PTEN

Patterson-UTI (PTEN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This provider of onshore contract drilling services is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +166.7%. Revenues are expected to be $1.29 billion, up 9.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 20% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Patterson-UTI, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +14.29%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Patterson-UTI will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Patterson-UTI would post a loss of$0.03 per share when it actually produced break-even earnings, delivering a surprise of +100.00%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Patterson-UTI appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Oil and Gas - Drilling industry, Nabors Industries (NBR), is soon expected to post loss of $0.36 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +90.2%. Revenues for the quarter are expected to be $857.49 million, up 4.8% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Nabors has been revised 23.3% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Nabors will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Nabors Industries Ltd. (NBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Liberty Energy Inc. LBRT is set to report third-quarter 2026 earnings on Oct. 21, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 10 cents per share, and the same for revenues is pinned at $1.19 billion. Let us delve into the factors that might have influenced LBRT's performance in the to-be-reported quarter. Before that, it is worth taking a look at the company's performance in the last reported quarter. In the previously reported quarter, the Denver, CO-based oilfield service company's earnings beat the consensus mark, backed by its focus on AI-driven technology advancements and strong operational execution. LBRT reported adjusted net income of 9 cents per share, which beat the Zacks Consensus Estimate of 7 cents. Moreover, revenues of $1.2 billion beat the Zacks Consensus Estimate of $1.1 billion. The company's earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing in one, delivering an average negative surprise of 48.5%. This is depicted in the graph below: Liberty Energy Inc. price-eps-surprise | Liberty Energy Inc. Quote The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised 9.1% downward in the past 30 days. The estimated figure indicates a 266.7% year-over-year increase. The Zacks Consensus Estimate for revenues indicates growth of 25.5% from the year-ago period. Liberty Energy is a leading provider of hydraulic services and related technologies to onshore oil and natural gas exploration and production companies in North America. The company faces several headwinds that could limit its earnings growth in the third quarter of 2026. Its revenue growth may not translate into stronger profitability, as second-quarter results showed limited incremental earnings conversion. Our model predicts that the company's operating costs and expenses are likely to have increased to $1046.1 from $949.8 in the year-ago quarter, also creating pressure on earnings. Persistent crude oil price volatility and macroeconomic uncertainty could also prompt cautious spending by producers, particularly private operators that have driven much of the recent activity recovery. Meanwhile, rising capital expenditure commitments, higher equipment deposits and increasing overhead associated with the power generation business could weigh on cash flow and financial flexibility before meaningful power-related earnings emerge. On the bullish side, Liberty Energy could deliver an earnings beat in the third quarter of 2026 as strong fleet utilization and a nearly full operating calendar support higher activity levels. Management expects service pricing improvements to gain traction during the quarter, while demand for next-generation DigiPrime fleets and robust natural gas basin activity could further support performance. Our proven Zacks model does not predict an earnings beat for Liberty Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here. Earnings ESP of LBRT: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -11.86%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. LBRT's Zacks Rank: LBRT currently carries a Zacks Rank #3. Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this season. Baker Hughes Company BKR has an Earnings ESP of +1.15% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Baker Hughes is scheduled to release earnings on Oct. 27. BKR's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 17.4%. BKR is valued at around $55 billion. Core Laboratories Inc. CLB currently has an Earnings ESP of +3.03% and a Zacks Rank #3. It is scheduled to release earnings on Oct. 28. CLB's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while matching in one, delivering an average surprise of 14.6%. CLB is valued at around $448.3 million. Patterson-UTI Energy, Inc. PTEN has an Earnings ESP of +42.86% and a Zacks Rank #3 at present. It is scheduled to release earnings on Oct. 28. The Zacks Consensus Estimate for PTEN's 2026 earnings indicates year-over-year growth of about 92.3%. PTEN is valued at around $4.4 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Core Laboratories Inc. (CLB) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Patterson-UTI (PTEN). Shares have added about 24.5% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Patterson-UTI due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Patterson-UTI