Patterson Uti Energy Inc (PTEN) SEC Filing 10-Q Quarterly Report for the period ending Thursday, September 30, 2021

Exhibit 99.1

Contact: Mike Drickamer

Vice President, Investor Relations

(281) 765-7170

Patterson-UTI Energy Reports Financial Results for the Three and Nine Months Ended September 30, 2021

HOUSTON, Texas – October 28, 2021 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the three and nine months ended September 30, 2021. The Company reported a net loss of $83.0 million, or $0.44 per share, for the third quarter of 2021, compared to a net loss of $112 million, or $0.60 per share, for the third quarter of 2020. Revenues for the third quarter of 2021 were $358 million, compared to $207 million for the third quarter of 2020.

For the nine months ended September 30, 2021, the Company reported a net loss of $293 million, or $1.55 per share, compared to a net loss of $697 million, or $3.70 per share, for the nine months ended September 30, 2020. Revenues for the nine months ended September 30, 2021 were $891 million, compared to $903 million for the same period in 2020.

The financial results for the three months ended September 30, 2021 include pretax acquisition-related expenses of $0.9 million ($0.8 million after-tax) related to the acquisition of Pioneer Energy Services. Pretax acquisition-related expenses totaled $2.1 million for the nine months ended September 30, 2021.

Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “I am pleased that our total adjusted EBITDA for the third quarter increased 44% sequentially to $51.1 million on a 23% increase in revenues. As well, highlighting that our pressure pumping business continues to improve, adjusted EBITDA in this business more than doubled sequentially in the third quarter on a 36% increase in revenues.”

Mr. Hendricks continued, “In contract drilling, steady growth in activity positively impacted our third quarter financial results. Our average rig count for the third quarter improved to 80 rigs from 73 rigs in the second quarter. We expect activity growth will be robust in the fourth quarter, as we expect our average rig count, including 13 rigs from Pioneer Energy, to be approximately 106 rigs in the United States.

“Total contract drilling revenues and gross profit for the third quarter increased approximately 11% sequentially. On a per rig day basis, average rig margin per day for the third quarter increased slightly to $6,300 as an increase in average rig revenue per day was largely offset by a similar increase in average rig cost per day. The number and cost of rig reactivations, as well as general oilfield cost inflation, including the cost of rig labor, services and supplies, moved higher in the third quarter.

“In the fourth quarter, we expect the increase in the rig count to drive an improvement in total revenue and gross margin. Due to the large number of rig reactivations in the fourth quarter, as well as general cost inflation, average rig margin per day is expected to decrease to approximately $5,500. With the tight rig market and resulting increases we have seen in leading-edge dayrates, we expect daily margins for drilling rigs to rebound in the first quarter.

“As of September 30, 2021, Patterson-UTI and Pioneer Energy had term contracts for drilling rigs in the United States providing for future dayrate drilling revenue of approximately $286 million and $64 million, respectively. Based on contracts currently in place in the United States, we expect an average of 53 rigs operating under term contracts during the fourth quarter, and an average of 35 rigs operating under term contracts during the four quarters ending September 30, 2022.

“In pressure pumping, during the third quarter we were able to achieve higher pricing based on our outstanding service quality. We also benefited from more simulfrac work and the full quarter impact of two spreads that were reactivated in the second quarter. Relative to the second quarter, gross profit increased by 85% to $17.9 million on a 36% increase in revenues to $153 million. We activated our tenth spread in September. We expect to activate our 11th spread late in the fourth quarter and our 12th spread in the first quarter.

“In directional drilling, the third quarter gross profit of $3.4 million increased 35% from the second quarter on a 28% increase in revenues to $31.7 million. During the third quarter, we benefited from the full-quarter impact of the strong growth in activity we saw in the second quarter.”

Mr. Hendricks concluded, “The acquisition of Pioneer Energy Services enhances our position as a leading provider of contract drilling services in the United States and expands our geographic footprint into Latin America. With this acquisition, we have expanded our APEX® rig fleet to 215 rigs of which 166 have super-spec capabilities. We are excited about the opportunities this acquisition offers, and we welcome the Pioneer employees to the Patterson-UTI family.

The Company declared a quarterly dividend on its common stock of $0.02 per share, payable on December 16, 2021, to holders of record as of December 2, 2021.