Patterson-UTI Energy Reports Financial Results for the Quarter Ended September 30, 2026

Q: What were Patterson-UTI Energy's third-quarter 2026 earnings?

Patterson-UTI Energy reported $28 million attributable to common stockholders and diluted earnings of $0.07 per share. Revenue was $1.3 billion, up 9% sequentially, while adjusted EBITDA was $264 million.

Q: What is Patterson-UTI Energy's fourth-quarter 2026 outlook?

Patterson-UTI expects adjusted gross profit of $150 million in Drilling Services and $140 million in Completion Services, with Drilling Products declining 5–10% sequentially. Other adjusted gross profit is expected to remain steady compared with the third quarter.

Fourth-quarter expectations include higher drilling and completion adjusted gross profit, but a 5–10% sequential decline in Drilling Products.

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Rhea-AI Summary

Patterson-UTI Energy (PTEN) returned to profit in the third quarter of 2026, reporting $28 million attributable to common stockholders. Revenue rose 9% sequentially to $1.3 billion, and diluted earnings were $0.07 per share versus a $0.05 loss in the second quarter. Adjusted EBITDA, a non-GAAP earnings measure, was $264 million.

Completion pricing improved, while Drilling Products revenue rose 21% sequentially. Patterson-UTI expects fourth-quarter adjusted gross profit of $150 million in Drilling Services and $140 million in Completion Services, but a 5–10% sequential decline in Drilling Products. Rig reactivations and the Colombia wind-down will bring additional costs. Nine-month operating cash flow fell to $420.876 million from $563.693 million a year earlier. A quarterly dividend of $0.10 per share is payable December 15, 2026, to holders of record December 1.

21 points · 0 major

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1 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

Moderate pointThird-quarter revenue increased 9% sequentially to $1.3 billion.
Moderate pointThird-quarter diluted EPS reached $0.07, versus losses of $0.05 sequentially and $0.10 a year earlier.
Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Drilling Services adjusted gross profit is expected at $150 million.
Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Completion Services adjusted gross profit is expected at $140 million, supported by additional pricing improvements.
Moderate point. Forward-looking: it has not happened yet and may not happen.Free cash flow is expected to increase meaningfully in 2027 compared with 2026.
Moderate pointSenior-note repayments totaled $482.505 million during the first nine months of 2026. 10% of market cap

15 minor points

Minor pointThird-quarter operating income reached $63.273 million, versus a $6.962 million second-quarter loss.
Minor pointThird-quarter adjusted EBITDA was $264 million, a non-GAAP earnings measure.
Minor pointDrilling Services revenue rose to $417.367 million from $373.501 million in the second quarter.
Minor pointDrilling Services adjusted gross profit rose to $148.914 million from $113.882 million sequentially.
Minor pointU.S. drilling activity ended the quarter at 104 rigs, above the quarterly average of 101.
Minor pointCompletion Services generated $808 million revenue and $133 million adjusted gross profit in the third quarter.
Minor pointCompletion Services pricing increased mid-single digits compared with the second quarter.
Minor pointDrilling Products revenue increased 21% sequentially to $110 million, with improved margins.
Minor pointDrilling Products adjusted gross profit reached $51 million, its highest since the 2023 Ulterra acquisition.
Minor pointDrilling Products international revenue reached a company record for the second consecutive quarter.
Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter U.S. drilling activity is expected to average approximately 104 rigs, with year-end activity above that level.
Minor point. Forward-looking: it has not happened yet and may not happen.Additional rig reactivations are anticipated in the first quarter of 2027.
Minor point. Forward-looking: it has not happened yet and may not happen.Natural-gas-capable equipment is expected to represent approximately 90% of the active completion fleet by year-end 2026.
Minor pointThird-quarter shareholder returns totaled approximately $62 million, including $24 million in share repurchases.
Minor pointNine-month equipment purchases decreased to $413.906 million from $450.516 million a year earlier.

