Patterson-UTI Reports Drilling Activity for August 2024

Rhea-AI Summary

Patterson-UTI Energy (NASDAQ:PTEN) has released its drilling activity report for August 2024. The company operated an average of 107 drilling rigs in the United States during the month. For the two-month period ending August 31, 2024, the average number of operating drilling rigs was 108.

Patterson-UTI defines 'average drilling rigs operating' as the average number of rigs earning revenue under drilling contracts in the U.S. The company emphasizes that this metric alone does not fully reflect its financial performance, as numerous other factors can impact operating results. Patterson-UTI plans to continue providing monthly updates on its drilling rig operations.

Positive

• Maintained a substantial fleet of 107 active drilling rigs in August 2024
• Consistent operational performance with 108 average rigs over the past two months
• Commitment to transparency through regular monthly drilling activity updates

Negative

• Slight decrease in average drilling rigs from 108 to 107 month-over-month

Insights

Financial Analyst

Patterson-UTI's August drilling activity report reveals a slight decrease in active rigs, with an average of 107 rigs operating in the U.S., down from the two-month average of 108. This 0.93% decline, while small, could signal a potential softening in demand for drilling services. However, it's important to note that rig count is just one factor in the company's financial performance.

The stability in rig count suggests a steady revenue stream for Patterson-UTI, but investors should be aware that factors such as day rates, operational efficiency and contract terms also significantly impact profitability. The company's cautionary statement about not over-interpreting rig count trends is prudent, indicating transparent communication with investors.

For a comprehensive assessment, we'd need to analyze these figures alongside industry-wide trends, oil prices and the company's financial statements. The commitment to monthly updates demonstrates a proactive approach to investor relations, which is generally viewed positively by the market.

Oil Industry Expert

The marginal dip in Patterson-UTI's rig count from 108 to 107 reflects the dynamic nature of the oil and gas industry. This slight fluctuation is not uncommon and could be attributed to various factors such as completion of drilling contracts, temporary pauses in operations, or strategic redeployment of assets.

It's important to contextualize this data within the broader industry landscape. The U.S. oil and gas sector has been experiencing a period of cautious optimism, balancing between production growth and capital discipline. Patterson-UTI's relatively stable rig count suggests they're maintaining a steady market position amidst these industry dynamics.

Investors should monitor how this rig count compares to competitors and overall industry trends. A key question is whether this slight decrease is company-specific or part of a larger industry shift. Additionally, the efficiency and technological capabilities of these rigs are important factors that can offset small changes in rig count.

HOUSTON, TX / ACCESSWIRE / September 9, 2024 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of August 2024, the Company had an average of 107 drilling rigs operating in the United States. For the two months ended August 31, 2024, the Company had an average of 108 drilling rigs operating in the United States.

Average drilling rigs operating reported in the Company's monthly announcements represent the average number of the Company's drilling rigs that were earning revenue under a drilling contract in the United States. The Company cautioned that numerous factors in addition to average drilling rigs operating can impact the Company's operating results and that a particular trend in the number of drilling rigs operating may or may not indicate a trend in or be indicative of the Company's financial performance. The Company intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month.

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 drill 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: 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, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI's services; the impact of the ongoing conflict in Ukraine; strength and financial resources of competitors; utilization, margins and planned capital expenditures; 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; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; 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; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; our return of capital to stockholders; 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.

Contact:

Michael Sabella
Vice President, Investor Relations
(281) 885-7589

Contact Information:

Michael Sabella
Investor Relations
michael.sabella@patenergy.com
2032973732

SOURCE: Patterson-UTI

View the original press release on accesswire.com

FAQ

How many drilling rigs did Patterson-UTI Energy operate in August 2024?

Patterson-UTI Energy operated an average of 107 drilling rigs in the United States during August 2024.

What was Patterson-UTI's (PTEN) average drilling rig count for the two months ending August 31, 2024?

For the two months ended August 31, 2024, Patterson-UTI Energy had an average of 108 drilling rigs operating in the United States.

Does Patterson-UTI's (PTEN) reported drilling rig count directly indicate its financial performance?

No, Patterson-UTI cautions that numerous factors beyond the average drilling rigs operating can impact the company's financial performance, and this metric alone may not indicate a trend in or be indicative of the company's financial results.

How often does Patterson-UTI Energy (PTEN) provide updates on its drilling rig operations?

Patterson-UTI Energy intends to continue providing monthly updates on drilling rigs operating shortly after the end of each month.