Patterson-UTI Energy, Inc. reported a significant decline in financial performance for the first quarter of 2026, with total operating revenues of $1.12 billion, down 12.8% from $1.28 billion in the same period last year. The company experienced a net loss of $24.6 million, or $0.06 per share, compared to a net income of $1 million, or $0.00 per share, in the first quarter of 2025. The decrease in revenue was primarily attributed to lower activity levels in its drilling and completion services segments, which were impacted by market conditions and reduced customer spending.
In comparison to the previous fiscal period, Patterson-UTI's revenues from drilling services fell to $351.7 million from $412.9 million, while completion services revenues decreased to $679.6 million from $766.1 million. The drilling products segment also saw a decline, with revenues dropping to $79.8 million from $85.7 million. Operating costs and expenses totaled $1.13 billion, a decrease from $1.26 billion in the prior year, but the company still reported an operating loss of $14.3 million, compared to an operating income of $16.9 million in the first quarter of 2025.
Strategically, Patterson-UTI has focused on enhancing its operational efficiency and technology offerings. The company continues to invest in its completion services segment, particularly in natural gas-powered solutions and automated completion processes. As of March 31, 2026, Patterson-UTI operated 152 marketed land-based drilling rigs, with a backlog of approximately $260 million in contract drilling services, indicating a stable demand for its services despite the current market challenges.
Operationally, Patterson-UTI's average active rig count in the U.S. remained stable at 92 rigs, with a slight decrease from 93 rigs in the previous quarter. The company reported a total employee headcount of 4,500 as of March 31, 2026, reflecting a commitment to maintaining its workforce amid fluctuating market conditions. The company also declared a cash dividend of $0.10 per share, to be paid on June 15, 2026, signaling its intention to return value to shareholders despite the recent losses.
Looking ahead, Patterson-UTI anticipates a challenging environment in the second quarter of 2026, with expectations of slightly declining adjusted gross profit in its drilling services segment. However, the company remains optimistic about potential increases in activity levels in the latter half of the year, driven by reassessments of capital allocation by operators in response to commodity price fluctuations and geopolitical developments. The company continues to monitor market conditions closely and is prepared to adjust its strategies accordingly to navigate the evolving landscape.
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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