PATTERSON-UTI ENERGY, INC. Condensed Consolidated Balance Sheets (unaudited, in thousands)
December 31, | December 31, | ||||
2024 | 2023 | ||||
ASSETS | |||||
Current assets: | |||||
Cash, cash equivalents and restricted cash | $ | 241,293 | $ | 192,680 | |
Accounts receivable, net | 763,806 | 971,091 | |||
Inventory | 167,023 | 180,805 | |||
Other current assets | 123,193 | 141,122 | |||
Total current assets | 1,295,315 | 1,485,698 | |||
Property and equipment, net | 3,010,342 | 3,340,412 | |||
Goodwill | 487,388 | 1,379,741 | |||
Intangible assets, net | 929,610 | 1,051,697 | |||
Deferred tax assets, net | - | 3,927 | |||
Other assets | 110,811 | 158,556 | |||
Total assets | $ | 5,833,466 | $ | 7,420,031 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: |
Accounts payable Accrued liabilities Other current liabilities
Total current liabilities Long-term debt, net Deferred tax liabilities, net Other liabilities
Total liabilities
Stockholders' equity:
$ 421,318 $ 534,420
385,751 446,268
34,924 69,747
841,993 1,050,435
1,219,770 1,224,941
238,097 248,107
57,762 75,867
2,357,622 2,599,350
Stockholders' equity attributable to controlling interests Noncontrolling interest
Total equity
Total liabilities and stockholders' equity
3,465,823 4,812,292
10,021 8,389
3,475,844 4,820,681
$ 5,833,466 $ 7,420,031
PATTERSON-UTI ENERGY, INC. Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
REVENUES | $ | 1,162,135 | $ | 1,357,222 | $ | 1,584,317 | $ | 5,377,911 | $ | 4,146,456 | ||||
COSTS AND EXPENSES: | ||||||||||||||
Direct operating costs | 859,659 | 1,011,907 | 1,119,117 | 3,919,869 | 2,811,319 | |||||||||
Depreciation, depletion, amortization and impairment | 254,599 | 374,680 | 278,787 | 1,171,873 | 731,416 | |||||||||
Impairment of goodwill | - | 885,240 | - | 885,240 | - | |||||||||
Selling, general and administrative | 73,079 | 65,696 | 61,037 | 268,337 | 169,962 | |||||||||
Merger and integration expense | 3,460 | 6,699 | 19,949 | 33,037 | 98,077 | |||||||||
Other operating expense (income), net | 2,673 | 3,629 | (6,278) | (10,708) | (16,272) | |||||||||
Total operating costs and expenses | 1,193,470 | 2,347,851 | 1,472,612 | 6,267,648 | 3,794,502 | |||||||||
OPERATING INCOME (LOSS) | (31,335) | (990,629) | 111,705 | (889,737) | 351,954 | |||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest income | 928 | 745 | 1,539 | 5,729 | 6,122 | |||||||||
Interest expense, net of amount capitalized | (17,725) | (17,990) | (18,681) | (71,963) | (52,870) | |||||||||
Other income (expense) | (1,333) | (716) | (1,293) | (975) | 1,898 | |||||||||
Total other expense | (18,130) | (17,961) | (18,435) | (67,209) | (44,850) | |||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (49,465) | (1,008,590) | 93,270 | (956,946) | 307,104 | |||||||||
INCOME TAX EXPENSE (BENEFIT) | 1,927 | (30,256) | 31,332 | 9,453 | 61,152 | |||||||||
NET INCOME (LOSS) | (51,392) | (978,334) | 61,938 | (966,399) | 245,952 | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | ||||||||||||||
NONCONTROLLING INTEREST | 190 | 427 | (12) | 1,632 | (340) | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON | ||||||||||||||
STOCKHOLDERS | $ | (51,582) | $ | (978,761) | $ | 61,950 | $ | (968,031) | $ | 246,292 | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON | ||||||||||||||
STOCKHOLDERS PER COMMON SHARE: | ||||||||||||||
Basic | $ | (0.13) | $ | (2.50) | $ | 0.15 | $ | (2.44) | $ | 0.88 | ||||
