Patterson-UTI Energy Reports Financial Results for the Quarter Ended September 30, 2024
Patterson-UTI Energy reported Q3 2024 financial results with total revenue of $1.4 billion. The company posted a net loss of $979 million ($2.50 per share), including an $885 million goodwill impairment and a $114 million asset retirement charge. Adjusted net income was $2 million, with Adjusted EBITDA of $275 million. The company generated $860 million in cash from operations and $322 million in free cash flow year-to-date. Patterson-UTI returned $71 million to shareholders in Q3 and declared a quarterly dividend of $0.08 per share. The company expects Q4 capital expenditures below $700 million and projects steady rig activity into 2025.
Patterson-UTI Energy ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato totale di 1,4 miliardi di dollari. L'azienda ha registrato una perdita netta di 979 milioni di dollari (2,50 dollari per azione), inclusa una riduzione di valore dell'avviamento di 885 milioni di dollari e una spesa per la cessazione delle attività di 114 milioni di dollari. Il reddito netto rettificato è stato di 2 milioni di dollari, con un EBITDA rettificato di 275 milioni di dollari. L'azienda ha generato 860 milioni di dollari in cassa dalle operazioni e 322 milioni di dollari di flusso di cassa libero fino ad oggi. Patterson-UTI ha restituito 71 milioni di dollari agli azionisti nel terzo trimestre e ha dichiarato un dividendo trimestrale di 0,08 dollari per azione. L'azienda prevede spese in conto capitale nel quarto trimestre inferiori a 700 milioni di dollari e proietta un'attività costante delle piattaforme fino al 2025.
Patterson-UTI Energy reportó los resultados financieros del tercer trimestre de 2024 con ingresos totales de 1.4 mil millones de dólares. La compañía reportó una pérdida neta de 979 millones de dólares (2.50 dólares por acción), que incluye una disminución de valor de 885 millones de dólares por buena voluntad y un cargo de 114 millones de dólares por retiro de activos. El ingreso neto ajustado fue de 2 millones de dólares, con un EBITDA ajustado de 275 millones de dólares. La compañía generó 860 millones de dólares en efectivo de operaciones y 322 millones de dólares en flujo de caja libre hasta la fecha. Patterson-UTI devolvió 71 millones de dólares a los accionistas en el tercer trimestre y declaró un dividendo trimestral de 0.08 dólares por acción. La compañía espera que los gastos de capital del cuarto trimestre se mantengan por debajo de 700 millones de dólares y proyecta un nivel constante de actividad de plataformas hasta 2025.
Patterson-UTI 에너지가 2024년 3분기 재무 결과를 발표했습니다. 총 수익은 14억 달러입니다. 회사는 순손실 9억 7천 9백만 달러 (주당 2.50달러)를 기록했으며, 여기에는 8억 8천 5백만 달러의 영업권 손상과 1억 1천 4백만 달러의 자산 처분 비용이 포함됩니다. 조정된 순이익은 200만 달러였고, 조정된 EBITDA는 2억 7천 5백만 달러였습니다. 회사는 운영 활동에서 8억 6천만 달러의 현금을 생성했으며, 올해 현재까지 자유 현금 흐름은 3억 2천 2백만 달러입니다. Patterson-UTI는 3분기에 주주에게 7천 1백만 달러를 반환했으며, 주당 0.08달러의 분기 배당금을 선언했습니다. 회사는 4분기 자본 지출이 7억 달러 이하로 유지될 것으로 예상하며, 2025년까지 안정적인 장비 활동을 전망하고 있습니다.
Patterson-UTI Energy a rapporté les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires total de 1,4 milliard de dollars. L'entreprise a affiché une perte nette de 979 millions de dollars (2,50 dollars par action), incluant une dépréciation de 885 millions de dollars sur le goodwill et une charge de 114 millions de dollars pour la cessation d'activité. Le revenu net ajusté était de 2 millions de dollars, avec un EBITDA ajusté de 275 millions de dollars. La société a généré 860 millions de dollars de liquidités provenant des opérations et 322 millions de dollars de flux de trésorerie libre à ce jour. Patterson-UTI a retourné 71 millions de dollars aux actionnaires au troisième trimestre et a déclaré un dividende trimestriel de 0,08 dollar par action. L'entreprise prévoit des dépenses d'investissement au quatrième trimestre en dessous de 700 millions de dollars et projette une activité continue des rigs jusqu'en 2025.
Patterson-UTI Energy hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 1,4 Milliarden Dollar. Das Unternehmen meldete einen Nettoverlust von 979 Millionen Dollar (2,50 Dollar pro Aktie), einschließlich einer Wertminderung des Geschäfts von 885 Millionen Dollar und einer Rückstellung für die Stilllegung von 114 Millionen Dollar. Der bereinigte Nettogewinn betrug 2 Millionen Dollar bei einem bereinigten EBITDA von 275 Millionen Dollar. Das Unternehmen generierte 860 Millionen Dollar an operativen Cashflows und 322 Millionen Dollar an freiem Cashflow bis heute. Patterson-UTI gab im dritten Quartal 71 Millionen Dollar an die Aktionäre zurück und erklärte eine vierteljährliche Dividende von 0,08 Dollar pro Aktie. Das Unternehmen erwartet, dass die Investitionsausgaben im vierten Quartal unter 700 Millionen Dollar bleiben und projiziert eine konstante Bohraktivität bis 2025.