Energy, Inc. before we dive into how investors and analysts have reacted as of late. Patterson-UTI Energy (PTEN) reported second-quarter 2026 adjusted earnings of break-even, outperforming the Zacks Consensus Estimate of a loss of 3 cents per share. The bottom line improved from the year-ago quarter's adjusted loss of 6 cents, primarily due to stronger performance in its Completion Services segment and year-over-year improvement in the Drilling Products and Other operations. Houston, TX-based oil and gas drilling company’s total revenues of $1.23 billion beat the Zacks Consensus Estimate of $1.15 billion by 7%. The top line also increased about 0.7% year over year, driven by improved activity and pricing in the Completion Services segment, along with higher revenues from Drilling Products and Other operations. PTEN’s board of directors declared a quarterly dividend of 10 cents per share, payable on Sept. 15, 2026, to shareholders of record as of Sept. 1. Drilling Services: Revenues in this segment totaled $373.5 million, down 7.5% from the year-ago quarter's $403.8 million, but beat our estimate of $350.7 million. Operating income declined to $22.7 million from $40.6 million a year ago, primarily due to a non-cash charge related to the Colombia exit. The reported figure also missed our operating income estimate of $41.1 million. Completion Services: Segment revenues increased 4.8% year over year to $753.6 million from $719.3 million and beat our estimate of $659.1 million. Operating income totaled $8.2 million against an operating loss of $29.2 million in the prior-year quarter. This improvement was driven by high pressure pumping utilization, better pricing and continued growth in integrated completion services. The reported figure beat our expectation of an operating loss of $17.6 million. Drilling Products: Revenues increased 3.3% year over year to $91.3 million from $88.4 million and beat our estimate of $80.4 million. Operating income improved to $8.3 million from $6.8 million in the year-ago quarter. Record international revenues and stronger U.S. revenue per industry rig offset disruptions in the Middle East and seasonal weakness in Canada. However, the reported operating income beat our estimate of $2.7 million. Other: Revenues amounted to $9.5 million, up 21.8% from the year-ago quarter’s $7.8 million and beat our estimate of $7.7 million. Operating income improved to $5.1 million from a loss of $2 million in the second quarter of 2025, aided by higher oil prices. The reported figure beat our operating income estimate of $2.3 million. In the reported quarter, PTEN spent $155.9 million on capital programs compared with $144.2 million in the prior-year period.  As of June 30, 2026, this company had cash and cash equivalents of $203.2 million and long-term debt of $1.23 billion. Its debt-to-capitalization was 28.5%. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 96.88% due to these changes. At this time, Patterson-UTI has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Patterson-UTI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Patterson-UTI belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Noble Corporation PLC (NE), has gained 12.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Noble Corporation PLC reported revenues of $719.69 million in the last reported quarter, representing a year-over-year change of -15.2%. EPS of $0.01 for the same period compares with $0.13 a year ago. Noble Corporation PLC is expected to post earnings of $0.13 per share for the current quarter, representing a year-over-year change of -31.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -45.7%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Noble Corporation PLC. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Noble Corporation PLC (NE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

What a fantastic six months it’s been for Patterson-UTI. Shares of the company have skyrocketed 41.1%, hitting $11.77. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is now the time to buy Patterson-UTI, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free. We’re happy investors have made money, but we’re cautious about Patterson-UTI. Here are three reasons you should be careful with PTEN, plus one stock we’d rather own. In any given year, energy gross margins are heavily influenced by prices, hedging, and cost inflation, but over a full cycle these gross margins reveal which producers are structurally advantaged through superior “rock” quality, infrastructure access, and cost position. Patterson-UTI, which averaged 29.9% gross margin over the last five years, exhibited bottom-tier unit economics in the sector. It means the company will struggle at higher commodity prices than peers with better gross margins. Adjusted EBITDA margin strips out accounting distortions tied to depletion and historical drilling spend, providing a clearer view of the cash-generating power of the underlying asset base before financing and reinvestment decisions. Looking at the trend in its profitability, Patterson-UTI’s EBITDA margin might have fluctuated slightly but has generally stayed the same over the last year. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its EBITDA margin for the trailing 12 months was 18.8%. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Patterson-UTI has shown mediocre cash profitability relative to peers over the last five years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 5.8%, below what we’d expect for an upstream and integrated energy business. Patterson-UTI isn’t a terrible business, but it isn’t one of our picks. Following the recent surge, the stock trades at 66.3× forward P/E (or $11.77 per share). This valuation tells us a lot of optimism is priced in - you can find more timely opportunities elsewhere. We’d suggest looking at an all-weather company that owns household favorite Taco Bell. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

