September 30, 2026 | December 31, 2025 |
ASSETS | |
Current assets: | |
Cash, cash equivalents and restricted cash | $ 339,310 $ 420,642 |
Accounts receivable, net | 945,660 723,277 |
Inventory | 143,853 160,280 |
Other current assets | 88,765 113,892 |
Total current assets | 1,517,588 1,418,091 |
Property and equipment, net | 2,557,588 2,711,037 |
Goodwill | 487,388 487,388 |
Intangible assets, net | 727,870 814,810 |
Other assets | 161,471 139,140 |
Total assets | $ 5,451,905 $ 5,570,466 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
Current liabilities: | |
Accounts payable | $ 553,891 $ 470,782 |
Accrued liabilities | 294,098 366,488 |
Other current liabilities | 28,943 26,372 |
Total current liabilities | 876,932 863,642 |
Long-term debt, net | 1,234,495 1,221,038 |
Deferred tax liabilities, net | 221,090 215,818 |
Other liabilities | 42,489 45,253 |
Total liabilities | 2,375,006 2,345,751 |
Stockholders' equity: | |
Stockholders' equity attributable to controlling interests | 3,070,892 3,218,538 |
Noncontrolling interest | 6,007 6,177 |
Total equity | 3,076,899 3,224,715 |
Total liabilities and stockholders' equity | $ 5,451,905 $ 5,570,466 |
2026 | 2026 | 2025 | 2026 | 2025 | |
REVENUES | $ 1,342,234 | $ 1,227,967 | $ 1,175,954 | $ 3,687,532 | $ 3,675,811 |
COSTS AND EXPENSES: | |||||
Direct operating costs | 1,005,438 | 947,329 | 893,833 | 2,801,922 | 2,784,610 |
Depreciation, depletion, amortization and impairment | 221,583 | 217,781 | 225,598 | 657,758 | 719,322 |
General and administrative | 69,960 | 67,505 | 61,976 | 206,228 | 193,014 |
Other operating expense (income), net | (18,020) | 2,314 | 22,601 | (20,370) | 19,460 |
Total operating costs and expenses | 1,278,961 | 1,234,929 | 1,204,008 | 3,645,538 | 3,716,406 |
OPERATING INCOME (LOSS) | 63,273 | (6,962) | (28,054) | 41,994 | (40,595) |
OTHER INCOME (EXPENSE): | |||||
Interest income | 2,695 | 2,902 | 1,480 | 8,362 | 4,216 |
Interest expense, net of amount capitalized | (19,974) | (20,398) | (17,488) | (57,857) | (52,830) |
Other income (expense) | 1,150 | (3,464) | 1,020 | (1,349) | 1,344 |
Total other income (expense) | (16,129) | (20,960) | (14,988) | (50,844) | (47,270) |
INCOME (LOSS) BEFORE INCOME TAXES | 47,144 | (27,922) | (43,042) | (8,850) | (87,865) |
INCOME TAX EXPENSE (BENEFIT) | 18,508 | (8,647) | (6,592) | 6,265 | (4,008) |
NET INCOME (LOSS) | 28,636 | (19,275) | (36,450) | (15,115) | (83,857) |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST | 283 | 327 | (48) | 761 | 684 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON | ||||||||||
STOCKHOLDERS | $ | 28,353 | $ | (19,602) | $ | (36,402) | $ | (15,876) | $ | (84,541) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER COMMON SHARE: | ||||||||||
Basic | $ 0.07 | $ (0.05) | $ (0.10) | $ (0.04) | $ (0.22) | |||||
Diluted | $ 0.07 | $ (0.05) | $ (0.10) | $ (0.04) | $ (0.22) | |||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||
Basic | 381,099 | 380,192 | 382,819 | 380,298 | 384,888 | |||||
Diluted | 384,356 | 380,192 | 382,819 | 380,298 | 384,888 | |||||
CASH DIVIDENDS PER COMMON SHARE | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.30 | $ 0.24 | |||||
2026 | 2025 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (15,115) | $ (83,857) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and impairment | 657,758 | 719,322 |
Deferred income tax expense (benefit) | 4,987 | (5,599) |
Stock-based compensation | 18,697 | 30,527 |
Net (gain) loss on asset disposals | (20,270) | (1,739) |