Negative

Major pointSenior-note issuance provided $496.015 million in net proceeds, adding debt during the first nine months of 2026. 11% of market cap
Moderate pointNine-month operating cash flow fell to $420.876 million from $563.693 million a year earlier.
Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Drilling Products adjusted gross profit is expected to decline 5–10% sequentially amid lower expected Saudi activity.
Moderate point. Forward-looking: it has not happened yet and may not happen.Active completion horsepower is not expected to increase through the first half of 2027 as diesel assets are decommissioned.
Minor pointCash, cash equivalents and restricted cash declined to $339.310 million from $420.642 million at December 31, 2025.

9 minor points

Minor pointNine-month common-stockholder loss narrowed to $15.876 million from $84.541 million, but remained a loss.
Minor pointCompletion activity declined modestly as sand constraints and trucking delays increased non-productive time.
Minor point. Forward-looking: it has not happened yet and may not happen.Rig reactivations and the Colombia wind-down are expected to bring additional fourth-quarter costs.
Minor pointColombia contract drilling exit costs totaled $20.011 million in the first nine months of 2026.
Minor point. Forward-looking: it has not happened yet and may not happen.Completion Services expects seasonal and holiday impacts in the fourth quarter.
Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter general and administrative expense is expected at approximately $70 million.
Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter depreciation, depletion, amortization and impairment expense is expected at approximately $220 million.
Minor pointLong-term debt, net, increased to $1,234.495 million from $1,221.038 million at December 31, 2025.
Minor pointThird-quarter general and administrative expense rose to $69.960 million from $67.505 million sequentially.

News Explained

During the third quarter, Patterson-UTI says it returned approximately $62 million to shareholders, including $24 million through share repurchases, identifying buybacks as part of the quarter’s completed capital returns.

Key Figures

Total revenue: $1.3 billion; 9% sequential increase Net income attributable to common stockholders: $28 million Adjusted EBITDA: $264 million +5 more

Total revenue: $1.3 billion; 9% sequential increase; Third quarter 2026
Net income attributable to common stockholders: $28 million; Third quarter 2026
Adjusted EBITDA: $264 million; Third quarter 2026
Quarterly dividend: $0.10 per share; Declared for holders of record December 1, 2026; payable December 15, 2026
Drilling Products revenue: $110 million; 21% sequential increase; Third quarter 2026
Drilling Services adjusted gross profit: $150 million; Fourth-quarter 2026 outlook
Completion Services adjusted gross profit: $140 million; Fourth-quarter 2026 outlook
Drilling Products adjusted gross profit: 5%-10% decline sequentially; Fourth-quarter 2026 outlook

Previous Earnings Reports

1 past event · Latest: Jul 29

Same Type 1 event

Jul 29
Quarterly earnings

24h Move

+5.6%

Q2 report supplied prior-quarter results and Q3 segment adjusted-gross-profit outlook, now followed by reported outcomes.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, adjusted gross profit, free cash flow, non-productive time

4 terms

adjusted ebitda financial

"Third Quarter 2026 Adjusted EBITDA(1) of $264 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted gross profit financial

"Drilling Services revenue was $417 million, and adjusted gross profit(2) was $149 million"

Adjusted gross profit is a company’s revenue from selling goods or services minus the direct costs of producing them, with one-time or unusual items added back or removed to show the core margin. Investors use it like a cleaned-up snapshot of how much a business actually earns on its products, similar to measuring body weight after removing heavy clothes, because it helps compare performance across periods and companies without noise from rare events.

free cash flow financial

"We expect free cash flow to remain strong in the fourth quarter"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

non-productive time technical

"several fleets experienced elevated non-productive time late in the quarter"

Non-productive time is periods when a company’s equipment, factory floor, or workforce is not generating its intended output or revenue — for example, machine downtime, maintenance, setup, inspections, or paid employee time spent on training or administrative tasks. It matters to investors because higher non-productive time raises unit costs and reduces effective capacity, like a factory with idle machines that still incur rent and wages, and so it affects margins, delivery schedules, and the company’s ability to grow sales efficiently.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/28/2026 - 06:30 PM EDT

HOUSTON, TX / ACCESS Newswire / October 28, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported financial results for the quarter ended September 30, 2026.