Diluted | ||||||||||||||
$ | (0.13) | $ | (2.50) | $ | 0.15 | $ | (2.44) | $ | 0.88 | |||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES | ||||||||||||||
OUTSTANDING: | ||||||||||||||
Basic | 389,450 | 391,732 | 415,656 | 397,196 | 279,501 | |||||||||
Diluted | 389,450 | 391,732 | 418,751 | 397,196 | 280,061 | |||||||||
CASH DIVIDENDS PER COMMON SHARE | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.32 | $ | 0.32 |
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Twelve Months Ended | |||||
December 31, | |||||
2024 | 2023 | ||||
Cash flows from operating activities: | |||||
Net income (loss) | $ | (966,399) | $ | 245,952 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation, depletion, amortization and impairment | 1,171,873 | 731,416 | |||
Impairment of goodwill | 885,240 | - | |||
Deferred income tax expense (benefit) | (1,765) | 51,866 | |||
Stock-based compensation | 46,352 | 46,750 | |||
Net (gain) loss on asset disposals | (3,688) | (1,798) | |||
Other | 7,936 | (1,053) | |||
Changes in operating assets and liabilities | 35,987 | (67,219) | |||
Net cash provided by operating activities | 1,175,536 | 1,005,914 | |||
Cash flows from investing activities: | |||||
Acquisitions, net of cash acquired - NexTier | - | (65,185) | |||
Acquisitions, net of cash acquired - Ulterra | 2,983 | (357,314) | |||
Purchases of property and equipment | (678,386) | (615,690) | |||
Proceeds from disposal of assets | 25,832 | 26,473 | |||
Other | (5,173) | (5,874) | |||
Net cash used in investing activities | (654,744) | (1,017,590) | |||
Cash flows from financing activities: | |||||
Purchases of treasury stock | (290,427) | (200,710) | |||
Dividends paid | (126,791) | (100,034) | |||
Proceeds from revolving credit facility | 50,000 | 420,000 | |||
Repayment of revolving credit facility | (50,000) | (420,000) | |||
Proceeds from issuance of senior notes | - | 396,412 | |||
Payment on finance leases | (45,484) | (15,915) | |||
Repayment of senior notes | - | (7,837) | |||
Other | (12,290) | (6,349) | |||
Net cash (used in) provided by financing activities | (474,992) | 65,567 | |||
Effect of foreign exchange rate changes on cash, cash equivalents | |||||
and restricted cash | 2,813 | 1,236 | |||
Net increase in cash, cash equivalents and restricted cash | 48,613 | 55,127 | |||
Cash, cash equivalents and restricted cash at beginning of period | 192,680 | 137,553 | |||
Cash, cash equivalents and restricted cash at end of period | $ | 241,293 | $ | 192,680 | |
PATTERSON-UTI ENERGY, INC. Additional Financial and Operating Data (unaudited, dollars in thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Drilling Services | ||||||||||||||
Revenues | $ | 408,385 | $ | 421,563 | $ | 463,598 | $ | 1,727,810 | $ | 1,919,759 | ||||
Direct operating costs | $ | 245,480 | $ | 250,877 | $ | 276,439 | $ | 1,029,591 | $ | 1,119,200 | ||||
Adjusted gross profit (1) | $ | 162,905 | $ | 170,686 | $ | 187,159 | $ | 698,219 | $ | 800,559 | ||||
Depreciation, amortization and impairment | $ | 85,174 | $ | 201,272 | $ | 91,951 | $ | 477,398 | $ | 364,312 | ||||
Selling, general and administrative | $ | 4,741 | $ | 3,809 | $ | 3,204 | $ | 16,502 | $ | 15,014 | ||||
Other operating income, net | $ | - | $ | - | $ | (676) | $ | - | $ | (769) | ||||
Operating income (loss) | $ | 72,990 | $ | (34,395) | $ | 92,680 | $ | 204,319 | $ | 422,002 | ||||