For the quarter ended June 2026, Patterson-UTI (PTEN) reported revenue of $1.23 billion, up 0.7% over the same period last year. EPS came in at $0, compared to -$0.06 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.15 billion, representing a surprise of +6.97%. The company delivered an EPS surprise of +100%, with the consensus EPS estimate being -$0.03. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Patterson-UTI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating days - Contract drilling - U.S.: 8,361 compared to the 8,357 average estimate based on three analysts. Average active rig count - Contract Drilling - U.S.: 92 versus the three-analyst average estimate of 92. Operating revenue- Other Operations: $9.49 million versus the five-analyst average estimate of $6.92 million. The reported number represents a year-over-year change of +21.8%. Operating revenue- Drilling Services: $373.5 million compared to the $358.89 million average estimate based on five analysts. The reported number represents a change of -7.5% year over year. Revenues- Completion Services: $753.64 million compared to the $691.46 million average estimate based on five analysts. The reported number represents a change of +4.8% year over year. Revenues- Drilling Products: $91.33 million versus the five-analyst average estimate of $78.79 million. The reported number represents a year-over-year change of +3.3%. Operating income- Other: $5.05 million compared to the $3 million average estimate based on five analysts. Operating income- Corporate: $-51.25 million versus the five-analyst average estimate of $-45.16 million. Operating income- Drilling Products: $8.32 million versus $3.55 million estimated by five analysts on average. Operating income- Completion Services: $8.19 million versus $-5.5 million estimated by five analysts on average. Operating income- Drilling Services: $22.74 million compared to the $42.24 million average estimate based on five analysts. View all Key Company Metrics for Patterson-UTI here>>> Shares of Patterson-UTI have returned +10.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Patterson-UTI Energy PTEN reported second-quarter 2026 adjusted earnings of break-even, outperforming the Zacks Consensus Estimate of a loss of 3 cents per share. The bottom line improved from the year-ago quarter's adjusted loss of 6 cents, primarily due to stronger performance in its Completion Services segment and year-over-year improvement in the Drilling Products and Other operations. Houston, TX-based oil and gas drilling company’s total revenues of $1.23 billion beat the Zacks Consensus Estimate of $1.15 billion by 7%. The top line also increased about 0.7% year over year, driven by improved activity and pricing in the Completion Services segment, along with higher revenues from Drilling Products and Other operations. PTEN’s board of directors declared a quarterly dividend of 10 cents per share, payable on Sept. 15, 2026, to shareholders of record as of Sept. 1. Patterson-UTI Energy, Inc. price-consensus-eps-surprise-chart | Patterson-UTI Energy, Inc. Quote Drilling Services: Revenues in this segment totaled $373.5 million, down 7.5% from the year-ago quarter's $403.8 million, but beat our estimate of $350.7 million. Operating income declined to $22.7 million from $40.6 million a year ago, primarily due to a non-cash charge related to the Colombia exit. The reported figure also missed our operating income estimate of $41.1 million. Completion Services: Segment revenues increased 4.8% year over year to $753.6 million from $719.3 million and beat our estimate of $659.1 million. Operating income totaled $8.2 million against an operating loss of $29.2 million in the prior-year quarter. This improvement was driven by high pressure pumping utilization, better pricing and continued growth in integrated completion services. The reported figure beat our expectation of an operating loss of $17.6 million. Drilling Products: Revenues increased 3.3% year over year to $91.3 million from $88.4 million and beat our estimate of $80.4 million. Operating income improved to $8.3 million from $6.8 million in the year-ago quarter. Record international revenues and stronger U.S. revenue per industry rig offset disruptions in the Middle East and seasonal weakness in Canada. However, the reported operating income beat our estimate of $2.7 million. Other: Revenues amounted to $9.5 million, up 21.8% from the year-ago quarter’s $7.8 million and beat our estimate of $7.7 million. Operating income improved to $5.1 million from a loss of $2 million in the second quarter of 2025, aided by higher oil prices. The reported figure beat our operating income estimate of $2.3 million. In the reported quarter, PTEN spent $155.9 million on capital programs compared with $144.2 million in the prior-year period.  As of June 30, 2026, this Zacks Rank #2 (Buy) company had cash and cash equivalents of $203.2 million and long-term debt of $1.23 billion. Its debt-to-capitalization was 28.