Patterson-UTI Energy’s 4Q15 Earnings Beat Wall Street Estimates



Patterson-UTI Energy’s 4Q15 revenues

Patterson-UTI Energy Inc. (PTEN) released its 4Q15 financial results on February 4, 2016. The company recorded total revenues of ~$338.5 million in 4Q15, down 62% from $901.2 million recorded in 4Q14.

Patterson-UTI Energy’s revenues for the latest quarter fell mostly due to a decreased rig count and a drilling operations slowdown for upstream companies. In comparison, PTEN’s peer Weatherford International’s (WFT) 4Q15 revenue decreased by 46% year-over-year.

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Patterson-UTI Energy’s 4Q15 earnings

The 4Q15 adjusted net loss per share for Patterson-UTI Energy is $0.41. Compared to the consensus sell-side analysts’ earnings estimate of -$0.48, adjusted earnings beat the estimates by 14%. Between 1Q13 and 4Q14, PTEN’s adjusted EPS increased by 39%.

Like many of its oilfield equipment and services (or OFS) peers, PTEN’s earnings crashed in 1Q15, following the weakness in the energy sector. In the past three quarters until 4Q15, PTEN has been recording adjusted net losses.

On an average, adjusted EPS has exceeded consensus EPS by ~26% in the past 12 quarters. Patterson-UTI Energy comprises 0.17% of the Vanguard Energy ETF (VDE). For investors looking for some exposure to the Oil and Gas Equipment and Services (or OFS) industry, OFS makes up 15.6% of VDE.

PTEN’s reported earnings in 4Q15

In 4Q15, Patterson-UTI Energy’s (PTEN) reported net loss was $58.6 million. This is a steep deterioration compared to 4Q14, when PTEN reported $57.5 million in net income.

PTEN’s fiscal 2015 versus fiscal 2014 results

In fiscal 2015, Patterson-UTI Energy’s revenues were $1.89 billion, down 41% compared to $3.18 billion recorded in fiscal 2014. The net loss attributable to PTEN in fiscal 2015 was $294.5 million, in contrast to $162.6 million net income in fiscal 2014.

The factors that primarily resulted in the fall in the company’s 4Q15 net income include a $288 million pretax goodwill impairment charge related to PTEN’s pressure pumping business, as well as other equipment and oil and natural gas asset impairment charges.

Next, we will discuss PTEN’s growth drivers.


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