Patterson-UTI Energy Reports 15.2% Revenue Decline in Q1 2025

Patterson-UTI Energy, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total operating revenues of $1.28 billion, down 15.2% from $1.51 billion in the same period last year. The company's net income attributable to common stockholders was $1.01 million, a stark decrease from $51.24 million in the first quarter of 2024. This resulted in a basic and diluted earnings per share of $0.00, compared to $0.13 in the prior year. The decrease in revenue was primarily driven by lower activity levels in the completion services segment, which saw revenues drop to $766.08 million from $944.99 million year-over-year.

In terms of operational metrics, Patterson-UTI's drilling services segment generated $412.86 million in revenue, a decrease from $457.57 million in the previous year, while the drilling products segment also saw a slight decline to $85.66 million from $89.97 million. The company reported a total operating income of $16.95 million, down from $87 million in the first quarter of 2024. The decline in profitability was attributed to reduced activity levels and pricing pressures in the completion services market, alongside increased operating costs.

Patterson-UTI has made strategic adjustments in response to market conditions, including a focus on maintaining a robust backlog of contract drilling services, which stood at approximately $407 million as of March 31, 2025. The company anticipates that about 9% of this backlog will carry over into the next fiscal year. Additionally, the company has been actively managing its capital expenditures, which totaled $161.83 million for the quarter, down from $226.94 million in the same period last year. This reduction reflects a strategic decision to align spending with current market demand.

The company’s balance sheet as of March 31, 2025, showed total assets of $5.77 billion, a decrease from $5.83 billion at the end of 2024. Current liabilities also decreased to $818.29 million from $841.99 million, while long-term debt remained relatively stable at $1.22 billion. Patterson-UTI's liquidity position is supported by approximately $225 million in cash and cash equivalents, alongside $498 million available under its credit agreement, which was amended in January 2025 to provide a $500 million revolving credit facility.

Looking ahead, Patterson-UTI's management expressed caution regarding the outlook for the remainder of 2025, citing potential impacts from ongoing geopolitical tensions, fluctuating oil prices, and inflationary pressures. The company expects its average daily rig count to remain steady, but anticipates slight declines in adjusted gross profit across its segments due to the expiration of favorable term contracts and seasonal cost increases. The management remains focused on monitoring market conditions and adjusting operational strategies accordingly to navigate the evolving landscape.