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Patterson-UTI Energy, Inc. (PTEN)

  • Jun. 11, 2014, 5:59 PM
    • It's time to lock in profits in Patterson-UTI Energy (PTEN), Barron's David Englander writes, after shares have surged 123% since July 2012.
    • While drilling demand shows signs of strengthening, Englander thinks PTEN shares likely reflect much of the good prospects, trading for an enterprise value of 4.8x next year's EBITDA and above their average 4.4x multiple since 2006.
    • Cowen analyst James Crandell warns to expect little improvement in dayrates from this point thanks to the aggressive adding of rigs by several contract drillers.
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  • Jun. 6, 2014, 2:24 PM
    • Patterson-UTI (PTEN +2%) is higher on news of a deal with an unidentified privately-held company to acquire pressure pumping operations in east Texas, including 31.5K horsepower of hydraulic fracturing equipment.
    • PTEN says the purchase provides it with a new base of operations to support drilling programs, supplementing its existing operations in the Permian Basin as well as the Eagle Ford and Barnett shale formations; PTEN also has a significant presence in the Marcellus and Utica shale plays in the eastern U.S.
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  • Apr. 24, 2014, 6:11 AM
    • Patterson-UTI Energy, Inc. (PTEN): Q1 EPS of $0.24 misses by $0.01.
    • Revenue of $678.2M (+1.7% Y/Y) misses by $1.32M.
    • Press Release
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  • Apr. 22, 2014, 5:15 PM
    • Some S&P energy stocks set new 52-week highs today, including Hess (HES), EQT and Baker Hughes (BHI), as the sector begins to catch up to the hype about the U.S. energy renaissance.
    • Analysts say oil and gas drillers are just starting to reap the benefits of an ancillary boom in energy-related technology and innovation; RBC Capital sees bullish prospects for rig companies, adding that drillers such as Helmerich & Payne (HP), Patterson-UTI (PTEN) and Nabors Industries (NBR) are best positioned to capitalize on the boom.
    • BofA/Merrill's Stephen Suttmeier offers a technical set-up, seeing energy poised for a breakout similar to Oct. 2010, when the sector moved above its 13-, 26- and 40-week relative moving averages and outperformed for another six months.
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  • Apr. 17, 2014, 11:29 AM
    • Deutsche Bank analysts raise their price targets on top oil service stocks (OIH), seeing increasing strength in a North American cyclical recovery with current forward earnings estimates perhaps proving to be conservative.
    • Basic Energy Services (BAS) gets a big price boost to $43 from $18, citing a recent activity update that indicated utilization levels had increased across all the company’s business segments.
    • Other top stocks rated Buy at the firm, including those whose price objectives have been raised: BHI, EXH, HAL, PTEN, PES, SLB.
  • Mar. 17, 2014, 12:25 PM
    • Patterson-UTI Energy (PTEN +4.3%) is upgraded to Buy from Neutral with a new $37 price target, up from $28.50, at Goldman Sachs on expectations for higher onshore pricing in North America that should help PTEN reach margin targets.
    • Goldman says it is adding PTEN, the second largest land driller and premier Marcellus and Permian pressure pumper, to its Conviction Buy list given its price increase forecast for drilling rigs and pressure pumping; Halliburton (HAL +2.3%), the leading U.S. pressure pumper, already is on Goldman's list.
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  • Feb. 20, 2014, 12:44 PM
    • Nabors Industries (NBR +3.4%) extends yesterday's big gains after posting strong Q4 results, and Morgan Stanley thinks shares can move a lot higher, upgrading NBR to Overweight from Equal Weight and raising its price target to $28 from $18.
    • NBR has underperformed peers Helmerich & Payne (HP) and Patterson-UTI (PTEN) by ~25% since Q3 2013 on poor operational execution and a muddled corporate strategy, but Stanley sees signs that NBR's  North America results have bottomed and execution has gained relative traction.
    • The firm also expects operational streamlining to gain momentum over coming quarters and is encouraged by the appointment of a new CFO.
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  • Feb. 7, 2014, 12:49 PM
    • Patterson-UTI Energy (PTEN +1%) is upgraded to Buy from Neutral with a $33 price target, raised from $22, at Global Hunter even after yesterday's 13.5% surge following a Q4 earnings beat.
