Patterson-UTI Addresses Current Market Conditions and Provides Operational Update

About this update from Patterson-uti Energy, Inc.

[{"type":"text","content":" HOUSTON, April 2, 2020 /PRNewswire/ -- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today provided an update to address the Company's response to current market conditions. Reduced demand for crude oil and refined products related to the necessary global response to the COVID-19 pandemic, combined with production increases from OPEC+, has led to a significant reduction in crude oil prices and resulted in falling demand for drilling and completion services in North America.\nIn response to current market conditions, Patterson-UTI is taking the following steps:\nReducing direct operating costs in line with activity declines, reducing SG&A expenses and other support costs, and closing a number of facilities. Reducing planned 2020 capital expenditures to approximately $140 million, a 60% reduction from 2019 and a more than 40% reduction from our previously announced plans for 2020 capital expenditures. Reducing executive group compensation for 2020 by more than 50%.Andy Hendricks, Patterson-UTI's Chief Executive Officer, stated, \"The safety of our employees remains our top priority. As the virus threat began to grow in North America, Patterson-UTI took steps to protect people and operations by enacting a specific Risk Mitigation and Business Continuity Plan to address the possible COVID-19 effects on our people, operations and facilities. We believe that we have taken significant steps to protect the safety and welfare of our people and maintain our consistent and high-quality operations.\"\nMr. Hendricks continued, \"Patterson-UTI has effectively responded to other downturns in its more than 40-year company history. While the circumstances leading to this downturn may be different, our response will be guided by the same principles that have guided us through previous downturns. Patterson-UTI's conservative balance sheet philosophy and history of scaling the business during previous downturns has resulted in our emergence as a stronger company. We believe that this time will be no different. \n\"While our drilling rig count was not significantly impacted in the first quarter, we do expect meaningful declines in April. Pressure pumping activity levels responded more quickly, with a significant decline in the later part of the first quarter. We have initiated strategic actions for the lower activity, including reducing direct operatin...

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