Patterson-UTI Energy Reports Significant Financial Changes in Q3 and Nine-Month Results Amid Challenging Market Environment

Patterson-UTI Energy, Inc. reported significant financial changes in its third quarter and nine-month results for 2024, reflecting a challenging market environment and strategic developments. For the three months ended September 30, 2024, the company generated operating revenues of $1,357.2 million, a notable increase from $1,011.5 million in the same period of 2023. This growth was primarily driven by a substantial rise in Completion Services revenue, which surged to $831.6 million from $459.6 million year-over-year. However, Drilling Services revenue declined to $421.6 million from $488.8 million, indicating a decrease in contract drilling activity.

Despite the revenue increase, Patterson-UTI reported an operating loss of $(990.6) million for Q3 2024, a stark contrast to an operating income of $9.7 million in Q3 2023. The net loss for the quarter was $(978.3) million, compared to a minimal net loss of $(0.3) million in the prior year. The significant losses were attributed to an $885 million goodwill impairment charge related to the Completion Services segment and a $114 million charge for the abandonment of 42 legacy drilling rigs.

For the nine months ended September 30, 2024, total operating revenues reached $4,215.8 million, up from $2,562.1 million in the same period of 2023. However, the net loss for the nine-month period was $(915.0) million, a sharp decline from a net income of $184.0 million in 2023. The company’s retained earnings showed a deficit of $(956.2) million as of September 30, 2024, compared to positive retained earnings of $57.0 million at the end of 2023.

Strategically, Patterson-UTI completed two significant acquisitions in 2023: the merger with NexTier Oilfield Solutions on September 1, 2023, valued at approximately $2.8 billion, and the acquisition of Ulterra Drilling Technologies on August 14, 2023, for about $894 million. These acquisitions aimed to enhance the company's service offerings and market position. The merger with NexTier has integrated a diverse set of well completion and production services, while the Ulterra acquisition expanded its drilling products segment.

As of September 30, 2024, Patterson-UTI's total assets decreased to $5.96 billion from $7.42 billion at the end of 2023, while total stockholders’ equity attributable to controlling interests fell to $3.56 billion from $4.81 billion. The company maintained a strong liquidity position with approximately $373 million in cash and an available borrowing capacity of about $613 million under its revolving credit facility.

Overall, Patterson-UTI's financial performance in 2024 reflects the impact of market conditions, strategic acquisitions, and significant impairment charges, leading to a challenging fiscal environment.