Patterson-UTI Energy, Inc.NASDAQ
Patterson-UTI: The Cyclical Bottom Is Still Ahead
Patterson-UTI: Investors Are Anticipating An Upcycle
Tue, Sep. 6, 7:29 AM
Tue, Aug. 16, 12:44 PM
- Marathon Oil (MRO +2.1%) is higher after BofA/Merrill Lynch upgrades shares to Buy from Neutral with a $21 price target, saying it believes management can resume growth in oil and gas production in 2017 as the addition of the STACK play likely dominating incremental drilling activity starting in H2.
- The firm says MRO is one of the most oil levered large-cap U.S. oil names, which positions the stock for upside to peers based on a binary outcome of higher oil prices; during recent months, MRO also has improved the balance sheet, increased capital flexibility and scooped up PayRock Energy Holdings.
- The MRO move is part of BofA/Merrill's more upbeat outlook for the broader energy sector, noting that when oil has rallied more than 25%, energy has outperformed the market nearly 90% of the time; the firm also upgrades Noble Corp. (NE -2.9%) and Patterson-UTI Energy (PTEN +1.9%) to Neutral from Underperform, and adds Devon Energy (DVN +1.8%) to its US 1 List.
Thu, Jul. 28, 6:05 AM
Wed, Jul. 27, 5:30 PM
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Tue, Jul. 12, 10:58 AM
- Forum Energy Technologies (FET +3.6%) is downgraded to Underweight from Neutral with a $10 price target at J.P. Morgan, which says expectations "have run too hard too fast" with other North American beta plays, and "a re-rating could lead to underperformance [in H2 2016] relative to equipment peers."
- FET shares have risen significantly since February on better expectations for normalized activity in the next cycle, but the firm sees the possibility for a retreat as expectations reset in H2 if oil prices struggle to move higher and rig counts remain volatile.
- JPM's other North American onshore Underweight-rated stocks that could underperform in a retrench in expectations include Helmerich & Payne (HP +4.2%) and Patterson-UTI Energy (PTEN +2.6%).
Mon, Jul. 11, 3:59 PM
- Patterson-UTI (PTEN -1.6%) is lower despite earning an upgrade to Buy from Hold with a $25 price target, lifted from $19, at Jefferies, which believes PTEN is positioned to benefit from increased hydraulic fracturing demand expected over the next several years.
- The firm foresees PTEN's pumping division revenues and EBITDA at a respective 15% and 45% higher in 2020 than the peak quarterly run-rate of the prior cycle, citing on a combination of more equipment and higher per-job profitability.
Wed, Jun. 1, 3:54 PM
- Land-based oil drillers "all look overvalued," Credit Suisse analysts say as they downgrade Helmerich & Payne (HP -2.1%), Patterson-UTI Energy (PTEN -2%) and Precision Drilling (PDS -4.6%) to Underperform from Neutral, and Nabors Industries (NBR -3.8%) to Neutral from Outperform, predicting current spot rates likely will fall when incremental rigs go to work.
- Among the group, the firm sees HP as "the worst offender" on valuation, with overly optimistic assumptions for $35K spot market dayrates and forgiveness of deferred tax liabilities still not enough to justify the current price based on its rig count, while NBR is "the relative winner due to its international exposure."
- The firm prefers Baker Hughes (BHI +0.1%) and Halliburton (HAL -0.1%) in the sector due to their North American exposure and expectations of execution, while Schlumberger (SLB -0.6%) "has valuation headwinds and issues with exploration, deepwater and international exposure, but longer-term exposure to the stock is essential."
- Now read Moody's: Drillers will be the last to recover in the oil patch (May 16)
Fri, Apr. 29, 1:58 PM
- In a bid to save approx. $47M annually, Patterson-UTI Energy (NASDAQ:PTEN) whacks quarterly dividend by 80% to $0.02/share.
- Forward yield 0.41%
- Payable June 23; for shareholders of record June 9; ex-div June 7.
Thu, Apr. 28, 6:14 AM
- Patterson-UTI Energy (NASDAQ:PTEN): Q4 EPS of -$0.48 beats by $0.06.
- Revenue of $269M (-59.1% Y/Y) beats by $10.71M.
