Three Oil and Gas Drillers Showing Strength Amidst Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy PTEN?
Source: NASDAQ.COM
Industry Overview: The Zacks Oil and Gas - Drilling industry includes companies that provide drilling rigs and services for oil and gas exploration, with a focus on the volatility of offshore drilling compared to onshore operations. The industry's future is influenced more by contracting activity than by oil prices.
Trends Impacting the Industry: Key trends include cautious near-term contracting due to economic uncertainties, strengthening demand for deepwater drilling projects, and rising operational complexities that increase costs and risks for drilling companies.
Zacks Industry Rank and Performance: The industry ranks #226 out of 243 in the Zacks Industry Rank, indicating a bearish outlook with a significant decline in earnings estimates for 2025 and 2026. It has underperformed compared to the broader energy sector and the S&P 500 over the past year.
Stocks to Watch: Notable companies in the industry include Transocean, Helmerich & Payne, and Patterson-UTI Energy, each with unique strengths and challenges, but all facing a tough market environment reflected in their recent stock performances.
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Analyst Views on PTEN
Wall Street analysts forecast PTEN stock price to fall
9 Analyst Rating
4 Buy
4 Hold
1 Sell
Moderate Buy
Current: 8.140
Low
6.00
Averages
7.22
High
9.00
Current: 8.140
Low
6.00
Averages
7.22
High
9.00
About PTEN
Patterson-UTI Energy, Inc. is a 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. Its Drilling Services segment provides a comprehensive suite of directional drilling services in major producing onshore oil and natural gas basins in the United States, and it provides services that improve the statistical accuracy of wellbore placement for directional and horizontal wells. Its Completion Services segment consists of a well completion business consists of services for hydraulic fracturing, wireline and pumping, completion support, and cementing. Its Drilling Products segment engages in the manufacturing and distribution of drill bits throughout North America. The Company's drilling equipment is used in oil and natural gas exploration and production and in mining operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Patterson-UTI Energy (PTEN.US) Director Plans to Sell $3.24 Million in Common Stock via Form 144
- Stock Sale Announcement: Director Robert W. Drummond Jr. plans to sell 400,000 shares of its common stock on February 13.
- Market Value: The total market value of the shares being sold is approximately $3.24 million.
See More
Patterson-UTI Energy Reports Strong Q4 2025 Earnings with Increased Dividend
- Strong Cash Flow Performance: Patterson-UTI achieved $416 million in adjusted free cash flow for 2025, with Q4 marking the highest cash generation since the company's strategic transformation in 2023, demonstrating robust operational capabilities during typically soft seasonal periods.
- Significant Dividend Increase: The company announced a 25% increase in its quarterly dividend to $0.10 per share, with expectations that free cash flow will exceed dividend commitments, reflecting confidence in capital returns and ongoing value creation.
- CapEx Adjustment: Patterson-UTI plans to reduce its total CapEx budget by approximately 15% to $500 million for 2026, aiming to optimize capital allocation through high-return projects and asset upgrades, even as overall budgets decrease.
- International Expansion Opportunity: The company signed a multiyear agreement to lease high-spec rigs in Argentina, utilizing idle assets to create value in international markets, with expectations of sustained growth in activity over the next five years, further expanding the company's market share.
See More
Patterson-UTI Energy Announces 25% Dividend Increase to $0.10 per Share
- Dividend Increase: Patterson-UTI Energy has declared a quarterly dividend increase from $0.08 to $0.10 per share, representing a 25% rise, which reflects the company's ongoing improvement in profitability and cash flow, thereby boosting investor confidence.
- Yield Performance: This dividend hike results in a forward yield of 5.03%, not only attracting investors seeking stable returns but also potentially enhancing the stock's market appeal and driving price appreciation.
- Payment Schedule: The new dividend will be payable on March 16, with a record date of March 2 and an ex-dividend date also on March 2, ensuring that existing shareholders can promptly benefit from the increased returns, further solidifying the shareholder base.
