Latest news with #Patterson-UTI
Business Insider
3 days ago
- Business
- Business Insider
Patterson-UTI reports May 2025 drilling activity
Patterson-UTI (PTEN) reported that for the month of May 2025, the company had an average of 103 drilling rigs operating in the For the two months ended May 31, 2025, the company had an average of 106 drilling rigs operating in the U.S. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Yahoo
24-04-2025
- Business
- Yahoo
Patterson-UTI (PTEN) Reports Break-Even Earnings for Q1
Patterson-UTI (PTEN) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this provider of onshore contract drilling services would post a loss of $0.10 per share when it actually produced a loss of $0.12, delivering a surprise of -20%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Patterson-UTI , which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $1.28 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.67%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Patterson-UTI shares have lost about 28.8% since the beginning of the year versus the S&P 500's decline of -10.1%. While Patterson-UTI has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Patterson-UTI: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $1.23 billion in revenues for the coming quarter and -$0.09 on $4.83 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Noble Corporation PLC (NE), is yet to report results for the quarter ended March 2025. The results are expected to be released on April 28. This company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -31.1%. The consensus EPS estimate for the quarter has been revised 4.4% higher over the last 30 days to the current level. Noble Corporation PLC's revenues are expected to be $853.91 million, up 34% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Noble Corporation PLC (NE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
Trump's tariffs on steel, aluminum to raise costs for US energy firms, experts say
By Vallari Srivastava (Reuters) -U.S. tariffs on steel and aluminum imports are poised to escalate costs for the oilfield service companies behind North America's vast energy industry, as their operations rely heavily on these metals. Steel is essential for everything from the drilling rigs and pipelines to refineries and storage tanks provided by companies such as ChampionX and Patterson-UTI that supply the equipment and services necessary for oil-and-gas producers. Any tariff hike is a potential hit to the operational and production costs of these businesses, half a dozen industry experts told Reuters. U.S. President Donald Trump's increased tariffs on all steel and aluminum imports took effect earlier on Wednesday "with no exceptions or exemptions", escalating the global trade war. "About 14% of what we buy, it comes from countries that will be impacted by tariffs," said Patterson-UTI CEO Andy Hendricks. "If you layer on tariffs, it could affect us in the low single digits in terms of our costs going up for what we do," Peer ChampionX has also warned of equipment costs going up due to tariffs. A particular variety of steel, hot-rolled coil steel (HRC), is used to fashion oil country tubular goods (OCTG) - specialized pipes and tubes designed to endure high pressures, temperatures and corrosive environments. In 2024, the U.S. imported nearly 40% of its OCTG, according to Wood Mackenzie analyst Nathan Nemeth. By January 2025, Canada and Mexico accounted for 16% of OCTG imports, hinting at buyers stockpiling ahead of potential tariffs. Broadly, U.S. imports of steel products from Canada and Mexico in January rose more than 32% from the previous month to 1,017,644 metric tons, U.S. Census Bureau data showed. Rystad Energy expects tariffs to spike OCTG costs by 15% year-on-year. U.S. prices of HRC are estimated to ascend to $890 per short ton in 2025, marking a 15% increase from the previous year's average price, according to S&P Global Commodity Insights analyst Ali Oktay. "It's probably going to be harder for service companies in 2025 to maintain their activity levels and their pricing," said Mark Chapman, principal analyst for OFS Intelligence at Enverus. Shares of Patterson-UTI and ChampionX have dropped about 16% and 3.3%, respectively, since Trump on February 11 announced plans to hike duties on steel and metal imports. Chapman sees costs rising for Halliburton as well as firms like NOV and Tenaris, key providers of steel pipes to the petroleum industry. While Halliburton and NOV did not respond to requests for comment, Tenaris said it was monitoring the potential impact of tariffs. This price surge will likely be passed on to customers who operate in the exploration and production segment, particularly smaller-scale producers who are more exposed to spot market pricing. "OCTGs represent about 8.5% of drilling and completion costs for onshore wells in the Lower 48 states. So if prices rose by 25%, about 2.1% would be added to well costs," Wood Mackenzie's Nemeth said. Average well costs for producers in the U.S. typically range from $8 million to $9 million. "They're (small-cap producers) at the mercy of the service providers," Chapman said. Large-scale producers such as Exxon Mobil, ConocoPhillips, EOG Resources and Diamondback, with their robust balance sheets and diversified supply chains, are better equipped to absorb these costs. The tariffs come amid plummeting oil prices, the lowest since Russia's invasion of Ukraine disrupted supply chains. Trump's wish to achieve cheaper oil prices and increased production might not align with the profitability of producers. Further, Venture Global, Energy Transfer and Williams Companies all warned in regulatory filings that tariffs could raise project costs, particularly construction costs related to foreign-sourced materials such as steel and aluminum.
