Patterson-UTI Reports Stable Drilling Activity in December 2024

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has reported its drilling activity for December 2024, maintaining a stable rig count despite seasonal softness in the oil and gas industry. The company's average drilling rigs operating in the United States remained relatively unchanged, with 104 rigs in December and 105 rigs in the fourth quarter of 2024. This consistency in rig count reflects Patterson-UTI's ability to adapt to market conditions and customer needs, as well as its strategic fleet management.



Patterson-UTI's stable rig count is a testament to its strong operational performance and cash flow generation. The company's focus on providing high-quality services to top-tier customers, along with its disciplined approach to capital allocation, has enabled it to maintain profitability even in challenging market conditions. This is evident in the company's ability to generate almost $570 million of free cash flow during the first four full quarters since the closing of the NexTier merger and Ulterra acquisition.



The company's ability to adapt to market conditions and customer needs is also reflected in its expansion of capabilities through the NexTier and Ulterra transactions. Patterson-UTI has received positive feedback from its first fully integrated drilling and completion offering, and it is in discussions with several more customers regarding similar arrangements. This demonstrates the company's unique commercial and operational strategy, which delivers value to both customers and investors.

In conclusion, Patterson-UTI's stable drilling activity in December 2024 is a result of its strategic fleet management, strong operational performance, and ability to adapt to market conditions and customer needs. The company's focus on providing high-quality services and optimizing operations has enabled it to maintain profitability and generate strong cash flow, even in challenging market conditions. As Patterson-UTI continues to expand its capabilities and deliver value to customers and investors, it is well-positioned to capitalize on opportunities in the energy market.

Rating: Buy (Reiterated).