- Generated $860 million in cash from operations and $322 million free cash flow YTD
- Returned $71 million to shareholders in Q3 and $366 million in first nine months
- $780 million remaining in share repurchase authorization
- Strong electric fleet deployment with 80% of active fleet capable of natural gas power
- Drilling Products revenue up 4% sequentially
- Net loss of $979 million ($2.50 per share) in Q3
- $885 million goodwill impairment charge
- $114 million asset retirement charge for 42 legacy non-Tier 1 rigs
- Expected slowdown in completion activity for Q4
- Reduced fleet size by 10% from beginning of year
Insights
The Q3 results present a mixed picture with significant one-time charges impacting the bottom line. The
Key positives include robust capital returns to shareholders (
The
The strategic consolidation through NexTier merger and Ulterra acquisition shows mixed results. While generating strong free cash flow, the substantial goodwill impairment suggests overvaluation at acquisition. The company's market positioning remains solid with high-spec rigs maintaining steady demand while older assets face retirement.
The transition toward electric fleets (155,000 horsepower) and natural gas-powered equipment (
HOUSTON, TX / ACCESSWIRE / October 23, 2024 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported financial results for the quarter ended September 30, 2024.
Third Quarter 2024 Financial Results
Total revenue of
$1.4 billion Net loss attributable to common stockholders of
$979 million , or$2.50 per shareIncludes an
$885 million goodwill impairment, a$114 million asset retirement charge for rigs we are no longer marketing, and$7 million in merger and integration expenses
Adjusted net income attributable to common stockholders of
$2 million , or$0.00 per shareExcludes goodwill impairment, asset retirement charge, and merger and integration expenses
Adjusted EBITDA of
$275 million Excludes goodwill impairment, asset retirement charge, and merger and integration expenses
Other Key Items
Year-to-date through September 30, 2024: Cash from Operations of
$860 million , Free Cash Flow of$322 million Returned
$71 million to shareholders in the third quarter and$366 million in the first nine months of the yearUsed
$40 million to repurchase more than 4 million shares in the third quarter; since the close of the NexTier merger and Ulterra acquisition through September 30, 2024, returned$475 million to shareholders including$346 million in share repurchases$780 million in remaining share repurchase authorization as of September 30, 2024Declared a quarterly dividend on its common stock of
$0.08 per share, payable on December 16, 2024 to holders of record as of December 2, 2024
Management Commentary
"It has been over a year since we closed the NexTier merger and Ulterra acquisition, and it is evident that we are stronger as a combined entity than we were on a standalone basis," said Andy Hendricks, Chief Executive Officer. "Patterson-UTI has generated almost
"U.S. Contract Drilling saw the benefit of a disciplined market with our quality asset base working for top tier customers, and we delivered another quarter of better-than-expected margins helped by relatively steady revenue per day and an improvement in costs. In Completion Services, natural gas prices and M&A activity caused some customers to delay completion activity, although we are seeing good financial results as we continue to roll out our electric fleets. Drilling Products revenue improved in the United States despite a lower industry rig count, and we achieved another quarter of improving adjusted gross profit."
"We expect our rig count will remain relatively steady through the rest of the year, while completion activity is likely to experience a sequential slowdown due to typical holiday breaks and capital discipline being exercised by our customers into year-end," continued Mr. Hendricks. "As we start to look towards 2025, we believe our rig activity will remain steady in both oil and natural gas basins, and we expect our Completion Services adjusted gross profit in the first half of 2025 will exceed our projected Completion Services results in the second half of this year. With our disciplined approach to capital allocation, we expect our free cash flow will remain strong, including in the fourth quarter this year."
"The NexTier and Ulterra transactions expanded our capabilities and enhanced our ability to serve our customers and compete in a rapidly changing market. We have received very positive feedback so far from our first fully integrated drilling and completion offering, and we are in discussions with several more customers regarding similar arrangements," said Mr. Hendricks. "We believe the long-term winners in U.S. shale will be the service providers that can offer a truly unique and difficult-to-replicate service to the customer, and over time, we are confident that our unique commercial and operational strategy will deliver value to our customers and our investors."
"We delivered another quarter of strong free cash flow," said Andy Smith, Chief Financial Officer. "We expect our 2024 capital expenditures to be below
Drilling Services
During the third quarter, Drilling Services revenue totaled
Within the Drilling Services segment for the third quarter, U.S. Contract Drilling revenue was
As of September 30, 2024, the Company had term contracts for drilling rigs in the United States providing for future dayrate drilling revenue of approximately
For the third quarter, other Drilling Services revenue, which primarily includes International Contract Drilling and Directional Drilling, was
Completion Services
Third quarter Completion Services revenue totaled
During the third quarter, we continued to see strong financial results as we roll out our electric fleets. We expect the percentage of our pump hours from electric frac equipment to increase again in the fourth quarter. Despite reducing our 2024 capital expenditures, we have increased the expected electric horsepower in our fleet to 155,000 in the fourth quarter this year. Approximately
We are continuing to streamline our asset base and have stopped investing in older Tier 2 diesel assets. By the end of 2024, we will have retired and decommissioned nearly 400,000 horsepower of older Tier 2 diesel equipment this year and expect to close the year with a total fleet of approximately 3 million horsepower - representing a roughly
Drilling Products
Third quarter Drilling Products revenue totaled
Since Patterson-UTI closed the Ulterra acquisition, the Drilling Products segment has increased market share on rigs operated by our U.S. Contract Drilling business by more than
Other
During the third quarter, Other revenue totaled
Goodwill and Asset Impairment
During the third quarter, we reported an
On a periodic basis, we evaluate our fleet of drilling rigs for marketability based on the condition of inactive rigs, expenditures that would be necessary to bring inactive rigs to working condition and the expected demand for drilling services by rig type. The components comprising rigs that will no longer be marketed are evaluated, and those components with continuing utility to our other marketed rigs are transferred to other rigs or to our yards to be used as spare equipment. The remaining components of these rigs are abandoned. In the third quarter of 2024, we identified 42 legacy non-Tier 1 rigs and equipment to be retired. Given our updated view on the outlook for industry drilling activity in the United States, we believed these rigs had limited commercial opportunity and were unlikely to ever return to work without a significant capital investment. We recorded a
Outlook
In drilling, we expect to see a relatively steady rig count for our Tier 1 high-spec drilling rigs through the rest of the year and into 2025. However, the overall industry rig count may fluctuate as older, lower spec assets could see weaker demand given the bifurcated capabilities within the industry rig fleet. We expect customers will reduce completion activity in the fourth quarter before activity recovers again in the first half of 2025.
