Patterson-UTI Energy (PTEN)
Market Price (7/8/2026): $9.16 | Market Cap: $3.5 BilSector: Energy | Industry: Oil & Gas Drilling
Patterson-UTI Energy (PTEN)
Market Price (7/8/2026): $9.16Market Cap: $3.5 BilSector: EnergyIndustry: Oil & Gas Drilling
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 18% Attractive yieldFCF Yield is 7.9% Megatrend and thematic driversMegatrends include US Energy Independence. Themes include US Oilfield Technologies, and US LNG. | Weak multi-year price returns2Y Excs Rtn is -38%, 3Y Excs Rtn is -85% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -72 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -1.5% Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -9.4%, Rev Chg QQuarterly Revenue Change % is -13% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 55% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.8% Key risksPTEN key risks include [1] a decline in demand for its drilling services as technological advancements enable oil producers to achieve higher output with fewer wells. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 18% |
| Attractive yieldFCF Yield is 7.9% |
| Megatrend and thematic driversMegatrends include US Energy Independence. Themes include US Oilfield Technologies, and US LNG. |
| Weak multi-year price returns2Y Excs Rtn is -38%, 3Y Excs Rtn is -85% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -72 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -1.5% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -9.4%, Rev Chg QQuarterly Revenue Change % is -13% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 55% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.8% |
| Key risksPTEN key risks include [1] a decline in demand for its drilling services as technological advancements enable oil producers to achieve higher output with fewer wells. |
Qualitative Assessment
AI Analysis | Feedback
Patterson-UTI Energy (PTEN) stock has lost about 15% since 3/31/2026 because of the following key factors:
1. Macroeconomic Uncertainty and Oil Price Volatility.
Despite initial spikes in oil prices early in fiscal Q2 2026, with West Texas Intermediate (WTI) crude hitting a 46-month peak of $112.84 per barrel on April 7, 2026, and Brent crude climbing to $114.47 per barrel, significant market uncertainty persisted due to geopolitical tensions and the blockade of the Strait of Hormuz. However, the futures strip for WTI oil remained lower, in the $76-$78 range, indicating market expectations of future price declines that could deter long-term investment in new drilling projects by exploration and production companies. This broader economic apprehension was further underlined by the International Energy Agency (IEA) cutting its global growth forecast for 2026 by 0.2 percentage points to 2.4% due to the Middle East conflict and rising inflation.
2. Softness in the Natural Gas Market.
While oil prices experienced volatility, the natural gas market remained subdued. Natural gas prices fell below $3.50 per MMBtu after an early February spike. The effective closure of the Strait of Hormuz significantly disrupted global liquefied natural gas (LNG) supply and led to a downward revision of global gas demand forecasts for 2026, impacting sentiment for gas-related drilling and completion services.
Show more
Patterson-UTI Energy (PTEN) stock has lost about 15% since 3/31/2026 because of the following key factors:
1. Macroeconomic Uncertainty and Oil Price Volatility.
Despite initial spikes in oil prices early in fiscal Q2 2026, with West Texas Intermediate (WTI) crude hitting a 46-month peak of $112.84 per barrel on April 7, 2026, and Brent crude climbing to $114.47 per barrel, significant market uncertainty persisted due to geopolitical tensions and the blockade of the Strait of Hormuz. However, the futures strip for WTI oil remained lower, in the $76-$78 range, indicating market expectations of future price declines that could deter long-term investment in new drilling projects by exploration and production companies. This broader economic apprehension was further underlined by the International Energy Agency (IEA) cutting its global growth forecast for 2026 by 0.2 percentage points to 2.4% due to the Middle East conflict and rising inflation.
2. Softness in the Natural Gas Market.
While oil prices experienced volatility, the natural gas market remained subdued. Natural gas prices fell below $3.50 per MMBtu after an early February spike. The effective closure of the Strait of Hormuz significantly disrupted global liquefied natural gas (LNG) supply and led to a downward revision of global gas demand forecasts for 2026, impacting sentiment for gas-related drilling and completion services.
3. Net Loss Despite Fiscal Q1 Earnings Beat and Mixed Guidance.
Patterson-UTI Energy reported a net loss attributable to common stockholders of $25 million for fiscal Q1 2026 (ended March 31, 2026), despite an earnings per share (EPS) beat of -$0.06 against an estimated -$0.10. Although the company later increased its consolidated adjusted EBITDA guidance for fiscal Q2 2026 to approximately $220 million, supported by stronger pricing in Completion Services, the initial net loss in Q1 and the prevailing broader market uncertainties likely overshadowed this positive operational outlook.
4. Significant Insider Selling.
Over the three months leading up to July 7, 2026, insiders at Patterson-UTI Energy sold approximately $11.9 million worth of shares. This substantial insider selling, exceeding the $5 million threshold, could signal a lack of confidence from company executives and contributed to negative investor sentiment.
