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Jun 30, 2024
Patterson-UTI Q2 2024 Earnings Report
Patterson-UTI reported financial results, highlighting revenue of $1.3 billion and net income of $11 million for the quarter ended June 30, 2024.
Key Takeaways
Patterson-UTI Energy reported a total revenue of $1.3 billion and a net income attributable to common stockholders of $11 million, or $0.03 per share, for the second quarter of 2024. The results include $11 million in merger and integration expenses. The company returned $164 million to shareholders during the quarter and confirmed its expectation to return at least $400 million in 2024.
Total revenue reached $1.3 billion.
Net income attributable to common stockholders was $11 million, or $0.03 per share, including merger and integration expenses.
Adjusted EBITDA was $324 million, excluding merger and integration expenses.
Returned $164 million to shareholders in the second quarter, with $819 million remaining in share repurchase authorization as of June 30, 2024.
Patterson-UTI
Patterson-UTI
Patterson-UTI Revenue by Segment
Revenue by Segment
Drilling Services Revenue
CapyFin.comCompletion Services Revenue
CapyFin.comDrilling Products Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Patterson-UTI anticipates relatively steady industry drilling activity for the remainder of the year, with customer completion activity managing annual budgets and potential impacts from customer consolidation and weak natural gas prices already reflected in current activity.
Positive Outlook
- U.S. Contract Drilling to operate an average of 108 U.S. rigs in the third quarter.
- Completion Services expects to see less white space in the third quarter.
- Activity in West Texas is expected to be steady, sequentially.
- Drilling Products segment expects continued growth in International operations.
- Drilling Products segment expects a seasonal recovery in Canada post-spring breakup.
Challenges Ahead
- Adjusted gross profit per operating day for U.S. Contract Drilling is expected to decrease to approximately $15,000 due to customer churn and lower rig count impact.
- Other Drilling Services adjusted gross profit is expected to be down slightly in the third quarter.
- Completion Services expects to see elevated white space compared to normal operations.
- Revenue in the United States for Drilling Products is expected to decline slightly on lower industry rig count.
- Customers will continue to use completion activity to manage annual budgets, which is likely to impact frac activity with higher-than-normal calendar white space likely persisting through year-end.
Revenue & Expenses
Visualization of income flow from segment revenue to net income