Q3 2024 Patterson-UTI Energy Inc Earnings Call Transcript
Key Points
- Patterson-UTI Energy Inc (PTEN) successfully integrated NexTier and Ulterra, solidifying its position as a leading player in the oilfield services sector.
- The company generated almost $570 million of free cash flow in the first four quarters since the NexTier and Ulterra transactions.
- Patterson-UTI Energy Inc (PTEN) returned 15% of its current market cap to shareholders through share repurchases and dividends.
- The company has a strong balance sheet with an investment-grade credit rating, allowing for a lower cost of capital.
- Patterson-UTI Energy Inc (PTEN) is seeing strong financial results from its electric fleets, which are delivering higher-than-average returns compared to the completion services segment average.
- Patterson-UTI Energy Inc (PTEN) reported a net loss attributable to common shareholders of $979 million in the third quarter, including an $885 million impairment of goodwill.
- The company experienced a decline in completion services adjusted gross profit due to unplanned gaps impacting fixed cost leverage.
- There is a potential for the overall industry rig count to move somewhat lower, impacting Patterson-UTI Energy Inc (PTEN)'s operations.
- The company anticipates average activity in 2025 will be slightly below 2024, with a steady rig count, indicating potential challenges in maintaining growth.
- Patterson-UTI Energy Inc (PTEN) is retiring and decommissioning nearly 400,000 horsepower of older Tier 2 diesel frac equipment, reflecting challenges in maintaining competitiveness in an oversupplied market.
Good morning. Thank you for standing by. My name is Prilla, and I will be your conference operator today.
At this time, I would like to welcome everyone to the Patterson-UTI Third Quarter 2024 Earnings Conference Call. (Operator Instructions)
I would now like to turn the conference over to Michael Sabella. You may begin.
Thank you, operator. Good morning, and welcome to Patterson-UTI's Earnings Conference Call to discuss our third quarter 2024 results. With me today are Andy Hendricks, President and Chief Executive Officer; and Andy Smith, Chief Financial Officer.
As a reminder, statements that are made in this conference call that refer to the company's or management's plans, intentions, targets, beliefs, expectations or predictions for the future are considered forward-looking statements. These forward-looking statements are subject to risks and uncertainties as disclosed in the company's SEC filings which could cause the company's actual results to
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