Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. The Contract Drilling Services segment markets its contract drilling services primarily in west Texas, Appalachia, Rockies, Oklahoma, South Texas, East Texas, and Colombia. As of December 31, 2021, this segment had a drilling fleet of 192 marketable land-based drilling rigs. The Pressure Pumping Services segment offers pressure pumping services that consist of well stimulation for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, cementing, and acid pumping services in Texas and the Appalachian region. The Directional Drilling Services segment provides a suite of directional drilling services, including directional drilling and measurement-while-drilling services; supply and rental of downhole performance motors; and software and services that enhances the accuracy of directional and horizontal wellbores, wellbore quality, and on-bottom rate of penetration. It also services equipment to drilling contractors, as well as provides electrical controls and automation to the energy, marine, and mining industries in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.
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Here are 1-3 brief analogies for Patterson-UTI Energy (PTEN):
- Essentially, a specialized Halliburton or Schlumberger for North American onshore drilling and hydraulic fracturing services.
- The Caterpillar for oil and gas wells – providing and operating the heavy machinery and services to get oil out of the ground.
- Like a large-scale Fluor or Kiewit for building and servicing oil and gas wells.
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- Contract Drilling Services: Provides onshore drilling rigs and related services to exploration and production companies for oil and natural gas wells.
- Pressure Pumping Services: Delivers hydraulic fracturing and other well completion services essential for maximizing hydrocarbon recovery from wells.
- Reservoir Solutions: Offers specialized services including directional drilling, downhole technology, and rental tools designed to optimize wellbore placement and efficiency.
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Major Customers of Patterson-UTI Energy (PTEN)
Patterson-UTI Energy (PTEN) primarily sells its drilling and completion services to other companies in the oil and natural gas industry.
According to its public filings, Patterson-UTI Energy serves a diverse customer base, and no single customer accounted for 10% or more of its consolidated revenues in recent fiscal years (e.g., 2023, 2022, 2021). As such, PTEN does not identify specific "major customers" by name in its annual reports.
However, PTEN's customers generally fall into the following categories:
- Major integrated oil and gas companies
- Large and small independent oil and gas companies
- National oil and gas companies
These categories encompass a wide array of exploration and production (E&P) companies that require PTEN's services for contract drilling, pressure pumping, and other completion activities across various North American basins.
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William Andrew Hendricks, Jr. President, Chief Executive Officer, Director
Mr. Hendricks joined Patterson-UTI Energy in early 2012 as Chief Operating Officer and was appointed Chief Executive Officer later that year. He has over 30 years of experience in the global oil and gas industry. Prior to Patterson-UTI, he worked for Schlumberger for 24 years, where his last role was President of Schlumberger Drilling & Measurements from 2010 to 2012. He began his career working on an offshore drilling rig for Ocean Drilling & Exploration Company. Mr. Hendricks holds a Bachelor of Science degree in Petroleum Engineering from Texas A&M University.
C. Andrew Smith Executive Vice President, Chief Financial Officer
Mr. Smith has served as Executive Vice President and Chief Financial Officer of Patterson-UTI Energy since September 2017. Before joining Patterson-UTI, he was the Chief Financial Officer and Executive Vice President of Kirby Corporation from 2014 to 2017. Mr. Smith also held various senior positions at Global Industries, Natco Group, and Benthic Geotech. He is a Certified Public Accountant (CPA).
James Michael Holcomb Chief Operating Officer
Mr. Holcomb has been the Chief Business Officer and Executive Vice President of Patterson-UTI Energy since January 2023. He previously served as President of Patterson-UTI Drilling Company and Senior Vice President of Operations of Patterson-UTI Drilling Company LLC from April 2006 to January 2012.
Kenneth N. Berns Executive Vice President and Chief Commercial Officer
Mr. Berns serves as Executive Vice President and Chief Commercial Officer for Patterson-UTI Energy. He is also a Certified Public Accountant (CPA).
Seth D. Wexler Executive Vice President, General Counsel and Secretary
Mr. Wexler has served as Executive Vice President, General Counsel and Secretary of Patterson-UTI Energy since January 2023. He previously held the position of Senior Vice President, General Counsel and Secretary at Seventy Seven Energy Inc.
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The key risks to Patterson-UTI Energy (PTEN) primarily revolve around the cyclical and evolving nature of the energy industry.
- Dependence on Oil and Natural Gas Prices and Demand: Patterson-UTI Energy's financial performance is highly sensitive to prevailing market prices for oil and natural gas and expectations for future prices. Declines in these commodity prices directly lead to reduced capital and operating expenditures by their customers, subsequently decreasing the demand for PTEN's drilling and completion services, which can adversely affect revenue, profitability, and cash flows.
