Patterson-UTI

Since March MDN has been watching the active number of rigs operated by Patterson-UTI Energy as a proxy for whether or not we’ve “turned the corner” on falling rig counts in the Marcellus/Utica. Patterson is a major drilling contractor with operations in the Marcellus/Utica region. Month after the month it’s the same story: Patterson is operating less rigs in the U.S. than it was the month before. The numbers are now out for October. What do they show? We’ve hit a new low. Here’s a recap of the numbers rigs Patterson was operating in the U.S. over the past eight months: March – 142; April – 131; May – 122; June – 112; July – 111 (seemed like it was turning the corner! but it wasn’t); August – 106; September – 99; and now in October – 92. Kerplunk…
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Patterson-UTI Energy is an oilfield services company, running in the same circles as Schlumberger, Halliburton and Baker Hughes. We previously reported the hammering oilfield services companies have been getting in the market. Not only are energy companies drilling less (laying rigs down), energy companies are pressuring oilfield services companies–the companies that do the actual drilling and fracking–to lower their prices. Less work and lower money for the work you’re doing has taken it’s toll. However, these companies are handling the downturn in different ways. Patterson-UTI, like several of its competitors, lost money in 3Q15–but Patterson’s loss cut much deeper (and makes us wonder if it’s ripe for a takeover). Let us explain…
Read More “Patterson-UTI 3Q15: $226M Loss, But Not as Bad as it Seems”

Since March MDN has been watching the active number of rigs operated by Patterson-UTI Energy as a proxy for whether or not we’ve “turned the corner” on falling rig counts in the Marcellus/Utica. Patterson is a major drilling contractor with operations in the Marcellus/Utica region. We won’t recount all of the numbers here, for that you can read our story from August (see Patterson-UTI Active Rigs (Sadly) Falls Again in August). What do the latest numbers, from September, show? The downward spiral continues…
Read More “Patterson-UTI Rig Counts Continue Downward Spiral in September”

Since March MDN has been watching the active number of rigs operated by Patterson-UTI Energy as a proxy for whether or not we’ve “turned the corner” on falling rig counts in the Marcellus/Utica. Patterson is a major drilling contractor with operations in the Marcellus/Utica region. We won’t recount all of the numbers here, for that you can read our story from July (see Patterson-UTI Active Rigs Finally Hits Bottom in July? Maybe). We theorized that perhaps Patterson had hit bottom in July with 111 active rigs operating in the U.S. and 4 rigs in Canada. Alas, it seems the bottom as not yet been reached. Patterson released their August numbers yesterday, the while Canada has stayed steady at 4 active rigs, their U.S. rig fleet has fallen to an average of 106 active rigs in August…
Read More “Patterson-UTI Active Rigs (Sadly) Falls Again in August”

Since March MDN has been watching the active number of rigs operated by Patterson-UTI Energy as a proxy for whether or not we’ve “turned the corner” on falling rig counts in the Marcellus/Utica. Patterson is a major drilling contractor with operations in the Marcellus/Utica region. In March, Patterson ran an average of 142 U.S. rigs and 4 Canadian rigs. In April, they ran an average of 131 U.S. rigs and 2 Canadian rigs. In May, Patterson ran an average of 122 U.S. rigs and 1 Canadian rig. In June, Patterson ran an average of 112 drilling rigs in the U.S. and one rig in Canada. What about July? The number in the U.S. slide by one, to 111 drilling rigs. But the number in Canada increased–back up to 4 active rigs operating. Have we finally hit rock bottom on the lay down of drilling rigs?…
Read More “Patterson-UTI Active Rigs Finally Hits Bottom in July? Maybe”

