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Patterson-UTI (PTEN) Posts Narrower Loss, Sales Beat in Q1
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Patterson-UTI Energy (PTEN - Free Report) reported a first-quarter 2022 adjusted net loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents. This outperformance can be attributed to better-than-expected results in the Contract Drilling and Other Operations segments.
Moreover, the loss was narrower than the year-ago quarter's loss of 57 cents per share on accelerated rig activity and much higher energy prices.
The company’s total quarterly revenues of $509 million marginally outperformed the Zacks Consensus Estimate of $508 million. Moreover, the top line improved by an impressive 111.4 % on a year-over-year basis.
Patterson-UTI will pay out its quarterly dividend of 4 cents per share (or 16 cents per share annualized) on Jun 16, 2022 to shareholders of record as of Jun 2, 2022. A dividend of 4 cents marks 100% year-over-year growth from the last year’s first-quarter payout of 2 cents per share.
Segmental Performances
Contract Drilling: Revenues totaled $256.6 million, up by 92.2% from the last year’s fourth-quarter figure of $133.5 million, due to further increased activity and pricing strength. Despite revenues, the unit lost about $3.2 million in the first quarter, narrower than the year-ago loss of $48.6 million, due to the increasing day rates and lower operating costs on a per day basis.
Pressure Pumping: Revenues of $189.6 million rose about 150% from the year-ago figure of $75.8 million due to better pricing. Moreover, the segment posted an operating profit of $6.4 million compared to a loss of $39.7 million in the first quarter of 2021. The profit is attributable to better pricing and the full-quarter impact of the spread reactivated in the fourth quarter.
Directional Drilling: Revenues summed at $43.3 million, up 120% year over year from the last year’s figure of $19.7 million, due to higher activity and more favorable pricing. Moreover, the segment posted an operating profit of $1.8 million against a loss of $4.9 million reported in the corresponding quarter of 2021 due to higher activity and more favorable pricing.
Other Operations: Revenues were $19.8 million, 66.2% more than the year-ago quarter’s $11.9 million, as activity levels improved. The unit also posted a quarterly profit of $741 thousand compared to a loss of $4.6 million recorded in the year-ago quarter.
PattersonUTI Energy, Inc. Price, Consensus and EPS Surprise
In the first quarter of 2022, PTEN spent $94.8 million on capital programs (compared with $18.5 million in the first quarter of 2021). As of Mar 31, 2022, the company had $48.3 million of cash and cash equivalents and $852.5 million as long-term debt.
Outlook
Patterson-UTI believes that the increasing demand and the tight supply of rigs should drive better pricing, longer-term contracts and increase the contract backlog in contract drilling moving forward.
Based on contracts currently in place, Patterson-UTI expects its second-quarter 2022 rig count to average 57 rigs under term contracts. As the onshore driller foresees a ramp-up in drilling activity, the company expects the second-quarter rig count to be 122 rigs, on average.
For 2022, PTEN expects adjusted EBITDA to be more than $500 million. The company maintains its Capex forecast of approximately $350 million.
The Zacks Consensus Estimate for Cenovus Energy’s 2022 earnings is pegged at $2.62 per share, up 223.5% from the projected year-ago earnings of 81 cents.
Cenovus Energy’s stock has rallied 130.4% in a year. The Zacks Consensus Estimate for CVE’s 2022 earnings has been revised approximately 48% upward over the past 60 days.
The Zacks Consensus Estimate for PBF Energy’s 2022 earnings has been revised upward by about 126.6% over the past 60 days from $1.73 to $3.92 per share. PBF Energy’s stock has increased 78.8% in a year.
The Zacks Consensus Estimate for PBF’s 2022 earnings is projected at $3.92 per share, up about 256.8% from the projected year-ago loss of $2.50.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $11.07 per share, which is an increase of 102% from the projected year-ago earnings of $5.48.
Ranger Oil beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 27%. ROCC stock has rallied 129% in a year.
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Patterson-UTI (PTEN) Posts Narrower Loss, Sales Beat in Q1
Patterson-UTI Energy (PTEN - Free Report) reported a first-quarter 2022 adjusted net loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents. This outperformance can be attributed to better-than-expected results in the Contract Drilling and Other Operations segments.
