Patterson-UTI Energy Inc

PTEN: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$36.00	Fmjqj	Yrrgb

Patterson-UTI Earnings: Another Quarter of Weak Results, but Rig Demand May Be Near the Bottom

Katherine Olexa ,

Aug 5, 2024

No-moat Patterson posted another quarter of contraction, with every segment showing declining revenue and operating income falling by 285 basis points to 3.3%. This all culminated into an 80-basis-point drop in EBITDA margin, now sitting at 24%. Completion services, which represents 60% of revenue, lead this decline because of weaker activity by producers. As a result, we are reducing our fair value to $14 from $15.

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