Within the Drilling Services segment, we expect U.S. Contract Drilling to operate an average of 106 rigs in the fourth quarter, with adjusted gross profit per operating day of slightly less than
In our Completion Services segment, during the fourth quarter, we see slowing activity into year-end from normal seasonal holidays, while our customers are also reducing completion activity to maintain spending within their budgets. We expect fourth quarter Completion Services adjusted gross profit of approximately
In our Drilling Products segment for the fourth quarter, we expect a slight sequential increase in revenue and adjusted gross profit, driven by growth in our International operations, while U.S. revenue is expected to decline slightly on lower industry rig count.
For the fourth quarter, Other revenue and adjusted gross profit is expected to be roughly flat with the prior quarter.
For the fourth quarter, we expect selling, general and administrative expense of approximately
We expect fourth quarter capital expenditures to be approximately
For purposes of the shareholder return target, the Company defines free cash flow as net cash provided by operating activities less capital expenditures. The shareholder return target, including the amount and timing of any dividend payments and/or share repurchases are subject to the discretion of the Company's Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company's debt agreements and other factors.
All references to "per share" in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260.
Third Quarter Earnings Conference Call
The Company's quarterly conference call to discuss the operating results for the quarter ended September 30, 2024, is scheduled for October 24, 2024, at 9:00 a.m. Central Time. The dial-in information for participants is (800) 715-9871 (Domestic) and (646) 307-1963 (International). The conference ID for both numbers is 1337733. The call is also being webcast and can be accessed through the Investor Relations section of the Company's website at investor.patenergy.com. A replay of the conference call will be on the Company's website for two weeks.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "potential," "project," "pursue," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the successful integration and expected benefits of the recently completed NexTier merger and Ulterra acquisition on our financial condition, results of operations, strategy and plans and our ability to realize those benefits; synergies, costs and financial and operating impacts of acquisitions, including the NexTier merger and the Ulterra acquisition; the successful integration of NexTier and Ulterra operations and the future financial and operating results of the combined company; the combined company's plans, objectives, expectations and intentions with respect to future operations and services; adverse oil and natural gas industry conditions; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI's services and their associated effect on rates; excess availability of land drilling rigs, completion services and drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; the impact of the ongoing Ukraine/Russia and Middle East conflicts and instability in other international regions; strength and financial resources of competitors; utilization, margins and planned capital expenditures; ability to obtain insurance coverage on commercially reasonable terms and liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology and the risk of obsolescence of existing technologies; the ability to attract and retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; difficulty in building and deploying new equipment; governmental regulation, including climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; financial flexibility, including availability of capital and the ability to repay indebtedness when due; adverse credit and equity market conditions; our return of capital to stockholders, including timing and amounts of dividends and share repurchases; stock price volatility; and compliance with covenants under Patterson-UTI's debt agreements.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
| September 30, |
|
| December 31, 2023 |
| |||
ASSETS |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash, cash equivalents and restricted cash |
| $ | 115,482 |
|
| $ | 192,680 |
|
Accounts receivable, net |
|
| 863,779 |
|
|
| 971,091 |
|
Inventory |
|
| 172,750 |
|
|
| 180,805 |
|
Other current assets |
|
| 150,239 |
|
|
| 141,122 |
|
Total current assets |
|
| 1,302,250 |
|
|
| 1,485,698 |
|
