Overview

• Drilling services provider's Q4 revenue beat analyst expectations

• Company reported Q4 adjusted EBITDA of $221 mln

• Quarterly dividend raised by 25% to $0.10 per share

Outlook

• Company expects Q1 adjusted gross profit for Drilling Services to decline by less than 5%

• Company anticipates Q1 Completion Services adjusted gross profit of $95 mln

• Patterson-UTI expects full-year 2026 capital expenditures to be less than $500 mln

Result Drivers

• COST CONTROL - Patterson-UTI cited strong operational execution and cost control in a challenging commodity environment as key to its Q4 performance

• AUTOMATION DEMAND - High demand for Cortex automation applications supported drilling operations, with most rigs now equipped

• DIGITAL PLATFORM LAUNCH - Introduction of eos Completions Digital Platform enhanced efficiency and customer demand in completion services

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$1.20 bln	$1.10 bln (10 Analysts)
Q4 Net Income		-$9 mln
Q4 Dividend		$0.10

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas drilling peer group is "buy."

• Wall Street's median 12-month price target for Patterson-UTI Energy Inc is $7.25, about 7.2% below its February 3 closing price of $7.81

Press Release: ID:nACSzPpV7a

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