Show less
Stock Movement Drivers
Fundamental Drivers
The -14.8% change in PTEN stock from 3/31/2026 to 7/7/2026 was primarily driven by a -11.7% change in the company's P/S Multiple.| (LTM values as of) | 3312026 | 7072026 | Change |
|---|---|---|---|
| Stock Price ($) | 10.73 | 9.15 | -14.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,827 | 4,663 | -3.4% |
| P/S Multiple | 0.8 | 0.7 | -11.7% |
| Shares Outstanding (Mil) | 379 | 380 | -0.1% |
| Cumulative Contribution | -14.8% |
Market Drivers
3/31/2026 to 7/7/2026| Return | Correlation | |
|---|---|---|
| PTEN | -14.8% | |
| Market (SPY) | 15.0% | -33.0% |
| Sector (XLE) | -10.8% | 83.8% |
Fundamental Drivers
The 52.9% change in PTEN stock from 12/31/2025 to 7/7/2026 was primarily driven by a 57.3% change in the company's P/S Multiple.| (LTM values as of) | 12312025 | 7072026 | Change |
|---|---|---|---|
| Stock Price ($) | 5.98 | 9.15 | 52.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,838 | 4,663 | -3.6% |
| P/S Multiple | 0.5 | 0.7 | 57.3% |
| Shares Outstanding (Mil) | 383 | 380 | 0.9% |
| Cumulative Contribution | 52.9% |
Market Drivers
12/31/2025 to 7/7/2026| Return | Correlation | |
|---|---|---|
| PTEN | 52.9% | |
| Market (SPY) | 9.9% | -20.2% |
| Sector (XLE) | 23.0% | 75.8% |
Fundamental Drivers
The 62.0% change in PTEN stock from 6/30/2025 to 7/7/2026 was primarily driven by a 75.6% change in the company's P/S Multiple.| (LTM values as of) | 6302025 | 7072026 | Change |
|---|---|---|---|
| Stock Price ($) | 5.65 | 9.15 | 62.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,148 | 4,663 | -9.4% |
| P/S Multiple | 0.4 | 0.7 | 75.6% |
| Shares Outstanding (Mil) | 387 | 380 | 1.8% |
| Cumulative Contribution | 62.0% |
Market Drivers
6/30/2025 to 7/7/2026| Return | Correlation | |
|---|---|---|
| PTEN | 62.0% | |
| Market (SPY) | 22.0% | 3.8% |
| Sector (XLE) | 31.9% | 74.5% |
Fundamental Drivers
The -14.0% change in PTEN stock from 6/30/2023 to 7/7/2026 was primarily driven by a -44.1% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 6302023 | 7072026 | Change |
|---|---|---|---|
| Stock Price ($) | 10.64 | 9.15 | -14.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,930 | 4,663 | 59.2% |
| P/S Multiple | 0.8 | 0.7 | -3.3% |
| Shares Outstanding (Mil) | 212 | 380 | -44.1% |
| Cumulative Contribution | -14.0% |
Market Drivers
6/30/2023 to 7/7/2026| Return | Correlation | |
|---|---|---|
| PTEN | -14.0% | |
| Market (SPY) | 74.6% | 38.8% |
| Sector (XLE) | 47.1% | 78.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| PTEN Return | 62% | 102% | -34% | -21% | -22% | 43% | 90% |
| Peers Return | 25% | 78% | -12% | -12% | 2% | 21% | 113% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 101% |
Monthly Win Rates [3] | |||||||
| PTEN Win Rate | 50% | 67% | 17% | 58% | 33% | 57% | |
| Peers Win Rate | 53% | 63% | 40% | 42% | 62% | 54% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 57% | |
Max Drawdowns [4] | |||||||
| PTEN Max Drawdown | -40% | -45% | -44% | -41% | -43% | -33% | |
| Peers Max Drawdown | -33% | -43% | -35% | -33% | -42% | -25% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: HP, NBR, HAL, SLB, BKR.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/7/2026 (YTD)
How Low Can It Go
| Event | PTEN | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -37.8% | -18.8% |
| % Gain to Breakeven | 60.7% | 23.1% |
| Time to Breakeven | 304 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -11.8% | -7.8% |
| % Gain to Breakeven | 13.4% | 8.5% |
| Time to Breakeven | 579 days | 18 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -34.6% | -6.7% |
| % Gain to Breakeven | 53.0% | 7.1% |
| Time to Breakeven | 49 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -76.8% | -33.7% |
| % Gain to Breakeven | 330.9% | 50.9% |
| Time to Breakeven | 327 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -45.6% | -19.2% |
| % Gain to Breakeven | 83.8% | 23.8% |
| Time to Breakeven | 1206 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -29.3% | -12.2% |
| % Gain to Breakeven | 41.4% | 13.9% |
| Time to Breakeven | 37 days | 62 days |
In The Past
Patterson-UTI Energy's stock fell -37.8% during the 2025 US Tariff Shock. Such a loss loss requires a 60.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | PTEN | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -37.8% | -18.8% |
| % Gain to Breakeven | 60.7% | 23.1% |
| Time to Breakeven | 304 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -34.6% | -6.7% |
| % Gain to Breakeven | 53.0% | 7.1% |
| Time to Breakeven | 49 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -76.8% | -33.7% |
| % Gain to Breakeven | 330.9% | 50.9% |
| Time to Breakeven | 327 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -45.6% | -19.2% |
| % Gain to Breakeven | 83.8% | 23.8% |
| Time to Breakeven | 1206 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -29.3% | -12.2% |
| % Gain to Breakeven | 41.4% | 13.9% |
| Time to Breakeven | 37 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -53.0% | -17.9% |
| % Gain to Breakeven | 112.6% | 21.8% |
| Time to Breakeven | 927 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -60.1% | -53.4% |
| % Gain to Breakeven | 150.7% | 114.4% |
| Time to Breakeven | 591 days | 1085 days |
In The Past
Patterson-UTI Energy's stock fell -37.8% during the 2025 US Tariff Shock. Such a loss loss requires a 60.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Patterson-UTI Energy (PTEN)
Patterson-UTI Energy (PTEN) is a prominent energy services company that provides essential onshore contract drilling and well completion services to oil and natural gas operators. Operating primarily in the United States and internationally, PTEN plays a crucial role in supporting the exploration and production activities of its energy sector clients.
