Patterson-UTI Energy Reports Financial Results for the Quarter Ended September 30, 2026
PATTERSON UTI ENERGY INC (PTEN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contact: Michael Sabella Vice President, Investor Relations (281) 885-7589 Patterson-UTI Energy Reports Financial Results for the Quarter Ended September 30, 2026 HOUSTON, Texas – October 28, 2026 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial r
How this was made
The 30-second read
Why it matters
The earnings beat and dividend announcement provide fresh, material information for traders.
Market read
First disclosure of PTEN's Q3 results and forward outlook, offering actionable insight for the stock.
What to watch
Potential geopolitical risk in Colombia and Saudi Arabia could dampen future performance.
Third Quarter 2026 Total Revenue of $1.3 billion, a 9% sequential increase; Net Income Attributable to Common Stockholders of $28 million; and Adjusted EBITDA of $264 million.
Sequential revenue growth, a return to GAAP profitability, and higher adjusted EBITDA were supported by improved U.S. onshore drilling and completion demand, pricing, and Drilling Products growth. Completion activity disruptions, Colombia exit costs, and expected Saudi Arabia activity pressure remain areas of attention.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $1.34B | 9% sequential increase | – |
| Direct operating costs, three months ended September 30, 2026GAAP | $1.01B | – | – |
| Depreciation, depletion, amortization and impairment, three months ended September 30, 2026GAAP | $221.6M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $69.96M | – | – |
| Other operating expense (income), net, three months ended September 30, 2026GAAP | −$18.02M | – | – |
| Operating income (loss), three months ended September 30, 2026GAAP | $63.27M | – | – |
| Net income (loss), three months ended September 30, 2026GAAP | $28.64M | – | – |
| Net income (loss) attributable to common stockholders, three months ended September 30, 2026GAAP | $28.35M | – | – |
| Diluted net income (loss) attributable to common stockholders per common share, three months ended September 30, 2026GAAP | $ 0.07 | – | – |
| Basic net income (loss) attributable to common stockholders per common share, three months ended September 30, 2026GAAP | $ 0.07 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $263.9M | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $3.69B | – | – |
| Operating income (loss), nine months ended September 30, 2026GAAP | $41.99M | – | – |
| Net income (loss), nine months ended September 30, 2026GAAP | −$15.12M | – | – |
| Net income (loss) attributable to common stockholders, nine months ended September 30, 2026GAAP | −$15.88M | – | – |
| Diluted net income (loss) attributable to common stockholders per common share, nine months ended September 30, 2026GAAP | $ (0.04) | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $700.8M | – | – |
| Drilling Services adjusted gross profit, three months ended September 30, 2026non-GAAP | $148.9M | – | – |
| Completion Services adjusted gross profit, three months ended September 30, 2026non-GAAP | $132.8M | – | – |
| Drilling Products adjusted gross profit, three months ended September 30, 2026non-GAAP | $51.20M | – | – |
| Other adjusted gross profit, three months ended September 30, 2026non-GAAP | $3.84M | – | – |
| Total capital expenditures, three months ended September 30, 2026other | $141.4M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $420.9M | – | – |
| Purchases of property and equipment, nine months ended September 30, 2026GAAP | −$413.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Drilling ServicesActivity increased throughout the quarter, with demand particularly strong for rigs returning to service following structural upgrades. Growth was concentrated in oil-producing basins, particularly the Rockies and Permian, while the Directional Drilling business benefited from increased demand and greater well complexity. | $417.4M | – | – |
| Completion ServicesResults improved sequentially, supported by a mid-single-digit pricing increase compared with the second quarter. Demand was particularly robust for equipment capable of using natural gas as a fuel. | $808.3M | – | – |
| Drilling ProductsStrong U.S. demand drove a company record revenue per industry rig and higher pricing. International revenue increased sequentially and reached a company record for the second consecutive quarter. | $110.2M | 21% sequentially | – |
| OtherOther includes the oilfield rentals business, prior to its divestiture in April 2025, and oil and natural gas working interests. | $ 6,393 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter 2026 outlook
- Operating expensesGeneral and administrative expense to be approximately $70 million; depreciation, depletion, amortization, and impairment expense to be approximately $220 million.