Third Quarter 2026 Financial Results and Other Key Items

Third Quarter 2026 Total Revenue of $1.3 billion, a 9% sequential increase
Third Quarter 2026 Net Income Attributable to Common Stockholders of $28 million
Third Quarter 2026 Adjusted EBITDA⁽¹⁾ of $264 million
Declared a quarterly dividend of $0.10 per share, payable on December 15, 2026 to holders of record as of December 1, 2026

Management Commentary

"We are benefiting from increased U.S. onshore drilling and completion demand, which is supporting stronger pricing and returns," said Andy Hendricks, Chief Executive Officer. "Our teams executed well during the quarter, and investments in our fleet and digital and automation capabilities are delivering differentiated operational performance for our customers. As these capabilities continue to gain momentum and industry demand strengthens, we expect further improvements in financial performance, and believe we are well positioned to improve our market position."

"The commodity price environment continues to support higher customer budgets, and our discussions indicate the likelihood for additional rig reactivations and increased completion demand in 2027," continued Mr. Hendricks. "In Drilling Services, customer programs are increasingly requiring upgraded rigs with advanced digital and automation capabilities and larger structures designed to drill deeper wells and longer laterals more efficiently. Demand for these capabilities is supporting strong pricing for our highest-specification rigs. In Completion Services, pricing momentum remains positive, particularly for natural gas-powered assets, which provides a substantial fuel-cost advantage over diesel equipment. Natural gas powered frac equipment remains in very short supply, and further pricing improvement will be necessary to support the investment required to meet industry demand. These market conditions should allow us to create additional value for our shareholders."

"We generated strong free cash flow during the quarter, reinforcing our confidence in our outlook," said Andy Smith, Chief Financial Officer. "We expect free cash flow to remain strong in the fourth quarter and increase meaningfully in 2027 compared with 2026. During the third quarter, we returned approximately $62 million to shareholders, including $24 million for share repurchases. We continue to evaluate a range of capital-allocation opportunities, including high-return strategic investments, additional cash returns to shareholders, and debt reduction. Our priority remains maximizing return on capital, while maintaining the long-term flexibility of our balance sheet."

Drilling Services

Third quarter Drilling Services revenue was $417 million, and adjusted gross profit⁽²⁾ was $149 million.

U.S. Contract Drilling operating days totaled 9,249 in the third quarter, with an average of 101 rigs operating. Activity increased throughout the quarter, and we exited the period with 104 rigs operating. Demand was particularly strong for rigs returning to service following structural upgrades, supporting premium pricing for our highest specification rigs. Growth was concentrated in oil-producing basins, particularly the Rockies and Permian, while natural gas activity remained steady compared with the beginning of the third quarter. Our Directional Drilling business also benefited from increased demand and greater well complexity, with results outpacing the overall industry drilling activity with stronger margins.

Completion Services

Third quarter Completion Services revenue totaled $808 million, with adjusted gross profit of $133 million.

Completion Services results improved sequentially, supported by a mid-single-digit pricing increase compared with the second quarter. Total completion activity declined modestly as several fleets experienced elevated non-productive time late in the quarter, primarily due to temporary sand availability constraints in South Texas and trucking delays in the Permian Basin. Excluding these short-term disruptions, fleetwide utilization remained very strong, with positive pricing momentum continuing throughout the quarter and into the fourth quarter. Demand was particularly robust for equipment capable of using natural gas as a fuel. By the end of 2026, approximately 90% of our active fleet will be natural gas capable.

Drilling Products

Third quarter Drilling Products revenue totaled $110 million, with adjusted gross profit of $51 million.

