Patterson-UTI Earnings: Subdued Land Activity in North America Weighs on Results

No-moat Patterson-UTI posted solid second-quarter results, with revenue up 22% year over year, but down 4% sequentially as oil and gas activity growth continues to decelerate across North America. The firmwide adjusted EBITDA margin was similarly affected, expanding nearly 600 basis points year over year, but contracting 150 basis points versus last quarter. We’ll incorporate Patterson’s full operating and financial results shortly, but after this first look, we maintain our $18 fair value estimate.