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. For the third quarter, the Drilling Services segment is expected to operate at an average U.S. rig count of approximately 100 rigs, with adjusted gross profit projected at around $145 million, supported by higher pricing and increased activity. Completion Services' adjusted gross profit is expected to be roughly $140 million on near-full utilization and additional pricing gains. Drilling Products' adjusted gross profit is forecasted at about $40 million, benefiting from stronger U.S. drilling activity and seasonal recovery in Canada. Other operations are expected to generate an adjusted gross profit of approximately $5 million. The company projects third-quarter G&A expenses of about $70 million, depreciation and amortization expense of around $225 million and continues to expect approximately $600 million of capital expenditures for full-year 2026. While we have discussed PTEN’s second-quarter results in detail, let us take a look at three other key reports in this space. Houston, TX-based oil and gas equipment and services provider Halliburton HAL posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%. Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation RRC reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization. The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter. Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. KMI reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%. As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report Range Resources Corporation (RRC) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the second-quarter performance beat to a faster-than-anticipated recovery in U.S. shale activity, with both the pace and magnitude of demand exceeding initial internal projections. A clear market bifurcation has emerged where operators are prioritizing high-specification equipment capable of drilling deeper wells and longer laterals, specifically those exceeding 4 miles. The company is aggressively shifting its completion fleet toward natural gas-powered assets, expecting 90% of active horsepower to be gas-powered by year-end to capture premium pricing and lower fuel costs. Drilling rig pricing on new contracts increased 10%-15% sequentially, driven by a near-total sell-out of high-quality rigs in regions outside the Permian Basin. The Drilling Products segment achieved record international revenue despite geopolitical disruptions in the Middle East, supported by market share gains and pricing improvements. Management emphasized that the current oil strip around $70 per barrel remains significantly above the $60 level many customers used for 2026 budgeting, providing a constructive backdrop for activity growth. Management expects oil-directed activity to improve further into 2027, with private E&Ps leading the initial recovery followed by increased demand from public customers. The company is investing in capital-efficient rig upgrades, targeting a one-year payback by increasing structural load capacity to 1 million pounds for 10-15 rigs through early 2027. Completion demand is expected to tighten further in the second half of 2026 as the lag between recent rig additions and frac requirements closes, supporting continued pricing momentum. Free cash flow is projected to improve in the second half of 2026 and grow meaningfully in 2027 as capital investments in new technology begin to contribute fully to results. The company maintains a commitment to return at least 50% of adjusted free cash flow to shareholders, with 2026 dividends expected to be fully covered despite increased working capital needs. Patterson-UTI is exiting its contract drilling operations in Colombia due to aging assets, political headwinds, and a strategic decision to reallocate capital to higher-return U.S. opportunities. The company recorded $21 million in non-cash charges related to the Colombia exit, primarily from inventory write-downs and asset impairments. Working capital was a significant use of cash in the first half due to seasonal factors and the rapid acceleration of activity, though management expects it to become a source of cash in the second half. Supply chain disruptions and logistics challenges in the Middle East persist due to regional conflict, though the Drilling Products segment has managed to grow through these headwinds. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that reactivated rigs are being deployed for long-term programs rather than short-term work, with upgrades typically secured by six-month to three-year term contracts. Public E&Ps are currently in discussions for activity increases in late 2026 and early 2027, focusing on high-hook-load rigs and gas-powered frac equipment. Upgrades to 1-million-pound load capacity cost approximately $2 million per rig, with returns supported by higher day rates and quick paybacks within the initial contract term. The company identified a tranche of 10-15 rigs for these capital-efficient upgrades through early next year. Management is focused on 'price recovery' after a three-year downturn where pricing fell roughly 30%; they are prioritizing margin expansion over adding new market capacity. While the company has secured manufacturing slots for 2027, they have not yet committed to adding total fleet horsepower, preferring to wait for further pricing stabilization. A mid-quarter cutover to a unified ERP system for a third of the business caused temporary billing delays, contributing to the higher receivable balance at quarter-end. Management confirmed the system is now live for the majority of the business, reducing the risk of future administrative cash flow delays.