The company's core services are structured across three main segments. Its Contract Drilling Services segment deploys a fleet of land-based drilling rigs to major U.S. regions such as West Texas, Appalachia, and Oklahoma, and internationally in Colombia. Complementing this, the Pressure Pumping Services segment offers critical well stimulation and completion services, including hydraulic fracturing, cementing, and acid pumping, concentrated in Texas and the Appalachian region.
PTEN further specializes in Directional Drilling Services, providing advanced solutions like directional drilling, measurement-while-drilling (MWD), and downhole performance motors, along with software designed to improve wellbore accuracy and efficiency. Additionally, the company supplies equipment services to drilling contractors, offers electrical controls and automation to diverse industries, and holds non-operating working interests in oil and natural gas assets. Its primary customer base consists of oil and natural gas operators requiring comprehensive drilling and well optimization support.
AI Analysis | Feedback
- Patterson-UTI Energy is like the **Amazon Web Services (AWS) for the oil and gas industry** – providing the essential physical infrastructure, specialized equipment, and technical services that energy companies need to get oil and gas out of the ground.
- Patterson-UTI Energy is like a **highly specialized general contractor for oil and gas wells**, handling the complex drilling, fracking, and well completion work.
- Patterson-UTI Energy is like **Industrial Light & Magic (ILM) for drilling oil wells** – providing the highly specialized technology and skilled operations needed for complex underground projects.
AI Analysis | Feedback
- Contract Drilling Services: Provides onshore contract drilling services to oil and natural gas operators using land-based drilling rigs.
- Pressure Pumping Services: Offers well stimulation services such as hydraulic fracturing, cementing, and acid pumping for well completion and remedial work.
- Directional Drilling Services: Delivers specialized services for controlling wellbore direction and trajectory, including measurement-while-drilling, downhole motors, and related software.
- Electrical Controls and Automation: Supplies electrical controls and automation systems to the energy, marine, and mining industries.
AI Analysis | Feedback
- Oil and natural gas operators: These companies utilize PTEN for onshore contract drilling services, well stimulation, hydraulic fracturing, cementing, acid pumping, and a suite of directional drilling services.
- Drilling contractors: PTEN provides equipment servicing to these entities.
- Companies within the energy, marine, and mining industries: For these industries, PTEN offers electrical controls and automation services.
AI Analysis | Feedback
AI Analysis | Feedback
William A. (Andy) Hendricks, Jr. - President and Chief Executive Officer
Mr. Hendricks has served as President and Chief Executive Officer of Patterson-UTI since October 2012, and as a director since June 2017. Prior to his CEO role, he was Chief Operating Officer of Patterson-UTI from April 2012 to September 2012. Before joining Patterson-UTI, Mr. Hendricks worked for 24 years at Schlumberger, where he held various positions, including drilling division President. His career in the energy industry spans offshore and onshore operations globally, and he began by working on an offshore drilling rig for Ocean Drilling & Exploration Company. No information is available regarding Mr. Hendricks founding or managing other companies, selling companies he was previously involved with, or a pattern of managing companies backed by private equity firms.
C. Andrew Smith - Executive Vice President and Chief Financial Officer
Mr. Smith has served as Executive Vice President and Chief Financial Officer of Patterson-UTI since September 2017. Before joining Patterson-UTI, Mr. Smith was Executive Vice President and Chief Financial Officer of Kirby Corporation from April 2014 to September 2017. He has also held executive financial leadership roles with other companies, including Global Industries, NATCO Group, and Benthic Geotech. Mr. Smith is a Certified Public Accountant. No information is available regarding Mr. Smith founding or managing other companies, selling companies he was previously involved with, or a pattern of managing companies backed by private equity firms.
