Patterson-UTI Energy Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.95%.
Did PTEN Beat Earnings? Q1 2026 Results
Patterson-UTI Energy cleared a low bar in Q1 2026, posting results that beat on both the top and bottom lines even as the broader business continued to contract. The oilfield services company reported revenue of $1.12 billion, ahead of the $1.10 billion consensus estimate by 1.82%, though that figure still represented a 12.8% decline from the year-ago quarter as a challenging commodity environment weighed on activity across all three segments. The loss per diluted share came in at $0.06, beating the $0.10 consensus estimate by 41.75%, helped in part by cost reduction measures implemented late in 2025 and discipline on capital spending, which fell to $116.63 million from $161.83 million a year earlier. Winter storms disrupted completion operations for roughly five days, yet near-full utilization of active equipment, particularly natural gas-powered fleets, cushioned the blow. Looking ahead, management struck a constructive tone, guiding Q2 Completion Services adjusted gross profit to approximately $105 million and signaling plans to reactivate drilling rigs in the second half, with price increase discussions already underway; the company also raised its quarterly dividend to $0.10 per share from $0.08.
- Lower U.S. rig count and reduced completion activity versus year-ago quarter
- Winter storm disruption of approximately 5 days across nearly the entire completion fleet
- Cost reduction measures implemented in late 2025 provided full-quarter benefit
- Early termination payments of approximately $3 million in Drilling Services
- Geopolitical disruption in the Middle East impacting Drilling Products costs and activity
- Near-full utilization of natural gas-powered completion equipment
- Working capital headwinds of approximately $131 million reduced operating cash flow
“We delivered another quarter of solid operating results, as our businesses successfully navigated a challenging commodity environment to start the year. We are pleased with our performance given the macro backdrop earlier this year, with customers operating under budgets that were built around much lower oil price assumptions than what we see today. We continue to prioritize equipment and technology investments that improve demand for our drilling and completion businesses and help manage costs. We expect the benefits of these investments to build over time, particularly as U.S. land drilling and completion activity improves.”
Patterson UTI Energy CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, Drilling Services is expected to average approximately 90 U.S. rigs, with an exit rate near the highest activity level so far this year as rigs are reactivated during the second half of the quarter. Drilling Services adjusted gross profit is expected at approximately $130 million, including approximately $5 million in rig reactivation costs. Completion Services adjusted gross profit is expected at approximately $105 million with continued high utilization. Drilling Products adjusted gross profit is expected to decline slightly from Q1 due to seasonal Canadian spring breakup and increased international costs, particularly in the Middle East. Other adjusted gross profit is expected at approximately $5 million. G&A expense is expected at approximately $67 million, and DD&A expense at approximately $220 million. Management expects working capital headwinds in H1 to give way to tailwinds as the year progresses. The company anticipates reactivating additional rigs in H2 2026 and is discussing price increases in completions given high industry utilization.
PTEN YoY Financials
PTEN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.