Wed, Apr. 27, 5:30 PM
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Fri, Apr. 15, 12:39 PM
- Investor hopes of further gains in oil prices are unrealistic, and expectations for U.S. onshore drilling stocks are sporting inflated multiples, J.P. Morgan analysts say as they reduce ratings where expectations may have jumped too far too fast.
- The firm downgrades Helmerich & Payne (HP -2.6%) and Patterson-UTI (PTEN -3.6%) to Underweight from Neutral with respective $39 and $13 price targets, saying that while both have strong management teams and solid execution should continue, it is "skeptical of the macro environment required to deliver on the current elevated multiples embedded in each stock."
- Superior Energy (SPN -1.2%) is downgraded to Neutral from Overweight with a $13 price target, with JPM saying SPN has faced several challenges in recent quarters and likely will have a difficult H1, although cost adjustments should provide some support to the company in H2.
- Now read Anadarko, Antero upgraded; Southwestern, EP Energy cut at J.P. Morgan
Fri, Mar. 18, 12:24 PM
- Patterson-UTI (PTEN -5.4%), Superior Energy Services (SPN -6.5%) and Forum Energy Tech (FET -3.3%) are downgraded to Neutral from Buy at Citigroup, which believes the market may have gotten ahead of itself for the stocks.
- “For those already reflecting recovery multiples, we expect oil betas to begin diminishing or the stocks to simply take a pause in the absence of additional catalysts near term," Citi analyst Scott Gruber writes.
- The firm maintains its Buy ratings on Halliburton (HAL -1.1%) and U.S. Silica (SLCA -3.5%), saying the consensus 2018 recovery earnings estimates for the two high-quality companies remain too low.
Mon, Mar. 7, 6:49 PM
- Offshore drillers such as Seadrill (SDRL) staged a spectacular rebound last week, but Wells Fargo analysts Judson Bailey and his team suspect the group has come too far too fast.
- Although the firm says it remains constructive on the prospects of a long-term recovery in oil prices and in North American spending, it advises against chasing the short-covering induced rally and believes most offshore drillers have swung from fairly valued to overvalued.
- Wells says it prefers a balance of North American market share winners such as Baker Hughes (NYSE:BHI) and Halliburton (NYSE:HAL) along with select higher beta names such as U.S. Silica (NYSE:SLCA), Nabors Industries (NYSE:NBR) and Patterson-UTI (NASDAQ:PTEN) as a way to play a North American recovery.
- It's still "a game of survival" in offshore drilling, Barclays' David Anderson says, not expecting improvement in the downward trajectory of offshore upstream spending over the next two years, even if oil moves back above $50/bbl by year-end.
- Barclays is “extremely cautious” on offshore drilling stocks, with the firm seeing the most potential downside to Underweight-rated Transocean (NYSE:RIG), Diamond Offshore (NYSE:DO) and Noble Corp. (NYSE:NE)
Thu, Feb. 4, 6:04 AM
- Patterson-UTI Energy (NASDAQ:PTEN): Q4 EPS of -$0.40 beats by $0.08.
- Revenue of $338.56M (-62.4% Y/Y) beats by $15.01M.
Wed, Feb. 3, 5:30 PM
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Wed, Jan. 20, 6:38 PM
- ConocoPhillips (NYSE:COP), ExxonMobil (NYSE:XOM), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY) are retained with Outperform ratings at Wells Fargo, which says the average upside potential for the four in its international E&P and integrated oil group is 38% at the top end of its valuation range and 25% at the lower end.
- From both a debt-adjusted cash flow and enterprise value/EBITDA standpoint, MRO and Market Perform-rated Chevron (NYSE:CVX) and Murphy Oil (NYSE:MUR) carry the most discounted valuations, the firm says.
- Among oil services stocks, the firm likes Halliburton (NYSE:HAL), RPC (NYSE:RES), Patterson-UTI Energy (NASDAQ:PTEN), U.S. Silica (NYSE:SLCA) and Nabors Industries (NYSE:NBR) to survive the downturn while maintaining the financial flexibility to thrive and take share in a North American recovery.
- Earlier: Wells Fargo's MLPs most likely to cut distributions: ETE, ETP, WMB, WPZ, AMID, APLP, CCLP, CEQP (Jan. 15)