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PTEN's full-year earnings has moved 57.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, PTEN has moved about 49.8% on a year-to-date basis. Meanwhile, the Oils-Energy sector has returned an average of 19.9% on a year-to-date basis. As we can see, Patterson-UTI is performing better than its sector in the calendar year.
One other Oils-Energy stock that has outperformed the sector so far this year is Suncor Energy (SU - Free Report) . The stock is up 27.7% year-to-date.
Over the past three months, Suncor Energy's consensus EPS estimate for the current year has increased 43.6%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Patterson-UTI belongs to the Oil and Gas - Drilling industry, a group that includes 9 individual stocks and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have gained 28.2% this year, meaning that PTEN is performing better in terms of year-to-date returns.
Suncor Energy, however, belongs to the Oil and Gas - Integrated - Canadian industry. Currently, this 4-stock industry is ranked #4. The industry has moved +35.8% so far this year.
Patterson-UTI and Suncor Energy could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.
HOUSTON, TX / ACCESS Newswire / July 6, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of June 2026, the Company had an average of 95 drilling rigs operating in the United States. For the three months ended June 30, 2026, the Company had an average of 92 drilling rigs operating in the United States.
Average drilling rigs operating reported in the Company's monthly announcements represent the average number of the Company's drilling rigs that were earning revenue under a drilling contract in the United States. The Company cautioned that numerous factors in addition to average drilling rigs operating can impact the Company's operating results and that a particular trend in the number of drilling rigs operating may or may not indicate a trend in or be indicative of the Company's financial performance. The Company intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized drill bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "potential," "project," "pursue," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: adverse oil and natural gas industry conditions; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI's services and their associated effect on rates; excess availability of land drilling rigs, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; the impact of the ongoing conflict in Ukraine; strength and financial resources of competitors; utilization, margins and planned capital expenditures; liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; our return of capital to stockholders; stock price volatility; and compliance with covenants under Patterson-UTI's debt agreements.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
Patterson-UTI (PTEN - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 24.8% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why PTEN Could Experience a TurnaroundThe heavy selling of PTEN shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 26.86. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for PTEN has increased 12.2%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, PTEN currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is PattersonUTI Energy (PTEN - Free Report) . PTEN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is PTEN's P/B ratio of 0.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.66. Over the past 12 months, PTEN's P/B has been as high as 1.06 and as low as 0.61, with a median of 0.80.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PTEN has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.36.
These are only a few of the key metrics included in PattersonUTI Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PTEN looks like an impressive value stock at the moment.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
WILMINGTON, Del.--(BUSINESS WIRE)--AstraZeneca's TRUQAP® (capivasertib) in combination with abiraterone and prednisone has been approved in the US as the first and only targeted treatment for adult patients with PTEN-deficient metastatic androgen pathway modulation-naïve or sensitive (mAPMN/S) prostate cancer, previously referred to as metastatic hormone-sensitive prostate cancer (mHSPC), as detected by a US Food and Drug Administration (FDA)-authorized test.1 The approval by the US FDA was bas.
Patterson-UTI (PTEN - Free Report) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.1. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +40.77%. A quarter ago, it was expected that this provider of onshore contract drilling services would post a loss of $0.11 per share when it actually produced a loss of $0.02, delivering a surprise of +81.82%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Patterson-UTI, which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $1.12 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.13%. This compares to year-ago revenues of $1.28 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Patterson-UTI shares have added about 72.8% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for Patterson-UTI?While Patterson-UTI has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Patterson-UTI was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.08 on $1.1 billion in revenues for the coming quarter and -$0.31 on $4.39 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Noble Corporation PLC (NE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 26.
This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -19.2%. The consensus EPS estimate for the quarter has been revised 19.4% higher over the last 30 days to the current level.
Noble Corporation PLC's revenues are expected to be $728.18 million, down 16.7% from the year-ago quarter.
Patterson-UTI (PTEN - Free Report) reported $1.12 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 12.8%. EPS of -$0.06 for the same period compares to $0 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.08 billion, representing a surprise of +3.13%. The company delivered an EPS surprise of +40.77%, with the consensus EPS estimate being -$0.10.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Patterson-UTI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating days - Contract drilling - U.S.: 8,301 versus 8,295 estimated by three analysts on average.Operating revenue- Drilling Services: $351.72 million versus the five-analyst average estimate of $349.52 million. The reported number represents a year-over-year change of -14.8%.Operating revenue- Other Operations: $6.23 million versus $4.84 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -60.9% change.Revenues- Drilling Products: $79.8 million compared to the $82.28 million average estimate based on five analysts. The reported number represents a change of -6.9% year over year.Revenues- Completion Services: $679.59 million compared to the $644.37 million average estimate based on five analysts. The reported number represents a change of -11.3% year over year.Operating income- Drilling Services: $44.3 million compared to the $37.14 million average estimate based on five analysts.Operating income- Other: $2.08 million versus $-1 million estimated by five analysts on average.Operating income- Drilling Products: $5.1 million versus the five-analyst average estimate of $1.37 million.Operating income- Completion Services: $-20.7 million versus the five-analyst average estimate of $-22.74 million.View all Key Company Metrics for Patterson-UTI here>>>
Shares of Patterson-UTI have returned -3% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
On April 23, 2026, Patterson-UTI Energy Inc PTEN shares rose 3.0% today, closing at $11.14. The stock has shown notable price performance over the past year, with a 100.0% increase. The shares have traded within a 52-week range of $5.10 to $11.75.