Not that we need it, but we have evidence of more tough times in the oilfield services business. We previously reported on tough times for Halliburton (see Tough Times: Halliburton’s Net Income Drops 93% in 1 Year) and Baker Hughes (see Tough Times: Baker Hughes Net Income Drops 153% in 1 Year). They are some of the largest oilfield services companies in the world–both operating in the Marcellus/Utica region. Patterson-UTI Energy is another Marcellus/Utica oilfield services firm, although much smaller than Halliburton and BH. Sometimes being smaller means being more maneuverable–fleet of foot–able to adapt quicker. Being smaller has not, however, shielded Patterson from the current downturn. Patterson reports revenue for 2Q14 (a year ago) was $757.3 million. Revenue for 2Q15 was $472.8 million–a drop of 38% year over year. When you add in expenses of all types, the picture is dismal: In 2Q14 Patterson’s net income was $54.3 million. In 2Q15 it was minus $19.0 million, or $19M in the hole–which is a 135% drop year over year. Patterson’s ratios similar to both Halliburton and BH…
Read More “Tough Times: Patterson-UTI’s Net Income Drops 135% in 1 Year”

One of the informal metrics we’ve been following to see when the current slide in rig counts (and consequently drilling activity) has truly turned around is to follow the active rig counts for Patterson-UTI, a major drilling contractor with operations in the Marcellus/Utica region. In March, Patterson ran an average of 142 U.S. rigs and 4 Canadian rigs. In April, they ran an average of 131 U.S. rigs and 2 Canadian rigs. In May, Patterson ran an average of 122 U.S. rigs and 1 Canadian rig. You see the trend. What about June? Patterson recently issued June numbers, and sadly the slide continues. In June, Patterson ran an average of 112 drilling rigs in the U.S. and retained one active rig in Canada…
Read More “Patterson-UTI Active Rig Count Continues to Slide in June”

We continue to see mixed signals when it comes to the end of declining rig counts. Yesterday we ran a story highlighting the comments from the largest private oilfield services company in the U.S., Canary, saying we’ve now turned a corner in shale and “the industry is on the way back” (see Largest Private Oilfield Svcs Co Says Shale is Rebounding). Then we look at Patterson-UTI’s average rig count numbers for their company–and the numbers continue to decline rather significantly. Two months ago, in March, Patterson ran an average of 142 U.S. rigs and 4 Canadian rigs. In April, they ran an average of 131 U.S. rigs and 2 Canadian rigs (see Patterson-UTI Active Rig Count Drops Again in April). For May, Patterson just announced they ran an average of 122 U.S. rigs and 1 Canadian rig. Oy vey…
Read More “Steep Decline in Rig Count Continues for Patterson-UTI in May”

Patterson-UTI operates (leases out) drilling rigs for shale and conventional drilling. They are one of the biggest rig firms in the Marcellus/Utica. In March Patterson reported they had an average of 142 drilling rigs operating in the United States and four rigs in Canada. Patterson just released the April numbers and the bleeding continues. In April, Patterson had an average of 131 rigs operating in the U.S. and just two in Canada. Although it’s true that drillers are today more efficient than they were just a year or two ago, this continuing dramatic drop in rig counts has everyone wondering, “When will we hit the bottom?”…
Read More “Patterson-UTI Active Rig Count Drops Again in April”

Patterson-UTI Energy, one of the companies that owns and operates drilling rigs in the Marcellus/Utica, filed their first quarter 2015 financial results today. Revenue was down just 3% year over year–$678 million for 1Q15 vs $658 million for 1Q14. But earnings–the money you keep after all expenses–took a dive right off a cliff. In 1Q15 Patterson made just $9.1 million, or 6 cents per share. In 1Q14, the company made $34.8 million in earnings, or 24 cents per share. That’s a 74% drop in earnings year over year. Ouch…
Read More “Patterson-UTI 1Q15: Revenue Down a Little, Earnings Down a Lot”

How much is drilling slowing down across all U.S. shale plays? This little statistic may illustrate it. Patterson-UTI operates (leases out) drilling rigs for shale and conventional drilling. They are one of the biggest rig firms in the Marcellus/Utica. If you were to average the first three months of the year–January through March–Patterson-UTI operated an average of 165 rigs in the U.S. and 8 rigs in Canada. But if you looked at just the month of March, Patterson UTI operated an average of 142 rigs in the U.S. and 4 rigs in Canada. That’s a pretty steep drop in numbers over the course of just a few months–more than 14%…
Read More “Patterson-UTI Rig Counts Drop More than 14% in 1Q15”