Patterson-UTI Energy (PTEN) Q4 2024 earnings summary

Executive summary

• Delivered strong free cash flow in 2024, balancing capital returns to shareholders with organic investments and cost management.

• Achieved operational integration of recent acquisitions, streamlining costs and enhancing efficiencies.

• Reported Q4 2024 revenue of $1.2 billion and a net loss attributable to common stockholders of $52 million, or $0.13 per share, including $3 million in merger and integration expenses.

• Adjusted EBITDA for Q4 was $225 million, excluding merger and integration expenses.

• Full year 2024 cash from operations reached $1.2 billion, with adjusted free cash flow of $523 million.

Financial highlights

• Q4 2024 revenue was $1.162 billion, with a net loss of $52 million or $0.13 per share.

• Adjusted EBITDA for Q4 was $225 million; adjusted free cash flow for 2024 totaled $523 million.

• Returned $52 million to shareholders in Q4, including $0.08 per share dividend and $20 million in share repurchases.

• Returned $417 million to shareholders in 2024 via dividends and share repurchases.

• Declared a quarterly dividend of $0.08 per share, payable March 17, 2025.

Outlook and guidance

• 2025 capital expenditures expected to be approximately $600 million, down from $678 million in 2024.

• Plan to return at least 50% of adjusted free cash flow to shareholders through dividends and buybacks.

• Q1 2025 guidance: 106 active rigs, adjusted gross profit per drilling day of ~$15,250, and completion services adjusted gross profit of ~$100 million.

• Q1 2025 Drilling Products and Other segments: adjusted gross profit expected to be flat sequentially.

• Expect steady U.S. drilling activity in 2025, with potential upside in natural gas demand in 2026-2027.