Patterson-UTI Energy Inc

Patterson-UTI Energy (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.

Nabors Industries’ valuation, expressed as a TTM PE (price-to-earnings) multiple, isn’t available due to negative adjusted earnings.

In 4Q16, analysts expect Flotek Industries (FTK) to post an adjusted loss per share of ~$0.04.

The correlation coefficient between the price of crude oil and Halliburton (HAL) stock from September 5, 2016, to September 5, 2017, is 0.65.

Patterson-UTI Energy’s EV, when scaled by trailing-12-month adjusted EBITDA, is lower than the group peer average.

On February 23, 2018, Schlumberger was trading at $66.50, which is ~17% lower than its price a year ago.

Saudi Arabia’s crude oil production increased by 60,000 bpd to 10,120,000 bpd in May—compared to the previous month.

From 4Q15 to 4Q16, National Oilwell Varco’s (NOV) EBITDA margin crashed, dropping from 6.8% to -45.3% during this period.

Superior Energy Services’ (SPN) correlation with crude oil’s price on March 28–June 28 was 0.62—a strong positive relationship.

On March 31, 2017, Basic Energy Services’ (BAS) stock price had fallen 6% from December 30, 2016.

On January 23, 2017, Patterson-UTI Energy (PTEN) provided an update on its revenues and earnings for 4Q16. PTEN expects its revenues to increase 20% to $247 million in 4Q16, compared to $206.3 million in 3Q16.

On March 31, 2017, Nabors Industries (NBR) stock was 20.0% lower than it was on December 30, 2016. In 1Q17, NBR’s adjusted earnings were negative.

In fiscal 3Q17, analysts expect an ~$1.16 adjusted loss per share for Tidewater. Analysts expect Tidewater’s adjusted loss to fall in the coming quarter.

Weatherford International (WFT) stock’s correlation with crude oil was strong between June 29 and July 6, at 0.72.

Schlumberger’s (SLB) Drilling segment witnessed the highest revenue fall of 32% in 4Q16 compared to 3Q16.

From 2Q16 to 2Q17, Flotek Industries’ (FTK) EBITDA margin (or EBITDA as a percentage of revenues) improved to 2.3% from 0.7%.

Approximately 79% of the Wall Street analysts tracking Patterson-UTI Energy (PTEN) have recommended a “buy” or some equivalent as of May 15.

Patterson-UTI Energy’s forward PE multiple isn’t available, which indicates negative earnings in the next 12 months.

Patterson-UTI Energy’s (PTEN) dividend yield fell to 0.29% on March 31, 2017. Since then, its dividend yield has risen to 0.38% as of June 2, 2017.

In the past year, Patterson-UTI Energy stock has risen 87% as of February 17, 2017. It’s outperformed the VanEck Vectors Oil Services ETF’s return of ~35% in the same period.

National Oilwell Varco’s correlation with crude oil prices increased in the trailing year to September 8, 2017—compared to the previous year.

Schlumberger’s Drilling segment witnessed the highest revenue fall at 32% in 4Q16 compared to 4Q15. The segment was followed by the Reservoir Characterization and Production segments.

From 4Q15 to 4Q16, Patterson-UTI’s Contract Drilling segment revenue fell ~33%, while its Pressure Pumping segment witnessed a 20% revenue decline.

In the past couple of years, some major US upstream and integrated companies have reduced their capex following the sharp fall in crude oil prices.

Crude oil prices have risen significantly since the end of June 2017. Analysts don’t expect much impending downside in crude oil prices.

Weatherford International (WFT) plans to hold its Q2 earnings call on July 27. Analysts expect an adjusted loss of $0.18 per share for WFT.

In the past year, crude oil has increased ~64%.

Approximately 50% of the Wall Street analysts tracking Superior Energy Services rated it as a “buy” or some equivalent as of June 28.

On March 19–June 19, the percentage of analysts recommending a “buy” or some equivalent for Patterson-UTI Energy has increased from 76% to 78%.

According to Wall Street analysts’ ratings, Halliburton (HAL) has the highest “buy” or some equivalent rating in the OFS industry.

On March 29, Schlumberger’s (SLB) stock price was 4.0% lower than on December 29, 2017.

As of April 11, 2018, 78% of the analysts tracking Schlumberger rated it as a “buy,” ~19% rated it as a “hold,” and 3% rated it as a “sell.”

Flotek Industries’ forward EV-to-EBITDA multiple (11.7x) is significantly lower than its current EV-to-EBITDA multiple (~199x).

Since September 29, Patterson-UTI Energy’s stock price has fallen 2%—compared to a 2% rise in the iShares Core S&P Mid-Cap ETF (IJH).

On September 1–8, 2017, oilfield service stock Tidewater (TDW) rose the most among the energy sector stocks.

From 2Q16 to 2Q17, Halliburton’s (HAL) EBITDA margin (or EBITDA as a percentage of revenues) rose from 12% to 16%.

On June 30, 2017, Schlumberger’s (SLB) stock price was 22% lower than its price on December 30, 2016. In 2Q17, SLB’s adjusted earnings were negative.

Nabors Industries’ PE multiple was not meaningful in 2015 and 2016 as a result of negative adjusted earnings during this period.

Weatherford International (WFT) stock and crude oil prices have had a steady positive correlation in the past year.

Short interest in Schlumberger’ (SLB) stock as a percentage of its float was ~1.5% on August 4, 2017, compared to 1.6% as of June 30, 2017.

Since the beginning of 2017, Patterson-UTI Energy (PTEN) stock has returned -28% as of August 1.

PTEN’s management believes that its merger with Seventy Seven Energy has consolidated PTEN’s position in drilling and pressure pumping activity.