GF Value™ verdict: PTEN is trading at $11.14, which is 37.4% above its GF Value™ of $8.11, indicating it is overvalued.GF Score™: PTEN has a score of 68/100, which is considered above average.Most notable signal: Insiders have sold $5.1M worth of shares in the last 3 months, with no buying activity recorded. Is PTEN Overvalued or Undervalued? Patterson-UTI Energy Inc's current price of $11.14 is significantly above the calculated GF Value™ of $8.11, suggesting the stock is overvalued by 37.4%. This overvaluation presents a risk for potential investors, as the market price does not reflect the estimated intrinsic value based on historical performance and future expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label indicates that the stock is significantly overvalued, which could lead to a price correction if market conditions shift.
The margin of safety in this scenario is notably slim, as the current price surpasses the GF Value™ by a substantial margin. Investors may want to consider the implications of this overvaluation before making investment decisions, particularly given the lack of insider buying activity, which could signal a lack of confidence in the stock's current pricing.
How Does PTEN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 756.5x 11.3x The current forward P/E ratio of 756.5x is significantly above the 5-year median P/E of 11.3x, indicating that PTEN is trading at an exceptionally high valuation compared to its historical levels. This analysis aligns with the GF Value™ verdict, reinforcing the notion that PTEN is overvalued at its current price.
What Does PTEN's GF Score™ Tell Us? Metric Rating GF Score™ 68/100 Financial Strength 6/10 Profitability 5/10 Growth 4/10 Valuation 5/10 Momentum 3/10 The GF Score™ of 68/100 indicates that PTEN is positioned well above average in terms of its overall quality. However, the mixed scores reveal areas of concern, particularly in momentum, which is rated at only 3/10, suggesting weaker price performance relative to its peers. Financial strength is moderately rated at 6/10, while profitability and valuation rankings are both at 5/10, indicating stable but not exceptional performance in these areas. The growth rank of 4/10 indicates potential for improvement, which may not be fully realized in the current overvalued market price.
What Are Insiders Doing with PTEN Stock? Recent insider activity has shown a notable trend, with insiders selling $5.1 million worth of shares in the past three months and no recorded buying. This pattern often signals a lack of confidence in the company's future prospects from those closest to the business. The absence of insider buying could be interpreted as a sign that insiders do not view the current price as an attractive entry point, which may warrant caution for potential investors.
What This Means for Investors Based on the analysis of GF Value™, Patterson-UTI Energy Inc PTEN is currently overvalued. This assessment is supported by both the current price relative to GF Value™ and the high forward P/E ratio compared to historical norms. Potential investors may want to exercise caution when considering PTEN at this valuation level.
For the complete analysis, visit the Patterson-UTI Energy Inc PTEN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is PTEN's GF Score™?
PTEN's GF Score™ is 68/100, indicating that the stock is above average in terms of overall quality and potential for long-term returns.
Is PTEN overvalued or undervalued?
PTEN is currently overvalued, trading at 37.4% above its GF Value™ of $8.11.
What is PTEN's P/E ratio?
PTEN's forward P/E ratio is 756.5x, which is significantly higher than its 5-year median P/E of 11.3x, indicating that the stock is trading at an inflated valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Bloom Energy (BE - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.
Bloom Energy is a member of our Oils-Energy group, which includes 240 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Bloom Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for BE's full-year earnings has moved 109.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that BE has returned about 173.4% since the start of the calendar year. Meanwhile, stocks in the Oils-Energy group have gained about 28.8% on average. This shows that Bloom Energy is outperforming its peers so far this year.
One other Oils-Energy stock that has outperformed the sector so far this year is Patterson-UTI (PTEN - Free Report) . The stock is up 82.3% year-to-date.
The consensus estimate for Patterson-UTI's current year EPS has increased 19.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Bloom Energy belongs to the Alternative Energy - Other industry, which includes 51 individual stocks and currently sits at #75 in the Zacks Industry Rank. On average, this group has gained an average of 26.1% so far this year, meaning that BE is performing better in terms of year-to-date returns.
Patterson-UTI, however, belongs to the Oil and Gas - Drilling industry. Currently, this 8-stock industry is ranked #159. The industry has moved +56.8% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Bloom Energy and Patterson-UTI as they could maintain their solid performance.
Key Takeaways PTEN reported a Q1 2026 loss of 6 cents per share, narrower than estimates, while revenues beat.PTEN saw revenue declines across segments, though Drilling and Completion units topped estimates.PTEN expects Q2 strength in utilization, with projected gross profit supported by active equipment demand. Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. However, the bottom line decreased from the year-ago quarter's breakeven result due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments.
Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%. This was driven by higher-than-expected revenues from the Drilling Services and Completion Services segments. The Drilling Services and Completion Services segments reported revenues of $351.7 million and $679.6 million, which beat the consensus mark of $350 million and $37.1 million, respectively. However, the top line decreased about 12.8% year over year. This underperformance can be attributed to the decrease in year-over-year segment revenues.
PTEN’s board of directors declared a quarterly dividend of 10 cents per share, payable on June 15, 2026, to its common shareholders of record as of June 1.
Q1 Segmental Performances of Patterson-UTI EnergyDrilling Services: Revenues in this segment totaled $351.7 million, down 14.8% from the prior-year quarter’s figure of $412.9 million, but beat our estimate of $350 million.
Operating income amounted to $44.3 million compared with $76.3 million in the first quarter of 2025. The figure beat our operating income estimate of $37.1 million.
Completion Services: This segment’s revenues of $679.6 million decreased about 11.3% from the year-ago quarter’s figure of $766.1 million. However, the metric beat our estimate of $644 million.
Operating loss totaled $20.7 million compared with a loss of $18.8 million in the first quarter of 2025 and was narrower than our estimate of $22.7 million.
Drilling Products: This segment’s revenues of $79.8 million decreased about 6.8% from the year-ago quarter’s figure of $85.7 million and missed our estimate of $82 million.
Operating profit totaled $5.1 million, compared with a profit of $6.7 million in the first quarter of 2025. The number also beat our operating profit estimate of $1.4 million.
Other Services: Revenues amounted to $6.2 million, down almost 61% from the year-ago quarter’s figure of $15.9 million, but beat our estimate of $4.8 million.
Operating profit amounted to $2.1 million against a profit of $0.2 million in the first quarter of 2025. The number also beat our estimate of an operating loss of $1 million.
PTEN’s Capital Expenditure & Financial PositionIn the reported quarter, PTEN spent $116.6 million on capital programs compared with $161.8 million in the prior-year period.
As of March 31, 2026, the company had cash and cash equivalents worth $337.2 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.8%.
This Zacks Rank #2 (Buy) company reported total operating costs and expenses of $1131.6 million compared with $1263.6 million in the first quarter of 2025.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Patterson-UTI Energy’s Q2 OutlookFor the second quarter, the Drilling Services segment is projected to operate at an average U.S. rig count of around 90 rigs. Adjusted gross profit for this segment is anticipated to be about $130 million, including about $5 million in rig reactivation costs, with limited revenue contribution from those rigs during the quarter.
In the Completion Services segment, adjusted gross profit is forecast at roughly $105 million, supported by strong utilization of active equipment. The company will continue to focus on strategic investments aimed at upgrading its asset base with advanced technologies that are expected to deliver superior long-term returns, rather than extending the life of diesel-powered equipment.
For the Drilling Products segment, adjusted gross profit is expected to decline modestly from first-quarter levels, reflecting reduced activity in Canada due to the seasonal spring breakup, along with higher international costs, particularly in the Middle East.
Other operations are expected to generate an adjusted gross profit of about $5 million in the second quarter. Additionally, general and administrative expenses are projected at approximately $67 million, while depreciation, depletion, amortization and impairment expenses are estimated to total around $220 million.
Important Earnings at a GlanceWhile we have discussed PTEN’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) reported first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents due to softer activity in the North American region and the negative impact of geopolitical conflict in the Middle East, which hurt both of the company’s segments.
Meanwhile, revenues of $5.4 billion were 0.3% lower year over year but beat the Zacks Consensus Estimate of $5.3 billion.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Range Resources Corporation (RRC - Free Report) reported first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents.
Total quarterly revenues of $1,018.3 million topped the Zacks Consensus Estimate of $919.3 million. The top line increased from the prior-year figure of $854 million.
Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
EQT Corporation (EQT - Free Report) reported first-quarter 2026 adjusted earnings from continuing operations of $2.33 per share, which beat the Zacks Consensus Estimate of $2.23. The bottom line increased from the year-ago quarter’s figure of $1.18.
Adjusted operating revenues increased to $3,136 million from $2,153 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $3,127 million.
Strong quarterly results were driven by the increase in total sales volumes and higher realized natural gas equivalent prices.
As of March 31, 2026, the company had cash and cash equivalents of $326.6 million and net debt of $5.67 billion.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Patterson-UTI (PTEN - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Patterson-UTI currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for PTEN that show why this provider of onshore contract drilling services shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For PTEN, shares are up 20.28% over the past week while the Zacks Oil and Gas - Drilling industry is up 5.92% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 19.32% compares favorably with the industry's 8.49% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Patterson-UTI have risen 55.35%, and are up 118.97% in the last year. On the other hand, the S&P 500 has only moved 2.81% and 29.8%, respectively.
