Patterson-UTI Energy, Inc. reported a total revenue of $5.38 billion for the fiscal year ending December 31, 2024, marking a significant increase of 30% from $4.15 billion in 2023. The company's profitability, however, faced challenges, resulting in a net loss of approximately $966.4 million, compared to a net income of $246.3 million in the previous year. This decline in profitability was largely attributed to an $885 million impairment charge related to goodwill in the completion services segment, reflecting the impact of reduced market activity and pricing pressures.
The company experienced notable changes in its operational metrics, with revenues from its completion services segment surging by 60% to $3.23 billion, driven by the integration of NexTier Oilfield Solutions and the Ulterra acquisition. In contrast, revenues from drilling services decreased by 10% to $1.73 billion, primarily due to a reduction in operating days and increased drilling efficiencies. The average active rig count in the U.S. for the fourth quarter of 2024 was 105, down from 121 rigs at the end of 2023, indicating a broader industry trend of consolidation and efficiency improvements.
Strategically, Patterson-UTI made significant moves in 2023, including the completion of the NexTier merger on September 1, 2023, valued at approximately $2.8 billion, and the acquisition of Ulterra Drilling Technologies for about $894 million. These acquisitions aimed to enhance the company's service offerings and market position. Additionally, in December 2024, Patterson-UTI entered a joint venture with ADNOC Drilling and SLB, acquiring a 15% interest in Turnwell Industries, which has been awarded a contract to drill and complete 144 unconventional wells.
Operationally, Patterson-UTI's drilling products segment showed resilience, with revenues increasing by 161% to $351.7 million, attributed to the Ulterra acquisition. The company reported a total employee headcount of approximately 9,200 as of January 31, 2025, reflecting the workforce adjustments following the mergers. The company anticipates capital expenditures of approximately $600 million for 2025, focusing on maintaining and upgrading its asset base while navigating the current market conditions.
Looking ahead, Patterson-UTI's management expressed cautious optimism, expecting a seasonal uptick in completion activity in the first quarter of 2025 as customer budgets reset. However, the company remains vigilant regarding the volatility of oil and natural gas prices, which averaged $70.73 per barrel in the fourth quarter of 2024. The ongoing geopolitical environment, inflationary pressures, and customer capital deployment will continue to influence the company's operational and financial performance in the near term.
About PATTERSON UTI ENERGY INC
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