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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Patterson-UTI Energy 2016 Update – $319M Loss

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 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’s rig count kept sinking month by month until June 2016 when things turned around. Since last June, Patterson has reactived and began running new rigs (higher rig count) in each successive month. Just last week Patterson released their numbers for January and once again it was good news (see Patterson-UTI Jan Rig Count – Continues to Climb). However, financially speaking it’s not all butterflies and unicorns for Patterson. Yesterday the company released its fourth quarter and full year 2016 numbers. Patterson lost $78 million in 4Q16 (compared with losing $59 million in 4Q15), and lost $319 million for all of 2016 (vs. losing $294 million for all of 2015). Looming on the horizon is Patterson’s buyout of, and merger in, of Seventy Seven Energy (see Seventy Seven Energy Throws in the Towel, Sells to Paterson-UTI). Seventy Seven Energy (SSE) is the old Chesapeake Oilfield Operating company–spun out into a standalone company. It never did make any money, from the moment it became a standalone company. Patterson hopes by combining SSE into its own operation, they will spin some gold from straw–the straw being that both companies now lose money. They hope (gamble?) is, of course, that with a pickup in drilling, Patterson’s fortunes will change. Here’s yesterday’s update…
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Patterson-UTI Jan Rig Count – Continues to Climb

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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the turning point–the first time in over a year that Patterson’s rig count reversed and began to climb once again. Since June the count has steadily risen. The latest count, for January, saw the second biggest month over month increase since the trend reversed. In January, Patterson’s rig count hit 76, up 5 from 71 in December…
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Patterson-UTI Floats $418M of New Stock to Pay Off SSE’s Debts

As MDN told you in 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 of this year, 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.). In the third quarter of this year, the red ink continued to flow, with SSE losing $36.5 million. Now that 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 is floating 15,800,000 shares of stock at $26.45 per share to raise $418 million. The stated reason? “To fund the repayment of the outstanding indebtedness of Seventy Seven Energy Inc.”…
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Patterson-UTI Dec Rig Count, Big 9% Jump Up from Nov

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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. Since June the count has steadily risen. The latest count, for December, saw the biggest month over month increase since the trend reversed. In December, Patterson’s rig count hit 71, up 6 from 65 in November. That’s a big 9% jump!…
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Seventy Seven Energy Throws in the Towel, Sells to Paterson-UTI

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 (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 of this year, 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.). In the third quarter of this year, the red ink continued to flow, with SSE losing $36.5 million. Patterson-UTI Energy, another oilfield services company with major operations in the northeast, is buying out and merging in SSE in an all-stock deal worth $1.76 billion…
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Patterson-UTI Nov Rig Count, Up 6th Mo in a Row

6-in-a-rowAs 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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. Since June the count has steadily risen. The latest count, for November, once again shows an increase. It’s not much–Patterson added just two rigs over the October average. But hey, this is now the sixth month in a row the count has gone up, which is a good sign!…
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Patterson-UTI Oct Rig Count, Up 5th Mo in a Row

Patterson-UTI logoAs 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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. Since June the count has steadily risen. The latest count, for October, once again shows an increase. It ain’t much–just a single rig–but hey, at least they’re still adding rigs!…
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Patterson-UTI 3Q16: $84M Loss, Industry has Begun Recovery

Patterson-UTI logoEach 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 reported losing $84 million during the second quarter of 2016, responding that the company is positioned for a recovery (see Patterson-UTI 2Q16: $86M Loss, “Well Positioned” for a Recovery). How about 3Q16? Patterson issued their third quarter update yesterday, and it shows the company lost $84 million. Yuck. Of course, that’s an improvement from losing $226 million a year earlier in 3Q15. Patterson CEO Andy Hendricks said rig counts have steadily climbed higher since May, something we’ve noted month by month here on MDN. Patterson Chairman of the Board, Mark Siegel, said the industry “has begun the initial stages of the recovery process.” That’s good news. Here’s the 3Q16 update from Patterson-UTI Energy…
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Turnaround Continues: Patterson-UTI Sept Rig Count Up 4th Mo

Patterson-UTI logoAs 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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. In July the count went up again (see Patterson-UTI July Rig Count Goes Up for 2nd Month in Row). And wonder of wonders, the count rose again in August (see Turn Around! Patterson-UTI August Rig Count Up 3rd Mo in a Row). We were holding our breath for September. Would the count go up again? Or would the momentum stall out? The numbers are in, and Patterson reports their rig count rose by another two active rigs in September! That’s the fourth straight month of increases in the count…
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Patterson-UTI Buys Canadian Drilling Tech Company

Patterson-UTI logoPatterson-UTI Energy is a company we watch as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around (see Turn Around! Patterson-UTI August Rig Count Up 3rd Mo in a Row). Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States and Canada. Patterson announced this morning they have agreed to buy out Canadian-based Warrior Rig Ltd., a drilling technology company. No price was disclosed. We consider it a good sign that Patterson can scrounge up enough nickles to buy another company. A sign that things are indeed beginning to look up…
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Turn Around! Patterson-UTI August Rig Count Up 3rd Mo in a Row

Patterson-UTI logoAs 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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. In July the count went up again (see Patterson-UTI July Rig Count Goes Up for 2nd Month in Row). And now, drum roll please! For a third month in a row the Patterson-UTI rig count in the U.S. increased, jumping from 56 rigs operating in July to 60 operating in August. We believe we can safely say we’ve now turned the corner with drilling in the Marcellus/Utica. We’re officially on the upswing!…
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Patterson-UTI July Rig Count Goes Up for 2nd Month in Row

Patterson-UTI logoAs 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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. What about July? The numbers are in, and we’re excited to report that Patterson added another rig to the count in July…
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Patterson-UTI 2Q16: $86M Loss, “Well Positioned” for a Recovery

Patterson-UTI logoEach 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). After more than a year, Patterson’s June report finally showed a small turnaround (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). But what about Patterson’s financial health? The company released their second quarter 2016 update earlier today. Patterson reports losing $86 million in 2Q16, versus losing $19 million in 2Q15. The reason for the drop: Patterson averaged 55 operating rigs in 2Q16 versus an average of 71 rigs operating in 1Q16. According to comments by the company’s top brass, they are doing everything they can to make it through the downturn and believe they are “well positioned for a recovery.” If things have truly turned around and drilling is back, hopefully Patterson will come roaring back. The Marcellus/Utica is counting on it!…
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Financial Finagling: Patterson-UTI Extends Date for Line of Credit

Patterson-UTI logoEach month MDN reports on the rig count for oilfield services company Patterson-UTI Energy. Why? Because Patterson-UTI has major operations in the Marcellus/Utica and we use their rig count as a proxy for predicting the pickup or slowdown of drilling in the northeast. Last week we reported the exciting news that Patterson’s rig count had, after more than a year, reversed and went up (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). Today we report that Patterson is, like so many other companies in the oil and gas sector, playing around with its financing. Patterson announced it has extended its line of credit. Some $358 million of the company’s $500 million line of credit was due to be paid off by September 2017. They cut a deal with their bankers to extend that to March 2019. Plus they’re doing some other financial finagling…
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Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2

Patterson-UTI logoAs 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). Month by month Paterson’s rig count has declined over the past year plus. We have been waiting for over a year to report this: We’ve finally turned the corner! The Patterson rig count in June ticked up by 2 rigs–to 55 active rigs (up from 53 in May). Perhaps it’s too early to pop the cork on the champagne, but we are excited and hope/think this portends the slow down has finally hit rock bottom and new drilling is, ever so gradually, beginning to pick up again…
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