Patterson-UTI Energy Surges 10% on Strong Q3 Earnings, Plans Sub-$600M 2024 CapEx

Patterson-UTI Energy (PTEN) reported better-than-expected third-quarter results, with a GAAP loss of $0.10 per share and revenue of $1.18 billion, surpassing analyst forecasts despite a 13.2% year-over-year decline. The company returned $64 million to shareholders, including an $0.08 per share dividend, and anticipates keeping full-year capital expenditures below $600 million, signaling strong fiscal discipline. Its stock price rose over 10% following the earnings announcement, crossing above its 200-day moving average and trading around $6.62 per share. Patterson-UTI has also been actively repurchasing shares, completing the buyback of over 92 million shares since 2013, with recent repurchases totaling nearly 6 million shares for $34 million. The company’s strategic expansion through the NexTier merger has positioned it to control nearly 20% of the North American market for drilling and completions services, though profitability challenges remain with negative net and operating margins. Overall, Patterson-UTI Energy's solid Q3 performance and disciplined capital management support a positive outlook in the energy sector.