- Secular Shift Towards Clean Energy Sources: There is a significant long-term risk stemming from the global transition from fossil fuels to renewable energy sources. This shift, which has been accelerated by global energy crises, could lead to a sustained reduction in demand for oil and natural gas, thereby impacting the long-term viability and profitability of Patterson-UTI Energy's core business.
- Impact of Technological Advancements in Oil Extraction: Ongoing technological progress in the oil and gas industry enables producers to extract more hydrocarbons from a fixed number of wells. This increased efficiency means that oil producers can achieve higher output with fewer wells, which in turn reduces the demand for drilling and related oilfield services provided by companies like Patterson-UTI Energy, potentially leading to lower profits despite stable overall production levels.
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The accelerating global energy transition, driven by advancements in renewable energy technologies (solar, wind), battery storage, and electric vehicles, is leading to a structural decline in the long-term demand for oil and natural gas. This directly threatens Patterson-UTI's core business by reducing the addressable market and demand for its drilling and completion services, which are predominantly tied to hydrocarbon extraction.
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Patterson-UTI Energy (PTEN) operates primarily in North America, providing a range of oilfield services. The addressable markets for their main products and services are sized as follows:
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Contract Drilling Services: The North America drilling services market was valued at approximately USD 4.31 billion in 2024.
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Pressure Pumping Services: The North America pressure pumping market is projected to reach USD 8.2 billion by 2024, with a forecasted growth to USD 12.0 billion by 2034.
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Broader Oilfield Services Market (including drilling, completion, directional drilling, and rental equipment): The North America oilfield services market size was calculated to be USD 46.27 billion in 2024 and is anticipated to be worth USD 61.03 billion by 2033.
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Patterson-UTI Energy (PTEN) anticipates several key drivers for revenue growth over the next two to three years:
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Increased Natural Gas Drilling Activity: The company expects a potential increase in natural gas drilling activity, particularly in 2026, propelled by the development and commissioning of new Liquefied Natural Gas (LNG) facilities. This trend is expected to boost demand for drilling and completion services.
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Expansion and Adoption of Digital and Automation Technologies: Patterson-UTI is investing in and expanding its digital portfolio, including the launch of the PTEN Digital Performance Center and new technologies like Vertex™ Automated Controls. These advanced solutions are designed to enhance operational efficiency and optimize drilling and completion processes for customers, which is anticipated to drive adoption and revenue from these differentiated services.
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Realization of Synergies and Integrated Service Offerings from Recent Acquisitions: The company completed strategic acquisitions of Ulterra and merged with NexTier, aiming to enhance its market positioning in the drilling and completions sector. The ongoing integration of these operations and commercial strategies, focusing on fully integrated drilling and completion services, is expected to expand Patterson-UTI's offerings and market share.
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Growth in International Drilling Products Business: Patterson-UTI projects growth in its international Drilling Products segment. This international expansion is expected to contribute to a sequential increase in Drilling Products revenue.
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Share Repurchases
- Patterson-UTI Energy repurchased approximately $1 billion in shares under an ongoing buyback program announced in 2013, having repurchased over 92 million shares as of Q3 2025.
- The company plans to return at least $400 million to shareholders in 2024, including at least $270 million in buybacks.
- As of Q3 2024, Patterson-UTI had $780 million authorized for repurchase, representing about 25% of its market capitalization, with management expecting significant further buybacks.
Share Issuance
- Patterson-UTI Energy issued 34.9 million shares of common stock as part of the consideration for the acquisition of Ulterra Drilling Technologies in August 2023.
- The merger with NexTier Oilfield Solutions in June 2023 was an all-stock transaction, where NexTier shareholders received 0.7520 shares of Patterson-UTI common stock for each NexTier share, with Patterson-UTI shareholders owning approximately 55% of the combined company. This acquisition involved the issuance of 178 million shares.
- The company's outstanding shares increased significantly by 30.05% in 2023 and 38.98% in 2024, largely due to acquisitions.
Outbound Investments
- In August 2023, Patterson-UTI Energy acquired Ulterra Drilling Technologies, a global provider of specialized drill bit solutions, for $370 million in cash and 34.9 million shares of Patterson-UTI common stock.
- Patterson-UTI merged with NexTier Oilfield Solutions in an all-stock transaction in June 2023, creating a combined entity with an enterprise value of approximately $5.4 billion.
- In July 2021, the company acquired Pioneer Energy Services Corp., which provided land-based contract drilling and production services, for $295 million.
Capital Expenditures
- Patterson-UTI Energy expects capital expenditures for 2025 to be approximately $600 million, primarily for strategic investments in technology across all businesses.
- Total capital expenditures for the third quarter of 2025 were $144 million.
- The company anticipates lower capital expenditures in 2026 compared to 2025, while continuing to maintain key fleet assets and invest in new technologies to generate free cash flow.
