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PTEN Nasdaq· Patterson-UTI Energy Inc
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PTEN Nasdaq· Patterson-UTI Energy Inc
Earnings report Q3 2023

PTEN Reports Flat Revenues in Latest Quarter, Excluding Deferred Revenue Recognition

Segments of Revenue

  • Drilling Services: Generated $488.7 million in revenue, accounting for 48.3% of total operating revenues.
  • Completion Services: Generated $459.5 million in revenue, representing 45.4% of total operating revenues.
  • Drilling Products: Generated $46.6 million in revenue, contributing 4.6% to total operating revenues.

Strengths

  • PTEN's overall revenue remained flat in the latest quarter, excluding the recognition of approximately $29 million in previously deferred revenue from a customer prepayment. This recognition was due to a change in the customer's drilling schedule.
  • The company's drilling services segment maintained a significant share of total operating revenues, indicating a strong demand for its services.
  • PTEN's completion services segment also contributed a substantial portion to the company's revenue, highlighting its diversified business offerings.

Challenges

  • Excluding the impact of the deferred revenue recognition, PTEN's drilling services revenues would have decreased by 6% compared to the previous quarter. This decline can be attributed to a reduction in the average contract drilling rig count in the United States, from 128 rigs to 120 rigs.
  • The drilling products segment experienced no revenue in the latest quarter, indicating potential challenges or limited demand for these products.

Noteworthy

  • PTEN recognized approximately $29 million in previously deferred revenue from a customer prepayment, which positively impacted the company's revenue for the quarter. This recognition was a result of a change in the customer's drilling schedule.

Summary

PTEN reported flat revenues in the latest quarter, excluding the recognition of deferred revenue. The drilling services and completion services segments remained the primary drivers of the company's revenue. However, the drilling services segment experienced a decline in revenue due to a reduction in the average contract drilling rig count. The absence of revenue in the drilling products segment suggests potential challenges or limited demand. PTEN's recognition of previously deferred revenue from a customer prepayment positively impacted its overall revenue performance.

Source documents

Form 10-Q  filed on Nov 09, 2023
90 pages scanned

Reference data

Company financials Q3 revenue 1.58B
Analyst estimates Q3 EPS beat by 2.08%
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