James Michael Holcomb - Chief Operating Officer
Mr. Holcomb has served as Chief Operating Officer of Patterson-UTI since August 2025. He joined Patterson-UTI in 1988 through an acquisition and has since held numerous operational management roles. These roles include Executive Vice President and Chief Business Officer from September 2023 to August 2025, and President of Patterson-UTI Drilling Company LLC from January 2012 to December 2022.
Kenneth N. Berns - Executive Vice President and Chief Commercial Officer
Mr. Berns has served as Executive Vice President and Chief Commercial Officer of Patterson-UTI since May 2017. He previously served as a director of Patterson-UTI from May 2001 to June 2017 and as Senior Vice President from April 2003 to May 2017. Mr. Berns has been an executive with REMY Investors since 1994.
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 since February 2024. Prior to this, he served as Senior Vice President, General Counsel and Secretary from February 2017 to February 2024, and as General Counsel and Secretary from August 2009 to February 2017. From March 1998 to August 2009, Mr. Wexler specialized in securities law and mergers and acquisitions as a partner at the law firm of Norton Rose Fulbright US LLP.
AI Analysis | Feedback
The key risks to Patterson-UTI Energy (PTEN) largely stem from the inherent cyclicality and evolving landscape of the oil and natural gas industry.
- Commodity Price Volatility: Patterson-UTI Energy's business is highly dependent on the spending levels of oil and natural gas operators, which are directly influenced by the volatile prices of these commodities. Fluctuations, particularly sustained low prices for oil or natural gas, can significantly reduce demand for the company's contract drilling, pressure pumping, and directional drilling services, leading to decreased revenue, compressed profit margins, and lower rig utilization.
- Integration Risk from NexTier Merger: The company's recent substantial merger with NexTier Oilfield Solutions introduces significant integration risk. While this combination aims to provide scale and create a dominant, integrated North American land services player, its success relies entirely on effectively executing the merger and realizing the projected synergies. Failure to successfully integrate operations, systems, and cultures could lead to increased complexity, higher costs, and a failure to achieve the anticipated benefits.
- Energy Transition and Regulatory/Environmental Pressures: The oil and gas industry faces increasing long-term pressure from the global energy transition towards renewable resources, as well as evolving governmental regulations and environmental concerns. These pressures can manifest as stricter operating requirements, increased compliance costs, limitations on drilling activities, and a potential reduction in overall demand for fossil fuels over time, impacting Patterson-UTI Energy's long-term business prospects and operational flexibility.
AI Analysis | Feedback
The global shift towards renewable energy sources and the broader decarbonization trend pose a clear emerging threat to Patterson-UTI Energy (PTEN). As the world transitions away from fossil fuels due to climate change concerns, technological advancements in renewables, and supportive government policies, the long-term demand for oil and natural gas exploration and production is expected to decline. Since PTEN's core business relies entirely on providing contract drilling, pressure pumping, and directional drilling services for oil and natural gas operators, a sustained and accelerating reduction in fossil fuel demand would directly diminish the need for their services, fundamentally challenging their business model.
AI Analysis | Feedback
Contract Drilling Services
The global contract drilling market was valued at approximately USD 12.53 billion in 2023 and is projected to reach around USD 22.32 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 8.6% from 2024 to 2030.
The global drilling services market size was valued at USD 17.82 billion in 2025 and is projected to grow to USD 31.65 billion by 2034, exhibiting a CAGR of 6.41% during the forecast period. North America held a 26.48% share of this market in 2025, with the onshore segment dominating at 69.49% of the market share in 2026.
The U.S. drilling market is valued at USD 19 billion. The U.S. market for drilling services is poised to reach a valuation of USD 4.02 billion in 2026.
Pressure Pumping Services
The global pressure pumping market was valued at USD 95.57 billion in 2025 and is projected to reach USD 183.76 billion by 2035, growing at a CAGR of 6.76% from 2026 to 2035. North America dominated the global pressure pumping market with a 65% revenue share in 2025. Another estimate values the global pressure pumping market at USD 69.67 billion in 2023, projected to reach USD 110.76 billion by 2032, with a CAGR of 5.29% from 2024 to 2032. North America held over 42% of this market in 2023.
For hydraulic fracturing, a key component of pressure pumping services, the global market size was valued at USD 64.41 billion in 2025 and is anticipated to reach approximately USD 142.4 billion by 2035, expanding at a CAGR of 8.26% from 2026 to 2035. The U.S. hydraulic fracturing market is projected to grow at a 12.32% CAGR from 2025 to 2035 and captured the largest revenue share of 72% within North America in 2025.
For well cementing services, another component, the global market size was estimated at USD 8.8 billion in 2023 and is anticipated to reach USD 11.6 billion by 2030, with a CAGR of 4.1% from 2024 to 2030. North America secured 41.1% of the global revenue share in 2023 for well cementing services and is currently estimated to hold over 42.1% in 2025. The oil and gas cementing services market was valued at USD 10,020.83 million in 2025 and is expected to increase to USD 14,100.32 million by 2032, growing at a CAGR of 5.0%.
