Analyst Note| Katherine Olexa |
Patterson-UTI Energy posted good results in its first quarter as demand for drilling rig equipment and pressure pumping services remains strong throughout North America. We expect the favorable market dynamics will persist in the near term, and by our estimate, Patterson will return to prepandemic operating levels by 2023. We’ll incorporate the full financial and operational results in our model shortly, but for now, our $9 fair value estimate is unchanged. We maintain our no-moat, stable trend rating.