Interested in Patterson-UTI Energy, Inc.? Here are five stocks we like better. Second-quarter revenue rose 10% sequentially to $1.228 billion, supported by stronger drilling activity, improved pricing and near-full completion-equipment utilization. The company reported a $20 million net loss, including non-cash charges, and adjusted EBITDA of $232 million. Management expects continued momentum in the third quarter, forecasting roughly 100 drilling rigs, $145 million in Drilling Services adjusted gross profit and $140 million in Completion Services adjusted gross profit. Higher-specification rigs, natural-gas-powered frac equipment and pricing gains are supporting margins. Patterson-UTI is investing about $600 million in 2026 capital expenditures while maintaining liquidity, with $203 million in cash and no revolver borrowings at quarter-end. The company also confirmed its exit from Colombia and expects free cash flow to improve in the second half of 2026 and meaningfully in 2027. Oil Shorts Are Crowded, 3 Names That Could Bring on a Squeeze Patterson-UTI Energy (NASDAQ:PTEN) reported second-quarter revenue of $1.228 billion, up 10% from the first quarter, as stronger drilling activity, higher pricing and near-full utilization of completion equipment lifted results across its operating segments. The company posted a net loss attributable to common shareholders of $20 million, or $0.05 per share, including $21 million in non-cash charges related to its exit from Contract Drilling operations in Colombia and $5 million in non-cash charges tied to the write-down of minority interests in non-controlled entities. Adjusted EBITDA totaled $232 million. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Why Goldman Sachs Just Upgraded These 3 Stocks and What It Means Chief Executive Officer Andy Hendricks said activity and pricing improved faster than the company anticipated during the quarter, including relative to guidance provided in a mid-quarter update. He said the momentum continued into the third quarter, driven by demand for higher-specification drilling rigs and natural-gas-powered hydraulic fracturing equipment. In Drilling Services, Patterson-UTI generated second-quarter revenue of $374 million and adjusted gross profit of $114 million. Excluding approximately $20 million in Colombia-related non-cash charges, adjusted gross profit would have been $134 million, Chief Financial Officer Andy Smith said. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Is NexTier-Patterson UTI Deal A Sign Of More Consolidation Ahead? U.S. Contract Drilling recorded 8,361 operating days and averaged 92 operating rigs in the quarter. Revenue per day increased from the first quarter, while the company’s directional drilling operation also posted a “meaningful” sequential improvement, according to Smith. For the third quarter, Patterson-UTI expects its drilling-services rig count to average about 100 rigs and to exit the period above that level. The company forecast adjusted gross profit of roughly $145 million for the segment. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Hendricks said pricing on new drilling contracts rose about 10% to 15% from first-quarter levels. Upgraded rigs are being deployed at day rates several thousand dollars above those for standard super-spec rigs, he said. Outside the Permian Basin, high-quality rigs are effectively sold out, according to Hendricks, while increasing Permian demand has also supported pricing. The company is investing in upgrades that increase rig capacity for deeper wells and longer laterals, including larger structures, expanded circulating systems, more pipe-racking capacity, and digital and automation capabilities. Hendricks said many upgrades cost in the low-single-digit millions of dollars, or about $2 million in some cases, and can achieve payback within a year under term contracts. Patterson-UTI expects to upgrade roughly 10 to 15 rigs through this year and early next year, alongside larger projects supported by contracts lasting more than three years. Hendricks said roughly half of recent wells drilled had laterals longer than two miles, compared with about one-third a year earlier. Wells with laterals exceeding four miles accounted for more than 10% of recent wells, about four times the prior-year average, while drilling targeting deeper shale intervals more than doubled year over year. Completion Services reported $754 million in second-quarter revenue and $123 million in adjusted gross profit. The segment benefited from a largely full frac calendar and improved pricing across part of its fleet. Smith said pressure-pumping utilization was very high during the quarter and that even a modest improvement in demand supported meaningful pricing gains. Natural-gas-powered equipment is nearly fully utilized, he said, while much of the remaining available industry capacity consists of older diesel equipment. Patterson-UTI expects Completion Services adjusted gross profit of approximately $140 million in the third quarter, supported by near-full utilization and additional price increases. Hendricks said the company expects third-quarter schedules to contain less idle time than in prior periods and cited higher pricing and the increasing mix of newer gas-powered equipment as the main drivers of margin improvement. The company is retiring older diesel assets and adding direct-drive Emerald frac equipment powered entirely by natural gas. While it had expected available horsepower to decline as diesel retirements outpaced additions, capital spending announced in May is expected to keep second-half available horsepower broadly in line with the first half. By year-end, Patterson-UTI expects about 90% of active horsepower to be powered substantially by natural gas. Hendricks