Capital expenditures | $ | 54,321 | $ | 69,127 | $ | 73,625 | $ | 264,667 | $ | 334,780 | ||||
Completion Services | ||||||||||||||
Revenues | $ | 650,848 | $ | 831,567 | $ | 1,014,357 | $ | 3,232,785 | $ | 2,017,440 | ||||
Direct operating costs | $ | 555,527 | $ | 703,809 | $ | 782,482 | $ | 2,658,170 | $ | 1,567,940 | ||||
Adjusted gross profit (1) | $ | 95,321 | $ | 127,758 | $ | 231,875 | $ | 574,615 | $ | 449,500 | ||||
Depreciation, amortization and impairment | $ | 135,852 | $ | 140,930 | $ | 147,891 | $ | 564,155 | $ | 283,230 | ||||
Impairment of goodwill | $ | - | $ | 885,240 | $ | - | $ | 885,240 | $ | - | ||||
Selling, general and administrative | $ | 9,703 | $ | 10,253 | $ | 13,662 | $ | 41,557 | $ | 26,050 | ||||
Other operating income, net | $ | - | $ | - | $ | - | $ | (17,792) | $ | - | ||||
Operating income (loss) | $ | (50,234) | $ | (908,665) | $ | 70,322 | $ | (898,545) | $ | 140,220 | ||||
Capital expenditures | $ | 61,469 | $ | 86,755 | $ | 107,217 | $ | 320,329 | $ | 214,746 | ||||
Drilling Products | ||||||||||||||
Revenues | $ | 86,522 | $ | 89,102 | $ | 88,109 | $ | 351,651 | $ | 134,679 | ||||
Direct operating costs | $ | 49,186 | $ | 47,144 | $ | 49,484 | $ | 191,107 | $ | 81,555 | ||||
Adjusted gross profit (1) | $ | 37,336 | $ | 41,958 | $ | 38,625 | $ | 160,544 | $ | 53,124 | ||||
Depreciation, amortization and impairment | $ | 27,328 | $ | 22,924 | $ | 31,392 | $ | 100,610 | $ | 48,467 | ||||
Selling, general and administrative | $ | 10,209 | $ | 9,898 | $ | 7,494 | $ | 35,860 | $ | 11,158 | ||||
Operating income (loss) | $ | (201) | $ | 9,136 | $ | (261) | $ | 24,074 | $ | (6,501) | ||||
Capital expenditures | $ | 15,834 | $ | 16,309 | $ | 16,632 | $ | 61,687 | $ | 24,572 | ||||
Other | ||||||||||||||
Revenues | $ | 16,380 | $ | 14,990 | $ | 18,253 | $ | 65,665 | $ | 74,578 | ||||
Direct operating costs | $ | 9,466 | $ | 10,077 | $ | 10,712 | $ | 41,001 | $ | 42,624 | ||||
Adjusted gross profit (1) | $ | 6,914 | $ | 4,913 | $ | 7,541 | $ | 24,664 | $ | 31,954 | ||||
Depreciation, depletion, amortization and impairment | $ | 4,790 | $ | 8,330 | $ | 6,291 | $ | 24,043 | $ | 28,237 | ||||
Selling, general and administrative | $ | 59 | $ | 156 | $ | 232 | $ | 708 | $ | 888 | ||||
Operating income (loss) | $ | 2,065 | $ | (3,573) | $ | 1,018 | $ | (87) | $ | 2,829 | ||||
Capital expenditures | $ | 2,894 | $ | 5,909 | $ | 6,258 | $ | 21,813 | $ | 24,645 | ||||
Corporate | ||||||||||||||
Depreciation | $ | 1,455 | $ | 1,224 | $ | 1,262 | $ | 5,667 | $ | 7,170 | ||||
Selling, general and administrative | $ | 48,367 | $ | 41,580 | $ | 36,445 | $ | 173,710 | $ | 116,852 | ||||
Merger and integration expense | $ | 3,460 | $ | 6,699 | $ | 19,949 | $ | 33,037 | $ | 98,077 | ||||
Other operating (income) expense, net | $ | 2,673 | $ | 3,629 | $ | (5,602) | $ | 7,084 | $ | (15,503) | ||||
Capital expenditures | $ | 5,832 | $ | 2,487 | $ | 1,541 | $ | 9,890 | $ | 16,947 | ||||
Total Capital Expenditures | $ | 140,350 | $ | 180,587 | $ | 205,273 | $ | 678,386 | $ | 615,690 |
- Adjusted gross profit is defined as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense, which does not include impairment of goodwill). See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted EBITDA
(unaudited, dollars in thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Adjusted Earnings Before Interest, Taxes, Depreciation | ||||||||||||||||
