Patterson-UTI Energy (PTEN) investor relations material

Executive summary

• Delivered strong Q4 2025 results with revenue of $1.2 billion, adjusted EBITDA of $221 million, and a net loss attributable to common shareholders of $9 million, supported by robust operational execution and cost controls despite a challenging commodity environment.

• Generated $416 million in adjusted free cash flow for 2025, with Q4 being the highest since the 2023 transformation.

• Increased quarterly dividend by 25% to $0.10 per share, reflecting confidence in ongoing free cash flow generation and a commitment to return at least 50% of adjusted free cash flow to shareholders.

• Maintained steady activity and pricing across drilling and completion services, with resilience in both oil and gas markets.

• Continued investment in differentiated technologies and digital platforms to enhance operational efficiency and customer value.

Financial highlights

• Q4 2025 revenue was $1.2 billion; net loss attributable to common shareholders was $9 million ($0.02 per share).

• Adjusted EBITDA for Q4 was $221 million; adjusted free cash flow for the year totaled $416 million.

• Q4 segment revenues: Drilling services $361 million, Completion services $702 million, Drilling products $84 million.

• Q4 adjusted gross profit: Drilling services $132 million, Completion services $111 million, Drilling products $34 million.

• Cash and equivalents at year-end were $421 million, up from $241 million at the end of 2024.

Outlook and guidance

• Expect Q1 2026 drilling services rig count in the low- to mid-90s, with adjusted gross profit declining by less than 5% from Q4.

• Completion services Q1 adjusted gross profit expected at ~$95 million, reflecting weather-related activity impacts.

• Drilling products Q1 adjusted gross profit to improve slightly, with international revenue growth anticipated in 2026.

• Gross CapEx for 2026 projected at less than $500 million, net of asset sales, weighted toward the first half.

• Anticipate additional demand for services in H2 2026 as natural gas demand grows.