Reuters
11-03-2025
- Business
- Reuters
Trump's tariffs on steel, aluminum to raise costs for US energy firms, experts say
March 11 (Reuters) - The proposed U.S. tariffs on steel and aluminum imports are poised to escalate costs for U.S. oilfield services companies, which rely on these metals for their operations. Oilfield services firms such as ChampionX (CHX.O), opens new tab and Patterson-UTI (PTEN.O), opens new tab are the backbone of the North American oil and gas industry, supplying essential equipment and services for drilling, production and maintenance. The lifeblood of this sector - drilling rigs, pipelines, refineries, compressors, storage tanks and offshore platforms - is steel. U.S. President Donald Trump earlier on Tuesday doubled the planned tariffs on Canadian steel and aluminum imports to 50%, to go into effect on Wednesday morning. Any tariff hike is a potential hit to the operational and production costs of these businesses, half a dozen industry experts told Reuters. "About 14% of what we buy, it comes from countries that will be impacted by tariffs," said Patterson-UTI CEO Andy Hendricks. "If you layer on tariffs, it could affect us in the low single digits in terms of our costs going up for what we do," Peer ChampionX has also warned of equipment costs going up due to tariffs. A particular variety of steel, hot-rolled coil steel (HRC), is used to fashion oil country tubular goods (OCTG) - specialized pipes and tubes designed to endure high pressures, temperatures and corrosive environments. In 2024, the U.S. imported nearly 40% of its OCTG, according to Wood Mackenzie analyst Nathan Nemeth. By January 2025, Canada and Mexico accounted for 16% of OCTG imports, hinting at buyers stockpiling ahead of potential tariffs. Broadly, U.S. imports of steel products from Canada and Mexico rose in January more than 32% from the previous month, to 1,017,644 metric tons, U.S. Census Bureau data showed. Rystad Energy forecasts tariffs to spike OCTG costs by 15% year-on-year. U.S. prices of HRC are estimated to ascend to $890 per short ton in 2025, marking a 15% increase from the previous year's average price, according to S&P Global Commodity Insights analyst Ali Oktay. "It's probably going to be harder for service companies in 2025 to maintain their activity levels and their pricing," said Mark Chapman, principal analyst for OFS Intelligence at Enverus. Shares of Patterson-UTI have fallen about 16.5% while ChampionX has dropped 3.3% since February 11, when Trump announced plans to hike duties on steel and metal imports. Chapman sees costs rising for Halliburton (HAL.N), opens new tab as well as firms like NOV (NOV.N), opens new tab and Tenaris ( opens new tab, key providers of steel pipes to the petroleum industry. None of the three firms responded to requests for comment. This price surge will likely be passed on to customers who operate in the exploration and production segment, particularly smaller-scale producers who are more exposed to spot market pricing. "OCTGs represent about 8.5% of drilling and completion costs for onshore wells in the Lower 48 states. So if prices rose by 25%, about 2.1% would be added to well costs," Wood Mackenzie's Nemeth said. Average well costs for producers in the U.S. typically range from $8 million to $9 million. "They're (small-cap producers) at the mercy of the service providers," Chapman said. Large-scale producers such as Exxon Mobil (XOM.N), opens new tab, ConocoPhillips (COP.N), opens new tab, EOG Resources (EOG.N), opens new tab and Diamondback (FANG.O), opens new tab, with their robust balance sheets and diversified supply chains, are better equipped to absorb these costs. The tariff comes amid plummeting oil prices, the lowest since Russia's invasion of Ukraine disrupted supply chains. Trump's wish to achieve cheaper oil prices and increased production might not align with the profitability of producers. Further, Venture Global (VG.N), opens new tab, Energy Transfer (ET.N), opens new tab and Williams Companies (WMB.N), opens new tab all warned in regulatory filings that tariffs could raise project costs, particularly construction costs related to foreign-sourced materials such as steel and aluminum.
Associated Press
11-02-2025
- Business
- Associated Press
Patterson-UTI Reports Drilling Activity for January 2025
HOUSTON, TX / ACCESS Newswire / February 11, 2025 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of January 2025, the Company had an average of 106 drilling rigs operating in the United States. Average drilling rigs operating reported in the Company's monthly announcements represent the average number of the Company's drilling rigs that were earning revenue under a drilling contract in the United States. The Company cautioned that numerous factors in addition to average drilling rigs operating can impact the Company's operating results and that a particular trend in the number of drilling rigs operating may or may not indicate a trend in or be indicative of the Company's financial performance. The Company intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month. About Patterson-UTI Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized drill bit solutions in the United States, Middle East and many other regions around the world. For more information, visit Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as 'anticipate,' 'believe,' 'budgeted,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'predict,' 'potential,' 'project,' 'pursue,' 'should,' 'strategy,' 'target,' or 'will,' and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: adverse oil and natural gas industry conditions; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI's services and their associated effect on rates; excess availability of land drilling rigs, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; the impact of the ongoing conflict in Ukraine; strength and financial resources of competitors; utilization, margins and planned capital expenditures; liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; our return of capital to stockholders; stock price volatility; and compliance with covenants under Patterson-UTI's debt agreements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
