
Patterson-UTI Energy (PTEN) Stock Forecast & Price Target
Patterson-UTI Energy (PTEN) Analyst Ratings
Bulls say
Patterson-UTI Energy Inc. has strengthened its market position, controlling nearly 20% of the North American market for drilling and completions services following its merger with NexTier, significantly expanding its offerings in pressure pumping operations. The company is expected to return at least 50% of free cash flow to investors through dividends and buybacks, indicative of robust financial health and commitment to shareholder value. Additionally, a favorable outlook is supported by strong demand for its Tier 1 Super-spec drilling rigs and anticipated improvements in pricing, equipment utilization, and overall margins despite ongoing industry challenges.
Bears say
Patterson-UTI Energy's financial performance reflects significant challenges, as evidenced by a 39.4% year-over-year decline in segment adjusted EBITDA, alongside an 8.0% sequential dip in overall adjusted EBITDA despite slightly surpassing estimates. The company experienced weakness in both drilling services and completion services, with completion services revenue dropping 10.7% year-over-year and below expectations by 1.1%. Additionally, the free cash flow of $71 million fell short of projections, pointing to an overall weaker operational efficiency and pressure on profit margins, which raises concerns about the company's financial stability.
This aggregate rating is based on analysts' research of Patterson-UTI Energy and is not a guaranteed prediction by Public.com or investment advice.
Patterson-UTI Energy (PTEN) Analyst Forecast & Price Prediction
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