Patterson-UTI Energy reported higher revenue and positive net income for the third quarter, alongside a stronger outlook for U.S. drilling and completion activity. The oilfield-services company also declared a $0.10-per-share quarterly dividend.
Management pointed to improving customer demand and pricing, particularly for advanced drilling rigs and natural-gas-powered fracturing equipment. It expects free cash flow to remain strong in the fourth quarter and rise meaningfully in 2027 compared with 2026.
Key details
- Third-quarter revenue was $1.3 billion, up 9% sequentially.
- Net income attributable to common stockholders was $28 million. Adjusted EBITDA was $264 million.
- The quarterly dividend is $0.10 per share, payable Dec. 15 to shareholders of record on Dec. 1.
- Patterson-UTI said stronger U.S. onshore drilling and completion demand is supporting pricing and returns. Management cited customer interest in reactivating rigs and increasing completion activity in 2027.
- In drilling services, customers are seeking upgraded rigs with digital and automation features, as well as larger structures suited to deeper wells and longer laterals. The company said demand is supporting strong pricing for its highest-specification rigs.
- In completion services, management said pricing momentum is positive, especially for natural-gas-powered equipment. It described that equipment as being in very short supply and said further pricing improvement would be needed to support investment to meet demand.
- The company said it generated strong free cash flow in the quarter and expects it to remain strong in the fourth quarter, with a meaningful increase in 2027 compared with 2026.
What it means
The results and commentary point to improving operating conditions for Patterson-UTI, with demand and pricing strength concentrated in higher-specification drilling rigs and gas-powered completion equipment. Management’s outlook also ties further growth in those services to investment in the fleet and related capabilities.