Investors should also take note of PTEN's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now PTEN is averaging 10,328,673 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with PTEN.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PTEN's consensus estimate, increasing from -$0.34 to -$0.22 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that PTEN is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Patterson-UTI on your short list.
HOUSTON, TX / ACCESS Newswire / May 6, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of April 2026, the Company had an average of 88 drilling rigs operating in the United States.
Average drilling rigs operating reported in the Company's monthly announcements represent the average number of the Company's drilling rigs that were earning revenue under a drilling contract in the United States. The Company cautioned that numerous factors in addition to average drilling rigs operating can impact the Company's operating results and that a particular trend in the number of drilling rigs operating may or may not indicate a trend in or be indicative of the Company's financial performance. The Company intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized drill bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "potential," "project," "pursue," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: adverse oil and natural gas industry conditions; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI's services and their associated effect on rates; excess availability of land drilling rigs, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; the impact of the ongoing conflict in Ukraine; strength and financial resources of competitors; utilization, margins and planned capital expenditures; liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; our return of capital to stockholders; stock price volatility; and compliance with covenants under Patterson-UTI's debt agreements.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
On May 6, 2026, Lisanti Capital Growth disclosed a new position in Patterson-UTI Energy (PTEN +1.26%), acquiring 896,470 shares in an estimated $7.67 million trade based on quarterly average pricing.
What happenedAccording to the SEC filing dated May 6, 2026, Lisanti Capital Growth initiated a new position in Patterson-UTI Energy (PTEN +1.26%) by acquiring 896,470 shares. The estimated value of the trade was $7.67 million, calculated using the average closing price during the first quarter of 2026. The quarter-end valuation of the stake stood at $9.71 million, reflecting both the position size and price performance during the period.
What else to knowThis was a new position, representing 2.45% of the fund’s 13F reportable assets under management at quarter-end.Top holdings after the filing:NASDAQ: FIVE: $9.74 million (2.5% of AUM)NASDAQ: PTEN: $9.71 million (2.5% of AUM)NYSE: CRS: $8.27 million (2.1% of AUM)NYSE: MOD: $8.08 million (2.0% of AUM)NASDAQ: BTSG: $8.07 million (2.0% of AUM)As of May 6, 2026, shares of Patterson-UTI Energy were priced at $11.58, up about 120% over the past year and significantly outperforming the S&P 500 by about 90 percentage points.Company overviewMetricValueRevenue (TTM)$4.66 billionNet income (TTM)($119.27 million)Dividend yield3%Price (as of May 6, 2026)$11.58Company snapshotPatterson-UTI Energy provides contract drilling, pressure pumping, and directional drilling services, with a focus on onshore oil and gas operations in the United States and select international markets.The company generates revenue primarily from drilling contracts, well stimulation, and related oilfield services, leveraging a large fleet of land-based rigs and specialized equipment.Its primary customers are oil and natural gas exploration and production companies seeking efficient, technologically advanced drilling and completion solutions.Patterson-UTI Energy is a leading provider of onshore contract drilling and pressure pumping services, operating a substantial fleet and serving major oil and gas regions across North America. The company differentiates itself through integrated service offerings, advanced drilling technology, and a broad geographic footprint. Its scale and technical expertise position it to support complex drilling projects and adapt to evolving customer needs in the energy sector.
What this transaction means for investorsThis purchase looks like it could be a bet that the oilfield services cycle still has room to run, even after Patterson-UTI shares more than doubled over the past year. The stock’s rally has already priced in a lot of optimism, but management’s latest commentary suggests activity levels may finally be stabilizing after a choppy stretch for the industry.
Patterson-UTI reported first-quarter revenue of $1.1 billion and adjusted EBITDA of $205 million, while executives pointed to improving commodity prices and stronger customer demand heading into the second quarter. Management also said it plans to reactivate drilling rigs later this quarter and expects additional rigs to come back online in the second half of 2026.
That said, the quarter was not flawless. The company posted a net loss of roughly $25 million, while completion services revenue slipped from the prior year amid weather disruptions and softer activity earlier in the quarter.
Still, for the longer-term, if oil prices stay supportive and rig utilization improves as management expects, Patterson-UTI could still have operating leverage left despite the stock’s huge move over the past year, and that might be why Lisanti Capital Growth bought in last quarter.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Modine Manufacturing. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy.
On May 5, 2026, Jaime Cesar, Director at Patterson-UTI Energy (PTEN +1.26%), reported the direct sale of 10,000 common shares for a transaction value of approximately $123,000, as disclosed in the SEC Form 4 filing.
Transaction summaryMetricValueShares traded (direct)10,000Transaction value$123,000Post-transaction shares (direct)77,462Post-transaction value (direct ownership)$961,000Transaction value based on SEC Form 4 reported price ($12.29); post-transaction value based on May 5, 2026 market close ($12.41).
Key questionsHow does this transaction affect Jaime Cesar’s direct ownership in Patterson-UTI Energy?
