Patterson-UTI Rig Count of 165 in January Another All-Time High

As we do each month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson operates many rigs in our region. Last April, Patterson bought out and merged in Seventy Seven Energy (SSE). The addition of SSE’s rigs served to rocket Patterson’s rig count number in April and May much higher (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE fully absorbed into Patterson, the rig count number settled down. In September Patterson’s rig count slipped by 1–the first loss since June 2016. In October the count retreated another three, to 158. But the trend reversed in November when the the count jumped again–back up to 161. Then in December Patterson’s rig count hit a new, all-time high of 163 (see Patterson-UTI Rig Count Hits All-Time High in December, Up to 163). And here we are, in the dead of winter, and Patterson has done it again. The average rig count for January was 165, another new, all-time high…
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Patterson-UTI Issues Half Billion $ of New Debt to Pay Off Old Debt

Each month MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular (see our Patterson stories here). Patterson operates many rigs in the Marcellus/Utica region, hence our interest in the company and what it does. Yesterday Patterson announced it wants to get $525 million (over half a billion dollars) for newly floated IOUs, called “notes” in the financial world. This is nothing new–for Patterson or most other publicly-traded companies in the oil and gas industry. We always marvel at how big finance works. The stated reason for floating over a half billion in new notes is…to pay off older notes. That is, they are floating new debt to pay off old debt, plus a little extra change “for general corporate purposes.” The new notes will be “guaranteed on a senior unsecured basis.” How does that work? Doesn’t “unsecured” mean “nothing backing it up”? How do you guarantee something with nothing? We’re not picking on Patterson–well, maybe just a little. We’re pointing out our own lack of understanding in how companies can continuously issue new debt for old debt. Won’t the piper need to be paid some day? Apparently today is not that day! Here’s the latest new-debt-for-old debt announcement…
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Patterson-UTI Rig Count Hits All-Time High in December, Up to 163

As we do each month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson operates many rigs in our region. Last April, Patterson bought out and merged in Seventy Seven Energy (SSE). The addition of SSE’s rigs served to rocket Patterson’s rig count number in April and May much higher (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE fully absorbed into Patterson, the rig count number settled down. In September Patterson’s rig count slipped by 1–the first loss since June 2016. In October the count retreated another three, to 158. But the trend reversed in November when the the count jumped again–back up to 161. The numbers for December were just released and show Patterson’s monthly active rig count hit 163–which is a new, all-time high…
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Patterson-UTI Rig Count Gains 3 in November, Back Up to 161

As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket Patterson’s rig count number in April and May much higher (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE now fully absorbed into Patterson, the rig count number settled down. In September Patterson’s rig count slipped by 1–the first loss since June 2016. In October the count retreated another three, to 158. But what’s this? The numbers for November were just released and show that the count jumped again–back up to 161…
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Patterson-UTI Rig Count Slips Another 3 in October to 158

As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket Patterson’s rig count number in April and May much higher (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE now fully absorbed into Patterson, the rig count number settled down. In September Patterson’s rig count slipped by 1–the first loss since June 2016 (see Patterson-UTI Rig Count Count Slips by 1 Rig to 161 in Sept). The latest numbers are out for October, and the count retreated another three, to 158…
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Patterson-UTI Rig Count Count Slips by 1 Rig to 161 in Sept

As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket Patterson’s rig count number in April and May much higher (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE now fully absorbed into Patterson, the rig count number settled down. In June, Patterson’s count went up by a single new rig in North America, to 160. The trend continued in July, with Patterson picking up another 2 active rigs for 162 in North America–the 14th month in a row. Patterson reported last month that in August the rig count held at 162–no new rigs were added (see Patterson-UTI Rig Count Holds at All-Time High of 162 in August). And what about September? It had to happen sooner or later–what goes up must come down. In September, Patterson’s rig count slipped by one, to an average of 161 operating rigs. Hey, it was a great ride that went from June 2016 to July 2017…
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Patterson-UTI Buying Directional Driller MS Energy for ~$222M

Patterson-UTI Energy, an oilfield services company with major operations in the northeast, has just cut a deal to buy out a second company in a deal worth roughly $220 million. The company getting bought is MS Energy Services, a leading provider of directional drilling services in most U.S. shale plays, including a big presence in both the Marcellus and Utica Shale. It was only April of this year that Patterson completed a buyout of Seventy Seven Energy (SSE) in an all-stock deal worth $1.76 billion (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). SSE is the former Chesapeake Oilfield Operating company, the oilfield services subsidiary of Chesapeake Energy that Chessy spun out into its own company in July 2014 after it couldn’t find anyone to buy it. Since then, Patterson has absorbed and put to work SSE’s large drilling rig fleet. MS Energy is a much smaller competitor–with a specialization in directional drilling. The MS deal is similar to the SSE deal in that most of it is a stock swap. Patterson is giving MS Energy 8.8 million shares of stock worth (at yesterday’s opening value of $16.65 per share), $146.5 million. The deal also calls for an additional $75 million in cash. Add it together, and you get roughly $221.5 million. MS Energy’s CEO and COO are both getting jobs at Patterson as part of the deal. Here’s the lowdown on Patterson’s latest acquisition…
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Patterson-UTI Rig Count Holds at All-Time High of 162 in August

As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket up Patterson’s rig count number in April and May (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE now fully absorbed into Patterson, the rig count number settled down. In June, Patterson’s count went up by a single new rig in North America, to 160 (see Patterson-UTI Rig Count Hits New High of 160 in June). The trend continued in July, with Patterson picking up another 2 active rigs for 162 in North America–the 14th month in a row (see Patterson-UTI Rig Count Hits New High of 162 in July). Sooner or later it had to happen. Patterson reports in August the rig count held at 162–no new rigs were added. But hey, it’s still an incredible run!…
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Patterson-UTI Rig Count Hits New High of 162 in July