- Market Reaction Expectations: With the dividend increase, market attention on Patterson-UTI Energy may rise, especially against the backdrop of a reshuffle in the oilfield services sector, prompting investors to reassess the company's value and growth potential.
See More
Patterson-UTI Energy Q4 Earnings Beat Expectations
- Earnings Highlights: Patterson-UTI Energy reported a Q4 GAAP EPS of -$0.02, beating expectations by $0.08, demonstrating the company's resilience in challenging conditions, although it remains in negative territory.
- Revenue Performance: The company's Q4 revenue reached $1.15 billion, a 0.9% year-over-year decline, yet it exceeded market expectations by $50 million, indicating that Patterson-UTI's market position remains robust in a competitive oil and gas sector.
- Market Reaction: Despite the earnings beat, J.P. Morgan downgraded Patterson-UTI's rating, reflecting broader concerns in the oilfield services industry that may impact investor confidence.
- Industry Dynamics: Amidst a reshuffle in the oilfield services sector, Patterson-UTI is viewed as an overlooked and undervalued investment opportunity, potentially attracting attention from value-seeking investors.
See More
Major Earnings Reports Expected After Wednesday's Close
- Major Earnings Preview: After the market closes on Wednesday, key companies such as Alphabet, QUALCOMM, Snap, and T-Mobile US are set to report earnings, which are expected to impact market sentiment, particularly in the tech and telecom sectors.
- Diverse Company Reports: In addition to the major players, up to 70 companies including AFL, ALGN, and ALL will also release earnings, indicating heightened market activity and investor interest.
- Market Reaction Anticipation: Investors will closely monitor the outcomes of these earnings reports to assess company performance and future outlooks, which could influence stock market trends, especially in the current economic climate.
- Significance of Earnings Season: Earnings season serves as a crucial period for investors to gauge the financial health of companies and market trends, with analysts and investors leveraging this information to adjust their investment strategies.
See More
Patterson-UTI Energy Set to Release Q4 Earnings on February 4
- Earnings Announcement Date: Patterson-UTI Energy is set to announce its Q4 earnings on February 4 after market close, with consensus EPS estimate at -$0.10 and revenue expected at $1.1 billion, reflecting an 8.3% year-over-year decline, which may impact investor confidence in the company's future profitability.
- Earnings Performance Analysis: Over the past year, Patterson-UTI has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a relative stability in profitability that could attract value-seeking investors looking for reliable returns.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen five upward revisions and no downward adjustments, while revenue estimates experienced six upward revisions and two downward, suggesting a market optimism regarding the company's future performance that may drive stock price volatility post-earnings release.
- Industry Restructuring Impact: J.P. Morgan downgraded Patterson-UTI in an oilfield services reshuffle while raising Helmerich & Payne, which may influence investor perceptions of Patterson-UTI and increase market uncertainty surrounding its stock performance.
See More
Patterson-UTI Energy (PTEN.US) Director Plans to Sell $3.24 Million in Common Stock via Form 144
- Stock Sale Announcement: Director Robert W. Drummond Jr. plans to sell 400,000 shares of its common stock on February 13.
- Market Value: The total market value of the shares being sold is approximately $3.24 million.
See More
Patterson-UTI Energy Reports Strong Q4 2025 Earnings with Increased Dividend
- Strong Cash Flow Performance: Patterson-UTI achieved $416 million in adjusted free cash flow for 2025, with Q4 marking the highest cash generation since the company's strategic transformation in 2023, demonstrating robust operational capabilities during typically soft seasonal periods.
- Significant Dividend Increase: The company announced a 25% increase in its quarterly dividend to $0.10 per share, with expectations that free cash flow will exceed dividend commitments, reflecting confidence in capital returns and ongoing value creation.
- CapEx Adjustment: Patterson-UTI plans to reduce its total CapEx budget by approximately 15% to $500 million for 2026, aiming to optimize capital allocation through high-return projects and asset upgrades, even as overall budgets decrease.