The sale reduced Cesar’s direct ownership by 11.43%, leaving 77,462 directly held shares, which equates to an estimated 0.02% of outstanding shares as of the most recent update.Were any indirect holdings, options, or derivatives involved in this transaction?
No; the transaction exclusively involved directly held common shares, with no indirect entities or derivative securities reported before or after the sale.Is this sale part of an ongoing pattern or a one-off event?
This is Cesar’s only open-market sale within the structured historical window; prior filings in this period were all administrative in nature, not sales.What is the current market value of the remaining position and how might this influence future capacity for sales?
As of the May 5, 2026 market close, the remaining direct position is valued at approximately $961,000, indicating continued holding capacity, though future sales would reflect a diminished available share base unless additional shares are acquired.Company overviewMetricValueEmployees9,200Revenue (TTM)$4.66 billionNet income (TTM)($118.82 million)1-year price change101%* 1-year price change calculated using May 8, 2026 as the reference date.
Company snapshotPTEN provides onshore contract drilling, pressure pumping, and directional drilling services to oil and natural gas operators, with a significant presence in key U.S. energy basins and international markets.Patterson-UTI generates revenue primarily through drilling contracts, well stimulation, and related oilfield services, leveraging a large fleet of land-based rigs and specialized equipment.It serves exploration and production companies in the oil and gas sector, targeting both large integrated energy firms and independent operators.Patterson-UTI Energy is a leading provider of oilfield services, operating one of the largest land-based drilling fleets in North America. The company’s diversified service offering and scale position it to capture demand across multiple energy basins and customer segments. Strategic investments in technology and operational efficiency help drive competitiveness in a cyclical industry.
What this transaction means for investorsJaime Cesar sold roughly 11% of his directly held PTEN shares at $12.29, pocketing about $123,000 while leaving more than $960,000 worth of stock in place. That's a trim, not an exit, and directors sell for all kinds of reasons — tax planning, diversification, a personal expense — that have nothing to do with their read on the company. Without a public statement from Cesar, there's no basis for assigning a motive. One thing worth noting: this wasn't a 10b5-1 plan sale. Plan sales are pre-scheduled and largely automatic, which strips out most of the signal. This was a straight open-market transaction, meaning Cesar made a deliberate choice to sell on May 5. That's a marginal uptick in significance compared to a plan sale — but the size of what he kept tempers it considerably. A director who expects the stock to move meaningfully lower typically doesn't leave nearly $1 million sitting in it. For investors watching PTEN, a single director selling 0.02% of outstanding shares isn't a reason to revisit the thesis. If insider activity is part of how you track sentiment, this one reads as background noise.
Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PattersonUTI Energy (PTEN - Free Report) . PTEN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for PTEN is its P/B ratio of 0.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.84. PTEN's P/B has been as high as 1.06 and as low as 0.61, with a median of 0.80, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PTEN has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.9.
These are only a few of the key metrics included in PattersonUTI Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PTEN looks like an impressive value stock at the moment.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Patterson-UTI (PTEN - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Patterson-UTI currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for PTEN that show why this provider of onshore contract drilling services shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For PTEN, shares are up 8.76% over the past week while the Zacks Oil and Gas - Drilling industry is up 8.08% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 31.52% compares favorably with the industry's 19.31% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Patterson-UTI have increased 53.71% over the past quarter, and have gained 116.69% in the last year. On the other hand, the S&P 500 has only moved 7.88% and 25.61%, respectively.
Investors should also pay attention to PTEN's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. PTEN is currently averaging 8,648,309 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with PTEN.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PTEN's consensus estimate, increasing from -$0.33 to -$0.21 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that PTEN is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Patterson-UTI on your short list.
Key Takeaways FLOC Q1 EBITDA margin hit 40.8% and rental revenues were nearly 60%; PTEN posted $205M adjusted EBITDA.FLOC bought Valiant in March 2026 to add ESP; PTEN is upgrading fleet to natural gas-powered gear.FLOC 7x fwd P/B vs PTEN ~1.5x; 2027 EPS 14% for FLOC vs 130% for PTEN. The oilfield services industry is gaining attention as producers focus on improving drilling efficiency, maximizing output from existing wells and responding to a more constructive energy-price backdrop. Flowco Holdings (FLOC - Free Report) and Patterson-UTI Energy (PTEN - Free Report) both serve this market, but in different ways. Flowco is more focused on production optimization, artificial lift and emissions-management solutions, while Patterson-UTI has broader exposure to drilling, completions and drilling products. Both companies recently reported better-than-expected first-quarter results, but their risk-reward profiles are not identical.
The Case for Flowco
Flowco delivered a strong first quarter of 2026, with revenues of $209.5 million, adjusted EBITDA of $85.5 million and free cash flow of $52.3 million. Its business is tied closely to helping oil and gas producers get more from wells that are already producing. This is important because many producers today are focused on improving returns from existing assets rather than only drilling new wells.
