Patterson-UTI Energy (PTEN) investor relations material

Executive summary

• Q2 2026 revenue reached $1.23 billion, up 10% sequentially, with all business segments outperforming expectations and strong growth in completion services and drilling products.

• Net loss attributable to common stockholders was $19.6 million, including $21 million in non-cash charges for exiting Colombian drilling operations and a $5 million write-down of noncontrolling investments.

• Adjusted EBITDA for Q2 2026 was $232 million, reflecting strong operational performance despite exit costs in Colombia.

• Strategic investments in technology and fleet upgrades are underway, positioning for further growth into 2027 and beyond.

• Free cash flow is expected to improve in H2 2026 and meaningfully in 2027, supporting dividends and shareholder returns.

Financial highlights

• Q2 2026 revenue: $1.23 billion, up 10% sequentially; net loss: $19.6 million, including $21 million in Colombia exit costs.

• Adjusted EBITDA: $231.9 million; adjusted net income: $1 million after excluding non-cash charges.

• Cash and equivalents at June 30, 2026: $203 million; working capital: $588 million.

• Capital expenditures for Q2 2026: $156 million; six-month CapEx: $273 million; full-year CapEx expected at $600 million.

• Dividend payout: $0.10 per share for Q2 2026; $76 million in dividends paid in first half of 2026.

Outlook and guidance

• Q3 2026 guidance: Drilling Services adjusted gross profit ~$145 million, Completion Services ~$140 million, Drilling Products ~$40 million.

• U.S. rig count expected to average 100 in Q3 2026, exiting higher; near-full utilization and improved pricing in completion services.

• Working capital expected to be a source of cash in H2 2026; free cash flow conversion targeted at 40% through-cycle.

• Management expects continued growth in drilling and completion activity and pricing into 2027.