Property and equipment, net |
|
| 3,095,070 |
|
|
| 3,340,412 |
|
Goodwill |
|
| 487,388 |
|
|
| 1,379,741 |
|
Intangible assets, net |
|
| 962,595 |
|
|
| 1,051,697 |
|
Deferred tax assets, net |
|
| - |
|
|
| 3,927 |
|
Other assets |
|
| 116,374 |
|
|
| 158,556 |
|
Total assets |
| $ | 5,963,677 |
|
| $ | 7,420,031 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 493,360 |
|
| $ | 534,420 |
|
Accrued liabilities |
|
| 326,794 |
|
|
| 446,268 |
|
Other current liabilities |
|
| 38,248 |
|
|
| 69,747 |
|
Total current liabilities |
|
| 858,402 |
|
|
| 1,050,435 |
|
Long-term debt, net |
|
| 1,219,461 |
|
|
| 1,224,941 |
|
Deferred tax liabilities, net |
|
| 245,687 |
|
|
| 248,107 |
|
Other liabilities |
|
| 68,169 |
|
|
| 75,867 |
|
Total liabilities |
|
| 2,391,719 |
|
|
| 2,599,350 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Stockholders' equity attributable to controlling interests |
|
| 3,562,127 |
|
|
| 4,812,292 |
|
Noncontrolling interest |
|
| 9,831 |
|
|
| 8,389 |
|
Total equity |
|
| 3,571,958 |
|
|
| 4,820,681 |
|
Total liabilities and stockholders' equity |
| $ | 5,963,677 |
|
| $ | 7,420,031 |
|
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
| Three Months Ended |
|
| Nine Months Ended |
| |||||||||||||||
| September 30, |
|
| June 30, |
|
| September 30, |
|
| September 30, |
| |||||||||
| 2024 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||
REVENUES |
| $ | 1,357,222 |
|
| $ | 1,348,194 |
|
| $ | 1,011,452 |
|
| $ | 4,215,776 |
|
| $ | 2,562,139 |
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating costs |
|
| 1,011,907 |
|
|
| 971,164 |
|
|
| 691,458 |
|
|
| 3,060,210 |
|
|
| 1,692,202 |
|
Depreciation, depletion, amortization and impairment |
|
| 374,680 |
|
|
| 267,638 |
|
|
| 197,635 |
|
|
| 917,274 |
|
|
| 452,629 |
|
Impairment of goodwill |
|
| 885,240 |
|
|
| - |
|
|
| - |
|
|
| 885,240 |
|
|
| - |
|
Selling, general and administrative |
|
| 65,696 |
|
|
| 64,578 |
|
|
| 45,102 |
|
|
| 195,258 |
|
|
| 108,925 |
|
Credit loss expense |
|
| 721 |
|
|
| (273 | ) |
|
| - |
|
|
| 5,679 |
|
|
| - |
|
Merger and integration expense |
|
| 6,699 |
|
|
| 10,645 |
|
|
| 70,188 |
|
|
| 29,577 |
|
|
| 78,128 |
|
Other operating expense (income), net |
|
| 2,908 |
|
|
| (10,786 | ) |
|
| (2,635 | ) |
|
| (19,060 | ) |
|
| (9,994 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total operating costs and expenses |
|
| 2,347,851 |
|
|
| 1,302,966 |
|
|
| 1,001,748 |
|
|
| 5,074,178 |
|
|
| 2,321,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
OPERATING INCOME (LOSS) |
|
| (990,629 | ) |
|
| 45,228 |
|
|
| 9,704 |
|
|
| (858,402 | ) |
|
| 240,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
| 745 |
|
|
| 1,867 |
|
|
| 2,131 |
|
|
| 4,801 |
|
|
| 4,583 |
|
Interest expense, net of amount capitalized |
|
| (17,990 | ) |
|
| (17,913 | ) |
|
| (15,625 | ) |
|
| (54,238 | ) |
|
| (34,189 | ) |
Other income (expense) |
|
| (716 | ) |
|
| 224 |
|
|
| (618 | ) |
|
| 358 |
|
|
| 3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total other expense |
|
| (17,961 | ) |
|
| (15,822 | ) |
|
| (14,112 | ) |
|
| (49,079 | ) |
|
| (26,415 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INCOME (LOSS) BEFORE INCOME TAXES |
|
| (1,008,590 | ) |
|
| 29,406 |
|
|
| (4,408 | ) |
|
| (907,481 | ) |
|
| 213,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INCOME TAX EXPENSE (BENEFIT) |
|
| (30,256 | ) |
|
| 17,785 |
|
|
| (4,130 | ) |
|
| 7,526 |
|
|
| 29,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NET INCOME (LOSS) |
|
| (978,334 | ) |
|
| 11,621 |
|
|
| (278 | ) |
|
| (915,007 | ) |
|
| 184,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST |
|
| 427 |
|
|
| 544 |
|
|
| (328 | ) |
|
| 1,442 |
|
|
| (328 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
| $ | (978,761 | ) |
| $ | 11,077 |
|
| $ | 50 |
|
| $ | (916,449 | ) |
| $ | 184,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER COMMON SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (2.50 | ) |
| $ | 0.03 |
|
| $ | 0.00 |
|
| $ | (2.29 | ) |
| $ | 0.79 |
|
Diluted |
| $ | (2.50 | ) |
| $ | 0.03 |
|
| $ | 0.00 |
|
| $ | (2.29 | ) |
| $ | 0.79 |
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 391,732 |
|
|
| 399,558 |
|
|
| 280,218 |
|
|
| 399,795 |
|
|
| 233,631 |
|
Diluted |
|
| 391,732 |
|
|
| 399,558 |
|
|
| 281,984 |
|
|
| 399,795 |
|
|
| 234,488 |
|
CASH DIVIDENDS PER COMMON SHARE |
| $ | 0.08 |
|
| $ | 0.08 |
|
| $ | 0.08 |
|
| $ | 0.24 |
|
| $ | 0.24 |
|
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
| Nine Months Ended |
| ||||||
| September 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income (loss) |