- NoteDrilling Services adjusted gross profit of $150 million.
- NoteCompletion Services adjusted gross profit of $140 million.
- NoteDrilling Products adjusted gross profit to decline 5-10%, sequentially.
- NoteOther adjusted gross profit to be steady compared to the third quarter.
- NoteOperate an average of approximately 104 rigs in the United States and exit 2026 above that level.
- NoteActivity levels in Completion Services broadly consistent with the third quarter.
Capital returns
- Declared a quarterly dividend of $0.10 per share, payable on December 15, 2026 to holders of record as of December 1, 2026.
- Returned approximately $62 million to shareholders during the third quarter, including $24 million for share repurchases.
- Purchases of treasury stock were $ (33,685) for the nine months ended September 30, 2026.
- Dividends paid were $ (114,105) for the nine months ended September 30, 2026.
- Cash dividends per common share were $ 0.10 for the three months ended September 30, 2026.
What drove it
- Increased U.S. onshore drilling and completion demand supported stronger pricing and returns.
- Customer programs increasingly require upgraded rigs with advanced digital and automation capabilities and larger structures designed to drill deeper wells and longer laterals more efficiently.
- Completion Services pricing momentum was positive, particularly for natural gas-powered assets, which management said remain in very short supply.
- Approximately 90% of the active fleet will be natural gas capable by the end of 2026.
- Drilling Products achieved its strongest quarterly revenue and adjusted gross profit since the Ulterra acquisition in 2023.
Concerns
- Several Completion Services fleets experienced elevated non-productive time late in the quarter due primarily to temporary sand availability constraints in South Texas and trucking delays in the Permian Basin.
- Drilling Services expects reactivation costs in the fourth quarter and additional costs related to winding down Colombia operations.
- Drilling Products expects fourth-quarter adjusted gross profit to decline 5-10%, sequentially, primarily due to expected lower drilling activity in Saudi Arabia amid ongoing geopolitical unrest.
- Completion Services does not expect active horsepower to increase through the first half of 2027 as new Emerald natural gas-powered equipment is deployed and diesel-powered assets are decommissioned.
What to watch
- Whether the United States rig count exits 2026 above approximately 104 operating rigs and whether additional rigs reactivate in the first quarter of 2027.
- Fourth-quarter Drilling Services adjusted gross profit of $150 million and Completion Services adjusted gross profit of $140 million.
- The extent of pricing improvement across rig classes and for natural gas-powered completion equipment.
- The duration of sand availability constraints in South Texas and trucking delays in the Permian Basin.
- Saudi Arabia drilling activity and its effect on fourth-quarter Drilling Products adjusted gross profit.
- Capital allocation among high-return strategic investments, additional shareholder cash returns, and debt reduction.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash were $ 339,310 at September 30, 2026, compared with $ 420,642 at December 31, 2025.
- Long-term debt, net was $ 1,234,495 at September 30, 2026, compared with $ 1,221,038 at December 31, 2025.
- Total assets were $ 5,451,905 at September 30, 2026.
- Net cash provided by operating activities was $ 420,876 for the nine months ended September 30, 2026.
- Net cash used in investing activities was $ (356,551) for the nine months ended September 30, 2026.
- Net cash used in financing activities was $ (141,596) for the nine months ended September 30, 2026.
- Net change in cash, cash equivalents and restricted cash was $ (81,332) for the nine months ended September 30, 2026.
- Total capital expenditures were $ 413,906 for the nine months ended September 30, 2026.
Analysis
Patterson-UTI reported third-quarter total revenues of $ 1,342,234, compared with $ 1,227,967 in the second quarter and $ 1,175,954 in the prior-year quarter. The company returned to GAAP profitability, reporting operating income of $ 63,273 and net income attributable to common stockholders of $ 28,353, versus operating losses in both comparison quarters. Adjusted EBITDA was $ 263,888, above $ 231,886 in the second quarter and $ 218,654 a year earlier.