From 1Q16 to 1Q17, Halliburton’s (HAL) EBITDA margin remained nearly unchanged at 13.7%.

Patterson-UTI Energy’s capex budget for 2017 is $450.0 million. That’s 275.0% higher than its 2016 capex.

Some of the major US upstream and integrated companies have gradually reduced their capex following crude oil’s sharp price fall since mid-2014.

In 2Q17, management expects Patterson-UTI Energy (PTEN) to operate 84 rigs under term contracts, compared to 81 in 1Q17.

Schlumberger’s EBITDA margin was impacted negatively as upstream companies slashed their budgets. From 1Q16 to 1Q17, Schlumberger’s EBITDA margin fell.

Patterson-UTI’s (PTEN) management believes that 2017 will see positive momentum for the company, led by higher drilling and pressure pumping activity.

Short interest in Nabors Industries (NBR), as a percentage of its float, rose to 11.5% as of March 31, 2017—compared to 6.5% as of December 30, 2016.

Patterson-UTI Energy’s (PTEN) operated average US rig count is expected to rise 21.0% in 1Q17 compared to 4Q16.

In the past couple of years, some major US upstream and integrated companies have reduced their capital expenditures (capex) following crude oil’s sharp price fall.

In the past couple of years, some major US upstream and integrated companies have reduced their capital expenditures (capex) following crude oil’s sharp fall.

Short interest in Patterson-UTI Energy (PTEN) stock as a percentage of its float was 15.7% on January 23, 2017, compared to 17.9% on September 30, 2016.

Wall Street’s recommendations on Flotek Industries In this article, we’ll look at changes in Wall Street analysts’ recommendations for Flotek Industries (FTK) between September and December. Consensus rating for Flotek Industries In December so far, 100% of the analysts tracking Flotek Industries have rated it a “buy” or some equivalent. In comparison, approximately 83% of […]

From December 2014 to December 2016, Halliburton’s (HAL) stock price reached the highest level in December 2016. It troughed at ~$28 in January 2016.

In December so far, 90% of the analysts tracking Halliburton rated it a “buy” or some equivalent.

In 3Q16, Halliburton’s net-debt-to-adjusted-EBITDA multiple was ~3.8x, or 251% higher than it was a year ago.

On December 12, Patterson-UTI Energy, one of the prominent contract drillers in North America, disclosed that it agreed to acquire Seventy Seven Energy.

We’ll discuss Helmerich & Payne (HP) and Patterson-UTI Energy’s (PTEN) indebtedness. On September 30, Patterson-UTI Energy’s net debt was $576 million.

The EIA estimates that natural gas production at the Eagle Ford Shale was ~5.9 Bcf (billion cubic feet) per day in October 2016.

The correlation coefficient between Helmerich & Payne’s stock price and crude oil prices from November 2015 to the present is 0.67.

On June 30, 2016, Helmerich & Payne (HP) had an order backlog of ~$2.0 billion compared to ~$3.5 billion in the previous year.

Since Schlumberger’s 2Q16 financial results were announced on July 21, 2016, its implied volatility fell from 22.6% to its current level.

On August 30, 2016, FMC Technologies (FTI) had an implied volatility of ~33%.

On August 19, Patterson-UTI Energy had an implied volatility of ~40%. Since its 2Q16 results were announced, its implied volatility has fallen from ~45%.

The correlation coefficient between Patterson-UTI Energy’s stock price and crude oil from August 2015 to now is 0.64, indicating a positive relationship.

Patterson-UTI Energy’s net debt-to-EBITDA Patterson-UTI Energy’s (PTEN) net debt-to-TTM (trailing-12-month) EBITDA (earnings before interest, tax, depreciation, and amortization) trended upward from fiscal 2Q15 through fiscal 2Q16. In 2Q16, Patterson-UTI Energy’s net debt-to-EBITDA was 2.7x, or 208% higher than one year previously. Remember, net debt-to-EBITDA reflects how easily a company can repay its debts from its […]

In 2Q16, the US rig count declined by 51% over one year previously. During this period, the international rig count decreased by only 19%.

The EIA (U.S. Energy Information Administration) expects crude oil production to slow down at the key US shales.

Approximately 52% of analysts tracking Patterson-UTI Energy (PTEN) rated it a “buy” or some equivalent. Approximately 34% rated the company a “hold.”

PTEN’s correlation with crude oil price has increased marginally since the end of 1Q16 through July 8, 2016, compared to the past year.

In 1Q16, the US rig count declined by 56% over 1Q15. During this period, the international rig count decreased by only 21%.

OFS (oilfield service) companies such as Patterson-UTI Energy (PTEN) are affected by rig counts and energy prices.

Patterson-UTI Energy’s (PTEN) adjusted earnings were negative in fiscal 1Q16.

As of March 31, 2016, Patterson-UTI Energy had a $65 million debt under a senior unsecured term loan.

According to the EIA, the Utica Shale in eastern Ohio has become one of the fastest-growing natural gas producing regions in the United States.

OFS companies are impacted by rig counts and energy prices. In the past year, WTI crude oil prices fell ~12%. Crude oil prices have fallen since June 2014.

Diamond Offshore Drilling released its financial information for fiscal 4Q15 on February 8, 2016. Its stock reacted somewhat positively immediately following the earnings release.

Patterson-UTI Energy’s segment wise performance From 4Q14 to 4Q15, all of Patterson-UTI Energy’s (PTEN) segments saw lower revenues. The Pressure Pumping segment suffered the highest revenue decline of 67% while the Contract Drilling segment was relatively resilient with a 59% fall. These two segments accounted for 99% of PTEN’s 4Q15 revenues. With respect to operating […]