| $ | (915,007 | ) |
| $ | 184,014 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and impairment |
|
| 917,274 |
|
|
| 452,629 |
|
Impairment of goodwill |
|
| 885,240 |
|
|
| - |
|
Deferred income tax expense |
|
| 5,824 |
|
|
| 22,323 |
|
Stock-based compensation |
|
| 35,790 |
|
|
| 33,338 |
|
Net (gain) loss on asset disposals |
|
| (5,956 | ) |
|
| 427 |
|
Credit loss expense |
|
| 5,679 |
|
|
| - |
|
Other |
|
| 1,668 |
|
|
| (1,188 | ) |
Changes in operating assets and liabilities |
|
| (70,810 | ) |
|
| (138,261 | ) |
Net cash provided by operating activities |
|
| 859,702 |
|
|
| 553,282 |
|
|
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Acquisitions, net of cash acquired - NexTier |
|
| - |
|
|
| (65,185 | ) |
Acquisitions, net of cash acquired - Ulterra |
|
| 2,983 |
|
|
| (357,314 | ) |
Purchases of property and equipment |
|
| (538,036 | ) |
|
| (410,417 | ) |
Proceeds from disposal of assets |
|
| 14,685 |
|
|
| 19,566 |
|
Other |
|
| (4,447 | ) |
|
| (286 | ) |
Net cash used in investing activities |
|
| (524,815 | ) |
|
| (813,636 | ) |
|
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Purchases of treasury stock |
|
| (269,948 | ) |
|
| (124,286 | ) |
Dividends paid |
|
| (95,593 | ) |
|
| (66,724 | ) |
Proceeds from revolving credit facility |
|
| 50,000 |
|
|
| 420,000 |
|
Repayment of revolving credit facility |
|
| (50,000 | ) |
|
| (420,000 | ) |
Proceeds from issuance of senior notes |
|
| - |
|
|
| 396,412 |
|
Payment on finance leases |
|
| (36,635 | ) |
|
| (6,321 | ) |
Repayment of senior notes |
|
| - |
|
|
| (7,837 | ) |
Other |
|
| (9,156 | ) |
|
| (2,933 | ) |
Net cash (used in) provided by financing activities |
|
| (411,332 | ) |
|
| 188,311 |
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
| (753 | ) |
|
| 1,538 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
| (77,198 | ) |
|
| (70,505 | ) |
Cash, cash equivalents and restricted cash at beginning of period |
|
| 192,680 |
|
|
| 137,553 |
|
Cash, cash equivalents and restricted cash at end of period |
| $ | 115,482 |
|
| $ | 67,048 |
|
PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)
| Three Months Ended |
|
| Nine Months Ended |
| |||||||||||||||
| September 30, |
|
| June 30, |
|
| September 30, |
|
| September 30, |
| |||||||||
| 2024 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||
Drilling Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
| $ | 421,563 |
|
| $ | 440,289 |
|
| $ | 488,775 |
|
| $ | 1,319,425 |
|
| $ | 1,456,161 |
|
Direct operating costs |
| $ | 250,877 |
|
| $ | 261,497 |
|
| $ | 279,927 |
|
| $ | 784,111 |
|
| $ | 842,761 |
|
Adjusted gross profit (1) |
| $ | 170,686 |
|
| $ | 178,792 |
|
| $ | 208,848 |
|
| $ | 535,314 |
|
| $ | 613,400 |
|
Depreciation, amortization and impairment |
| $ | 201,272 |
|
| $ | 98,607 |
|
| $ | 90,668 |
|
| $ | 392,224 |
|
| $ | 272,361 |
|
Selling, general and administrative |
| $ | 3,809 |
|
| $ | 4,073 |
|
| $ | 3,570 |
|
| $ | 11,761 |
|
| $ | 11,810 |
|
Other operating income, net |
| $ | - |
|
| $ | - |
|
| $ | (127 | ) |
| $ | - |
|
| $ | (93 | ) |
Operating income (loss) |
| $ | (34,395 | ) |
| $ | 76,112 |
|
| $ | 114,737 |
|
| $ | 131,329 |
|
| $ | 329,322 |
|
Capital expenditures |
| $ | 69,127 |
|
| $ | 58,426 |
|
| $ | 89,242 |
|
| $ | 210,346 |
|
| $ | 261,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Completion Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ | 831,567 |
|
| $ | 805,373 |
|
| $ | 459,574 |
|
| $ | 2,581,937 |
|
| $ | 1,003,083 |
|
Direct operating costs |
| $ | 703,809 |
|
| $ | 653,240 |
|
| $ | 368,869 |
|
| $ | 2,102,643 |
|
| $ | 785,458 |
|
Adjusted gross profit (1) |
| $ | 127,758 |
|
| $ | 152,133 |
|
| $ | 90,705 |
|
| $ | 479,294 |
|
| $ | 217,625 |
|
Depreciation, amortization and impairment |
| $ | 140,930 |
|
| $ | 138,693 |
|
| $ | 83,338 |
|
| $ | 428,303 |
|
| $ | 135,339 |
|
Impairment of goodwill |
| $ | 885,240 |
|
| $ | - |
|
| $ | - |
|
| $ | 885,240 |
|
| $ | - |
|
Selling, general and administrative |
| $ | 10,253 |
|
| $ | 10,637 |
|
| $ | 7,205 |
|
| $ | 31,854 |
|
| $ | 12,388 |
|
Other operating income, net |
| $ | - |
|
| $ | (7,922 | ) |
| $ | - |
|
| $ | (17,792 | ) |
| $ | - |
|
Operating income (loss) |
| $ | (908,665 | ) |
| $ | 10,725 |
|
| $ | 162 |
|
| $ | (848,311 | ) |
| $ | 69,898 |
|
Capital expenditures |
| $ | 86,755 |
|
| $ | 48,728 |
|
| $ | 56,464 |
|
| $ | 258,860 |
|
| $ | 107,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Drilling Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ | 89,102 |
|
| $ | 86,054 |
|
| $ | 46,570 |