As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket up Patterson’s rig count number in April and May (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE now fully absorbed into Patterson, the rig count number settled down. In June, Patterson’s count went up by a single new rig in North America, to 160 (see Patterson-UTI Rig Count Hits New High of 160 in June). That was the 13th month in a row Patterson’s rig count has gone up–an astonishing run. The trend continued in July, with Patterson picking up another 2 active rigs for 162 in North America…
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Patterson-UTI 2Q17: Moving Rigs from Marcellus/Utica to W Texas

Each month MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica turns around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Patterson’s rig count kept sinking month by month until June 2016 when things finally turned around. Since last June, Patterson has reactived and began running new rigs (a higher rig count) in each successive month. In April, Patterson completed a merger/buyout of Seventy Seven Energy, the new name for the former Chesapeake Oilfield Operating company (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). Yesterday Patterson issued its second quarter 2017 update–the first mostly-full quarter of operation since acquiring the sinking SSE. The company lost $92.2 million in 2Q17, versus losing $85.9 million in 2Q16. That’s not so hot. However, even after acquiring SSE, Patterson “only” lost $156 million for the first six months of 2017, verses losing the same amount last year. So at least they aren’t slipping any further into the hole. The one that that caught our eye in reading a transcript of a conference call held yesterday is that Patterson is upgrading and moving seven rigs out of the Marcellus/Utica region to West Texas–to use them for oil drilling. There’s still plenty of rigs left in our region, but still, it indicates where Patterson’s priorities lie–in the super hot drilling of the Permian Basin…
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Patterson-UTI Rig Count Hits New High of 160 in June

As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket up Patterson’s rig count number in April and May (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With the SSE now fully absorbed into Patterson, the rig count number has settled down. In June, Patterson’s count went up by a single new rig in North America, to 160. That is the 13th month in a row Patterson’s rig count has gone up–an astonishing run…
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Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May

As we do every month (and have for two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in the Marcellus/Utica. In April the Patterson rig count rocketed to 115, up an amazing 27 rigs in a single month–the biggest jump we’ve seen (see Patterson-UTI Huge Increase in Monthly Rig Count – SSE Factored?). Why the big jump in April? We theorized that rigs from Seventy Seven Energy, which Patterson recently bought/merged with, influenced those numbers (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). Last month we reached out to Patterson and got confirmation of our theory from Mike Drickamer, Vice President, Investor Relations: “We completed the merger with Seventy Seven Energy on April 20 and so the April rig count did reflect 10 days of rigs acquired from Seventy Seven Energy.” Patterson released their May rig count number yesterday, and it zoomed to another new high–of 159 rigs. That’s up an amazing 38% in one month! It is the most rigs we’ve tracked for Patterson since we began keeping track. The reason for May’s high number is, of course, that Patterson’s numbers now reflect a full month of SSE rigs now part of the Patterson fleet…Continue reading

Patterson-UTI Huge Increase in Monthly Rig Count – SSE Factored?

As we do every month (and have for two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in the Marcellus/Utica. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Patterson was our “canary down the mine shaft” for discerning when the deep, dark recession in drilling would turn around. It happened in June 2016–and every single month since that time, including the month of April. In March, Patterson’s rig count jumped up by 10, to an average of 88 active rigs operating in the U.S. That has been the biggest single monthly increase since they began adding rigs again last June–until April. Last month the Patterson rig count rocketed to 115, up an amazing 27 rigs in a single month. What in the world happened? We have an answer…
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Patterson-UTI Energy Completes Merger with Seventy Seven Energy

As MDN told you last November, Patterson-UTI Energy, an oilfield services company with major operations in the northeast, is buying out and merging in Seventy Seven Energy (SSE) in an all-stock deal worth $1.76 billion (see Seventy Seven Energy Throws in the Towel, Sells to Paterson-UTI). SSE is the former Chesapeake Oilfield Operating company, the oilfield services subsidiary of Chesapeake Energy that Chessy spun out into its own company in July 2014 after it couldn’t find anyone to buy it (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). It was an ill-fated venture from the beginning. SSE never turned a profit after becoming its own company. In June 2016, SSE, which has major operations in the Marcellus/Utica, filed for bankruptcy, then emerged from bankruptcy two months later borrowing $100 million (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). With Patterson is buying it, they are on the hook for SSE’s debts. So even though the deal to buy SSE is a no-cash stock swap, Patterson still needs a boatload of cash to pay off SSE’s debts. So Patterson floating 15.8 million shares of stock at $26.45 per share to raise $418 million in order to pay off SSE’s debts (see Patterson-UTI Floats $418M of New Stock to Pay Off SSE’s Debts). The day has finally arrived. Yesterday Patterson closed on the deal and now SSE, nee Chesapeake Oilfield Operating, is no more…
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Biggest Jump Yet in Patterson-UTI Rig Count, Up 10 Rigs in March

As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Patterson was our “canary down the mine shaft” for discerning when the deep, dark recession in drilling would turn around. It happened in June 2016–and every single month since that time, including the month of March. In fact, Patterson’s March rig count jumped by 10, to an average of 88 active rigs operating in the U.S. That’s the biggest single monthly increase since they began adding rigs again last June…
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Patterson-UTI Feb Rig Count Up 9th Month in a Row

As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Patterson was our “canary down the mine shaft” for discerning when the deep, dark recession in drilling would turn around. It happened in June 2016–and every single month since that time, including the month of February, Patterson’s active rig count has increased. In February, Patterson’s rig count hit 78, up 2 from 76 in January…
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