Patterson-UTI Energy, Inc. (PTEN)
Fair ValueFundamental
45
Price
$10.92
Market Cap
$4.15B
Part 1 · What the company is worth
Overview
Patterson-UTI Energy, Inc., through its subsidiaries, provides drilling and completion services to oil and natural gas exploration and production companies in the United States, Canada, Colombia, and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment engages in the provision of contract and directional drilling, and measurement-while-drilling (MWD) services in onshore oil and natural gas basins; supply and rental of downhole performance motors, such as Mpact drilling motors, and Mpower MWD systems; electrical controls and automation to the energy, marine, and mining industries; rig fleet evaluation; and drilling technology service. This segment also provides software and services, such as MWD Survey Fault Detection, Isolation and Recovery (FDIR) services, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; and HiFi Guidance that utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, equipment, materials, and cementing, as well as involved in the power solutions natural gas fueling, and last mile logistics and storage businesses. The Drilling Products segment engages in the design, manufacture, sale, and rental of matrix and steel-bodied polycrystalline diamond compact drill bits. It also rents oilfield tools; and offers specialized services for land-based oil and natural gas drilling, completion, and workover activities. The company was founded in 1978 and is headquartered in Houston, Texas.
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Direct competitors
Who this company fights with for the same customers
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Balance Sheet & Liquidity
Revenue
$4.65B
Trailing 12 months (through 6/30/2026)
Net Income
$-90M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$372M
Total Equity
$3.22B
Total Liabilities
$2.35B
Current Ratio
1.75
Interest Coverage
0.68
Debt/EBITDA
1.54
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$14.07
Current Price
$10.92
Margin of Safety
+22.4%
Fair Value Range
$13.37 - $14.78
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-2.9%
P/B Ratio
1.34
P/FCF
23.43
Gross Margin
-
ROIC
-0.9%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-0.9%
WACC
8.1%
ROIC − WACC
-8.9 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (12)
- P/FCF 23.43
- P/B Ratio 1.34
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Revenue Growth 5Y 33.8%
- Analyst Consensus 64% Buy
- Earnings Surprise avg 27.0%
- Share Dilution -1.7%
- Net Margin Trend -1.9% vs -21.7%
- Piotroski F-Score 5/9
Failed (10)
- EPS shows upward trend
- Price CAGR -8.50%
- ROIC -0.9%
- Operating Margin -1.1%
- CapEx intensity
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- DCF valuation (Fairly valued)
- ROE -2.8%
Unavailable (5)
- Gross Margin NaN%
- Dividend Payout NaN%
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. William Andrew Hendricks Jr. | President, CEO & Director | 60 |
| Mr. C. Andrew Smith CPA | Executive VP & CFO | 54 |
| Mr. James Michael Holcomb | Executive VP & Chief Operating Officer | 62 |
| Mr. Seth D. Wexler J.D. | Executive VP, General Counsel & Secretary | 53 |
| Mr. Kenneth N. Berns CPA | Executive VP & Chief Commercial Officer | 65 |
| Mr. Forrest Robinson | Chief Accounting Officer | 41 |
| Mr. Michael James Sabella | Vice President of Investor Relations | - |
| Mr. Marty Unrein | President of Patterson-UTI Drilling | - |
| Mr. Tommy Balez | President of NexTier Completion Solutions | - |
| Mr. John W. Clunan | President of Ulterra Drilling Technologies | - |
Audit Risk
3
Board Risk
1
Compensation Risk
1
Shareholder Rights Risk
3
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-10
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-04
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-08
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for PTEN, sourced from Markets Gazette.