|
| $ | 265,129 |
|
| $ | 46,570 |
|
Direct operating costs |
| $ | 47,144 |
|
| $ | 46,147 |
|
| $ | 32,071 |
|
| $ | 141,921 |
|
| $ | 32,071 |
|
Adjusted gross profit (1) |
| $ | 41,958 |
|
| $ | 39,907 |
|
| $ | 14,499 |
|
| $ | 123,208 |
|
| $ | 14,499 |
|
Depreciation, amortization and impairment |
| $ | 22,924 |
|
| $ | 23,176 |
|
| $ | 17,075 |
|
| $ | 73,282 |
|
| $ | 17,075 |
|
Selling, general and administrative |
| $ | 9,898 |
|
| $ | 8,092 |
|
| $ | 3,664 |
|
| $ | 25,651 |
|
| $ | 3,664 |
|
Operating income (loss) |
| $ | 9,136 |
|
| $ | 8,639 |
|
| $ | (6,240 | ) |
| $ | 24,275 |
|
| $ | (6,240 | ) |
Capital expenditures |
| $ | 16,309 |
|
| $ | 13,958 |
|
| $ | 7,940 |
|
| $ | 45,853 |
|
| $ | 7,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ | 14,990 |
|
| $ | 16,478 |
|
| $ | 16,533 |
|
| $ | 49,285 |
|
| $ | 56,325 |
|
Direct operating costs |
| $ | 10,077 |
|
| $ | 10,280 |
|
| $ | 10,591 |
|
| $ | 31,535 |
|
| $ | 31,912 |
|
Adjusted gross profit (1) |
| $ | 4,913 |
|
| $ | 6,198 |
|
| $ | 5,942 |
|
| $ | 17,750 |
|
| $ | 24,413 |
|
Depreciation, depletion, amortization and impairment |
| $ | 8,330 |
|
| $ | 5,512 |
|
| $ | 5,319 |
|
| $ | 19,253 |
|
| $ | 21,946 |
|
Selling, general and administrative |
| $ | 156 |
|
| $ | 253 |
|
| $ | 188 |
|
| $ | 649 |
|
| $ | 656 |
|
Operating income (loss) |
| $ | (3,573 | ) |
| $ | 433 |
|
| $ | 435 |
|
| $ | (2,152 | ) |
| $ | 1,811 |
|
Capital expenditures |
| $ | 5,909 |
|
| $ | 9,213 |
|
| $ | 5,972 |
|
| $ | 18,919 |
|
| $ | 18,387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
| $ | 1,224 |
|
| $ | 1,650 |
|
| $ | 1,235 |
|
| $ | 4,212 |
|
| $ | 5,908 |
|
Selling, general and administrative |
| $ | 41,580 |
|
| $ | 41,523 |
|
| $ | 30,475 |
|
| $ | 125,343 |
|
| $ | 80,407 |
|
Merger and integration expense |
| $ | 6,699 |
|
| $ | 10,645 |
|
| $ | 70,188 |
|
| $ | 29,577 |
|
| $ | 78,128 |
|
Credit loss expense |
| $ | 721 |
|
| $ | (273 | ) |
| $ | - |
|
| $ | 5,679 |
|
| $ | - |
|
Other operating income (expense), net |
| $ | 2,908 |
|
| $ | (2,864 | ) |
| $ | (2,508 | ) |
| $ | (1,268 | ) |
| $ | (9,901 | ) |
Capital expenditures |
| $ | 2,487 |
|
| $ | 183 |
|
| $ | 804 |
|
| $ | 4,058 |
|
| $ | 15,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Capital Expenditures |
| $ | 180,587 |
|
| $ | 130,508 |
|
| $ | 160,422 |
|
| $ | 538,036 |
|
| $ | 410,417 |
|
Adjusted gross profit is defined as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense, which does not include impairment of goodwill). See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted EBITDA
(unaudited, dollars in thousands)
| Three Months Ended |
|
| Nine Months Ended |
| |||||||||||||||
| September 30, |
|
| June 30, |
|
| September 30, |
|
| September 30, |
| |||||||||
| 2024 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) |
| $ | (978,334 | ) |
| $ | 11,621 |
|
| $ | (278 | ) |
| $ | (915,007 | ) |
| $ | 184,014 |
|
Income tax expense (benefit) |
|
| (30,256 | ) |
|
| 17,785 |
|
|
| (4,130 | ) |
|
| 7,526 |
|
|
| 29,820 |
|
Net interest expense |
|
| 17,245 |
|
|
| 16,046 |
|
|
| 13,494 |
|
|
| 49,437 |
|
|
| 29,606 |
|
Depreciation, depletion, amortization and impairment |
|
| 374,680 |
|
|
| 267,638 |
|
|
| 197,635 |
|
|
| 917,274 |
|
|
| 452,629 |
|
Impairment of goodwill |
|
| 885,240 |
|
|
| - |
|
|
| - |
|
|
| 885,240 |
|
|
| - |
|
Merger and integration expense |
|
| 6,699 |
|
|
| 10,645 |
|
|
| 70,188 |
|
|
| 29,577 |
|
|
| 78,128 |
|
Adjusted EBITDA |
| $ | 275,274 |
|
| $ | 323,735 |
|
| $ | 276,909 |
|
| $ | 974,047 |
|
| $ | 774,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total revenues |
| $ | 1,357,222 |
|
| $ | 1,348,194 |
|
| $ | 1,011,452 |
|
| $ | 4,215,776 |
|
| $ | 2,562,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA by Operating Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling Services |
| $ | 166,877 |
|
| $ | 174,719 |
|
| $ | 205,405 |
|
| $ | 523,553 |
|
| $ | 601,683 |
|
Completion Services |
|
| 117,505 |
|
|
| 149,418 |
|
|
| 83,500 |
|
|
| 465,232 |
|
|
| 205,237 |
|
Drilling Products |
|
| 32,060 |
|
|
| 31,815 |
|
|
| 10,835 |
|
|
| 97,557 |
|
|
| 10,835 |
|
Other |
|
| 4,757 |
|
|
| 5,945 |
|
|
| 5,754 |
|
|
| 17,101 |
|
|
| 23,757 |
|
Corporate |
|
| (45,925 | ) |
|
| (38,162 | ) |
|
| (28,585 | ) |
|
| (129,396 | ) |
|
| (67,315 | ) |
Adjusted EBITDA |
| $ | 275,274 |
|
| $ | 323,735 |
|
| $ | 276,909 |
|
| $ | 974,047 |
|
| $ | 774,197 |
|
