Investors Love This Stock? Patterson-UTI Energy, Inc. (NASDAQ: PTEN)

On 01 Nov 2019, Patterson-UTI Energy, Inc. (NASDAQ: PTEN) stock traded volume of 5209041 shares during its last trading session as compared to its average volume of 4190344 shares over the recent month. PTEN ended its day with the above stream along the move of 7.33% and closed at the price of $8.93 before opening at $8.45. It has total market capitalization is $1737260119. 52-week range of the stock remained $ 7.67 – 17.42 while its day lowest price was $8.33 and its hit its day highest price at $8.97.

PATTERSON-UTI ENERGY, INC. (PTEN) recently stated financial results for the three and nine months ended September 30, 2019.  The Company stated a net loss of $262M, or $1.31 per share, for the third quarter of 2019, contrast to a net loss of $75.0M, or $0.34 per share, for the quarter ended September 30, 2018.  Not Including charges discussed below, the majority of which were non-cash, the net loss for the third quarter of 2019 would have been $52.9M, or $0.27 per share.  Revenues for the third quarter of 2019 were $598M, contrast to $867M for the third quarter of 2018.

Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “We exceeded our expectation for cash flow generation during the third quarter.   We reduced our capital expenditures and, not including charges discussed below, Adjusted EBITDA for the third quarter exceeded capital expenditures by $74.9M.  During the third quarter, we also reduced debt by $150M, repurchased $75M of our shares, and paid dividends totaling $7.8M.”

For the nine months ended September 30, 2019, the Company stated a net loss of $340M, or $1.65 per share, contrast to a net loss of $120M, or $0.55 per share, for the nine months ended September 30, 2018.  Revenues for the nine months ended September 30, 2019, were $2.0B, contrast to $2.5B for the same period in 2018.

Financial results for the three and nine months ended September 30, 2019, include pre-tax charges totaling $260M ($209M after-tax or $1.05 per share).  These charges include asset impairment charges of $203M primarily in our drilling and pressure pumping sections, $17.8M of goodwill impairment charges at our Current Power and Great Plains Oilfield Rental businesses, $17.0M primarily related to the write-off of inventory at MS Directional, $14.6M related to inventory write-offs and severance at our Warrior Rig Technologies business, and $8.2M related to the early repayment of debt.  The financial results for the nine months ended September 30, 2019 also include charges in the second quarter, which included a $12.7M charge to reduce the carrying value on our balance sheet of a deposit placed in 2017 on future sand purchases and $3.6M of bad debt expense.

During the third quarter, the Company spent $75.0M to repurchase 8.2M shares, which brings the total repurchases through the first three quarters of 2019 to $225M for 20.0M shares under the Company’s share repurchase program.  At September 30, 2019, $175M remained under the Company’s share repurchase authorization.

Mark S. Siegel, Chairman of Patterson-UTI, stated, “We remained disciplined with our capital allocation during the third quarter, and our strong financial position allowed us to focus on debt reduction and share repurchases.  During the third quarter, we reduced debt by $150M, repurchased $75M of our ordinary stock, and paid dividends totaling $7.8M.  Since the starting of 2019, we have used our strong cash flow to repurchase 20.0M shares or 9.4% of the shares outstanding at the starting of the year, and our net debt to total capital ratio was only 21.6% at the end of the third quarter.

“Given our current public market equity valuation, our cash balance and predictable future cash flow generation, we will likely allocate additional capital to both share repurchases and debt repayment,” he concluded.

The Company reported a quarterly dividend on its ordinary stock of $0.04 per share, payable on December 19, 2019, to holders of record as of December 5, 2019.

PTEN net profit margin of the firm was recorded at -11.40% and operating profit margin was calculated at -11.70% while gross profit margin was measured as 29.10%. Beta factor, which measures the riskiness of the security, was registered at 1.60.

Willard Shelton

Willard Shelton – Technology My name is Willard Shelton, I have worked for the stock market industry for 4 years. Technology news grasp my attention the most. In early days, I started my journey with an ordinary author. Moving forward with great hard work and passion I achieve a higher position. As I believe in working hard and putting the soul in my work, I have accomplished so much success and place in, and now I have confidence in this, that I am the spin of this network. I have a vision of touching the sky. I wish to see this industry on a global scale one day. My other duties are that I am a contributor and an editor of the technology segment. My work is to do a critical analysis of companies and pick out the most significant information for investor network.

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