Drilling Products delivered its strongest quarterly revenue and adjusted gross profit since Patterson-UTI acquired Ulterra in 2023, with revenue increasing 21% sequentially and improved margins. Strong U.S. demand drove a company record revenue per industry rig and supported higher pricing. International revenue also increased sequentially, reaching a company record for the second consecutive quarter. This performance reflects the team's effective management of challenges related to the conflict in the Middle East, which is our largest international market.

Other

Third quarter Other revenue totaled $6 million, with adjusted gross profit of $4 million.

Outlook

In Drilling Services, we expect to operate an average of approximately 104 rigs in the United States during the fourth quarter and exit 2026 above that level, with additional rig reactivations anticipated in the first quarter of 2027. Results should benefit from continued pricing momentum, including higher dayrates across all rig classes and the deployment of upgraded rigs at dayrates above our current average. We expect to incur reactivation costs during the quarter as we prepare additional rigs for reactivation late in the fourth quarter and in early 2027, and we anticipate additional costs as we wind-down our operations in Colombia. Overall, we expect Drilling Services adjusted gross profit of $150 million in the fourth quarter.

In Completion Services, we expect fourth quarter adjusted gross profit of $140 million, supported by activity levels broadly consistent with the third quarter and additional pricing improvements. We anticipate some seasonal and holiday impact in the fourth quarter, although at this time it appears likely that it will be less pronounced than in prior fourth quarters. As we deploy new Emerald 100% natural gas powered equipment, we will continue to decommission diesel-powered assets and therefore do not expect active horsepower to increase through the first half of 2027.

In Drilling Products, we expect fourth quarter adjusted gross profit to decline 5-10%, sequentially, primarily reflecting the expectation for lower drilling activity in Saudi Arabia due to ongoing geopolitical unrest in the region.

We expect Other adjusted gross profit in the fourth quarter to be steady compared to the third quarter.

For the fourth quarter, we expect general and administrative expense to be approximately $70 million and depreciation, depletion, amortization, and impairment expense to be approximately $220 million.

Except for cash dividends per common share, all references to "per share" in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260.

Third Quarter Earnings Conference Call

The Company's quarterly conference call to discuss the operating results for the quarter ended September 30, 2026, is scheduled for October 29, 2026, at 9:00 a.m. Central Time. The dial-in information for participants is (833) 461-5787 (Domestic) and (585) 542-9983 (International). The Meeting ID for both numbers is 653 922 397. The call is also being webcast and can be accessed through the Investor Relations section of the Company's website at investor.patenergy.com. A webcast replay of the conference call will be on the Company's website for one year.

About Patterson-UTI

Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "predict," "project," "pursue," "see," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including, without limitation, statements regarding Patterson-UTI's future expectations, beliefs, plans, strategy, objectives, financial conditions, operations outlook, assumptions or future events or performance, activity levels, active rig count projections, contract terms, capex spending and budgets, future cash flow, future use of generated cash flow, customer demand, future commodity prices, outlook for international and domestic markets, and timing and amount of dividends, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. For information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and other disclosures in Patterson-UTI's SEC filings, including but not limited to its Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q.

Additional information concerning risks and uncertainties associated with Patterson-UTI's business is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.

Non-GAAP Financial Measures

(1) Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not defined by GAAP. See Non-GAAP Financial Measures below for a reconciliation of net income to Adjusted EBITDA.

(2) Adjusted gross profit is considered a non-GAAP financial measure. Our computations of Adjusted gross profit may not be the same as similarly titled measures of other companies. See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.

PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)

	September 30, 2026		December 31, 2025
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	339,310	$	420,642
Accounts receivable, net		945,660		723,277
Inventory		143,853		160,280
Other current assets		88,765		113,892
Total current assets		1,517,588		1,418,091
Property and equipment, net		2,557,588		2,711,037
Goodwill		487,388		487,388
Intangible assets, net		727,870		814,810
Other assets		161,471		139,140
Total assets	$	5,451,905	$	5,570,466
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	553,891	$	470,782
Accrued liabilities		294,098		366,488
Other current liabilities		28,943		26,372
Total current liabilities		876,932		863,642
Long-term debt, net		1,234,495		1,221,038
Deferred tax liabilities, net		221,090		215,818
Other liabilities		42,489		45,253
Total liabilities		2,375,006		2,345,751
Stockholders' equity:
Stockholders' equity attributable to controlling interests		3,070,892		3,218,538
Noncontrolling interest		6,007		6,177
Total equity		3,076,899		3,224,715
Total liabilities and stockholders' equity	$	5,451,905	$	5,570,466

PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2026			2026			2025			2026			2025
REVENUES	$	1,342,234		$	1,227,967		$	1,175,954		$	3,687,532		$	3,675,811
COSTS AND EXPENSES:
Direct operating costs		1,005,438			947,329			893,833			2,801,922			2,784,610
Depreciation, depletion, amortization and impairment		221,583			217,781			225,598			657,758			719,322
General and administrative		69,960			67,505			61,976			206,228			193,014
Other operating expense (income), net		(18,020	)		2,314			22,601			(20,370	)		19,460

Total operating costs and expenses		1,278,961			1,234,929			1,204,008			3,645,538			3,716,406

OPERATING INCOME (LOSS)		63,273			(6,962	)		(28,054	)		41,994			(40,595	)

OTHER INCOME (EXPENSE):
Interest income		2,695			2,902			1,480			8,362			4,216
Interest expense, net of amount capitalized		(19,974	)		(20,398	)		(17,488	)		(57,857	)		(52,830	)
Other income (expense)		1,150			(3,464	)		1,020			(1,349	)		1,344

Total other income (expense)		(16,129	)		(20,960	)		(14,988	)		(50,844	)		(47,270	)

INCOME (LOSS) BEFORE INCOME TAXES		47,144			(27,922	)		(43,042	)		(8,850	)		(87,865	)

INCOME TAX EXPENSE (BENEFIT)		18,508			(8,647	)		(6,592	)		6,265			(4,008	)

NET INCOME (LOSS)		28,636			(19,275	)		(36,450	)		(15,115	)		(83,857	)

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST		283			327			(48	)		761			684

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	28,353		$	(19,602	)	$	(36,402	)	$	(15,876	)	$	(84,541	)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER COMMON SHARE:
Basic	$	0.07		$	(0.05	)	$	(0.10	)	$	(0.04	)	$	(0.22	)
Diluted	$	0.07		$	(0.05	)	$	(0.10	)	$	(0.04	)	$	(0.22	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		381,099			380,192			382,819			380,298			384,888
Diluted		384,356			380,192			382,819			380,298			384,888
CASH DIVIDENDS PER COMMON SHARE	$	0.10		$	0.10		$	0.08		$	0.30		$	0.24

PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)

	Nine Months Ended
	September 30,
	2026			2025
Cash flows from operating activities:
Net income (loss)	$	(15,115	)	$	(83,857	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization and impairment		657,758			719,322
Deferred income tax expense (benefit)		4,987			(5,599	)
Stock-based compensation		18,697			30,527
Net (gain) loss on asset disposals		(20,270	)		(1,739	)
Certain Colombia contract drilling exit costs		20,011			-
Other		(3,578	)		27
Changes in operating assets and liabilities		(241,614	)		(94,988	)
Net cash provided by operating activities		420,876			563,693

Cash flows from investing activities:
Purchases of property and equipment		(413,906	)		(450,516	)
Proceeds from disposal of assets, including insurance recoveries		60,573			33,155
Other		(3,218	)		(19,480	)
Net cash used in investing activities		(356,551	)		(436,841	)