Directional Drilling Services
The global directional drilling services market is expected to reach USD 17.57 billion in 2025 and grow to USD 25.05 billion by 2030 at a CAGR of 7.35%. Another estimate indicates the global market was valued at USD 38.73 billion in 2024 and is projected to grow to USD 75.62 billion by 2035, exhibiting a CAGR of 6.27% from 2025 to 2035. North America led the global market with a 36.8% share in 2024 and dominated with a 29.77% share in 2025.
The U.S. horizontal directional drilling market generated a revenue of USD 1,892.3 million in 2024 and is expected to reach USD 3,135.3 million by 2030, growing at a CAGR of 8.5% from 2025 to 2030. The United States directional drilling services market is projected to grow from USD 2.73 billion in 2025 to USD 3.75 billion by 2031 at a 5.43% CAGR.
For Measurement-While-Drilling (MWD) services, the global market size was valued at USD 16.29 billion in 2024 and is projected to grow from USD 17.58 billion in 2025 to USD 32.29 billion by 2033, with a CAGR of 7.9% during the forecast period. North America dominated the global MWD market with a 39% share in 2025. The U.S. Measurement While Drilling (MWD) market captured the largest revenue share within North America in 2025. The U.S. market is expected to stand at USD 0.97 billion in 2026.
The global downhole tools market, which includes downhole performance motors, was valued at USD 5.18 billion in 2025 and is projected to reach USD 7.58 billion by 2033, growing at a CAGR of 4.9% from 2025 to 2033. North America held the largest share of 34.9% of the global downhole tools market in 2025. The U.S. downhole tools market size is estimated to hit USD 0.82 billion in 2026.
AI Analysis | Feedback
- Continued strength and market share gains in the Completion Services segment: This segment has been identified as a primary revenue driver, demonstrating positive year-over-year revenue growth in Q4 2025. Sustained strong performance and potential market share expansion within completion services are anticipated to contribute to future revenue.
- Leveraging technological advancements and a differentiated drilling fleet: Patterson-UTI's investment in advanced technologies, such as its APEX drilling rigs utilizing CORTEX technology (AI-driven software and automation), provides a competitive advantage. These differentiated offerings can attract customers seeking efficient and high-performance drilling solutions, potentially leading to increased demand and revenue.
- Expansion and optimization of integrated service offerings: The company's comprehensive suite of services, encompassing contract drilling, pressure pumping, directional drilling, and drilling products, allows for deeper customer relationships and cross-selling opportunities. The successful integration of acquisitions, like NexTier's fleet and software, further enhances this integrated approach, contributing to overall revenue growth.
- Sustained demand from structural customer activity in oil and natural gas production: The ongoing necessity for drilling and completion services to counteract natural decline rates and maintain existing oil and natural gas production levels creates a foundational demand for Patterson-UTI's offerings. The company's ability to consistently meet this demand is a key driver for its revenue base.
AI Analysis | Feedback
Share Repurchases
- Patterson-UTI Energy authorized a new $1 billion share buyback program in February 2024, with no specified expiration date.
- The company repurchased $34 million in shares during the third quarter of 2025 and $16 million in the second quarter of 2025.
- Between the closing of the NexTier merger and Ulterra acquisition through June 30, 2025, Patterson-UTI repurchased over 37 million shares, exceeding the shares issued for the Ulterra acquisition and reducing its share count by 8%.
Share Issuance
- In July 2021, as part of the acquisition of Pioneer Energy Services Corp. for $295 million, Patterson-UTI Energy issued up to 26,275,000 shares of its common stock.
Inbound Investments
- In the third quarter of 2025, Magnetar Financial LLC increased its holdings in Patterson-UTI Energy by 728.4%, owning 280,919 shares valued at approximately $1.46 million.
- American Century Companies Inc. boosted its stake in Patterson-UTI Energy by 7.9% in the third quarter of 2025, holding approximately 15.6 million shares.
- Numerous institutional investors, including Royal Bank of Canada, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., Goldman Sachs Group Inc., and Ninepoint Partners LP, also increased their ownership in PTEN during 2025.
Outbound Investments
- In July 2021, Patterson-UTI Energy agreed to acquire Pioneer Energy Services Corp. for $295 million, which included clearing Pioneer's debt and a $30 million cash payment, in addition to the share issuance.
- Patterson-UTI entered a multi-year agreement to lease two APEX 1500 drilling rigs to DLS Archer Ltd. S.A. for operations in Argentina's Vaca Muerta basin, representing an international expansion.
- The company opened a new drill-bit manufacturing facility in Saudi Arabia.
Capital Expenditures
- Patterson-UTI Energy's capital expenditures for the full year 2025 were approximately $600 million.
- The company forecasts full-year 2026 capital expenditures to be less than $500 million, net of asset sales, representing approximately a 15% reduction from 2025.