- International Expansion Opportunity: The company signed a multiyear agreement to lease high-spec rigs in Argentina, utilizing idle assets to create value in international markets, with expectations of sustained growth in activity over the next five years, further expanding the company's market share.
See More
Patterson-UTI Energy Announces 25% Dividend Increase to $0.10 per Share
- Dividend Increase: Patterson-UTI Energy has declared a quarterly dividend increase from $0.08 to $0.10 per share, representing a 25% rise, which reflects the company's ongoing improvement in profitability and cash flow, thereby boosting investor confidence.
- Yield Performance: This dividend hike results in a forward yield of 5.03%, not only attracting investors seeking stable returns but also potentially enhancing the stock's market appeal and driving price appreciation.
- Payment Schedule: The new dividend will be payable on March 16, with a record date of March 2 and an ex-dividend date also on March 2, ensuring that existing shareholders can promptly benefit from the increased returns, further solidifying the shareholder base.
- Market Reaction Expectations: With the dividend increase, market attention on Patterson-UTI Energy may rise, especially against the backdrop of a reshuffle in the oilfield services sector, prompting investors to reassess the company's value and growth potential.
See More
Patterson-UTI Energy Q4 Earnings Beat Expectations
- Earnings Highlights: Patterson-UTI Energy reported a Q4 GAAP EPS of -$0.02, beating expectations by $0.08, demonstrating the company's resilience in challenging conditions, although it remains in negative territory.
- Revenue Performance: The company's Q4 revenue reached $1.15 billion, a 0.9% year-over-year decline, yet it exceeded market expectations by $50 million, indicating that Patterson-UTI's market position remains robust in a competitive oil and gas sector.
- Market Reaction: Despite the earnings beat, J.P. Morgan downgraded Patterson-UTI's rating, reflecting broader concerns in the oilfield services industry that may impact investor confidence.
- Industry Dynamics: Amidst a reshuffle in the oilfield services sector, Patterson-UTI is viewed as an overlooked and undervalued investment opportunity, potentially attracting attention from value-seeking investors.
See More
Major Earnings Reports Expected After Wednesday's Close
- Major Earnings Preview: After the market closes on Wednesday, key companies such as Alphabet, QUALCOMM, Snap, and T-Mobile US are set to report earnings, which are expected to impact market sentiment, particularly in the tech and telecom sectors.
- Diverse Company Reports: In addition to the major players, up to 70 companies including AFL, ALGN, and ALL will also release earnings, indicating heightened market activity and investor interest.
- Market Reaction Anticipation: Investors will closely monitor the outcomes of these earnings reports to assess company performance and future outlooks, which could influence stock market trends, especially in the current economic climate.
- Significance of Earnings Season: Earnings season serves as a crucial period for investors to gauge the financial health of companies and market trends, with analysts and investors leveraging this information to adjust their investment strategies.
See More
Patterson-UTI Energy Set to Release Q4 Earnings on February 4
- Earnings Announcement Date: Patterson-UTI Energy is set to announce its Q4 earnings on February 4 after market close, with consensus EPS estimate at -$0.10 and revenue expected at $1.1 billion, reflecting an 8.3% year-over-year decline, which may impact investor confidence in the company's future profitability.
- Earnings Performance Analysis: Over the past year, Patterson-UTI has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a relative stability in profitability that could attract value-seeking investors looking for reliable returns.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen five upward revisions and no downward adjustments, while revenue estimates experienced six upward revisions and two downward, suggesting a market optimism regarding the company's future performance that may drive stock price volatility post-earnings release.
- Industry Restructuring Impact: J.P. Morgan downgraded Patterson-UTI in an oilfield services reshuffle while raising Helmerich & Payne, which may influence investor perceptions of Patterson-UTI and increase market uncertainty surrounding its stock performance.
See More