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not defined by accounting principles generally accepted in the United States of America ("GAAP"). We define Adjusted EBITDA as net income plus income tax expense (benefit), net interest expense, depreciation, depletion, amortization and impairment expense (including impairment of goodwill) and merger and integration expense. We present Adjusted EBITDA as a supplemental disclosure because we believe it provides to both management and investors additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Free Cash Flow
(unaudited, dollars in thousands)
| Nine Months Ended |
| ||||||
| September 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Free Cash Flow (1): |
|
|
|
|
|
| ||
Net cash provided by operating activities |
|
| 859,702 |
|
|
| 553,282 |
|
Less capital expenditures |
|
| (538,036 | ) |
|
| 410,417 |
|
Free cash flow |
| $ | 321,666 |
|
| $ | 142,865 |
|
We define free cash flow as net cash provided by operating activities less capital expenditures. We present free cash flow as a supplemental disclosure because we believe that it is an important liquidity measure and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company, that could be available for financing cash flows, such as dividend payments, share repurchases and/or repurchases of long-term indebtedness. Our computations of free cash flow may not be the same as similarly titled measures of other companies. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flows from operations reported in accordance with GAAP.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit
(unaudited, dollars in thousands)
| Three Months Ended |
|
| Nine Months Ended |
| |||||||||||||||
| September 30, |
|
| June 30, |
|
| September 30, |
|
| September 30, |
| |||||||||
| 2024 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||
Drilling Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
| $ | 421,563 |
|
| $ | 440,289 |
|
| $ | 488,775 |
|
| $ | 1,319,425 |
|
| $ | 1,456,161 |
|
Less direct operating costs |
|
| (250,877 | ) |
|
| (261,497 | ) |
|
| (279,927 | ) |
|
| (784,111 | ) |
|
| (842,761 | ) |
Less depreciation, amortization and impairment |
|
| (201,272 | ) |
|
| (98,607 | ) |
|
| (90,668 | ) |
|
| (392,224 | ) |
|
| (272,361 | ) |
GAAP gross profit |
|
| (30,586 | ) |
|
| 80,185 |
|
|
| 118,180 |
|
|
| 143,090 |
|
|
| 341,039 |
|
Depreciation, amortization and impairment |
|
| 201,272 |
|
|
| 98,607 |
|
|
| 90,668 |
|
|
| 392,224 |
|
|
| 272,361 |
|
Adjusted gross profit (1) |
| $ | 170,686 |
|
| $ | 178,792 |
|
| $ | 208,848 |
|
| $ | 535,314 |
|
| $ | 613,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Completion Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ | 831,567 |
|
| $ | 805,373 |
|
| $ | 459,574 |
|
| $ | 2,581,937 |
|
| $ | 1,003,083 |
|
Less direct operating costs |
|
| (703,809 | ) |
|
| (653,240 | ) |
|
| (368,869 | ) |
|
| (2,102,643 | ) |
|
| (785,458 | ) |
Less depreciation, amortization and impairment |
|
| (140,930 | ) |
|
| (138,693 | ) |
|
| (83,338 | ) |
|
| (428,303 | ) |
|
| (135,339 | ) |
GAAP gross profit |
|
| (13,172 | ) |
|
| 13,440 |
|
|
| 7,367 |
|
|
| 50,991 |
|
|
| 82,286 |
|
Depreciation, amortization and impairment |
|
| 140,930 |
|
|
| 138,693 |
|
|
| 83,338 |
|
|
| 428,303 |
|
|
| 135,339 |
|
Adjusted gross profit (1) |
| $ | 127,758 |
|
| $ | 152,133 |
|
| $ | 90,705 |
|
| $ | 479,294 |
|
| $ | 217,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Drilling Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ | 89,102 |
|
| $ | 86,054 |
|
| $ | 46,570 |
|
| $ | 265,129 |
|
| $ | 46,570 |
|
Less direct operating costs |
|
| (47,144 | ) |
|
| (46,147 | ) |
|
| (32,071 | ) |
|
| (141,921 | ) |
|
| (32,071 | ) |
Less depreciation, amortization and impairment |
|
| (22,924 | ) |
|
| (23,176 | ) |
|
| (17,075 | ) |
|
| (73,282 | ) |
|
| (17,075 | ) |
GAAP gross profit |
|
| 19,034 |
|
|
| 16,731 |
|
|
| (2,576 | ) |
|
| 49,926 |
|
|
| (2,576 | ) |
Depreciation, amortization and impairment |
|
| 22,924 |
|
|
| 23,176 |
|
|
| 17,075 |
|
|
| 73,282 |
|
|
| 17,075 |
|
Adjusted gross profit (1) |
| $ | 41,958 |
|
| $ | 39,907 |
|
| $ | 14,499 |
|
| $ | 123,208 |
|
| $ | 14,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ | 14,990 |
|
| $ | 16,478 |
|
| $ | 16,533 |
|
| $ | 49,285 |
|
| $ | 56,325 |
|
Less direct operating costs |
|
| (10,077 | ) |
|
| (10,280 | ) |
|
| (10,591 | ) |
|
| (31,535 | ) |
|
| (31,912 | ) |
Less depreciation, depletion, amortization and impairment |
|
| (8,330 | ) |
|
| (5,512 | ) |
|
| (5,319 | ) |
|
| (19,253 | ) |
|
| (21,946 | ) |
GAAP gross profit |
|
| (3,417 | ) |
|
| 686 |
|
|
| 623 |
|
|
| (1,503 | ) |
|
| 2,467 |
|
Depreciation, depletion, amortization and impairment |
|
| 8,330 |
|
|
| 5,512 |