- Expected capital expenditures for 2026 are primarily focused on Drilling (approximately 40%), Completion Services (approximately 45%, including $65 million for new Emerald natural-gas fleets), and Drilling Products (just over 10%), with an emphasis on maintaining the high-demand portion of its fleet and investing in new technologies and automation.
Latest Trefis Analyses
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 40.11 |
| Mkt Cap | 15.9 |
| Rev LTM | 13,416 |
| Op Inc LTM | 1,622 |
| FCF LTM | 976 |
| FCF 3Y Avg | 1,249 |
| CFO LTM | 1,819 |
| CFO 3Y Avg | 2,203 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -0.1% |
| Rev Chg 3Y Avg | 7.5% |
| Rev Chg Q | 1.1% |
| QoQ Delta Rev Chg LTM | 0.3% |
| Op Inc Chg LTM | -18.7% |
| Op Inc Chg 3Y Avg | 0.6% |
| Op Mgn LTM | 10.5% |
| Op Mgn 3Y Avg | 11.3% |
| QoQ Delta Op Mgn LTM | -0.6% |
| CFO/Rev LTM | 15.6% |
| CFO/Rev 3Y Avg | 19.5% |
| FCF/Rev LTM | 7.0% |
| FCF/Rev 3Y Avg | 7.6% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 15.9 |
| P/S | 1.0 |
| P/Op Inc | 11.4 |
| P/EBIT | 6.7 |
| P/E | 11.0 |
| P/CFO | 7.9 |
| Total Yield | 7.3% |
| Dividend Yield | 1.7% |
| FCF Yield 3Y Avg | 6.4% |
| D/E | 0.3 |
| Net D/E | 0.2 |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Completion Services | 2,892 | 3,233 | 2,017 | ||
| Drilling Services | 1,558 | 1,728 | 1,976 | ||
| Drilling Products | 344 | 352 | 135 | ||
| Other | 33 | 66 | 79 | ||
| Elimination of intercompany revenues - Drilling Services | -57 | -12 | -4 | ||
| Elimination of intercompany revenues - Other | -4 | -26 | -18 | ||
| Contract drilling | 1,329 | 668 | |||
| Directional drilling | 216 | 111 | |||
| Other operations | 118 | 76 | |||
| Pressure pumping | 1,022 | 524 | |||
| Total | 4,827 | 5,378 | 4,146 | 2,648 | 1,357 |
| $ Mil | 2025 | 2024 | 2023 | 2015 | 2014 |
|---|---|---|---|---|---|
| Drilling Services | 197 | 24 | 422 | ||
| Drilling Products | 26 | 204 | -7 | ||
| Other | -2 | -0 | 3 | ||
| Completion Services | -79 | -899 | 140 | ||
| Corporate | -183 | -219 | -206 | ||
| Credit loss expense | -1 | ||||
| Contract Drilling | -91 | 242 | |||
| Corporate and Other | -58 | -42 | |||
| Elimination | 11 | ||||
| Oil and natural gas | -13 | -5 | |||
| Pressure Pumping | -255 | 89 | |||
| Total | -41 | -890 | 352 | -407 | 283 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Completion Services | 2,341 | 2,469 | 3,836 | ||
| Drilling Services | 1,866 | 2,048 | 2,369 | ||
| Drilling Products | 1,019 | 966 | 1,012 | ||
| Corporate | 315 | 295 | 145 | 190 | 157 |
| Other | 29 | 56 | 59 | ||
| Contract drilling | 2,197 | 2,170 | |||
| Directional drilling | 121 | 87 | |||
| Other operations | 94 | 86 | |||
| Pressure pumping | 542 | 458 | |||
| Total | 5,570 | 5,833 | 7,420 | 3,144 | 2,958 |
Price Behavior
| Market Price | $9.15 | |
| Market Cap ($ Bil) | 3.5 | |
| First Trading Date | 11/02/1993 | |
| Distance from 52W High | -28.2% | |
| 50 Days | 200 Days | |
| DMA Price | $11.17 | $8.27 |
| DMA Trend | up | indeterminate |
| Distance from DMA | -18.1% | 10.6% |
| 3M | 1YR | |
| Volatility | 59.5% | 50.4% |
| Downside Capture | -69.58 | -26.42 |
| Upside Capture | -107.81 | 32.11 |
| Correlation (SPY) | -31.2% | 4.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.37 | -0.67 | -1.32 | -0.73 | 0.18 | 1.26 |
| Up Beta | -4.58 | -4.39 | -3.56 | -2.73 | -1.05 | 1.18 |
| Down Beta | 0.38 | 0.47 | 1.06 | 0.97 | 1.54 | 2.14 |