and Amortization (Adjusted EBITDA) (1): | ||||||||||||||||
Net income (loss) | $ | (51,392) | $ | (978,334) | $ | 61,938 | $ | (966,399) | $ | 245,952 | ||||||
Income tax expense (benefit) | 1,927 | (30,256) | 31,332 | 9,453 | 61,152 | |||||||||||
Net interest expense | 16,797 | 17,245 | 17,142 | 66,234 | 46,748 | |||||||||||
Depreciation, depletion, amortization and impairment | 254,599 | 374,680 | 278,787 | 1,171,873 | 731,416 | |||||||||||
Impairment of goodwill | - | 885,240 | - | 885,240 | - | |||||||||||
Merger and integration expense | 3,460 | 6,699 | 19,949 | 33,037 | 98,077 | |||||||||||
Adjusted EBITDA | $ | 225,391 | $ | 275,274 | $ | 409,148 | $ | 1,199,438 | $ | 1,183,345 | ||||||
Total revenues | $ | 1,162,135 | $ | 1,357,222 | $ | 1,584,317 | $ | 5,377,911 | $ | 4,146,456 | ||||||
Adjusted EBITDA by Operating Segment: | ||||||||||||||||
Drilling Services | $ | 158,164 | $ | 166,877 | $ | 184,631 | $ | 681,717 | $ | 786,314 | ||||||
Completion Services | 85,618 | 117,505 | 218,213 | 550,850 | 423,450 | |||||||||||
Drilling Products | 27,127 | 32,060 | 31,131 | 124,684 | 41,966 | |||||||||||
Other | 6,855 | 4,757 | 7,309 | 23,956 | 31,066 | |||||||||||
Corporate | (52,373) | (45,925) | (32,136) | (181,769) | (99,451) | |||||||||||
Adjusted EBITDA | $ | 225,391 | $ | 275,274 | $ | 409,148 | $ | 1,199,438 | $ | 1,183,345 | ||||||
- Adjusted earnings before interest, taxes, depreciation and amortization ("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 (including impairment of goodwill) 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 Free Cash Flow
(unaudited, dollars in thousands)
Twelve Months Ended | |||||
December 31, | |||||
2024 | 2023 | ||||
Adjusted Free Cash Flow (1): | |||||
Net cash provided by operating activities | $ | 1,175,536 | $ | 1,005,914 | |
Less capital expenditures | (678,386) | (615,690) | |||
Plus proceeds from disposal of assets | 25,832 | 26,473 | |||
Free cash flow | $ | 522,982 | $ | 416,697 | |
- We define adjusted free cash flow as net cash provided by operating activities less capital expenditures, plus proceeds from disposal of assets. We present adjusted free cash flow as a supplemental disclosure because we believe that it is an important liquidity measure and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company, that could be available for financing cash flows, such as dividend payments, share repurchases and/or repurchases of long-term indebtedness. Our computations of adjusted free cash flow may not be the same as similarly titled measures of other companies. Adjusted free cash flow is not intended to represent our residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flows from operations reported in accordance with GAAP.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit
(unaudited, dollars in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Drilling Services | |||||||||||||||
Revenues | $ | 408,385 | $ | 421,563 | $ | 463,598 | $ | 1,727,810 | $ | 1,919,759 | |||||
Less direct operating costs | (245,480) | (250,877) | (276,439) | (1,029,591) | (1,119,200) | ||||||||||
Less depreciation, amortization and impairment | (85,174) | (201,272) | (91,951) | (477,398) | (364,312) | ||||||||||
GAAP gross profit | 77,731 | (30,586) | 95,208 | 220,821 | 436,247 | ||||||||||
Depreciation, amortization and impairment | 85,174 | 201,272 | 91,951 | 477,398 | 364,312 | ||||||||||
