On Thursday, Patterson-UTI Energy Inc. (NASDAQ:PTEN), a provider of drilling and completion services, reported a larger-than-anticipated loss for the second quarter, impacted by a non-cash asset impairment charge.
Shares slid 2.76% in pre-market trading after the earnings release.
The company posted a net loss of $0.13 per share for the quarter ending June 30, 2025, missing analysts’ expectations of a $0.04 loss. Revenue came in slightly above forecasts at $1.22 billion, compared to the consensus estimate of $1.2 billion.
The quarterly loss reflected a $28 million non-cash impairment tied to Patterson-UTI’s drilling operations in Colombia. Adjusted EBITDA stood at $231 million for the period.
“Our second quarter activity was in line with the market, and at the same time we see opportunities with our operational footprint, technology portfolio, and financial position to improve our market position in both drilling and completions,” stated CEO Andy Hendricks.
During the quarter, Patterson-UTI’s U.S. Contract Drilling segment logged 9,465 operating days, averaging 104 rigs in operation. The company anticipates the average rig count to fall to the mid-90s in the third quarter, reflecting a slowdown in oil basin activity compared to Q2.
Patterson-UTI returned $46 million to shareholders in the quarter through dividends and share repurchases, including a quarterly dividend of $0.08 per share. The company also announced that this dividend will be payable on September 15, 2025.
“Our balance sheet remains a key strategic advantage, with low leverage and strong liquidity,” said CFO Andy Smith. “We expect free cash flow will accelerate in the second half of 2025, and a disciplined approach to capital allocation should lead to higher returns and drive long-term value for our shareholders.”
The company lowered its full-year 2025 maintenance capital expenditure forecast due to slightly reduced activity, but highlighted ongoing strong demand for new technology in both drilling and completions.
Patterson-UTI Energy stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.