Certain Colombia contract drilling exit costs | 20,011 | - |
Other | (3,578) | 27 |
Changes in operating assets and liabilities | (241,614) | (94,988) |
Net cash provided by operating activities | 420,876 | 563,693 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (413,906) | (450,516) |
Proceeds from disposal of assets, including insurance recoveries | 60,573 | 33,155 |
Other | (3,218) | (19,480) |
Net cash used in investing activities | (356,551) | (436,841) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (33,685) | (69,424) |
Dividends paid | (114,105) | (92,114) |
Net proceeds from issuance of senior notes | 496,015 | - |
Repayment of senior notes | (482,505) | - |
Payments of finance leases | (4,449) | (6,216) |
Other | (2,867) | (10,820) |
Net cash used in financing activities | (141,596) | (178,574) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (4,061) | (2,658) |
Net change in cash, cash equivalents and restricted cash | (81,332) | (54,380) |
Cash, cash equivalents and restricted cash at beginning of period | 420,642 | 241,293 |
Cash, cash equivalents and restricted cash at end of period $ 339,310 $ 186,913
Additional Financial and Operating Data (unaudited, dollars in thousands)Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30,
2026 | 2026 | 2025 | 2026 | 2025 | |
Drilling Services | |||||
Revenues | $ 417,367 | $ 373,501 | $ 380,200 | $ 1,142,585 | $ 1,196,865 |
Direct operating costs | $ 268,453 | $ 259,619 | $ 246,407 | $ 745,933 | $ 748,808 |
Adjusted gross profit (1) | $ 148,914 | $ 113,882 | $ 133,793 | $ 396,652 | $ 448,057 |
Depreciation, amortization and impairment | $ 84,005 | $ 85,490 | $ 84,100 | $ 253,439 | $ 281,719 |
General and administrative | $ 5,472 | $ 6,617 | $ 3,969 | $ 19,186 | $ 12,066 |
Other operating expense (income), net | $ 2,742 | $ (962) | $ 8,600 | $ 292 | $ 232 |
Operating income (loss) | $ 56,695 | $ 22,737 | $ 37,124 | $ 123,735 | $ 154,040 |
Operating days - U.S. (2) | 9,249 | 8,361 | 8,737 | 25,911 | 27,775 |
Capital expenditures | $ 55,240 | $ 60,148 | $ 46,691 | $ 169,809 | $ 175,323 |
Completion Services | |||||
Revenues | $ 808,307 | $ 753,641 | $ 705,275 | $ 2,241,535 | $ 2,190,687 |
Direct operating costs | $ 675,463 | $ 630,716 | $ 594,118 | $ 1,887,665 | $ 1,870,882 |
Adjusted gross profit (1) | $ 132,844 | $ 122,925 | $ 111,157 | $ 353,870 | $ 319,805 |
Depreciation, amortization and impairment | $ 106,989 | $ 108,838 | $ 117,058 | $ 327,299 | $ 352,658 |
General and administrative | $ 7,842 | $ 7,230 | $ 8,821 | $ 22,402 | $ 29,953 |
Other operating expense (income), net | $ - | $ (1,328) | $ 13,000 | $ (1,328) | $ 13,000 |
Operating income (loss) | $ 18,013 | $ 8,185 | $ (27,722) | $ 5,497 | $ (75,806) |
Capital expenditures | $ 62,712 | $ 75,023 | $ 81,301 | $ 182,836 | $ 212,459 |
Drilling Products | |||||
Revenues | $ 110,167 | $ 91,333 | $ 85,880 | $ 281,297 | $ 259,933 |
Direct operating costs | $ 58,971 | $ 54,194 | $ 50,265 | $ 160,089 | $ 146,540 |
Adjusted gross profit (1) | $ 51,196 | $ 37,139 | $ 35,615 | $ 121,208 | $ 113,393 |
Depreciation, amortization and impairment | $ 23,545 | $ 20,478 | $ 21,326 | $ 63,869 | $ 67,786 |
General and administrative | $ 8,500 | $ 8,344 | $ 8,486 | $ 24,767 | $ 26,256 |
Operating income (loss) | $ 19,151 | $ 8,317 | $ 5,803 | $ 32,572 | $ 19,351 |
Capital expenditures | $ 19,904 | $ 18,711 | $ 13,331 | $ 54,457 | $ 46,805 |
Other (3) | ||||||||||
Revenues | $ 6,393 | $ 9,492 | $ 4,599 | $ 22,115 | $ 28,326 | |||||