    • In its earnings call, the firm says PTEN elaborated on its solid beat by outlining incremental rig activations, equipment and service upgrades that increase demand and reduce costs, rate improvements and controlled costs for drilling services, and strong pressure pumping revenues.
    • The firm believes PTEN is setting itself up for a strong future and thinks investors will pony up 5x EBITDA for the shares.
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  • Feb. 6, 2014, 2:24 PM
    • Patterson-UTI Energy (PTEN +14.2%) soars after issuing Q4 earnings above analyst expectations, and investors focus on the company’s ongoing replacement of its rig fleet with higher specification, higher margin electrical rigs.
    • PTEN added 11 of the high-spec rigs during 2013 and plans to add another 20 in 2014, 10 of which are already under contract.
    • At year-end 2013, PTEN had term contracts for drilling rigs providing for ~$946M of future dayrate drilling revenue; operating days slid from 80,833 in 2012 to 69,918 in 2013, though the average revenue gained from each day rose from to ~$24K from ~$22.5K as newer rigs gained higher rates.
    • Based on contracts in place, PTEN expects an average of 124 rigs operating under term contracts during Q1 and an average of 93 rigs operating under term contracts during FY 2014.
    • Doubles its quarterly stock dividend to $0.10/share.
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  • Feb. 6, 2014, 6:04 AM
    • Patterson-UTI Energy, Inc. (PTEN): Q4 EPS of $0.28 beats by $0.06.
    • Revenue of $659M (+0.9% Y/Y) beats by $4.4M.
    • Press Release
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  • Feb. 6, 2014, 12:05 AM
  • Feb. 5, 2014, 5:30 PM
  • Dec. 31, 2013, 10:32 AM
    • Oil services analysts at Deutsche Bank are very positive on the sector for next year, despite pervasive fears of weakening U.S. oil prices.
    • Baker Hughes (BHI), Halliburton (HAL), Hercules Offshore (HERO) and Nabors Industries (NBR) are the firm's highest conviction choices and include price targets much higher than consensus; NBR's $27 target is the highest on Wall Street and would represent a 60% gain from current levels.
    • The firm also sees strong upside potential in Patterson-UTI Energy (PTEN), Pioneer Energy Services (PES) and Schlumberger (SLB).
  • Nov. 8, 2013, 8:52 AM
    • ISI Group turns bullish on the U.S. land rig and oil services sector after two years at neutral, as "E&P capex budgets finally appear poised for meaningful increases in 2014 driven by higher WTI prices, solid domestic production growth, and continued success in select basins." (
    • The firm's top picks are Patterson-UTI Energy (PTEN), upgraded to Strong Buy, and Buy-rated Nabors Industries (NBR), Key Energy (KEG), and Helmerich & Payne (HP).
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  • Oct. 28, 2013, 7:58 AM
    • Transocean (RIG) is cut to Sell from Neutral with a $50 price target, down from $53, at Goldman Sachs, which believes fundamentals will take over at the end of technical buying prompted by news of RIG's upcoming addition to the S&P 500 index.
    • Among other reasons for the downgrade: RIG faces significant contract renewal risk, as several of its deepwater rigs end their contracts during the next six months, in an environment where significant new capacity is being added to the market; and the key catalyst for offshore drillers is increases in dayrates, and rates have flattened for UDW rigs while early signs of utilization/dayrate weakness in the deepwater market are emerging.
    • Meanwhile, Goldman upgrades Patterson-UTI (PTEN) to Neutral from Sell, believing the worst is over for PTEN and Q3 earnings call commentary from E&Ps points towards increased drilling activity in 2014.
    • RIG -0.8% premarket.
  • Oct. 25, 2013, 3:58 PM
    • Patterson-UTI (PTEN +1%) is downgraded to Hold from Buy with a $23 price target, down from $25, at Wunderlich after the rig operator's "decent" Q3 results.
    • Revenues and EBITDA were near the firm's and the Street's estimates for the quarter, but Q4 guidance causes the firm to lower its estimates dramatically heading into the year-end.
    • While the firm still believes PTEN has a premier rig fleet headlined by its APEX rigs and remains a player in the pressure pumping game, continued OFS efficiency gains plus E&Ps remaining content in growth of activity prompts a more cautious stance.
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Company Description
Patterson-UTI Energy Inc is a provider of contract services to the oil and natural gas industry. It operates in three segments namely contract drilling services, pressure pumping services, and oil and natural gas exploration and production.