Patterson-UTI Energy Q2 Earnings Miss, Sales Beat Estimates, Fall Y/Y

Patterson-UTI Energy, Inc. PTEN reported a second-quarter 2025 adjusted net loss of 6 cents per share, which was wider than the Zacks Consensus Estimate of a 4-cent loss. The bottom line declined from the year-ago quarter's level of 5 cents profit. This year-over-year deterioration was primarily due to the poor contributions from the Drilling Services, Completion Services and Other Services segments.Total revenues of $1.2 billion beat the Zacks Consensus Estimate by 0.3%. This was due to higher-than-expected revenues from Drilling Services and Drilling Products. Revenues of Drilling Services and Drilling Products beat the consensus mark of $396 million and $85 million, respectively. However, the top line decreased 9.6% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from Drilling Services, Completion Services and Other Services segments.PTEN’s board of directors declared a quarterly dividend of 8 cents per share to its common shareholders of record as of Sept. 2, 2025. The payout, which is unchanged from the previous quarter, will be made on Sept. 15.Patterson-UTI Energy, Inc. Price, Consensus and EPS Surprise Patterson-UTI Energy, Inc. price-consensus-eps-surprise-chart | Patterson-UTI Energy, Inc. QuoteSegmental Performances of Patterson                       Drilling Services: Revenues in this segment totaled $403.8 million, down 8.3% from the prior-year quarter’s figure of $440.3 million. However, the top line beat our estimation of $365.1 million.Operating income amounted to $40.6 million compared with $76.1 million in the second quarter of 2024. However, the figure beat our operating income estimate of $24.1 million.As of June 30, 2025, the company had $312 million in future drilling revenues under term contracts.Completion Services: This segment’s revenues of $719.3 million dropped about 10.7% from the year-ago quarter’s figure of $805.4 million. Moreover, the metric missed our estimation of $762.4 million.Operating loss totaled $29.2 million against a profit of $10.7 million in the second quarter of 2024. However, the figure was narrower than our operating loss estimate of $43.4 million.Drilling Products: This segment’s revenues of $88.4 million increased about 2.7% from the year-ago quarter’s figure of $86.1 million. Additionally, the amount beat our estimation of $85.8 million.Operating profit reached $6.8 million, indicating a 21.1% decrease compared with the second quarter of 2024. The number also missed our operating profit estimate of $20.6 million.Other Services: Revenues amounted to $7.8 million, down 52.7% from the year-ago quarter’s figure of $16.5 million. However, the figure beat our estimation of $5.6 million.Operating loss amounted to $2 million against a profit $0.4 million in the second quarter of 2024. Additionally, the figure missed our estimation of an operating income of $0.1 million.PTEN’s Capital Expenditure & Financial PositionIn the reported quarter, PTEN spent $144.2 million on capital programs compared with $130.5 million in the prior year period.As of June 30, 2025, the company had cash and cash equivalents worth $185.9 million and long-term debt of $1.2 billion. The company’s debt-to-capitalization was 26.7%.This Zacks Rank #5 (Strong Sell) company returned $56 million to its shareholders in the second quarter of 2025. During the same period, it repurchased $20 million worth of shares. As of March 31, 2025, the company had $16 million remaining under its share repurchase authorization.The company reported total operating costs and expenses of $1248.8 million compared with $1303 million in the second quarter of 2024.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Patterson’s Q3 OutlookThe company anticipates an average rig count of approximately 90 for its Drilling Services segment in the third quarter of 2025, with an expected adjusted gross profit of around $130 million.For the Completion Services segment, the company anticipates adjusted gross profit to remain relatively steady sequentially in the third quarter. The company expects its Drilling Products segment's adjusted gross profit to improve slightly sequentially, though U.S. results may be impacted by a lower rig count.Additionally, the company anticipates its Canadian business in this segment to benefit from the end of the normal spring breakup. International revenues are expected to improve slightly.The company expects other segments to have a steady adjusted gross profit in the third quarter compared with the second quarter.PTEN anticipates selling, general and administrative (SG&A) expenses to decline slightly sequentially in the third quarter. Furthermore, the company expects total depreciation, depletion, amortization and impairment expense to be approximately $230 million for the third quarter.PTEN anticipates net capital expenditures (after asset sales) to be less than $600 million for full-year 2025. The company expects to reduce its full-year 2025 maintenance capital expenditures due to slightly lower activity.Important Earnings at a GlanceWhile we have discussed PTEN’s second-quarter results in detail, let us take a look at three other key reports in this space.San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation VLO, reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.Houston, TX-based oil and gas equipment and services provider, Halliburton Company HAL, reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.Norway-based integrated oil and gas operator, Equinor ASA EQNR, reported second-quarter 2025 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents. Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million. During the same time, Equinor generated a negative net cash flow of $2,579 million compared with $4,022 million in the year-ago period. Equinor’s capital expenditures amounted to $3.4 billion in the second quarter.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Halliburton Company (HAL): Free Stock Analysis Report Patterson-UTI Energy, Inc. (PTEN): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks