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Patterson-UTI Energy Inc PTEN Stock Quote

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Morningstar‘s Stock Analysis PTEN

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Raising Patterson-UTI's FVE to $15 as Strength in Drilling and Completions Activity Persist

Analyst Note

| Katherine Olexa |

After incorporating Patterson-UTI’s full third-quarter results into our forecast, we’re raising our fair value estimate to $15 per share from $12. We forecast firmwide revenue will increase 21% per year over the next five years on average. The growth will be primarily driven by exceptionally strong activity in North American drilling and completions activity through 2023. Contract drilling and pressure pumping services together comprise nearly 90% of Patterson’s overall business. The firm has benefited from a very favorable operating environment over the past several quarters, as high demand for drilling rigs and pressure pumping equipment has kept the North American market operating near full capacity. We expect the supply-demand imbalance will foster continued margin expansion for Patterson over the next few years, and by our estimate, the firmwide operating margin will average about 13% over the next five years.

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Key Statistics PTEN

Company Profile PTEN

Business Description

Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States and maintains moderately sized pressure-pumping operations primarily in Texas and the Appalachian region. It also provides directional drilling services and tool rental services in most U.S. onshore oil and gas basins.

10713 West Sam Houston Parkway North, Suite 800
Houston, TX, 77064
T +1 281 765-7100
Sector Energy
Industry Oil & Gas Drilling
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 5,000

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