said the company estimates average completion pricing had fallen about 30%, or potentially more, over the prior three years. He said the company sees an opportunity for substantial pricing recovery as increased drilling activity creates demand for frac capacity later this year and into 2027. Patterson-UTI has not decided to increase total fleet horsepower, instead prioritizing price recovery and fleet quality. Drilling Products recorded second-quarter revenue of $91 million and adjusted gross profit of $37 million. Revenue increased 14% from the first quarter despite Middle East disruptions and Canada’s seasonal spring breakup. The quarter marked the segment’s highest revenue since Patterson-UTI acquired Ulterra in 2023. Hendricks said the business achieved record international revenue, with growth across key geographies despite conflict-related disruptions in the Middle East. The U.S. business represented approximately 70% of segment revenue, while downhole tools grew to about 5% of segment revenue after increasing significantly since the end of 2025. The company expects Drilling Products adjusted gross profit of about $40 million in the third quarter, citing Canada’s seasonal recovery and higher U.S. activity. Hendricks also cited growing geothermal demand, saying bit runs had doubled from the end of 2025. Patterson-UTI invested $156 million in capital expenditures during the second quarter and continues to expect 2026 capital expenditures, net of asset-sale proceeds, of approximately $600 million. Spending includes drilling-rig upgrades and additional gas-powered Emerald frac fleets. The company ended the quarter with $203 million in cash and no borrowings under its $500 million revolving credit facility. It refinanced its 2028 senior unsecured notes, extending the maturity to 2036, and now has no senior-note maturities until 2029. Smith said the company expects interest expense of about $20 million per quarter. Management expects adjusted free cash flow in 2026 to exceed dividend payments despite higher capital spending and working-capital needs. The board approved a quarterly dividend of $0.10 per share, payable Sept. 15 to shareholders of record on Sept. 1. The company also confirmed it is exiting Colombia, citing aging assets, a less favorable political environment and the capital required to remain competitive. Smith said approximately 75% of the value written off in the quarter related to assets acquired through the Pioneer Energy Services transaction. Looking ahead, management said it expects free cash flow to improve in the second half of 2026 and increase meaningfully in 2027 as investments in upgraded rigs and completion equipment begin contributing more fully to results. Patterson-UTI Energy provides a comprehensive suite of onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company's core offerings include land-based drilling rigs, directional drilling, hydraulic fracturing services, downhole tool rental and well-servicing equipment. By integrating drilling and completion capabilities, Patterson-UTI Energy offers operators a streamlined solution designed to improve operational efficiency and well performance. Headquartered in Houston, Texas, Patterson-UTI Energy traces its origins to its founding in 1978 and was later incorporated in Delaware in 1996. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Patterson-UTI Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Patterson-UTI (PTEN) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this provider of onshore contract drilling services would post a loss of $0.1 per share when it actually produced a loss of $0.06, delivering a surprise of +40%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Patterson-UTI, which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $1.23 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.97%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Patterson-UTI shares have added about 50.1% since the beginning of the year versus the S&P 500's gain of 8.5%. While Patterson-UTI has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Patterson-UTI was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $1.2 billion in revenues for the coming quarter and -$0.06 on $4.64 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Helmerich & Payne (HP), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This oil and gas well-drilling contractor is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. Helmerich & Payne's revenues are expected to be $988.44 million, down 5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Patterson-UTI Energy Inc (NASDAQ:PTEN) reported a strong sequential revenue increase of 10% in Q2 2026, with all business segments performing ahead of expectations. The company is seeing significant pricing momentum, with new drilling rig contracts securing 10% to 15% higher day rates compared to Q1, and upgraded rigs commanding premiums. Demand for high-specification equipment is rising, driven by longer laterals and deeper wells, positioning PTEN's upgraded fleet for long-term, high-return contracts. The completion services segment is benefiting from a tight market for natural gas-powered frac equipment, allowing for meaningful pricing recovery after a three-year downturn. Management expects a meaningful improvement in free cash flow in the second half of 2026 and into 2027, supported by high-return capital investments and improving market conditions. Patterson-UTI Energy Inc (NASDAQ:PTEN) reported a net loss of $20 million for Q2 2026, impacted by non-cash charges related to the exit of its contract drilling business in Colombia. Working capital was a significant use of cash in the first half of the year due to the rapid acceleration in activity, creating a short-term headwind on cash flow. The