Patterson-UTI Energy Reports Significant Decline in Q2 2025 Financial Performance

Patterson-UTI Energy, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total operating revenues of $1.22 billion, down from $1.35 billion in the same period last year. The company experienced a net loss of $49.1 million, or $0.13 per share, compared to a net income of $11.1 million, or $0.03 per share, in the prior year. For the first half of 2025, revenues totaled $2.50 billion, a decrease from $2.86 billion in the first half of 2024, while the net loss for the six months was $48.1 million, compared to a profit of $62.3 million in the previous year.

The decline in revenue and profitability was attributed to several factors, including reduced activity in the oil and gas sector, lower average crude oil prices, and increased market volatility. The average price of oil fell to $64.57 per barrel in the second quarter, down from $71.78 in the first quarter of 2025. Additionally, the company recorded a $27.8 million impairment charge related to its Latin American drilling equipment, reflecting the challenging market conditions. Operating costs also increased, with total operating expenses reaching $1.25 billion, compared to $1.30 billion in the same quarter of 2024.

In terms of operational developments, Patterson-UTI's drilling services segment reported revenues of $403.8 million, down from $440.3 million a year earlier, while completion services revenues fell to $719.3 million from $805.4 million. The company maintained a contract drilling backlog of approximately $312 million as of June 30, 2025, with expectations that about 9% of this backlog will carry into the next year. The average active rig count in the U.S. decreased slightly to 104 rigs in the second quarter, down from 106 in the first quarter.

Strategically, Patterson-UTI has continued to focus on cost management and operational efficiency. The company has made investments in natural gas-powered equipment to align with evolving customer preferences for emissions-reducing technologies. Additionally, the company has a stock buyback program with approximately $728 million remaining for future repurchases, reflecting its commitment to returning capital to shareholders. The Board of Directors also approved a cash dividend of $0.08 per share, to be paid in September 2025, although future dividends will depend on business conditions and financial performance.

Looking ahead, Patterson-UTI anticipates continued challenges due to fluctuating oil and natural gas prices, geopolitical tensions, and macroeconomic uncertainties. The company expects its average rig count to remain in the mid-90s for the third quarter of 2025, with steady activity in completion services. However, prolonged low prices and reduced customer capital expenditures could further impact demand for its services, necessitating ongoing adjustments to its operational strategies.