Cash flows from financing activities:
Purchases of treasury stock		(33,685	)		(69,424	)
Dividends paid		(114,105	)		(92,114	)
Net proceeds from issuance of senior notes		496,015			-
Repayment of senior notes		(482,505	)		-
Payments of finance leases		(4,449	)		(6,216	)
Other		(2,867	)		(10,820	)
Net cash used in financing activities		(141,596	)		(178,574	)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		(4,061	)		(2,658	)
Net change in cash, cash equivalents and restricted cash		(81,332	)		(54,380	)
Cash, cash equivalents and restricted cash at beginning of period		420,642			241,293
Cash, cash equivalents and restricted cash at end of period	$	339,310		$	186,913

PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2026			2026			2025			2026			2025
Drilling Services
Revenues	$	417,367		$	373,501		$	380,200		$	1,142,585		$	1,196,865
Direct operating costs	$	268,453		$	259,619		$	246,407		$	745,933		$	748,808
Adjusted gross profit ⁽¹⁾	$	148,914		$	113,882		$	133,793		$	396,652		$	448,057
Depreciation, amortization and impairment	$	84,005		$	85,490		$	84,100		$	253,439		$	281,719
General and administrative	$	5,472		$	6,617		$	3,969		$	19,186		$	12,066
Other operating expense (income), net	$	2,742		$	(962	)	$	8,600		$	292		$	232
Operating income (loss)	$	56,695		$	22,737		$	37,124		$	123,735		$	154,040

Operating days - U.S. ⁽²⁾		9,249			8,361			8,737			25,911			27,775

Capital expenditures	$	55,240		$	60,148		$	46,691		$	169,809		$	175,323

Completion Services
Revenues	$	808,307		$	753,641		$	705,275		$	2,241,535		$	2,190,687
Direct operating costs	$	675,463		$	630,716		$	594,118		$	1,887,665		$	1,870,882
Adjusted gross profit ⁽¹⁾	$	132,844		$	122,925		$	111,157		$	353,870		$	319,805
Depreciation, amortization and impairment	$	106,989		$	108,838		$	117,058		$	327,299		$	352,658
General and administrative	$	7,842		$	7,230		$	8,821		$	22,402		$	29,953
Other operating expense (income), net	$	-		$	(1,328	)	$	13,000		$	(1,328	)	$	13,000
Operating income (loss)	$	18,013		$	8,185		$	(27,722	)	$	5,497		$	(75,806	)
Capital expenditures	$	62,712		$	75,023		$	81,301		$	182,836		$	212,459

Drilling Products
Revenues	$	110,167		$	91,333		$	85,880		$	281,297		$	259,933
Direct operating costs	$	58,971		$	54,194		$	50,265		$	160,089		$	146,540
Adjusted gross profit ⁽¹⁾	$	51,196		$	37,139		$	35,615		$	121,208		$	113,393
Depreciation, amortization and impairment	$	23,545		$	20,478		$	21,326		$	63,869		$	67,786
General and administrative	$	8,500		$	8,344		$	8,486		$	24,767		$	26,256
Operating income (loss)	$	19,151		$	8,317		$	5,803		$	32,572		$	19,351
Capital expenditures	$	19,904		$	18,711		$	13,331		$	54,457		$	46,805

Other ⁽³⁾
Revenues	$	6,393		$	9,492		$	4,599		$	22,115		$	28,326
Direct operating costs	$	2,551		$	2,800		$	3,043		$	8,235		$	18,380
Adjusted gross profit ⁽¹⁾	$	3,842		$	6,692		$	1,556		$	13,880		$	9,946
Depreciation, depletion, amortization and impairment	$	1,763		$	1,639		$	923		$	4,671		$	10,797
General and administrative	$	-		$	-		$	(177	)	$	2		$	109
Operating income (loss)	$	2,079		$	5,053		$	810		$	9,207		$	(960	)
Capital expenditures	$	2,735		$	1,910		$	2,145		$	5,756		$	7,543

