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Patterson-UTI Energy Inc PTEN Stock Quote

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Morningstar‘s Stock Analysis PTEN

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High Rig Demand Will Support Favorable Pricing for Patterson-UTI in the Near Term

Business Strategy and Outlook

| Katherine Olexa |

The U.S. land rig market remains oversaturated, with drillers commanding lower day rates and margins than in the past. We expect utilization for Tier 1 rigs (high-quality AC rigs with 1.5k-plus horsepower and multiwell pad drilling capabilities) to remain below 70% at midcycle. Generally, drillers can begin to command pricing power at around 80% utilization. Even as demand for oil (and thus rigs) recovers, we expect competition among drillers will remain elevated. Improved rig technologies have increased drilling efficiency, ultimately requiring fewer rigs to meet demand. Patterson acquired Pioneer Energy Services in the fourth quarter of 2021, expanding its U.S. rig capacity and adding exposure to Colombia (where Pioneer maintained eight rigs). We see more potential for drilling growth in international markets, but Patterson's exposure would be small, representing less than 5% of its total annual revenue.

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Key Statistics PTEN

Company Profile PTEN

Business Description

Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States and maintains moderately sized pressure-pumping operations primarily in Texas and the Appalachian region. It also provides directional drilling services and tool rental services in most U.S. onshore oil and gas basins.

10713 West Sam Houston Parkway North, Suite 800
Houston, TX, 77064
T +1 281 765-7100
Sector Energy
Industry Oil & Gas Drilling
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 5,000

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