Adjusted gross profit (1) | $ | 162,905 | $ | 170,686 | $ | 187,159 | $ | 698,219 | $ | 800,559 | |||||
Completion Services | |||||||||||||||
Revenues | $ | 650,848 | $ | 831,567 | $ | 1,014,357 | $ | 3,232,785 | $ | 2,017,440 | |||||
Less direct operating costs | (555,527) | (703,809) | (782,482) | (2,658,170) | (1,567,940) | ||||||||||
Less depreciation, amortization and impairment | (135,852) | (140,930) | (147,891) | (564,155) | (283,230) | ||||||||||
GAAP gross profit | (40,531) | (13,172) | 83,984 | 10,460 | 166,270 | ||||||||||
Depreciation, amortization and impairment | 135,852 | 140,930 | 147,891 | 564,155 | 283,230 | ||||||||||
Adjusted gross profit (1) | $ | 95,321 | $ | 127,758 | $ | 231,875 | $ | 574,615 | $ | 449,500 | |||||
Drilling Products | |||||||||||||||
Revenues | $ | 86,522 | $ | 89,102 | $ | 88,109 | $ | 351,651 | $ | 134,679 | |||||
Less direct operating costs | (49,186) | (47,144) | (49,484) | (191,107) | (81,555) | ||||||||||
Less depreciation, amortization and impairment | (27,328) | (22,924) | (31,392) | (100,610) | (48,467) | ||||||||||
GAAP gross profit | 10,008 | 19,034 | 7,233 | 59,934 | 4,657 | ||||||||||
Depreciation, amortization and impairment | 27,328 | 22,924 | 31,392 | 100,610 | 48,467 | ||||||||||
Adjusted gross profit (1) | $ | 37,336 | $ | 41,958 | $ | 38,625 | $ | 160,544 | $ | 53,124 | |||||
Other | |||||||||||||||
Revenues | $ | 16,380 | $ | 14,990 | $ | 18,253 | $ | 65,665 | $ | 74,578 | |||||
Less direct operating costs | (9,466) | (10,077) | (10,712) | (41,001) | (42,624) | ||||||||||
Less depreciation, depletion, amortization and impairment | (4,790) | (8,330) | (6,291) | (24,043) | (28,237) | ||||||||||
GAAP gross profit | 2,124 | (3,417) | 1,250 | 621 | 3,717 | ||||||||||
Depreciation, depletion, amortization and impairment | 4,790 | 8,330 | 6,291 | 24,043 | 28,237 | ||||||||||
Adjusted gross profit (1) | $ | 6,914 | $ | 4,913 | $ | 7,541 | $ | 24,664 | $ | 31,954 | |||||
- 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.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Drilling Services Adjusted Gross Profit
(unaudited, dollars in thousands)
Three Months Ended | |||||
December 31, | September 30, | ||||
2024 | 2024 | ||||
U.S. Contract Drilling | |||||
Revenues | $ | 339,355 | $ | 355,688 | |
Less direct operating costs | (188,208) | (196,430) | |||
Less depreciation, amortization and impairment | (77,182) | (194,509) | |||
GAAP gross profit | 73,965 | (35,251) | |||
Depreciation, amortization and impairment | 77,182 | 194,509 | |||
Adjusted gross profit (1) | $ | 151,147 | $ | 159,258 | |
Operating days - U.S. (2) | 9,617 | 9,870 | |||
Average revenue per operating day - U.S. (2) | $ | 35.29 | $ | 36.04 | |
Average direct operating costs per operating day - U.S. (2) | $ | 19.57 | $ | 19.90 | |
Average adjusted gross profit per operating day - U.S. (2) | $ | 15.72 | $ | 16.14 | |
Other Drilling Services | |||||
Revenues | $ | 69,030 | $ | 65,875 | |
Less direct operating costs | (57,272) | (54,447) | |||
Less depreciation, amortization and impairment | (7,992) | (6,763) | |||
GAAP gross profit | 3,766 | 4,665 | |||
Depreciation, amortization and impairment | 7,992 | 6,763 | |||
Adjusted gross profit (1) | $ | 11,758 | $ | 11,428 | |
- We define "Adjusted gross profit" as revenues less direct operating costs (excluding depreciation, 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.
- 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.