Direct operating costs | $ 2,551 | $ 2,800 | $ 3,043 | $ 8,235 | $ 18,380 | |||||
Adjusted gross profit (1) | $ 3,842 | $ 6,692 | $ 1,556 | $ 13,880 | $ 9,946 | |||||
Depreciation, depletion, amortization and impairment | $ 1,763 | $ 1,639 | $ 923 | $ 4,671 | $ 10,797 | |||||
General and administrative | $ - | $ - | $ (177) | $ 2 | $ 109 | |||||
Operating income (loss) | $ 2,079 | $ 5,053 | $ 810 | $ 9,207 | $ (960) | |||||
Capital expenditures | $ 2,735 | $ 1,910 | $ 2,145 | $ 5,756 | $ 7,543 | |||||
Corporate | ||||||||||
Depreciation | $ 5,281 | $ 1,336 | $ 2,191 | $ 8,480 | $ 6,362 | |||||
General and administrative | $ 48,146 | $ 45,314 | $ 40,877 | $ 139,871 | $ 124,630 | |||||
Other operating expense (income), net | $ (20,762) | $ 4,604 | $ 1,001 | $ (19,334) | $ 6,228 | |||||
Capital expenditures | $ 763 | $ 132 | $ 1,011 | $ 1,048 | $ 8,386 | |||||
Total Capital Expenditures | $ | 141,354 | $ | 155,924 | $ | 144,479 | $ | 413,906 | $ | 450,516 |
(1) Adjusted gross profit, which is considered a non-GAAP financial measure, is defined as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
(2) Operational data relates to our contract drilling business. A rig is considered to be operating if it is earning revenue pursuant to a contract on a given day.
(3) Other includes our oilfield rentals business, prior to its divestiture in April 2025, and oil and natural gas working interests.
Non-GAAP Financial Measures Adjusted EBITDA Reconciliations (unaudited, dollars in thousands)The following table reconciles Net income (loss) per the information below to Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as reported on the unaudited Condensed Consolidated Statements of Operations:
Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30,2026 | 2026 | 2025 | 2026 | 2025 | |
Net income (loss) | $ 28,636 | $ (19,275) | $ (36,450) | $ (15,115) | $ (83,857) |
Income tax expense (benefit) | 18,508 | (8,647) | (6,592) | 6,265 | (4,008) |
Net interest expense | 17,279 | 17,496 | 16,008 | 49,495 | 48,614 |
Depreciation, depletion, amortization and impairment | 221,583 | 217,781 | 225,598 | 657,758 | 719,322 |
Certain Colombia contract drilling exit costs (1) | - | 20,011 | - | 20,011 | - |
Noncontrolling investment write-down (2) | - | 4,520 | - | 4,520 | - |
Legal accruals and settlements (3) | - | - | 20,000 | - | 15,415 |
(Gain) loss on rigs sold | (22,118) | - | - | (22,118) | - |
Merger and integration expense | - | - | 90 | - | 1,010 |
Adjusted EBITDA(4) | $ 263,888 | $ 231,886 | $ 218,654 | $ 700,816 | $ 696,496 |
Total revenues | $ 1,342,234 | $ 1,227,967 | $ 1,175,954 | $ 3,687,532 | $ 3,675,811 |
Adjusted EBITDA by Operating Segment: | |||||
Drilling Services | $ 140,700 | $ 128,238 | $ 128,224 | $ 397,185 | $ 438,174 |
Completion Services | 125,002 | 117,023 | 102,336 | 332,796 | 289,852 |
Drilling Products | 42,696 | 28,795 | 27,129 | 96,441 | 87,137 |
Other | 3,842 | 6,692 | 1,733 | 13,878 | 9,837 |
Corporate | (48,352) | (48,862) | (40,768) | (139,484) | (128,504) |
Adjusted EBITDA | $ 263,888 | $ 231,886 | $ 218,654 | $ 700,816 | $ 696,496 |
(1) Certain Colombia contract drilling exit costs represent inventory and other asset write-downs recorded in direct operating expenses within the consolidated statements of operations. These costs were excluded from Adjusted EBITDA as they relate to our decision to exit our Colombia contract drilling operations and are not considered representative of ongoing operating performance.
