Patterson-UTI Energy Inc. [NASDAQ: PTEN] closed the trading session at $14.83 on 09/05/23. The day’s price range saw the stock hit a low of $14.675, while the highest price level was $15.57. The company report on September 1, 2023 at 9:25 AM that Patterson-UTI Energy and NexTier Oilfield Solutions Complete Merger.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) (“Patterson-UTI”) today announced the completion of its previously announced all-stock merger with NexTier Oilfield Solutions Inc. (“NexTier”), creating a leading provider of drilling and completions services in the United States. The combined company will retain the name Patterson-UTI Energy, Inc., continue trading under the ticker symbol PTEN and maintain its headquarters in Houston, Texas.Patterson-UTI prides itself on its best-in-class operational and technology portfolio bolstered by what we believe to be the most comprehensive set of drilling and completions operational data in the United States. The Company’s U.S. Contract Drilling business has 172 super-spec drilling rigs and its U.S. Well Completions business, which will operate under the NexTier Completions brand, has 3.3 million hydraulic fracturing horsepower.Andy Hendricks, President and Chief Executive Officer of Patterson-UTI, said, “We are excited to complete the merger of Patterson-UTI and NexTier, establishing us as a leading, technology-driven drilling and well completions business. The Company is well positioned to deliver value through our comprehensive portfolio, innovative offerings, significant free cash flow generation and strong financial position. With an outstanding combined team and collective track record of integrations, we are confident we will hit the ground running and successfully bring the businesses together. We look forward to welcoming our NexTier colleagues and starting this new chapter together.”Our strategic positioning sets the stage for enhanced shareholder value. The transaction is expected be accretive to both earnings per share and free cash flow in 2024. The Company expects to realize annual cost savings and operational synergies of approximately $200 million within 18 months following the merger closing. Patterson-UTI intends to target high free cash flow conversion, remain good stewards of capital and continue its practice of targeting a return of 50% of free cash flow to shareholders.Leadership TeamThe combined company’s proven management team reflects the strengths and capabilities of both organizations and includes:Board of DirectorsPatterson-UTI’s Board includes the following 11 members, six of whom are from the Patterson-UTI Board and five of whom are from the NexTier Board:About Patterson-UTI Energy, Inc.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 StatementsThis 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,” “intend,” “may,” “plan,” “predict,” “potential,” “project,” “pursue,” “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 statements regarding Patterson-UTI’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, 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. The statements include, without limitation, projections as to the anticipated benefits of the transaction, the impact of the transaction on Patterson-UTI’s business and future financial and operating results, the amount and timing of synergies from the transaction, the combined company’s projected revenues, adjusted EBITDA and cash flow, accretion, business and employee opportunities and capital return policy,, which are based on management’s estimates, assumptions and projections, and are subject to significant uncertainties and other factors, many of which are beyond Patterson-UTI’s control. These factors and risks include, but are not limited to: adverse oil and natural gas industry conditions; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI’s services and their associated effect on rates; excess availability of land drilling rigs, pressure pumping and directional drilling equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI’s services; the impact of the ongoing conflict in Ukraine; strength and financial resources of competitors; utilization, margins and planned capital expenditures; liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology; the ability to retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; synergies, costs and financial and operating impacts of acquisitions; difficulty in building and deploying new equipment; governmental regulation; climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; the ability to effectively identify and enter new markets; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; ability to obtain insurance coverage on commercially reasonable terms; financial flexibility; interest rate volatility; adverse credit and equity market conditions; availability of capital and the ability to repay indebtedness when due; our return of capital to stockholders; stock price volatility; and compliance with covenants under Patterson-UTI’s debt agreements. In addition, material risks that could cause actual results to differ from forward-looking statements include: the inherent uncertainty associated with financial or other projections; the prompt and effective integration of Patterson-UTI’s and NexTier’s businesses and the ability to achieve the anticipated synergies and value-creation contemplated by the transaction; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and retention as a result of the transaction; and the diversion of management time on transaction-related issues.Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements 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:
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) (“Patterson-UTI”) today announced the completion of its previously announced all-stock merger with NexTier Oilfield Solutions Inc. (“NexTier”), creating a leading provider of drilling and completions services in the United States. The combined company will retain the name Patterson-UTI Energy, Inc., continue trading under the ticker symbol PTEN and maintain its headquarters in Houston, Texas.
The stocks have a year to date performance of -11.94 percent and weekly performance of 5.85 percent. The stock has been moved at -1.92 percent over the last six months. The stock has performed -2.88 percent around the most recent 30 days and changed 39.77 percent over the most recent 3-months.
If compared to the average trading volume of 4.31M shares, PTEN reached to a volume of 12356201 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Patterson-UTI Energy Inc. [PTEN]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PTEN shares is $18.11 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PTEN stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Stifel have made an estimate for Patterson-UTI Energy Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 05, 2023.
The Average True Range (ATR) for Patterson-UTI Energy Inc. is set at 0.56, with the Price to Sales ratio for PTEN stock in the period of the last 12 months amounting to 1.11. The Price to Book ratio for the last quarter was 1.79, with the Price to Cash per share for the same quarter was set at 0.65. Price to Free Cash Flow for PTEN in the course of the last twelve months was 8.92 with Quick ratio for the last quarter at 1.60.
PTEN stock trade performance evaluation
Patterson-UTI Energy Inc. [PTEN] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.85. With this latest performance, PTEN shares dropped by -2.88% in over the last four-week period, additionally sinking by -1.92% over the last 6 months – not to mention a rise of 3.85% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PTEN stock in for the last two-week period is set at 56.93, with the RSI for the last a single of trading hit 60.31, and the three-weeks RSI is set at 56.61 for Patterson-UTI Energy Inc. [PTEN]. The present Moving Average for the last 50 days of trading for this stock 14.24, while it was recorded at 14.43 for the last single week of trading, and 13.93 for the last 200 days.
Patterson-UTI Energy Inc. [PTEN]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Patterson-UTI Energy Inc. [PTEN] shares currently have an operating margin of +7.54 and a Gross Margin at +11.98. Patterson-UTI Energy Inc.’s Net Margin is presently recorded at +5.84.
Return on Total Capital for PTEN is now 7.97, given the latest momentum, and Return on Invested Capital for the company is 6.19. Return on Equity for this stock inclined to 9.44, with Return on Assets sitting at 5.07. When it comes to the capital structure of this company, Patterson-UTI Energy Inc. [PTEN] has a Total Debt to Total Equity ratio set at 51.37. Additionally, PTEN Total Debt to Total Capital is recorded at 33.94, with Total Debt to Total Assets ending up at 27.22. Long-Term Debt to Equity for the company is recorded at 51.07, with the Long-Term Debt to Total Capital now at 33.74.
Reflecting on the efficiency of the workforce at the company, Patterson-UTI Energy Inc. [PTEN] managed to generate an average of $23,794 per employee. Receivables Turnover for the company is 5.74 with a Total Asset Turnover recorded at a value of 0.87.Patterson-UTI Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.80.
Earnings per share (EPS) analysis for Patterson-UTI Energy Inc. [PTEN] stock
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PTEN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Patterson-UTI Energy Inc. go to 44.60%.
Patterson-UTI Energy Inc. [PTEN]: Institutional Ownership
The top three institutional holders of PTEN stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in PTEN stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in PTEN stock with ownership which is approximately 5.7381%.