| Up Capture | -61% | -85% | -66% | -2% | 28% | 42% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 8 | 17 | 30 | 70 | 134 | 367 |
| Down Capture | 139% | 93% | -75% | -189% | -38% | 99% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 12 | 23 | 32 | 54 | 115 | 372 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PTEN | |
|---|---|---|---|---|
| PTEN | 52.5% | 50.4% | 1.00 | - |
| Sector ETF (XLE) | 28.7% | 20.9% | 1.11 | 74.3% |
| Equity (SPY) | 20.7% | 12.5% | 1.22 | 3.7% |
| Gold (GLD) | 23.0% | 27.8% | 0.73 | -5.5% |
| Commodities (DBC) | 22.9% | 18.6% | 0.97 | 53.8% |
| Real Estate (VNQ) | 13.6% | 13.8% | 0.68 | 2.3% |
| Bitcoin (BTCUSD) | -41.8% | 42.8% | -1.14 | 13.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PTEN | |
|---|---|---|---|---|
| PTEN | 1.0% | 55.1% | 0.23 | - |
| Sector ETF (XLE) | 19.5% | 25.9% | 0.68 | 77.9% |
| Equity (SPY) | 13.3% | 17.1% | 0.60 | 38.5% |
| Gold (GLD) | 17.8% | 18.3% | 0.79 | 8.9% |
| Commodities (DBC) | 7.6% | 19.5% | 0.29 | 56.3% |
| Real Estate (VNQ) | 3.1% | 18.9% | 0.06 | 27.4% |
| Bitcoin (BTCUSD) | 13.2% | 53.5% | 0.43 | 16.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PTEN | |
|---|---|---|---|---|
| PTEN | -5.8% | 62.2% | 0.18 | - |
| Sector ETF (XLE) | 9.3% | 29.6% | 0.36 | 76.5% |
| Equity (SPY) | 15.7% | 17.9% | 0.75 | 42.7% |
| Gold (GLD) | 11.6% | 16.1% | 0.59 | 4.1% |
| Commodities (DBC) | 6.2% | 18.0% | 0.27 | 53.5% |
| Real Estate (VNQ) | 5.6% | 20.7% | 0.23 | 32.2% |
| Bitcoin (BTCUSD) | 57.9% | 66.2% | 0.98 | 12.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 6/2/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/23/2026 | 1.7% | 9.7% | 10.5% |
| 2/5/2026 | 6.0% | -0.4% | 14.8% |
| 10/23/2025 | -1.9% | -6.8% | -18.2% |
| 7/24/2025 | -2.9% | -3.1% | -4.8% |
| 4/24/2025 | -0.2% | -3.9% | -6.2% |
| 2/6/2025 | 2.9% | 8.4% | -11.1% |
| 10/24/2024 | 2.5% | -3.8% | 8.9% |
| 7/25/2024 | -0.1% | -2.2% | -10.8% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 16 | 11 | 11 |
| # Negative | 8 | 13 | 13 |
| Median Positive | 3.1% | 8.4% | 14.8% |
| Median Negative | -1.7% | -3.9% | -10.5% |
| Max Positive | 7.7% | 26.3% | 62.4% |
| Max Negative | -14.4% | -11.8% | -21.3% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/23/2026 | 1.7% | 9.7% | 10.5% |
| 2/5/2026 | 6.0% | -0.4% | 14.8% |
| 10/23/2025 | -1.9% | -6.8% | -18.2% |
| 7/24/2025 | -2.9% | -3.1% | -4.8% |
| 4/24/2025 | -0.2% | -3.9% | -6.2% |
| 2/6/2025 | 2.9% | 8.4% | -11.1% |
| 10/24/2024 | 2.5% | -3.8% | 8.9% |
| 7/25/2024 | -0.1% | -2.2% | -10.8% |
| 5/2/2024 | 0.9% | 5.4% | -1.1% |
| 2/15/2024 | 2.6% | -1.5% | -0.2% |
| 11/8/2023 | -0.8% | -2.4% | -10.5% |
| 7/26/2023 | 0.9% | 0.6% | -8.6% |
| 4/27/2023 | -1.5% | -8.1% | -7.6% |
| 2/8/2023 | -14.4% | -11.8% | -21.3% |
| 10/26/2022 | 4.1% | 8.7% | 8.7% |
| 7/27/2022 | 3.3% | 1.4% | 7.1% |
| 4/27/2022 | 7.5% | 8.3% | 20.1% |
| 2/10/2022 | 3.9% | 26.3% | 47.3% |
| 10/28/2021 | 0.0% | 0.4% | -21.2% |
| 7/29/2021 | 1.6% | -11.7% | -12.4% |
| 4/29/2021 | 3.3% | 18.7% | 25.6% |
| 2/4/2021 | -9.3% | -6.0% | 39.5% |
| 10/22/2020 | 7.7% | -4.6% | 62.4% |
| 7/23/2020 | 7.5% | 11.1% | 7.5% |
| SUMMARY STATS | |||
| # Positive | 16 | 11 | 11 |
| # Negative | 8 | 13 | 13 |
| Median Positive | 3.1% | 8.4% | 14.8% |
| Median Negative | -1.7% | -3.9% | -10.5% |
| Max Positive | 7.7% | 26.3% | 62.4% |
| Max Negative | -14.4% | -11.8% | -21.3% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/28/2026 | 10-Q |
| 12/31/2025 | 02/10/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/29/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/11/2025 | 10-K |