(2) Noncontrolling investment write-down represents an impairment charge of certain minority equity investments. The charge was excluded from Adjusted EBITDA as it represents a non-operating item.
(3) Legal accruals and settlements represent net expenses (income) arising from certain significant legal matters, including settlement activity and reserve adjustments related to prior-year claims. Unlike routine legal costs incurred in the ordinary course of business, these infrequent items are excluded from Adjusted EBITDA because management does not consider them representative of our current period operating performance.
(4) Adjusted EBITDA is not defined by accounting principles generally accepted in the United States of America ("GAAP"). We define Adjusted EBITDA as net income (loss) plus income tax expense (benefit), net interest expense, depreciation, depletion, amortization and impairment expense, certain exit costs, noncontrolling investment write-down, certain significant legal accruals and settlements, impairment of goodwill, certain gains or losses on asset disposals and merger and integration expense. We present Adjusted EBITDA as a supplemental disclosure because we believe it provides, to both management and investors, additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies.
PATTERSON-UTI ENERGY, INC. Non-GAAP Financial Measures Adjusted Gross Profit Reconciliations (unaudited, dollars in thousands)The following table reconciles Adjusted gross profit to gross profit, which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted gross profit:
2026 | 2026 | 2025 | 2026 | 2025 | |
Drilling Services | |||||
Revenues | $ 417,367 | $ 373,501 | $ 380,200 | $ 1,142,585 | $ 1,196,865 |
Less direct operating costs | (268,453) | (259,619) | (246,407) | (745,933) | (748,808) |
Less depreciation, amortization and impairment | (84,005) | (85,490) | (84,100) | (253,439) | (281,719) |
GAAP gross profit (loss) | 64,909 | 28,392 | 49,693 | 143,213 | 166,338 |
Depreciation, amortization and impairment | 84,005 | 85,490 | 84,100 | 253,439 | 281,719 |
Adjusted gross profit (1) | $ 148,914 | $ 113,882 | $ 133,793 | $ 396,652 | $ 448,057 |
Completion Services
Revenues | $ 808,307 | $ 753,641 | $ 705,275 | $ 2,241,535 | $ 2,190,687 |
Less direct operating costs | (675,463) | (630,716) | (594,118) | (1,887,665) | (1,870,882) |
Less depreciation, amortization and impairment | (106,989) | (108,838) | (117,058) | (327,299) | (352,658) |
GAAP gross profit (loss) | 25,855 | 14,087 | (5,901) | 26,571 | (32,853) |
Depreciation, amortization and impairment | 106,989 | 108,838 | 117,058 | 327,299 | 352,658 |
Adjusted gross profit (1) | $ 132,844 | $ 122,925 | $ 111,157 | $ 353,870 | $ 319,805 |
Drilling Products
Revenues | $ 110,167 | $ 91,333 | $ 85,880 | $ 281,297 | $ 259,933 |
Less direct operating costs | (58,971) | (54,194) | (50,265) | (160,089) | (146,540) |
Less depreciation, amortization and impairment | (23,545) | (20,478) | (21,326) | (63,869) | (67,786) |
GAAP gross profit (loss) | 27,651 | 16,661 | 14,289 | 57,339 | 45,607 |
Depreciation, amortization and impairment | 23,545 | 20,478 | 21,326 | 63,869 | 67,786 |
Adjusted gross profit (1) | $ 51,196 | $ 37,139 | $ 35,615 | $ 121,208 | $ 113,393 |
Other
Revenues | $ 6,393 | $ 9,492 | $ 4,599 | $ 22,115 | $ 28,326 |
Less direct operating costs | (2,551) | (2,800) | (3,043) | (8,235) | (18,380) |
Less depreciation, depletion, amortization and impairment | (1,763) | (1,639) | (923) | (4,671) | (10,797) |
GAAP gross profit (loss) | 2,079 | 5,053 | 633 | 9,209 | (851) |
Depreciation, depletion, amortization and impairment | 1,763 | 1,639 | 923 | 4,671 | 10,797 |
Adjusted gross profit (1) | $ 3,842 | $ 6,692 | $ 1,556 | $ 13,880 | $ 9,946 |
(1) Adjusted gross profit is considered a non-GAAP financial measure. We define "Adjusted gross profit" as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense, which does not include impairment of goodwill). Adjusted gross profit is included as a supplemental disclosure because it is a useful indicator of our operating performance.