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Patterson-UTI Energy, Inc. (PTEN)

  • 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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  • Oct. 24, 2013, 6:13 AM
    • Patterson-UTI (PTEN): Q3 EPS of $0.51 in-line.
    • Revenue of $731M beats by $50.08M. (PR)
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  • Sep. 9, 2013, 10:49 AM
    • Though offshore drilling fundamentals remain challenged, Deutsche Bank believes some oilfield services stocks (OIH) are "very underappreciated."
    • The firm's top three sector stocks: Baker Hughes (BHI +2%), with a long restructuring that's finally complete; Halliburton (HAL +1.3%), whose international margins should improve dramatically; and Nabors (NBR +1.2%), whose high-end U.S. rigs and strong international business will drive growth.
    • Also discussed: SLB, PTEN, NE, EXH.
    | Comment!
  • Aug. 28, 2013, 10:38 AM
    • Shares of Patterson-UTI Energy (PTEN +2.6%) have shed 20% since March, as the recovery of the drilling rig market has taken longer than expected, but Barron's David Englander thinks PTEN could jump 35% from current levels.
    • While the rig market remains weak, the worst may be over: Rigs declined by only 7% Q/Q, and PTEN said in its July 25 earnings report it had seen an increase in contracting activity in recent weeks.
    • PTEN has enjoyed strong demand for its APEX rigs, with utilization levels of 96%, well above the industry average; pressure pumping sales remain strong.
    | Comment!
  • Jul. 25, 2013, 10:09 AM
    More on Patterson-UTI's (PTEN -0.2%) Q2 results: Contract drilling revenue fell 20% to $390M, while pressure pumping revenue rose 23% to $254M. Use of Apex rigs, which command a higher rate, remained high but lower utilization of conventional rigs and a seasonal decline in Canada affected the rig count. Average margin/day fell to $8,730 from $9,610 due to the Canada decline and higher U.S. operating costs.
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  • Jul. 25, 2013, 6:05 AM
    Patterson-UTI (PTEN): Q2 EPS of $0.28 misses by $0.02. Revenue of $659M beats by $12.61M. (PR)
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  • Jul. 10, 2013, 6:12 PM
    Stephens analysts predict mostly in-line Q2 earnings for oilfield service companies (OIH) with potential upside to margins thanks to stable pricing in onshore markets, but looking ahead to H2, the industry needs to add rigs in order to meet current estimates. Onshore, Q2 margins could surprise positively at BAS, PTEN, RES and SPN. Offshore, the firm likes HERO, HLX, HOS, OII.
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  • Jul. 10, 2013, 2:12 PM
    Nabors Industries' (NBR -5.8%) downbeat Q2 forecast could spell trouble for other oilfield services firms (OIH), Tudor Pickering warns; while some NBR-specific factors likely are at play, the U.S. horizontal rig count continues flat even with more than half the year over. NBR's biggest peers - SLB, HAL, BHI - are little changed, but smaller ones are mostly lower: HP -1.4%, PTEN -1.2%, PDS -1.5%, SPN -1.6%.
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  • Jul. 9, 2013, 8:59 AM
    Helmerich & Payne (HP) and Pioneer Energy Services (PES) are downgraded to Hold from Buy at Jefferies, which also cuts estimates on other land drillers in anticipation of ongoing higher capex and lower earnings growth. The firm cuts its price target on HP to $71 from $74, PES to $8 from $9, and Patterson-UTI (PTEN) to $20 from $23, but raises its target on Nabors (NBR) to $15 from $14.
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  • Apr. 25, 2013, 6:09 AM
    Patterson-UTI (PTEN): Q1 EPS of $0.38 beats by $0.02. Revenue of $667M beats by $10.84M. (PR)
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  • Feb. 7, 2013, 3:49 PM
    "Congratulations on making all the other pressure pumpers look like dorks,” a Raymond James analyst tells Patterson-UTI (PTEN +10.3%) in the company's conference call after Q4 pumping results were "far better than expected," despite a tough year in the oil services industry in that space. PTEN's fracking activity also rose "as customers performed well completions that had been delayed in previous quarters."
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  • Feb. 7, 2013, 10:31 AM
    Patterson-UTI (PTEN +7%) hits a 52-week high, as Q4 earnings easily beat expectations and revenues exceeded estimates for the fourth straight quarter. At year-end 2012, PTEN says it had term contracts for drilling rigs worth $1.24B in dayrate revenues, with an average of 97 rigs on term contracts in the coming year; a higher-than-expected 205 rigs were active in Q4.
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  • Feb. 7, 2013, 6:06 AM
    Patterson-UTI (PTEN): Q4 EPS of $0.40 beats by $0.12. Revenue of $653M beats by $53.66M. (PR)
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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.