Patterson-UTI Energy, Inc. reported a decline in financial performance for the third quarter of 2025, with total operating revenues of $1.176 billion, down from $1.357 billion in the same period last year. The company's net loss attributable to common stockholders was $36.4 million, or $(0.10) per share, compared to a net loss of $978.8 million, or $(2.50) per share, in the prior year. The decrease in revenue was primarily driven by lower activity levels in both the drilling and completion services segments, reflecting broader market conditions and reduced customer spending.
In comparison to the previous fiscal period, Patterson-UTI's revenues from drilling services decreased by 9.3% to $1.197 billion for the nine months ended September 30, 2025, while completion services revenues fell by 15.2% to $2.191 billion. The company also reported a significant reduction in operating costs, which totaled $1.204 billion for the third quarter, down from $2.348 billion a year earlier, largely due to lower depreciation and impairment charges. The company recorded a $27.8 million impairment charge related to its Latin American drilling equipment in the second quarter of 2025, which contributed to the overall loss.
Strategically, Patterson-UTI has focused on enhancing its operational efficiency and expanding its service offerings. The company has made investments in natural gas-powered solutions and advanced technologies, such as its Vertex™ automated completions process, to meet evolving customer demands for lower-emission operations. As of September 30, 2025, Patterson-UTI operated 152 marketed land-based drilling rigs, with a significant portion classified as Tier-1, super-spec rigs, which are designed for high-performance drilling.
Operationally, Patterson-UTI's average active rig count in the U.S. decreased to 95 rigs in the third quarter of 2025, down from 104 in the previous quarter. The company reported a contract drilling backlog of approximately $256 million, with expectations that about 9% of this backlog will remain at the end of the fiscal year. The company’s total assets decreased to $5.533 billion from $5.833 billion at the end of 2024, reflecting a reduction in property and equipment values.
Looking ahead, Patterson-UTI anticipates continued challenges due to volatile oil and natural gas prices, which could impact customer spending and demand for its services. The company expects its average rig count to remain steady through the end of 2025, with adjusted gross profit in the drilling services segment projected to decline slightly. The ongoing geopolitical tensions and trade policy uncertainties are also expected to influence market conditions, potentially affecting the company's financial outlook and operational performance in the near term.
About PATTERSON UTI ENERGY INC
Patterson-UTI Energy, Inc. provides contract drilling, well completion, and drilling product solutions to oil and natural gas exploration companies primarily in the U.S. and select international markets. Its core segments include drilling services, completion services, and drilling products, serving major operators with advanced, efficient equipment and integrated services. The company emphasizes technological innovation, safety, and environmental responsibility within the highly competitive energy services industry.
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