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Patterson-UTI Energy Inc PTEN

Rating as of

Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Increasing Patterson-UTI's Fair Value Estimate to $9 as Rig Demand Tightens Drilling Market

Analyst Note

| Katherine Olexa |

In the third quarter, Patterson-UTI posted sequential top-line growth above 20% for the second quarter straight. Increased drilling and fracking activity drove demand for rigs and frac spreads, a trend we expect will continue through 2022. We also expect the firm’s pricing power will improve, partially due to near-term market tightness and partially due to higher input costs. We’re increasing our fair value estimate to $9 from $7; the stock remains fairly valued.

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Company Profile

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.

Contact
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, 2021
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 3,000

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