The company’s Production Solutions segment is a key growth driver. In the first quarter, the segment generated $140 million in revenues and $61 million of adjusted segment EBITDA. Flowco benefits from demand for high-pressure gas lift, electric submersible pumps and other artificial-lift technologies that help bring oil and gas to the surface more efficiently. Its acquisition of Valiant Artificial Lift Solutions, completed in March 2026, expanded Flowco into electric submersible pumps, giving it a broader product portfolio across a well’s life cycle.
Flowco also has a strong margin profile. Its first-quarter adjusted EBITDA margin was 40.8%, helped by a rental-heavy model that provides recurring revenues and better visibility. Rental revenues represented nearly 60% of total revenues during the quarter, which makes the company’s cash flows more stable than a purely equipment-sales business.
The Case for Patterson-UTI
Patterson-UTI is a larger and more diversified oilfield services company. It operates in drilling services, completion services and drilling products, giving it broader exposure to any improvement in U.S. land drilling and completions activity. In the first quarter of 2026, PTEN reported total revenues of $1.1 billion and adjusted EBITDA of $205 million. Although it posted a net loss, the loss was narrower than expected.
PTEN’s Drilling Services segment reported $352 million in revenues and $134 million of adjusted gross profit. The company averaged 92 U.S. rigs working during the quarter. Management expects to reactivate rigs as activity improves, with a second-quarter exit rate above the quarterly average. This gives Patterson-UTI good leverage for a rebound in drilling activity.
Its Completion Services business also looks well-positioned. First-quarter revenues were $680 million, and management noted that utilization of active equipment remained high despite winter storm disruptions. PTEN is also focused on upgrading its fleet with natural gas-powered equipment instead of extending the life of older diesel assets. This should help it remain competitive as customers increasingly prefer cleaner and more efficient technologies.
Price Performance
Both stocks have rallied sharply, reflecting investor optimism about the oilfield services space. FLOC has gained nearly 70% over the past six months, while PTEN has surged 118.4%. PTEN’s stronger share-price performance suggests that investors are more aggressively pricing in a recovery in drilling and completions activity. However, such a sharp move also means that expectations are higher for both stocks.
Image Source: Zacks Investment Research
Valuation
Valuation favors Patterson-UTI. On a forward price-to-book basis, FLOC trades at more than 7X, while PTEN trades at about 1.5X. This is a wide gap. Flowco’s premium valuation reflects its higher margins, rental model and growth potential from Valiant. Still, for a layman, PTEN looks cheaper on this measure.
Image Source: Zacks Investment Research
EPS Estimate Revisions
The Zacks Consensus Estimate for PTEN’s earnings points to a 54% decline in 2026, followed by 130% growth in 2027.
Image Source: Zacks Investment Research
For FLOC, the estimate indicates a 34% decline in 2026 and 14% growth in 2027. This means both companies face some near-term earnings pressure, but PTEN is expected to show a much sharper rebound next year. That stronger projected recovery supports the bullish case for Patterson-UTI.
Image Source: Zacks Investment Research
Conclusion
Flowco is a high-quality, specialized oilfield services company with strong margins, recurring rental revenues and added growth potential from the Valiant acquisition. However, Patterson-UTI offers broader exposure to a recovery in drilling and completions, trades at a much lower valuation and has stronger expected earnings growth in 2027. Given these factors, PTEN carries a Zacks Rank #2 (Buy) and therefore looks slightly better at the moment than FLOC, which is a Zacks Rank #3 (Hold) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A month has gone by since the last earnings report for Patterson-UTI (PTEN - Free Report) . Shares have added about 9.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Patterson-UTI due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Patterson-UTI Energy, Inc. before we dive into how investors and analysts have reacted as of late.
Patterson-UTI Energy Q1 Earnings & Revenues Beat EstimatesPatterson-UTI Energy reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. However, the bottom line decreased from the year-ago quarter's breakeven result due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments.
Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%. This was driven by higher-than-expected revenues from the Drilling Services and Completion Services segments. The Drilling Services and Completion Services segments reported revenues of $351.7 million and $679.6 million, which beat the consensus mark of $350 million and $37.1 million, respectively. However, the top line decreased about 12.8% year over year. This underperformance can be attributed to the decrease in year-over-year segment revenues.
PTEN’s board of directors declared a quarterly dividend of 10 cents per share, payable on June 15, 2026, to its common shareholders of record as of June 1.
Q1 Segmental PerformancesDrilling Services: Revenues in this segment totaled $351.7 million, down 14.8% from the prior-year quarter’s figure of $412.9 million, but beat our estimate of $350 million.
Operating income amounted to $44.3 million compared with $76.3 million in the first quarter of 2025. The figure beat our operating income estimate of $37.1 million.
Completion Services: This segment’s revenues of $679.6 million decreased about 11.3% from the year-ago quarter’s figure of $766.1 million. However, the metric beat our estimate of $644 million.
Operating loss totaled $20.7 million compared with a loss of $18.8 million in the first quarter of 2025 and was narrower than our estimate of $22.7 million.
Drilling Products: This segment’s revenues of $79.8 million decreased about 6.8% from the year-ago quarter’s figure of $85.7 million and missed our estimate of $82 million.
