Patterson-UTI Q4 2024 Earnings Report
Key Takeaways
Patterson-UTI Energy reported Q4 2024 financial results with total revenue of $1.2 billion and a net loss attributable to common stockholders of $52 million, or $0.13 per share, which includes $3 million in merger and integration expenses. Adjusted EBITDA was $225 million, excluding merger and integration expenses. The company finalized a new 5-year, $500 million unsecured revolving credit facility and returned $52 million to shareholders in the fourth quarter.
Total revenue for the fourth quarter was $1.2 billion.
Net loss attributable to common stockholders was $52 million, or $0.13 per share, including $3 million in merger and integration expenses.
Adjusted EBITDA was $225 million, excluding merger and integration expenses.
Finalized a new 5-year, $500 million unsecured revolving credit facility expiring in January 2030.
Patterson-UTI
Patterson-UTI
Patterson-UTI Revenue by Segment
Forward Guidance
Patterson-UTI expects the U.S. shale drilling market to remain relatively steady in 2025, with potential for increased natural gas-directed drilling and completion activity later in the year. The company anticipates another year of strong free cash flow and will remain focused on capital allocation, expecting capital expenditures of approximately $600 million in 2025.
Positive Outlook
- U.S. shale drilling market expected to remain relatively steady.
- Potential increase in natural gas-directed drilling and completion activity later in the year.
- Anticipate another year of strong free cash flow in 2025.
- Expect equipment that can be powered by natural gas will remain effectively sold out into the second quarter.
- International revenue for drill bits and downhole tools expected to increase in 2025.
Challenges Ahead
- Inefficiencies early in the first quarter as crews restarted following the extended slowdown in the fourth quarter.
- Expect selling, general and administrative expense of approximately $67 million for Q1 2025.
- Expect depreciation, depletion, amortization, and impairment expense of approximately $235 million for Q1 2025.
- Capital expenditures are expected to be roughly $600 million for 2025.
- First quarter Completion Services adjusted gross profit of approximately $100 million.