Patterson-UTI Energy, Inc. PTEN reported breakeven adjusted earnings per share for the first quarter of 2025. The metric outperformed the Zacks Consensus Estimate of a loss of 4 cents. This outperformance was driven by an 11.2% year-over-year reduction in costs and expenses. However, the bottom line declined from the year-ago quarter's 15 cents. This year-over-year deterioration was mainly due to poor contribution from the Drilling Services, Completion Services and Other Services segments. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues of $1.3 billion beat the Zacks Consensus Estimate by 7.7%. This was due to higher-than-expected revenues from Drilling Services and Completion Services. Revenues of Drilling Services and Completion Services surpassed the consensus mark of $402 million and $686 million, respectively. However, the top line decreased 15.2% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from its segments.
PTEN’s board of directors declared a quarterly dividend of 8 cents per share to its common shareholders of record as of June 2. The payout, which is unchanged from the previous quarter, will be made on June 16.
Patterson-UTI Energy, Inc. Price, Consensus and EPS Surprise
Patterson-UTI Energy, Inc. Price, Consensus and EPS Surprise
Patterson-UTI Energy, Inc. price-consensus-eps-surprise-chart | Patterson-UTI Energy, Inc. Quote
Segmental Performances of Patterson
Drilling Services: Revenues in this segment totaled $412.9 million, down 9.8% from the prior-year quarter’s figure of $457.6 million. However, the top line beat our estimation of $405.7 million.
Operating income amounted to $76.3 million compared with $89.6 million in the first quarter of 2024. However, the figure beat our operating income estimate of $63.2 million. As of March 31, 2025, the company had $407 million in future drilling revenues under term contracts.
Completion Services: This segment’s revenues of $766.1 million dropped about 18.9% from the year-ago quarter’s figure of $945 million. However, the metric beat our estimation of $690.7 million.
Operating loss totaled $18.8 million against operating profit of $49.6 million in the first quarter of 2024. Additionally, the figure was narrower than our operating loss estimate of $31.4 million.
Drilling Products: This segment’s revenues of $85.7 million declined about 4.8% from the year-ago quarter’s figure of $90 million. Additionally, the amount missed our estimation of $86 million.
Operating profit reached $6.7 million, indicating a 3.5% increase compared with the first quarter of 2024. The number also beat our operating profit estimate of $4.3 million.
Other Services: Revenues amounted to $15.9 million, down 10.6% from the year-ago quarter’s figure of $17.8 million. Moreover, the figure missed our estimation of $16.5 million.
Operating income amounted to $0.2 million compared with $1 million in the first quarter of 2024. Additionally, the figure missed our estimation of an operating income of $0.5 million.
PTEN’s Capital Expenditure & Financial Position
In the reported quarter, PTEN spent $161.8 million on capital programs compared with $226.9 million in the prior year period. As of March 31, 2025, the company had cash and cash equivalents worth $225.2 million and long-term debt of $1.2 billion. The company’s debt-to-capitalization was 26%.
This Zacks Rank #3 (Hold) company returned $51 million to shareholders in the first quarter of 2025. During the same period, it repurchased $20 million worth of shares. As of March 31, 2025, the company had $741 million remaining under its share repurchase authorization.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company reported total operating costs and expenses of $1263.6 million compared with $1423.4 million in the first quarter of 2024.
Patterson’s Q2 Outlook
Drilling Services: The company expects rig activity in the second quarter to remain steady compared with the first quarter. PTEN anticipates a slight decline in adjusted gross profit due to lower average contracted revenues from older contracts and some seasonal cost increases.
Completion Services: The company expects activity to stay stable, similar to the end of the first quarter. PTEN anticipates a slight decline in adjusted gross profit, with potential lower demand later in the quarter, depending on oil prices.
Drilling Products: The company expects adjusted gross profit to stay flat in the second quarter. Activity in the United States is expected to remain steady and the usual seasonal slowdown in Canada is expected to be balanced by higher international revenues.
Other Services: The company expects a proportional decline in adjusted gross profit in this segment, following the absorption and sale of parts of the Great Plains Oilfield Rental business.
Expenses & Cash Flow: PTEN expects selling, general and administrative expenses of about $65 million and depreciation, depletion, amortization and impairment expenses of about $230 million for the second quarter.
Important Earnings at a Glance
While we have discussed PTEN’s first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider, Liberty Energy LBRT, reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.
As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.
Another oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.
As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.
Houston, TX-based oil and gas equipment and services provider, Baker Hughes BKR, reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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