Operating profit totaled $5.1 million, compared with a profit of $6.7 million in the first quarter of 2025. The number also beat our operating profit estimate of $1.4 million.
Other Services: Revenues amounted to $6.2 million, down almost 61% from the year-ago quarter’s figure of $15.9 million, but beat our estimate of $4.8 million.
Operating profit amounted to $2.1 million against a profit of $0.2 million in the first quarter of 2025. The number also beat our estimate of an operating loss of $1 million.
Capital Expenditure & Financial PositionIn the reported quarter, PTEN spent $116.6 million on capital programs compared with $161.8 million in the prior-year period.
As of March 31, 2026, the company had cash and cash equivalents worth $337.2 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.8%.
The company reported total operating costs and expenses of $1131.6 million compared with $1263.6 million in the first quarter of 2025.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 14.15% due to these changes.
VGM ScoresCurrently, Patterson-UTI has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Patterson-UTI has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Sourcerock Group LLC increased its position in Patterson-UTI Energy (PTEN +1.26%) by 713,127 shares. The fund’s quarter-end valuation for this stake shifted by $81.34 million, reflecting both trading activity and price changes.
What else to knowThis Patterson-UTI Energy buy now represents 7.12% of the fund’s 13F reportable assets.
Top holdings after the filing:
NYSE: AR: $352.50 million (14.8% of AUM)NYSE: CRC: $314.67 million (13.2% of AUM)NASDAQ: CHRD: $183.64 million (7.7% of AUM)NYSE: NE: $180.64 million (7.6% of AUM)NASDAQ: CENX: $157.71 million (6.6% of AUM)As of May 14, 2026, Patterson-UTI Energy shares were priced at $12.12.
Company/ETF overviewMetricValueRevenue (TTM)$4.66 billionNet income (TTM)$-119.27 millionDividend yield3.30%Price (as of market close May 14, 2026)$12.12Company/ETF snapshotPatterson-UTI Energy delivers drilling and well completion services to oil and gas operators in North America and select global regions. Patterson-UTI Energy, Inc. is a leading provider of contract drilling and well completion services to the energy sector, with a diverse portfolio spanning drilling, pressure pumping, and directional drilling.
The company provides onshore contract drilling, pressure pumping, and directional drilling services for oil and natural gas operators, with additional offerings in well stimulation, hydraulic fracturing, and drilling technology solutions. It operates a service-based business model, generating revenue primarily from drilling contracts and well completion services across major U.S. oil and gas basins and select international markets.
Patterson-UTI Energy leverages a large fleet and advanced drilling technologies to deliver efficient, high-quality services to oil and gas operators across North America and select international locations. Its integrated service offerings and scale position it as a key partner for operators seeking reliable and technologically advanced drilling solutions.
What this transaction means for investorsPatterson-UTI Energy provides the rigs, pressure-pumping crews, and wellsite services that oil and gas producers use to drill and complete wells. That makes the company different from an energy producer: commodity prices matter because they shape customer budgets, but Patterson-UTI earns its money from operator activity. The key is whether drilling and completion demand can keep crews busy, support pricing, and justify investment in newer equipment.T
he first quarter showed that having busy equipment does not always lead to strong earnings. Patterson-UTI brought in $1.1 billion in revenue and $205 million in adjusted EBITDA, but still reported a $25 million net loss for common shareholders. Completion Services was still the largest segment, with about $680 million in revenue, but turning that into profit is still a challenge. Management said that completion equipment stayed busy except during winter storms, but the company needs better pricing and cost control for this activity to have a bigger impact on earnings.
For investors, the next thing Patterson-UTI needs to show is better financial results from drilling and completion work. Rig activity, demand for pressure-pumping, and using natural gas-powered equipment are all important. However, the stock will be more attractive if the company can get better prices for its work, keep its modern fleets busier, and generate free cash flow that proves it can earn stronger returns over time.
On May 27, 2026, Patterson-UTI Energy Inc PTEN shares fell 5.3% to a current price of $11.48. The stock has experienced a 52-week range from $5.10 to $13.08, showing significant volatility over the past year.
GF Value™ verdict: Current price is $11.48, which is 43.3% overvalued compared to a GF Value™ of $8.01.GF Score™ is 56/100, indicating an average performance relative to potential long-term returns.Most notable signal: Insiders sold $9.5M in shares over the last 3 months, with no buying activity. Is PTEN Overvalued or Undervalued? Patterson-UTI Energy Inc PTEN is currently trading at $11.48, which is significantly above its GF Value™ of $8.01. This indicates that the stock is overvalued by approximately 43.3%, suggesting a lack of margin of safety for potential investors. The GF Valuation label classifies PTEN as "Significantly Overvalued," which heightens the risk for current shareholders and potential buyers looking for undervalued opportunities.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current overvaluation, investors may face challenges as the stock price could be subject to downward corrections, especially in light of the lack of insider buying and high forward P/E ratio.
