Patterson-UTI Q2 swings to Q2 net loss

Overview

• Patterson-UTI Q2 2025 revenue largely in-line with analyst expectations, totaling $1,219 mln

• Company reports net loss of $48.7 mln, including $28 mln non-cash asset impairment

• Adjusted EBITDA for Q2 at $231 mln, $46 mln returned to shareholders in Q2

Outlook

• Company expects Q3 Drilling Services adjusted gross profit of $130 mln

• Company anticipates steady Q3 Completion Services activity and adjusted gross profit vs Q2

• Company expects slight improvement in Q3 Drilling Products adjusted gross profit, sequentially

• Company reduces 2025 maintenance capital expenditures expectations due to lower activity

Result Drivers

• ASSET IMPAIRMENT - $28 mln non-cash asset impairment in Colombian drilling operations contributed to net loss

• NATURAL GAS ACTIVITY - Slight improvement in natural gas basin activity, with steady demand expected into Q3

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas drilling peer group is "buy"

• Wall Street's median 12-month price target for Patterson-UTI Energy Inc is $7.50, about 17.7% above its July 23 closing price of $6.17

Press Release: ID:nACStJmL1a