Patterson-UTI reports Q3 adjusted EPS 0c, consensus 3c

Reports Q3 revenue $1.4B, consensus $1.33B. “It has been over a year since we closed the NexTier merger and Ulterra acquisition, and it is evident that we are stronger as a combined entity than we were on a standalone basis,” said CEO Andy Hendricks. “Patterson-UTI (PTEN) has generated almost $570M of free cash flow during the first four full quarters since the closing of those transactions, showcasing the robust cash flow-generating capability of our Company. We have also delivered on our commitment to return significant capital to shareholders, having returned more than 15% of our current market capitalization during the four quarters ended September 30, 2024 through dividends and share repurchases…Drilling Products revenue improved in the U.S. despite a lower industry rig count, and we achieved another quarter of improving adjusted gross profit. We expect our rig count will remain relatively steady through the rest of the year, while completion activity is likely to experience a sequential slowdown due to typical holiday breaks and capital discipline being exercised by our customers into year-end…we expect our free cash flow will remain strong, including in Q4 this year.” “We delivered another quarter of strong free cash flow,” said CFO Andy Smith. “We expect our 2024 capital expenditures to be below $700M, even as we continue to increase our investment in next generation assets and improve our asset quality across the entire business. When including the recent Board of Directors approved dividend that we will pay in December, we have reached our expectation to return at least $400M to shareholders in 2024 through dividends and share repurchases. We will continue to explore high return opportunities for the remainder of our 2024 free cash flow, including the option to accelerate our share repurchases.”