company is exiting its operations in Colombia due to an unfavorable political environment and aging assets, which required a write-down of inventory and other assets. Geopolitical uncertainty and conflict in the Middle East continue to create disruptions in logistics and supply chains, impacting the Drilling Products segment's international operations. While pricing is recovering, the completion services segment is still recovering from a prolonged downturn where average pricing had fallen by an estimated 30% or more. Here are the key highlights from the Patterson-UTI Energy Inc (NASDAQ:PTEN) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 3 Warning Sign with PTEN. Is PTEN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the economics of upgrading rigs to top-tier status, including the cost and payback period? A: Andy Hendricks, CEO: Our engineering teams have developed capital-efficient ways to upgrade existing rig structures to a million-pound load capacity for longer laterals and deeper wells. We can spend in the low single-digit millions (around $2 million) on many rigs and achieve a payback within a year, supported by term contracts and higher day rates. We have about 10 to 15 rigs we can upgrade this way, and for larger structural upgrades, we are signing three-plus year contracts. Q: How should we think about the sustainability of the pricing gains you are seeing in both drilling and completion services? A: Andy Hendricks, CEO: In drilling, the 10% to 15% price increases on new contracts are very sustainable because they are locked into term contracts, and the market for high-spec rigs is tight. In completions, the sustainability is driven by the tightness of the market for natural gas-powered equipment. The industry is essentially sold out of high-end equipment, and we expect further pricing recovery in Q3 and Q4 as demand from increased drilling activity materializes. Q: The step-up in Q3 drilling services gross profit guidance to $145 million seems to match the rig count increase. Are reactivation costs preventing margins from stepping higher? A: Andy Smith, CFO: Yes, we expect a similar amount of reactivation costs in Q3 as we saw in Q2. Additionally, we will have some trailing costs associated with finalizing our exit from Colombia. These costs are embedded in the guidance and are holding margins back from increasing more. Q: Can you talk about the incremental margins in the completion services business and the ability to drive pricing and utilization through the back half of the year? A: Andy Hendricks, CEO: The improvement is driven by price increases. Our team successfully landed a large number of price increases in Q2 after three years of downward pressure, and we expect to get more in Q3 and Q4. The Q3 schedule is also more solid with less white space. The market is tight, and high-end natural gas-powered equipment is essentially sold out, which supports this pricing momentum. Q: Where do we stand on completion pricing relative to the trough, and what type of improvements can we see? A: Andy Hendricks, CEO: We estimate average pricing is down about 30% or more from three years ago. With the inflection in drilling activity and the lack of available high-end completion equipment, there is a good chance for us to recover a large part, if not all, of this pricing over the next few quarters. Q: At what point would you consider adding to your total frac fleet horsepower given the market opportunities? A: Andy Hendricks, CEO: Right now, we believe price recovery in completions is the biggest opportunity. The market is tight, and we are focused on that. We have a great relationship with Caterpillar and have access to equipment slots for 2027 if we decide to add fleets, but we have not made that decision yet. We are focused on price recovery in the near term. Q: Can you provide an update on the Turnwell JV with ADNOC? A: Andy Hendricks, CEO: We continue to participate in the Turnwell drilling and completion activity through advising, coaching, and mentoring to help improve efficiencies. Work is still ongoing to prove out costs on phase one to evaluate the path to phase two. That is about all I can say at this point. Q: The Q2 results surpassed the updated guidance you provided in mid-May. Where were the bright spots that exceeded your expectations? A: Andy Hendricks, CEO: The rig count moved faster than we anticipated even after our mid-quarter update. This tightening in the completions market allowed us to push pricing with several customers in Q2. The real demand from the 50 rigs added to the industry has not yet shown up in completions, which will make the market even tighter later this year and into 2027, supporting further price recovery. Q: What is your outlook for gas-directed drilling activity? A: Andy Hendricks, CEO: While there is a big focus on oil basins, we are also deploying drilling rigs into gas markets and are in discussions with gas E&Ps for further deliveries, including signing term contracts. We will see some increase in drilling activity in gas markets, which is good for us and will round out our portfolio. Q: Can you talk about the challenges in the Drilling Products segment, specifically regarding the Middle East and tungsten inflation? A: Andy Hendricks, CEO: In the Middle East, our team in Oman is doing great. In Saudi Arabia, while offshore has been challenged, land drilling is picking up. We have qualified to do rebuilds on drill bits for Aramco, which is a growing business. Regarding tungsten prices, we are seeing a shift from customers to steel body drill bits, which partially mitigates the higher cost of tungsten matrix bits. This is an industry-wide issue. For the complete transcript of the earnings call, please refer to the full earnings call transcript.