Patterson's First-Quarter Results Marred by Pressure Pumping Industry Onslaught
Patterson's results fell sequentially, with revenue down 12% and adjusted operating margin slipped to negative 4.5% from negative 1% previously. The drop is due mostly to the Pressure Pumping segment, where revenue fell 23% sequentially and adjusted operating margin fell to negative 8% from 0% previously (the segment's worst in two years). For now, our fair value estimate and no-moat rating are unchanged.Patterson's pressure pumping weakness was due to industry headwinds. As a reminder, U.S. sh...
Patterson-UTI Energy is an oilfield services company that primarily owns and operates fleets of land-based drilling rigs and a fleet of pressure pumping equipment. The company's business segments are: contract drilling services, which markets its contract drilling services to independent and other oil and natural gas operators; pressure pumping services, which provides pressure pumping services to oil and natural gas operators, primarily in Texas, the Mid-Continent region and the Appalachian region; and directional drilling services, which provides a suite of directional drilling services, including directional drilling and downhole performance motors in various onshore oil and natural gas basins.
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