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Patterson-UTI Reports Drilling Activity for January 2024

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Patterson-UTI Energy, Inc. (NASDAQ:PTEN) reported an average of 122 drilling rigs operating in the United States for January 2024. The company cautioned that various factors can impact its operating results and that the trend in the number of drilling rigs may not indicate its financial performance.
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The announcement by Patterson-UTI Energy, Inc. regarding the average number of drilling rigs operating in the United States serves as a key performance indicator for the company's operational efficiency and market demand. The figure of 122 drilling rigs is a direct reflection of the company's utilization rates, which are critical for understanding current revenue streams and projecting future financial health.

Investors and stakeholders typically monitor such figures closely as they can imply the company's ability to secure contracts and its competitiveness in the sector. A stable or increasing number of operating rigs often suggests a robust market environment and the potential for increased revenues, whereas a decline could signal market softness or operational challenges.

However, it is imperative to consider the company's cautionary note that the number of drilling rigs is not the sole determinant of financial performance. Factors such as day rates, operational costs and efficiency improvements also play significant roles in shaping the company's financial outcomes. Moreover, external market conditions such as oil prices, regulatory changes and broader economic indicators must be factored into the analysis for a comprehensive understanding of the potential impact on the company's stock performance.

The energy sector, particularly oil and gas drilling, is highly cyclical and sensitive to commodity price fluctuations. Patterson-UTI Energy's operational update is a valuable data point that reflects not only company-specific activity but also broader industry trends. For instance, an increase in the number of active rigs could be indicative of rising oil prices, which tend to stimulate exploration and production activities.

From a financial perspective, the operating rig count is a leading indicator that can precede revenue recognition. It is therefore crucial for the financial analysis to delve into the implications of these operational metrics on the company's cash flow and margins. For example, if the increased rig activity is due to higher day rates as a result of improved market conditions, this could suggest a positive outlook for the company's future earnings and profitability.

Furthermore, it's essential to evaluate the company's operational efficiency and cost management. Investors should assess whether the company is merely increasing its rig count or also optimizing its cost structure and achieving operational excellence, which can significantly affect the bottom line.

Understanding the significance of the average number of drilling rigs requires a grasp of the oil and gas industry's operational dynamics. The rig count is often viewed as a barometer for the industry's activity levels and health. An uptick in the rig count can signal increased capital investment and confidence among oil and gas producers, which could lead to greater demand for services provided by companies like Patterson-UTI Energy.

It's also important to contextualize the reported rig count against industry benchmarks and historical performance. If Patterson-UTI Energy's rig count is outpacing industry averages, this could indicate a competitive advantage or a greater share of market activity. Conversely, if the count is lagging, it may raise questions about the company's market position or strategy.

Another aspect to consider is the geographic distribution of the operating rigs. Regional factors such as infrastructure, regulatory environment and resource availability can significantly impact the profitability and sustainability of drilling operations. Analysts should examine the regions where Patterson-UTI Energy is active to assess the potential risks and opportunities associated with its operational footprint.

HOUSTON, TX / ACCESSWIRE / February 5, 2024 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of January 2024, the Company had an average of 122 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

SOURCE: Patterson-UTI Energy, Inc.



View the original press release on accesswire.com

FAQ

How many drilling rigs did Patterson-UTI Energy, Inc. have operating in the United States in January 2024?

Patterson-UTI Energy, Inc. reported an average of 122 drilling rigs operating in the United States for January 2024.

What is the ticker symbol for Patterson-UTI Energy, Inc.?

The ticker symbol for Patterson-UTI Energy, Inc. is PTEN.

What factors can impact Patterson-UTI Energy, Inc.'s operating results?

Various factors can impact Patterson-UTI Energy, Inc.'s operating results, as cautioned by the company in its report.

Does the trend in the number of drilling rigs operating indicate Patterson-UTI Energy, Inc.'s financial performance?

The trend in the number of drilling rigs operating may not indicate Patterson-UTI Energy, Inc.'s financial performance, as cautioned by the company in its report.

When does Patterson-UTI Energy, Inc. intend to provide updates on drilling rigs operating?

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

Patterson-UTI Energy Inc

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Oil & Gas Drilling
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United States of America
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