Patterson-UTI Reports Drilling Activity for May 2024
Patterson-UTI Energy reported an average of 114 drilling rigs operating in the United States for May 2024. For the two months ending May 31, 2024, the average number of drilling rigs was 115. These figures represent the company's revenue-generating rigs under drilling contracts. However, Patterson-UTI cautions that the number of operating rigs does not necessarily indicate overall financial performance due to various influencing factors. The company will continue to provide monthly updates on drilling activities.
- Average of 114 drilling rigs operating in the U.S. during May 2024.
- Average of 115 drilling rigs operating in the U.S. for the two months ending May 31, 2024.
- Consistent monthly updates on drilling activities.
- The number of operating rigs may not directly correlate with overall financial performance.
- Market factors other than rig count can significantly impact operating results.
Insights
Patterson-UTI Energy's report on drilling activity gives insight into their operational capacity and market presence. The
For instance, the price of oil and natural gas can heavily influence drilling activity. Fluctuations in commodity prices can lead to higher or lower demand for drilling services. If prices remain low, companies may reduce exploration activities, impacting Patterson-UTI's revenue.
On the flip side, technological advancements and efficiency improvements could offset such declines. With more rigs operating efficiently, Patterson-UTI could still maintain profitability even with fewer rigs.
Given these factors, investors should monitor commodity prices and industry demand while evaluating the company's performance.
The drilling activity report can provide indirect clues about Patterson-UTI's revenue stream. Each active rig generates income, so the average number of rigs in operation is a good proxy for potential revenue. However, as the company noted, this number alone doesn't capture all the factors affecting financial performance.
For example, contract rates, duration and rig efficiency can all influence revenue. Moreover, external factors such as regulatory changes or geopolitical events can impact the wider energy market and, consequently, Patterson-UTI's performance.
Short-term investors should keep an eye on monthly rig count updates for quick insights. Long-term investors, however, should delve deeper into financial statements, considering assets, liabilities and overall market conditions.
HOUSTON, TX / ACCESSWIRE / June 6, 2024 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of May 2024, the Company had an average of 114 drilling rigs operating in the United States. For the two months ended May 31, 2024, the Company had an average of 115 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 have in operation in May 2024?
What was the average number of drilling rigs operated by Patterson-UTI for the two months ending May 31, 2024?
Does the number of drilling rigs operated by Patterson-UTI indicate its financial performance?
Will Patterson-UTI continue to provide updates on its drilling activities?
