Patterson Uti Energy Inc

PTEN

Drilling Oil & Gas Wells

Mkt Cap

$4.442B

PE

22.49

Debt

$1.254B

Cash

$170.2M

EV

$5.526B

FCF

$412.4M

Market Cap

$4.442B

P/E Ratio

22.49

Debt

$1.254B

Cash

$170.2M

EV

$5.526B

FCF

$412.4M

Charts data: {"Earnings":[{"time":"2014-12-30","value":161001000},{"time":"2015-12-30","value":-294486000},{"time":"2016-12-30","value":-318634000},{"time":"2017-12-30","value":5740000},{"time":"2018-12-30","value":-321421000},{"time":"2019-12-30","value":-425703000},{"time":"2020-12-30","value":-803692000},{"time":"2021-12-30","value":-654545000},{"time":"2022-12-30","value":154658000},{"time":"2023-12-30","value":245952000}],"Sales":[{"time":"2014-12-30","value":3182291000},{"time":"2015-12-30","value":1891277000},{"time":"2016-12-30","value":915866000},{"time":"2017-12-30","value":2356684000},{"time":"2018-12-30","value":3326997000},{"time":"2019-12-30","value":2470685000},{"time":"2020-12-30","value":1124249000},{"time":"2021-12-30","value":1357081000},{"time":"2022-12-30","value":2647592000},{"time":"2023-12-30","value":4146456000}],"Net Margins":[{"time":"2014-12-30","value":0.05059279619619953},{"time":"2015-12-30","value":-0.15570749287386249},{"time":"2016-12-30","value":-0.34790460613233815},{"time":"2017-12-30","value":0.0024356256502781025},{"time":"2018-12-30","value":-0.09660994584605877},{"time":"2019-12-30","value":-0.1723016086631845},{"time":"2020-12-30","value":-0.7148701043985808},{"time":"2021-12-30","value":-0.4823182993498546},{"time":"2022-12-30","value":0.05841458955911636},{"time":"2023-12-30","value":0.05931619677141154}],"Assets":[{"time":"2014-12-30","value":5394011000},{"time":"2015-12-30","value":4533317000},{"time":"2016-12-30","value":3804606000},{"time":"2017-12-30","value":5758856000},{"time":"2018-12-30","value":5469866000},{"time":"2019-12-30","value":4439615000},{"time":"2020-12-30","value":3299069000},{"time":"2021-12-30","value":2957848000},{"time":"2022-12-30","value":3143823000},{"time":"2023-12-30","value":7420031000}],"Stockholders Equity":[{"time":"2014-12-30","value":2905810000},{"time":"2015-12-30","value":2561131000},{"time":"2016-12-30","value":2248724000},{"time":"2017-12-30","value":3982493000},{"time":"2018-12-30","value":3505423000},{"time":"2019-12-30","value":2833620000},{"time":"2020-12-30","value":2016059000},{"time":"2021-12-30","value":1609487000},{"time":"2022-12-30","value":1665523000},{"time":"2023-12-30","value":4820681000}],"ROE":[{"time":"2014-12-30","value":0.0554065819857458},{"time":"2015-12-30","value":-0.11498279471061808},{"time":"2016-12-30","value":-0.1416954681855132},{"time":"2017-12-30","value":0.00144130824586509},{"time":"2018-12-30","value":-0.09169250044859066},{"time":"2019-12-30","value":-0.1502329176106888},{"time":"2020-12-30","value":-0.39864507933547577},{"time":"2021-12-30","value":-0.4066792710969396},{"time":"2022-12-30","value":0.09285851951609195},{"time":"2023-12-30","value":0.051020177439660495}],"ROA":[{"time":"2014-12-30","value":0.05267100864273358},{"time":"2015-12-30","value":-0.089773558742969},{"time":"2016-12-30","value":-0.11991412514199894},{"time":"2017-12-30","value":-0.05079793625678433},{"time":"2018-12-30","value":-0.05890034600481986},{"time":"2019-12-30","value":-0.10396757376484222},{"time":"2020-12-30","value":-0.2704575139228673},{"time":"2021-12-30","value":-0.22913618279235445},{"time":"2022-12-30","value":0.06712559835588708},{"time":"2023-12-30","value":0.04743295546878443}]}

Patterson-UTI Energy, Inc., through its subsidiaries, provides contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. The Contract Drilling Services segment markets its contract drilling services primarily in west Texas, Appalachia, Rockies, Oklahoma, South Texas, East Texas, and Colombia. The Pressure Pumping Services segment offers pressure pumping services that consist of well stimulation for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, cementing, and acid pumping services in Texas and the Appalachian region. The Directional Drilling Services segment provides a suite of directional drilling services, including directional drilling and measurement-while-drilling services; supply and rental of downhole performance motors; and software and services that enhances the accuracy of directional and horizontal wellbores, wellbore quality, and on-bottom rate of penetration. It also services equipment to drilling contractors, as well as provides electrical controls and automation to the energy, marine, and mining industries in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Patterson Uti Energy Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$412.4M	$448.8M	$486.6M	$525.4M	$565M	$605.3M	$645.9M	$686.4M	$726.6M	$766M	$804.3M	$8.043B
DCF		$390.3M	$367.9M	$345.4M	$323.1M	$300.9M	$279.2M	$258.1M	$237.5M	$217.7M	$198.8M	$1.988B
Value	$4.907B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 33%

Earnings Stability -37%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-16%	-35%	0.24%	-9.7%	-17%	-71%	-48%	5.8%	5.9%	4.1%
ROA	-9%	-12%	-5.1%	-5.9%	-10%	-27%	-23%	6.7%	4.7%	4.3%
ROE	-11%	-14%	0.14%	-9.2%	-15%	-40%	-41%	9.3%	5.1%	4.2%

What is the average Net Margin?

The average Net Margin over the past 5 years is -22.47%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +4.87%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -9.13%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +3.1%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -15.06%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +4.1%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

Data are missing

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	3.59	3.24	-3.26	12.61	2.80	6.81	-12.13	6.46	3.22	3.04
Debt Equity	0.36	0.27	0.22	0.32	0.34	0.45	0.53	0.50	0.26	0.26
MIN
Graham Stability	-	-	-	-	-	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.04.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.57.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	24%	4.5%	55%	57%	7.7%
Net Income	-	-	-	59%	-
Stockholders Equity	12%	6.6%	34%	190%	11%
FCF	11%	34%	43%	200%	25%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.5%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +7.66%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.58%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +10.68%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +34.33%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +25.03%.