Moreover, the loss was narrower than the year-ago quarter's loss of 57 cents per share on accelerated rig activity and much higher energy prices.
The company’s total quarterly revenues of $509 million marginally outperformed the Zacks Consensus Estimate of $508 million. Moreover, the top line improved by an impressive 111.4 % on a year-over-year basis.
Patterson-UTI will pay out its quarterly dividend of 4 cents per share (or 16 cents per share annualized) on Jun 16, 2022 to shareholders of record as of Jun 2, 2022. A dividend of 4 cents marks 100% year-over-year growth from the last year’s first-quarter payout of 2 cents per share.
Segmental Performances
Contract Drilling: Revenues totaled $256.6 million, up by 92.2% from the last year’s fourth-quarter figure of $133.5 million, due to further increased activity and pricing strength. Despite revenues, the unit lost about $3.2 million in the first quarter, narrower than the year-ago loss of $48.6 million, due to the increasing day rates and lower operating costs on a per day basis.
Pressure Pumping: Revenues of $189.6 million rose about 150% from the year-ago figure of $75.8 million due to better pricing. Moreover, the segment posted an operating profit of $6.4 million compared to a loss of $39.7 million in the first quarter of 2021. The profit is attributable to better pricing and the full-quarter impact of the spread reactivated in the fourth quarter.
Directional Drilling: Revenues summed at $43.3 million, up 120% year over year from the last year’s figure of $19.7 million, due to higher activity and more favorable pricing. Moreover, the segment posted an operating profit of $1.8 million against a loss of $4.9 million reported in the corresponding quarter of 2021 due to higher activity and more favorable pricing.
Other Operations: Revenues were $19.8 million, 66.2% more than the year-ago quarter’s $11.9 million, as activity levels improved. The unit also posted a quarterly profit of $741 thousand compared to a loss of $4.6 million recorded in the year-ago quarter.
PattersonUTI Energy, Inc. Price, Consensus and EPS Surprise
PattersonUTI Energy, Inc. price-consensus-eps-surprise-chart | PattersonUTI Energy, Inc. Quote
Capital Expenditure & Financial Position
In the first quarter of 2022, PTEN spent $94.8 million on capital programs (compared with $18.5 million in the first quarter of 2021). As of Mar 31, 2022, the company had $48.3 million of cash and cash equivalents and $852.5 million as long-term debt.
Outlook
Patterson-UTI believes that the increasing demand and the tight supply of rigs should drive better pricing, longer-term contracts and increase the contract backlog in contract drilling moving forward.
Based on contracts currently in place, Patterson-UTI expects its second-quarter 2022 rig count to average 57 rigs under term contracts. As the onshore driller foresees a ramp-up in drilling activity, the company expects the second-quarter rig count to be 122 rigs, on average.
For 2022, PTEN expects adjusted EBITDA to be more than $500 million. The company maintains its Capex forecast of approximately $350 million.
Zacks Rank & Other Key Picks
Patterson-UTI currently has a Zacks Rank #2 (Buy). Other top-ranked players from the energy space are Cenovus Energy (CVE - Free Report) , PBF Energy (PBF - Free Report) and Ranger Oil , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cenovus Energy’s 2022 earnings is pegged at $2.62 per share, up 223.5% from the projected year-ago earnings of 81 cents.
Cenovus Energy’s stock has rallied 130.4% in a year. The Zacks Consensus Estimate for CVE’s 2022 earnings has been revised approximately 48% upward over the past 60 days.
The Zacks Consensus Estimate for PBF Energy’s 2022 earnings has been revised upward by about 126.6% over the past 60 days from $1.73 to $3.92 per share. PBF Energy’s stock has increased 78.8% in a year.
The Zacks Consensus Estimate for PBF’s 2022 earnings is projected at $3.92 per share, up about 256.8% from the projected year-ago loss of $2.50.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $11.07 per share, which is an increase of 102% from the projected year-ago earnings of $5.48.
Ranger Oil beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 27%. ROCC stock has rallied 129% in a year.