| 09/30/2024 | 10/28/2024 | 10-Q |
| 06/30/2024 | 07/29/2024 | 10-Q |
| 03/31/2024 | 05/06/2024 | 10-Q |
| 12/31/2023 | 02/27/2024 | 10-K |
| 09/30/2023 | 11/09/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/01/2023 | 10-Q |
| 12/31/2022 | 02/13/2023 | 10-K |
| 09/30/2022 | 10/31/2022 | 10-Q |
| 06/30/2022 | 08/02/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/28/2026 | 10-Q |
| 12/31/2025 | 02/10/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/29/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/11/2025 | 10-K |
| 09/30/2024 | 10/28/2024 | 10-Q |
| 06/30/2024 | 07/29/2024 | 10-Q |
| 03/31/2024 | 05/06/2024 | 10-Q |
| 12/31/2023 | 02/27/2024 | 10-K |
| 09/30/2023 | 11/09/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/01/2023 | 10-Q |
| 12/31/2022 | 02/13/2023 | 10-K |
| 09/30/2022 | 10/31/2022 | 10-Q |
| 06/30/2022 | 08/02/2022 | 10-Q |
| 03/31/2022 | 05/03/2022 | 10-Q |
| 12/31/2021 | 02/16/2022 | 10-K |
| 09/30/2021 | 11/02/2021 | 10-Q |
| 06/30/2021 | 08/03/2021 | 10-Q |
| 03/31/2021 | 05/04/2021 | 10-Q |
| 12/31/2020 | 02/09/2021 | 10-K |
| 09/30/2020 | 10/27/2020 | 10-Q |
| 06/30/2020 | 07/28/2020 | 10-Q |
| 03/31/2020 | 04/28/2020 | 10-Q |
| 12/31/2019 | 02/13/2020 | 10-K |
| 09/30/2019 | 10/30/2019 | 10-Q |
| 06/30/2019 | 07/29/2019 | 10-Q |
Insider Activity
Updated 6/9/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Hendricks, William Andrew JR | President & CEO | Direct | Sell | 6092026 | 11.64 | 200,000 | 2,328,000 | 29,594,397 | Form |
| 2 | Holcomb, James Michael | EVP & Chief Operating Officer | Direct | Sell | 6012026 | 11.47 | 150,000 | 1,720,500 | 4,834,869 | Form |
| 3 | Jaime, Cesar | Direct | Sell | 5072026 | 12.29 | 10,000 | 122,900 | 952,008 | Form | |
| 4 | Drummond, Robert Wayne JR | Direct | Sell | 5042026 | 12.02 | 61,475 | 738,930 | 13,567,851 | Form | |
| 5 | Drummond, Robert Wayne JR | Direct | Sell | 5042026 | 12.04 | 322,699 | 3,885,296 | 14,330,586 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Hendricks, William Andrew JR | President & CEO | Direct | Sell | 6092026 | 11.64 | 200,000 | 2,328,000 | 29,594,397 | Form |
| 2 | Holcomb, James Michael | EVP & Chief Operating Officer | Direct | Sell | 6012026 | 11.47 | 150,000 | 1,720,500 | 4,834,869 | Form |
| 3 | Jaime, Cesar | Direct | Sell | 5072026 | 12.29 | 10,000 | 122,900 | 952,008 | Form | |
| 4 | Drummond, Robert Wayne JR | Direct | Sell | 5042026 | 12.02 | 61,475 | 738,930 | 13,567,851 | Form | |
| 5 | Drummond, Robert Wayne JR | Direct | Sell | 5042026 | 12.04 | 322,699 | 3,885,296 | 14,330,586 | Form | |
| 6 | Hendricks, William Andrew JR | President & CEO | Direct | Sell | 5042026 | 11.85 | 250,000 | 2,962,500 | 33,453,771 | Form |
| 7 | Drummond, Robert Wayne JR | Trust(s) | Sell | 3182026 | 10.18 | 164,775 | Form | |||
| 8 | Cepak, Tiffany Thom | Direct | Sell | 3062026 | 8.86 | 12,000 | 106,320 | 1,427,443 | Form | |
| 9 | Drummond, Robert Wayne JR | Trust(s) | Sell | 2172026 | 8.17 | 400,000 | 3,268,000 | 1,346,212 | Form | |
| 10 | Stewart, James Carl | JCS Partners LP | Sell | 12192025 | 5.87 | 368,254 | 2,161,651 | 1,215,090 | Form | |
| 11 | Stewart, James Carl | JCS Partners LP | Sell | 12192025 | 5.87 | 350,000 | 2,054,500 | 3,376,741 | Form | |
| 12 | Stewart, James Carl | JCS Partners LP | Sell | 6042025 | 5.51 | 74,500 | 410,495 | 5,098,150 | Form |
Industry Resources
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.