The operating improvement was broad-based. Drilling Services revenue was $ 417,367 and adjusted gross profit was $ 148,914 as operating activity increased during the quarter and customers returned structurally upgraded rigs to service. Completion Services produced $ 808,307 of revenue and $ 132,844 of adjusted gross profit, aided by a mid-single-digit pricing increase. Drilling Products recorded $ 110,167 of revenue and $ 51,196 of adjusted gross profit, with revenue increasing 21% sequentially on strong U.S. demand, higher pricing, and higher international revenue.
Management identified near-term operational friction in Completion Services. Several fleets had elevated non-productive time late in the quarter due to temporary South Texas sand constraints and Permian trucking delays. The company nevertheless described fleetwide utilization as very strong excluding those disruptions and said pricing momentum continued into the fourth quarter. It also expects approximately 90% of its active fleet to be natural gas capable by the end of 2026, while active horsepower is not expected to increase through the first half of 2027 because diesel assets will be decommissioned as new Emerald equipment is deployed.
The fourth-quarter outlook calls for Drilling Services adjusted gross profit of $150 million and Completion Services adjusted gross profit of $140 million. The company expects to operate an average of approximately 104 U.S. rigs, exit 2026 above that level, and incur rig reactivation and Colombia wind-down costs. Drilling Products adjusted gross profit is expected to decline 5-10%, sequentially, reflecting anticipated lower Saudi Arabian drilling activity amid geopolitical unrest. Fourth-quarter general and administrative expense is expected to be approximately $70 million and depreciation, depletion, amortization, and impairment expense approximately $220 million.
Cash, cash equivalents and restricted cash were $ 339,310 at September 30, 2026, while long-term debt, net was $ 1,234,495. For the nine months ended September 30, 2026, net cash provided by operating activities was $ 420,876 and purchases of property and equipment were $ (413,906). The company returned approximately $62 million to shareholders in the third quarter, including $24 million for share repurchases, and declared a quarterly dividend of $0.10 per share.
Management, verbatim
We are benefiting from increased U.S. onshore drilling and completion demand, which is supporting stronger pricing and returns.
Andy Hendricks, Chief Executive Officer
Demand for these capabilities is supporting strong pricing for our highest-specification rigs. In Completion Services, pricing momentum remains positive, particularly for natural gas-powered assets, which provides a substantial fuel-cost advantage over diesel equipment.
Andy Hendricks, Chief Executive Officer
We generated strong free cash flow during the quarter, reinforcing our confidence in our outlook.
Andy Smith, Chief Financial Officer
Not in the filing
stated, not guessed- Quarterly operating cash flow was not reported.
- Quarterly free cash flow amount was not reported.
- Total consolidated GAAP gross profit and gross margin were not reported.
- Adjusted EPS was not reported.
- Fourth-quarter revenue guidance was not reported.
- Fourth-quarter tax-rate guidance was not reported.
- Previous-release outlook was not provided, so no comparison with prior guidance is available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
PTEN filed a Form 8‑K with Q3 2026 financial results and guidance for Q4 2026 and 2027.
Ticker impact
PTEN reported Q3 2026 results with $1.3B revenue, $28M net income, $264M adjusted EBITDA and declared a $0.10 dividend.
likely upward pressure as investors price in higher revenue and dividend payout
Revenue beat expectations, adjusted EBITDA grew, and a dividend was announced, providing fresh positive catalysts for the stock.
Market effects
Oilfield services sector may see broader optimism from PTEN's strong demand outlook.
U.S. onshore drilling demand boost could support related energy stocks.
Limited to energy services; no immediate global macro impact.
Counterpoint
If higher rig reactivation costs outweigh revenue gains, the stock could face pressure.
Key entities
- ExecutiveAndy Hendricks
CEO who highlighted demand and pricing strength.
- ExecutiveAndy Smith
CFO who discussed free cash flow and shareholder returns.