Corporate
Depreciation	$	5,281		$	1,336		$	2,191		$	8,480		$	6,362
General and administrative	$	48,146		$	45,314		$	40,877		$	139,871		$	124,630
Other operating expense (income), net	$	(20,762	)	$	4,604		$	1,001		$	(19,334	)	$	6,228
Capital expenditures	$	763		$	132		$	1,011		$	1,048		$	8,386

Total Capital Expenditures	$	141,354		$	155,924		$	144,479		$	413,906		$	450,516

Adjusted gross profit, which is considered a non-GAAP financial measure, is defined as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
Operational data relates to our contract drilling business. A rig is considered to be operating if it is earning revenue pursuant to a contract on a given day.
Other includes our oilfield rentals business, prior to its divestiture in April 2025, and oil and natural gas working interests.

PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted EBITDA Reconciliations
(unaudited, dollars in thousands)

The following table reconciles Net income (loss) per the information below to Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as reported on the unaudited Condensed Consolidated Statements of Operations:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2026			2026			2025			2026			2025
Net income (loss)	$	28,636		$	(19,275	)	$	(36,450	)	$	(15,115	)	$	(83,857	)
Income tax expense (benefit)		18,508			(8,647	)		(6,592	)		6,265			(4,008	)
Net interest expense		17,279			17,496			16,008			49,495			48,614
Depreciation, depletion, amortization and impairment		221,583			217,781			225,598			657,758			719,322
Certain Colombia contract drilling exit costs ⁽¹⁾		-			20,011			-			20,011			-
Noncontrolling investment write-down ⁽²⁾		-			4,520			-			4,520			-
Legal accruals and settlements ⁽³⁾		-			-			20,000			-			15,415
(Gain) loss on rigs sold		(22,118	)		-			-			(22,118	)		-
Merger and integration expense		-			-			90			-			1,010
Adjusted EBITDA⁽⁴⁾	$	263,888		$	231,886		$	218,654		$	700,816		$	696,496

Total revenues	$	1,342,234		$	1,227,967		$	1,175,954		$	3,687,532		$	3,675,811

Adjusted EBITDA by Operating Segment:
Drilling Services	$	140,700		$	128,238		$	128,224		$	397,185		$	438,174
Completion Services		125,002			117,023			102,336			332,796			289,852
Drilling Products		42,696			28,795			27,129			96,441			87,137
Other		3,842			6,692			1,733			13,878			9,837
Corporate		(48,352	)		(48,862	)		(40,768	)		(139,484	)		(128,504	)
Adjusted EBITDA	$	263,888		$	231,886		$	218,654		$	700,816		$	696,496

Certain Colombia contract drilling exit costs represent inventory and other asset write-downs recorded in direct operating expenses within the consolidated statements of operations. These costs were excluded from Adjusted EBITDA as they relate to our decision to exit our Colombia contract drilling operations and are not considered representative of ongoing operating performance.
Noncontrolling investment write-down represents an impairment charge of certain minority equity investments. The charge was excluded from Adjusted EBITDA as it represents a non-operating item.
Legal accruals and settlements represent net expenses (income) arising from certain significant legal matters, including settlement activity and reserve adjustments related to prior-year claims. Unlike routine legal costs incurred in the ordinary course of business, these infrequent items are excluded from Adjusted EBITDA because management does not consider them representative of our current period operating performance.
Adjusted EBITDA is not defined by accounting principles generally accepted in the United States of America ("GAAP"). We define Adjusted EBITDA as net income (loss) plus income tax expense (benefit), net interest expense, depreciation, depletion, amortization and impairment expense, certain exit costs, noncontrolling investment write-down, certain significant legal accruals and settlements, impairment of goodwill, certain gains or losses on asset disposals and merger and integration expense. We present Adjusted EBITDA as a supplemental disclosure because we believe it provides, to both management and investors, additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies.

PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit Reconciliations
(unaudited, dollars in thousands)

The following table reconciles Adjusted gross profit to gross profit, which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted gross profit:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2026			2026			2025			2026			2025
Drilling Services
Revenues	$	417,367		$	373,501		$	380,200		$	1,142,585		$	1,196,865
Less direct operating costs		(268,453	)		(259,619	)		(246,407	)		(745,933	)		(748,808	)
Less depreciation, amortization and impairment		(84,005	)		(85,490	)		(84,100	)		(253,439	)		(281,719	)
GAAP gross profit (loss)		64,909			28,392			49,693			143,213			166,338
Depreciation, amortization and impairment		84,005			85,490			84,100			253,439			281,719
Adjusted gross profit ⁽¹⁾	$	148,914		$	113,882		$	133,793		$	396,652		$	448,057

Completion Services
Revenues	$	808,307		$	753,641		$	705,275		$	2,241,535		$	2,190,687
Less direct operating costs		(675,463	)		(630,716	)		(594,118	)		(1,887,665	)		(1,870,882	)
Less depreciation, amortization and impairment		(106,989	)		(108,838	)		(117,058	)		(327,299	)		(352,658	)
GAAP gross profit (loss)		25,855			14,087			(5,901	)		26,571			(32,853	)
Depreciation, amortization and impairment		106,989			108,838			117,058			327,299			352,658
Adjusted gross profit ⁽¹⁾	$	132,844		$	122,925		$	111,157		$	353,870		$	319,805

Drilling Products
Revenues	$	110,167		$	91,333		$	85,880		$	281,297		$	259,933
Less direct operating costs		(58,971	)		(54,194	)		(50,265	)		(160,089	)		(146,540	)
Less depreciation, amortization and impairment		(23,545	)		(20,478	)		(21,326	)		(63,869	)		(67,786	)
GAAP gross profit (loss)		27,651			16,661			14,289			57,339			45,607
Depreciation, amortization and impairment		23,545			20,478			21,326			63,869			67,786
Adjusted gross profit ⁽¹⁾	$	51,196		$	37,139		$	35,615		$	121,208		$	113,393

Other
Revenues	$	6,393		$	9,492		$	4,599		$	22,115		$	28,326
Less direct operating costs		(2,551	)		(2,800	)		(3,043	)		(8,235	)		(18,380	)
Less depreciation, depletion, amortization and impairment		(1,763	)		(1,639	)		(923	)		(4,671	)		(10,797	)
GAAP gross profit (loss)		2,079			5,053			633			9,209			(851	)
Depreciation, depletion, amortization and impairment		1,763			1,639			923			4,671			10,797
Adjusted gross profit ⁽¹⁾	$	3,842		$	6,692		$	1,556		$	13,880		$	9,946

Adjusted gross profit is considered a non-GAAP financial measure. We define "Adjusted gross profit" as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense, which does not include impairment of goodwill). Adjusted gross profit is included as a supplemental disclosure because it is a useful indicator of our operating performance.

Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589

SOURCE: Patterson-UTI Energy

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Patterson-UTI Energy's third-quarter 2026 earnings?

Patterson-UTI Energy reported $28 million attributable to common stockholders and diluted earnings of $0.07 per share. Revenue was $1.3 billion, up 9% sequentially, while adjusted EBITDA was $264 million.

What is Patterson-UTI Energy's fourth-quarter 2026 outlook?

Patterson-UTI expects adjusted gross profit of $150 million in Drilling Services and $140 million in Completion Services, with Drilling Products declining 5–10% sequentially. Other adjusted gross profit is expected to remain steady compared with the third quarter.

Why does Patterson-UTI not expect completion horsepower to grow through the first half of 2027?

Patterson-UTI does not expect active completion horsepower to increase through the first half of 2027 because it will continue decommissioning diesel-powered assets as new Emerald 100% natural gas-powered equipment is deployed.

Patterson-UTI Energy Reports Financial Results for the Quarter Ended September 30, 2026