Patterson-uti Energy Stock Fair Value – Patterson-UTI Reports November 2023 Drilling Activity
December 12, 2023
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PATTERSON-UTI ($NASDAQ:PTEN): Patterson-UTI Energy, Inc. (“Patterson-UTI”) has reported its November 2023 drilling activity results, which saw an increase in total rig count. This further supports the company’s ongoing trend of increased drilling activity, as well as the continued strength of its operations. Patterson-UTI is a leading provider of onshore contract drilling services to exploration and production companies in North America. The company is one of the largest land-based drilling contractors in the United States and one of the largest providers of contract drilling services in Canada. Patterson-UTI also operates one of the largest fleets of pressure pumping and wireline equipment in the U.S., providing pressure pumping and wireline services to oil and natural gas exploration and production companies.
This is an increase of 11 rigs year-over-year from November 2022, and represents a record high for the company’s total active rigs. Overall, Patterson-UTI’s November 2023 drilling activity demonstrates the strength of its operations and a trend of increased drilling activity. This is a positive sign for the company moving forward, and suggests that the company’s ongoing operations will remain strong.
Market Price
On Monday, PATTERSON-UTI ENERGY reported its drilling activity for November 2023. At market open, the stock opened at $10.8 and closed at the same price, 0.1% lower than its closing price on the previous day. This marks a slight decrease in the company’s stock value, compared to the previous week.
However, it is too early to draw any conclusions about the company’s performance from this single day of trading. Investors will be watching closely to see how the stock performs in the weeks ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Patterson-uti Energy. More…
| Total Revenues | Net Income | Net Margin |
| 3.35k | 284.44 | 10.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Patterson-uti Energy. More…
| Operations | Investing | Financing |
| 856.22 | -927.21 | 93.76 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Patterson-uti Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.42k | 2.56k | 11.63 |
Key Ratios Snapshot
Some of the financial key ratios for Patterson-uti Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 33.9% | -19.9% | 10.9% |
| FCF Margin | ROE | ROA |
| 9.7% | 6.9% | 3.1% |
Analysis – Patterson-uti Energy Stock Fair Value
At GoodWhale, we recently conducted an analysis of PATTERSON-UTI ENERGY‘s wellbeing. After our research, we estimated the fair value of their share at around $11.0, as calculated by our proprietary Valuation Line. As it stands now, PATTERSON-UTI ENERGY’s stock is currently traded at $10.8, making it a fairly priced option that’s undervalued by 1.7%. We believe this presents a great buying opportunity for those looking to invest in the company. More…
Peers
The Company’s subsidiaries include Patterson-UTI Drilling Company LLC and Universal Pressure Pumping, Inc. Patterson-UTI Energy Inc’s competitors include Awilco Drilling PLC, Ensign Energy Services Inc, Talos Energy Inc.
– Awilco Drilling PLC ($LTS:0Q2K)
Awilco Drilling PLC is a provider of offshore drilling services. The company has a market cap of 169.75M as of 2022 and a return on equity of -2683.9%. The company offers a range of services including drilling, well intervention, and decommissioning.
– Ensign Energy Services Inc ($TSX:ESI)
Ensign Energy Services Inc is a Canadian-based oilfield service company with operations in Canada, the United States, Australia, and internationally. The company provides a range of services to the oil and gas industry, including drilling, completion, and production services. Ensign Energy Services Inc has a market capitalization of $532.99 million as of March 2022 and a return on equity of -1.08%. The company’s operations are focused in the Western Canadian Sedimentary Basin, the Permian Basin in the United States, and the Canning Basin in Australia.
– Talos Energy Inc ($NYSE:TALO)
Talos Energy Inc is an American oil and gas exploration and production company with a focus on the Gulf of Mexico and offshore Mexico. The company has a market cap of 1.71B as of 2022. Talos Energy Inc’s Return on Equity is 25.13%. Talos Energy Inc is headquartered in Houston, Texas.
Summary
This is further evidence of the company’s ongoing success in expanding its operations across the US and beyond. This is an impressive number considering the current market conditions and is a sign that Patterson-UTI’s investments are paying off. With oil prices expected to remain favorable and operators continuing to make investments, the outlook for Patterson-UTI Energy remains strong. With its expansive portfolio of drilling and well services, Patterson-UTI is well positioned to take advantage of any future opportunities in the energy sector.