How Does PTEN's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)731.9x11.3x The current P/E ratio of 731.9x is drastically higher than its 5-year median P/E of 11.3x. This stark contrast indicates that PTEN is trading significantly above its historical valuation levels. The P/E analysis agrees with the GF Value™ verdict, reinforcing the conclusion that PTEN is overvalued at its current price point.
What Does PTEN's GF Score™ Tell Us? MetricRating GF Score™56 Financial Strength5/10 Profitability5/10 Growth2/10 Valuation3/10 Momentum3/10 The GF Score™ of 56/100 indicates an average performance, with notable weaknesses in Growth (2/10) and Valuation (3/10). Financial Strength and Profitability both receive a score of 5/10, suggesting that while PTEN has a stable financial footing, there are significant concerns regarding its growth potential and current valuation metrics. The overall scores highlight areas for concern that may deter long-term investment.
What Are Insiders Doing with PTEN Stock? Recent insider activity has shown that insiders sold $9.5M worth of shares in the last three months, with no recorded buying. This trend may suggest a lack of confidence in the stock’s future performance or a strategic decision to liquidate positions at current valuations. Such selling activity can be a warning sign for potential investors, as it may indicate that those closest to the company do not foresee significant upside in the near term.
What This Means for Investors Based on the analysis of the GF Value™, Patterson-UTI Energy Inc PTEN appears to be overvalued at its current price of $11.48. The significant gap between the current price and the GF Value™ of $8.01, coupled with negative insider activity and low growth metrics, presents substantial risks for potential investors.
For the complete analysis, visit the Patterson-UTI Energy Inc PTEN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is PTEN's GF Score™?
PTEN has a GF Score™ of 56/100, indicating average performance relative to potential long-term returns based on various key factors.
Is PTEN overvalued or undervalued?
PTEN is currently overvalued, with a GF Value™ of $8.01 compared to its market price of $11.48, suggesting a significant premium is being paid for the stock.
What is PTEN's P/E ratio?
PTEN's current P/E ratio is 731.9x, which is substantially higher than its 5-year median P/E of 11.3x, indicating that the stock is trading well above its historical valuation norms.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Is Patterson-UTI (PTEN - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Patterson-UTI is a member of our Oils-Energy group, which includes 238 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Patterson-UTI is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PTEN's full-year earnings has moved 51.7% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, PTEN has gained about 88.7% so far this year. Meanwhile, the Oils-Energy sector has returned an average of 26.1% on a year-to-date basis. This means that Patterson-UTI is performing better than its sector in terms of year-to-date returns.
Another stock in the Oils-Energy sector, Ring Energy (REI - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 51.7%.
In Ring Energy's case, the consensus EPS estimate for the current year increased 410% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Patterson-UTI belongs to the Oil and Gas - Drilling industry, a group that includes 8 individual companies and currently sits at #73 in the Zacks Industry Rank. On average, stocks in this group have gained 58.2% this year, meaning that PTEN is performing better in terms of year-to-date returns.
In contrast, Ring Energy falls under the Oil and Gas - Exploration and Production - United States industry. Currently, this industry has 34 stocks and is ranked #95. Since the beginning of the year, the industry has moved +23.5%.
Investors interested in the Oils-Energy sector may want to keep a close eye on Patterson-UTI and Ring Energy as they attempt to continue their solid performance.
HOUSTON, TX / ACCESS Newswire / June 5, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of May 2026, the Company had an average of 92 drilling rigs operating in the United States. For the two months ended May 31, 2026, the Company had an average of 90 drilling rigs operating in the United States.
Average drilling rigs operating reported in the Company's monthly announcements represent the average number of the Company's drilling rigs that were earning revenue under a drilling contract in the United States. The Company cautioned that numerous factors in addition to average drilling rigs operating can impact the Company's operating results and that a particular trend in the number of drilling rigs operating may or may not indicate a trend in or be indicative of the Company's financial performance. The Company intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized drill bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "potential," "project," "pursue," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: adverse oil and natural gas industry conditions; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI's services and their associated effect on rates; excess availability of land drilling rigs, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; the impact of the ongoing conflict in Ukraine; strength and financial resources of competitors; utilization, margins and planned capital expenditures; liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; our return of capital to stockholders; stock price volatility; and compliance with covenants under Patterson-UTI's debt agreements.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Patterson-UTI (PTEN - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Patterson-UTI currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if PTEN is a promising momentum pick, let's examine some Momentum Style elements to see if this provider of onshore contract drilling services holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For PTEN, shares are up 2.68% over the past week while the Zacks Oil and Gas - Drilling industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 0.17% compares favorably with the industry's 0.17% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Patterson-UTI have increased 11.92% over the past quarter, and have gained 89.29% in the last year. In comparison, the S&P 500 has only moved 7.44% and 21.61%, respectively.
Investors should also take note of PTEN's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now PTEN is averaging 7,655,248 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with PTEN.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PTEN's consensus estimate, increasing from -$0.32 to -$0.15 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that PTEN is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Patterson-UTI on your short list.
