Patterson-UTI Energy, Inc. (PTEN) AI Stock Analysis

Patterson-UTI Energy, Inc., established in 1978 and headquartered in Houston, Texas, provides onshore contract drilling services to oil and natural gas operators globally. The company operates through three core segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. As of December 31, 2021, its Contract Drilling Services fleet included 192 marketable land-based drilling rigs across regions including west Texas, Appalachia, the Rockies, Oklahoma, South Texas, East Texas, and Colombia. Pressure Pumping provides well stimulation, hydraulic fracturing, cementing, and acid pumping, while Directional Drilling delivers measurement-while-drilling and downhole motor rentals.

Revenue grew at a 5-year CAGR of 33.8% from FY2020 to FY2025, rising from $1.36B in FY2021 to a peak of $5.38B in FY2024 before declining 10.3% to $4.83B in FY2025. Profitability has fluctuated significantly: net income reached $246.3M with a 5.9% net margin in FY2023, then turned to a net loss of $968.0M in FY2024 and -$93.6M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue increased 0.7% year-over-year, while quarterly earnings declined 97.9%. For the trailing twelve months, revenue was $4.67B with an operating margin of -0.5% and EPS of -$0.24.

As of June 30, 2026, Patterson-UTI Energy held $203.2M in cash and short-term investments against total debt of $1.26B, resulting in net debt of $1.06B. The company maintains shareholders' equity of $3.10B, a current ratio of 1.75, and a debt-to-equity ratio of 0.41. In FY2025, operating cash flow reached $961.2M and free cash flow was $372.2M. Capital deployment in FY2025 included $589.0M in capital expenditures, $69.6M in share buybacks, and $122.5M in dividends paid.

At a share price of $11.50 as of October 16, 2026, Patterson-UTI Energy has a market cap of $4.37B and an enterprise value of $5.31B. The stock trades at a forward P/E of 35.7x, compared to the median of its US-listed Energy peers of 12.7x. Its price-to-sales ratio is 0.9x and EV/EBITDA is 6.1x, both lower than peer medians of 1.8x and 8.0x, respectively. Over the past year, the stock returned 113.5%, outperforming the S&P 500 return of 16.8%, though its 5-year return of 47.9% trails the S&P 500 return of 83.0%.

Patterson-UTI Energy pays a forward annual dividend of $0.40 per share, yielding 3.48% on a quarterly schedule. The dividend has been paid for 23 consecutive years, with a 5-year annualized growth rate of 26.2%. In FY2025, the company paid $122.5M in dividends, and its payout ratio stands at 133.2%. The last ex-dividend date was September 1, 2026.

Wall Street sentiment includes 5 Strong Buy, 4 Buy, and 7 Hold ratings, with 0 Sell recommendations. The mean price target is $13.93, representing 21.2% upside from the last close of $11.50. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.05 on revenue of $4.93B. For the next fiscal year, 7 analysts project EPS of $0.33 and revenue of $5.30B. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of Patterson-UTI Energy, Inc. (PTEN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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