Patterson-UTI Energy Inc
PTEN: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$19.00 | Gkvl | Fvw |
Patterson-UTI Earnings: Another Quarter of Weak Results, but Rig Demand May Be Near the Bottom
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.