| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 47 | — | 17.8x | Around median | |
Growth | 36 | -7.3% | 7.1% | Bottom tier | |
Quality | 20 | -0.6% | 4.5% | Bottom tier | |
Safety | 56 | 21.2x | 2.6x | Around median | |
Capital Return | 63 | 2.79% | 2.12% | Around median | |
Momentum | 97 | 74.5% | 2.9% | Top tier | |
Sentiment | 46 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Patterson-UTI Energy provides services and products to the oil and gas sector, generating revenue primarily from contract drilling services, well completion and hydraulic fracturing services, and drilling products that include drill bits and downhole tools. Its pricing power depends on rig specifications, fracturing fleet efficiency, and digital technologies and automation; it is also replacing older diesel equipment with natural gas-powered Emerald assets to meet customer preferences and reduce fuel costs.
In fiscal Q2 2026, revenue reached $1.228 billion, up 10% from the previous quarter, while the company recorded a net loss of $20 million, or $0.05 per share, and adjusted EBITDA of $232 million, equivalent to approximately 18.9% of revenue. The loss included $21 million in non-cash costs related to exiting the contract drilling business in Colombia and $5 million related to the impairment of a minority interest in non-controlling entities.
Completion Services was the largest source of revenue in fiscal Q2 2026, with revenue of $754 million and adjusted gross profit of $123 million, representing a margin of approximately 16.3%. Drilling Services recorded revenue of $374 million and adjusted gross profit of $114 million, or $134 million excluding the non-cash Colombia costs, while Drilling Products generated revenue of $91 million and adjusted gross profit of $37 million, marking the highest quarterly revenue for this business since the acquisition of Ulterra in 2023.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on PTEN stock is “Buy,” with an average price target of $13.43 and a target range of $12 to $16; the average is only approximately 2.7% above the 52-week range high of $13.08, while the highest target exceeds that high by approximately 22%. There is no positive price-to-earnings multiple because of the net loss, so the valuation depends more heavily on the recovery of Completion Services pricing, margin improvement, and expected cash flow in fiscal 2027, while execution risks and the oil cycle remain.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue reached $1.228 billion in fiscal Q2 2026, up 10% from the previous quarter. The company recorded a net loss of $20 million, or $0.05 per share, and adjusted EBITDA of $232 million. The results included $21 million in non-cash costs related to the Colombia exit and $5 million for the impairment of a minority interest.
Completion Services was the largest business in fiscal Q2 2026, with revenue of $754 million and adjusted gross profit of $123 million. It was followed by Drilling Services, with revenue of $374 million and adjusted gross profit of $114 million. Drilling Products recorded revenue of $91 million and adjusted gross profit of $37 million, in addition to $9 million in other revenue.
The company says that natural gas-capable fracturing equipment was nearly fully utilized across the industry in fiscal Q2 2026, while many companies avoid older, higher-cost diesel equipment. The Emerald program allows diesel assets to be replaced with assets powered by 100% natural gas that achieve better pricing and margins. Patterson-UTI expects approximately 90% of its active horsepower to operate substantially on natural gas by the end of fiscal 2026.
The company expects an average of approximately 100 operating rigs and to exit fiscal Q3 2026 above that level, with adjusted gross profit for Drilling Services of approximately $145 million. It expects adjusted gross profit of approximately $140 million for Completion Services and approximately $40 million for Drilling Products. It also expects general and administrative expenses of approximately $70 million, depreciation, amortization, and impairment of approximately $225 million, and interest expense of approximately $20 million.
Approximately half of recent wells now have horizontal laterals exceeding two miles, compared with approximately one-third in the previous year, while laterals exceeding four miles now represent more than 10% of recent wells. These wells require larger structures, greater lifting capacity, more pipe storage space, and more advanced circulation and automation systems. The company can upgrade approximately 10 to 15 rigs during fiscal 2026 and early fiscal 2027, and several of these upgrades cost approximately $2 million, with expected payback within one year.
Patterson-UTI ended fiscal Q2 2026 with $203 million in cash and no outstanding borrowings under its $500 million revolving facility. It expects adjusted free cash flow in fiscal 2026 to exceed total dividend payments, despite expected net capital expenditures of approximately $600 million. The board also approved a quarterly dividend of $0.10 per share, payable on September 15, 2026, to shareholders of record on September 1, 2026, and management reaffirmed its commitment to return at least 50% of adjusted free cash flow to shareholders.