|
|
| 5,319 |
|
|
| 19,253 |
|
|
| 21,946 |
|
Adjusted gross profit (1) |
| $ | 4,913 |
|
| $ | 6,198 |
|
| $ | 5,942 |
|
| $ | 17,750 |
|
| $ | 24,413 |
|
We define "Adjusted gross profit" as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense, which does not include impairment of goodwill). Adjusted gross profit is included as a supplemental disclosure because it is a useful indicator of our operating performance.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Drilling Services Adjusted Gross Profit
(unaudited, dollars in thousands)
| Three Months Ended |
| ||||||
| September 30, |
|
| June 30, |
| |||
| 2024 |
|
| 2024 |
| |||
U.S. Contract Drilling |
|
|
|
|
|
| ||
Revenues |
| $ | 355,688 |
|
| $ | 378,398 |
|
Less direct operating costs |
|
| (196,430 | ) |
|
| (210,170 | ) |
Less depreciation, amortization and impairment |
|
| (194,509 | ) |
|
| (89,333 | ) |
GAAP gross profit |
|
| (35,251 | ) |
|
| 78,895 |
|
Depreciation, amortization and impairment |
|
| 194,509 |
|
|
| 89,333 |
|
Adjusted gross profit (1) |
| $ | 159,258 |
|
| $ | 168,228 |
|
|
|
|
|
|
|
|
| |
Operating days - U.S. (2) |
|
| 9,870 |
|
|
| 10,388 |
|
Average revenue per operating day - U.S. (2) |
| $ | 36.04 |
|
| $ | 36.43 |
|
Average direct operating costs per operating day - U.S. (2) |
| $ | 19.90 |
|
| $ | 20.23 |
|
Average adjusted gross profit per operating day - U.S. (2) |
| $ | 16.14 |
|
| $ | 16.19 |
|
|
|
|
|
|
|
|
| |
Other Drilling Services |
|
|
|
|
|
|
|
|
Revenues |
| $ | 65,875 |
|
| $ | 61,891 |
|
Less direct operating costs |
|
| (54,447 | ) |
|
| (51,327 | ) |
Less depreciation, amortization and impairment |
|
| (6,763 | ) |
|
| (9,274 | ) |
GAAP gross profit |
|
| 4,665 |
|
|
| 1,290 |
|
Depreciation, amortization and impairment |
|
| 6,763 |
|
|
| 9,274 |
|
Adjusted gross profit (1) |
| $ | 11,428 |
|
| $ | 10,564 |
|
We define "Adjusted gross profit" as revenues less direct operating costs (excluding depreciation, amortization and impairment expense, which does not include impairment of goodwill). Adjusted gross profit is included as a supplemental disclosure because it is a useful indicator of our operating performance.
Operational data relates to our contract drilling business. A rig is considered to be operating if it is earning revenue pursuant to a contract on a given day.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Net Income (Loss) and Adjusted Earnings Per Share
(unaudited, in thousands, except per share data)
| Three Months Ended September 30, 2024 |
| ||||||||||||||
| As Reported |
|
| Adjusted |
| |||||||||||
| Total |
|
| Per Share |
|
| Total |
|
| Per Share (1) |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net loss attributable to common stockholders as reported |
| $ | (978,761 | ) |
| $ | (2.50 | ) |
| $ | (978,761 | ) |
| $ | (2.50 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Reverse certain items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expense |
|
|
|
|
|
|
|
|
|
| 6,699 |
|
|
|
|
|
Impairment of goodwill |
|
|
|
|
|
|
|
|
|
| 885,240 |
|
|
|
|
|
Asset abandonment |
|
|
|
|
|
|
|
|
|
| 114,031 |
|
|
|
|
|
Income tax benefit |
|
|
|
|
|
|
|
|
|
| (25,353 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted net income (loss) |
| $ | (978,761 | ) |
| $ | (2.50 | ) |
| $ | 1,856 |
|
| $ | 0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock |
|
| 391,732 |
|
|
|
|
|
|
| 391,732 |
|
|
|
|
|
Add dilutive effect of potential common shares |
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
Weighted average number of diluted common shares outstanding |
|
| 391,732 |
|
|
|
|
|
|
| 391,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Federal statutory tax rate |
|
|
|
|
|
|
|
|
|
| 21.0 | % |
|
|
|
|
We define adjusted net income (loss) as net loss attributable to common stockholders as reported, excluding merger and integration expense, impairment of goodwill, and asset abandonment, less income tax benefit. We present adjusted net income (loss) and adjusted earnings per share in order to convey to investors our performance on a basis that, by excluding the items listed above, is more comparable to our net income (loss) and earnings per share information reported in previous periods. Adjusted net income (loss) and adjusted earnings per share should not be construed as an alternative to GAAP net loss and earnings per share.
Contact Information
Michael Sabella
Investor Relations
michael.sabella@patenergy.com
2032973732
SOURCE: Patterson-UTI Energy, Inc.
View the original press release on accesswire.com
FAQ
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