Patterson-UTI Energy, Inc. (PTEN)
NASDAQEnergyOil & Gas DrillingSnapshot 2026-09-04
$12.42-1.04%
Close 2026-09-04 · 1-day change
NASDAQEnergyOil & Gas DrillingSnapshot 2026-09-04
QuarterlyIQ Insights · PTEN
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within energy on a research-validated quality screen. As of 2026-09-04.
The screen ranks PTEN against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Energy names rated weak grew net income 60% of the time over the next year (vs 55% for the rest of the cohort, n=1735).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Maintain disciplined capital expenditures targeting approximately $600 million net of asset sales for full year 2026, focusing on high-return investments and fleet management.
Stated as a priority in 3 of last 3 quarters. Management updated full-year 2026 capital expenditure guidance from less than $500 million in 2026-Q1 to approximately $600 million in 2026-Q2. This reflects a disciplined approach focusing on high-return investments and fleet management. The trajectory shows management maintaining capital discipline while increasing investment to support growth.
“total capital expenditures, net of asset sales, are still expected to be approximately $600 million in 2026.”
“We continue to expect full-year 2026 capital expenditures to be less than $500 million, net of asset sales.”
“For full-year 2025, we now expect capital expenditures to be below $600 million, before considering the benefit of $33 million in asset sales.”
Complete debt refinancing by redeeming 3.95% Senior Notes due 2028 and maintain investment grade credit rating with strong liquidity and low leverage.
Stated as a priority in 3 of last 3 quarters. Management completed debt refinancing by redeeming $482.5 million of 3.95% Senior Notes due 2028 and issuing $500 million of 6.05% Senior Notes due 2036 in 2026-Q2. The company maintains an investment grade credit rating with low leverage (~1x net debt to LTM adjusted EBITDA) and strong liquidity ($834 million total). The trajectory shows delivery on refinancing and maintaining strong capital structure.
Invest in equipment and digital technology to improve drilling and completion activity, including rig reactivations, fleet upgrades, and new Emerald natural gas technology.
Stated as a priority in 3 of last 3 quarters. Drilling Services operating days increased from 8,301 in 2026-Q1 to 8,361 in 2026-Q2, with revenue rising from $351.7 million to $373.5 million. Management emphasized rig reactivations, pricing increases, and investments in Emerald natural gas completions equipment and digital platforms. The trajectory shows delivering growth in activity supported by technology investments.
Commit to returning at least 50% of adjusted free cash flow annually through dividends and share repurchases, with recent dividend increase to $0.10 per share quarterly.
Stated as a priority in 3 of last 3 quarters. Management increased quarterly dividend from $0.08 to $0.10 per share in 2026-Q1 and declared the same dividend in 2026-Q2. They commit to returning at least 50% of adjusted free cash flow annually through dividends and share repurchases. The trajectory shows consistent delivery on shareholder returns.
Focus on generating strong and sustainable free cash flow through operational execution, cost control, and working capital management.
Stated as a priority in 3 of last 3 quarters. Cash from operating activities was $63.9 million in 2026-Q1 and $56.1 million in 2026-Q2, reflecting typical working capital use in first half. Management expects full-year 2026 free cash flow to cover dividends and improve in 2027. The trajectory shows persistent focus on cash flow and operational efficiency with expected improvement.
“Expect full-year 2026 free cash flow to more than cover dividend payments; free cash flow to improve in 2027.”
Over the trailing year it converted 12.22x of net income into operating cash flow. Historically, Energy names rated robust grew net income 57% of the time over the next year (vs 38% for the rest of the cohort, n=996).
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
13 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Energy names rated neutral grew net income 58% of the time over the next year (vs 56% for the rest of the cohort, n=807).
Not investment advice. As of 2026-09-04.
“Completed redemption of all $482.5 million 3.95% Senior Notes due 2028 funded by proceeds from $500 million 6.05% Senior Notes due 2036.”
“Entered underwriting agreement for $500 million 6.05% Senior Notes due 2036 to redeem 2028 Notes and for general corporate purposes.”
“Strong capital structure with investment grade credit rating and no senior note maturities until 2029.”
“Expect to exit Q2 with 95 active rigs; additional rig reactivations planned; investing in Emerald 100% natural gas completions equipment.”
“Activating drilling rigs in Q2; near full utilization in Completion Services; prioritizing investments in high-grade assets and technology.”
“Investments in new technology and digital platforms like eos and Vertex to improve completions efficiency and customer value.”
“Declared a quarterly dividend of $0.10 per share, payable September 15, 2026.”
“Raised quarterly dividend 25% to $0.10 per share; committed to return at least 50% of adjusted free cash flow annually.”
“Returned approximately two-thirds of adjusted free cash flow to investors through dividends and share repurchases.”
“Strong free cash flow potential; working capital headwinds in first half expected to reverse in second half.”
“Delivered strong free cash flow through disciplined cash management and capital allocation in 2025.”