Patterson-UTI Energy reported first-quarter 2026 results, posting total revenue of $1.1 billion alongside a net loss of $25 million, or $0.06 per diluted share. Adjusted EBITDA reached $205 million, reflecting solid operational performance despite seasonal challenges and market headwinds.3133
Financial Highlights
Revenue declined from $1.28 billion in Q1 2025 and $1.15 billion in Q4 2025. The company generated $64 million in operating cash flow, with capital expenditures at $117 million. Cash and equivalents stood at $337 million at quarter-end, supporting a strong balance sheet with $1.22 billion in long-term debt.31
Segment Performance
- Drilling Services: Revenue of $352 million and adjusted gross profit of $134 million. Average U.S. rig count hit 92, bolstered by $3 million in early termination fees.
- Completion Services: Revenue reached $680 million with adjusted gross profit of $98 million. Operations faced a five-day winter storm disruption but achieved near-full utilization of natural gas-powered fleets.
- Drilling Products: Revenue of $80 million and adjusted gross profit of $33 million, pressured by Middle East geopolitical tensions affecting 10-15% of segment revenue and input cost inflation like tungsten.
Other operations contributed $6 million in revenue and $3 million in adjusted gross profit.31
Operational Updates and Outlook
Andy Hendricks, President and CEO, highlighted ongoing hiring efforts and strong execution across drilling and completions. “The first quarter of 2026 built on our momentum from 2025 with strong field execution supported by our technology and digital offerings,” Hendricks stated. The company emphasized cost controls, steady pricing, and customer focus amid shifting commodity dynamics.3233
Geopolitical risks and Middle East supply disruptions have elevated U.S. shale’s importance, with oil prices exceeding prior budget assumptions. Executives anticipate rig counts exiting Q2 at 92-95 rigs, positioning for second-half growth. Natural gas activity eyes gains from LNG exports in 2027.32
Completion fleets prioritize next-gen natural gas tech over reactivating older diesel units, which would cost over $10 million per fleet with uncertain returns. Drilling Products faces logistics pressures but holds strong market share in key regions like Saudi Arabia.33
Q2 Guidance
Drilling Services expects ~90 average rigs and $130 million adjusted gross profit, including $5 million in reactivation costs. Completion Services targets $105 million in adjusted gross profit. Drilling Products anticipates a slight decline due to Canadian spring breakup and Middle East costs. G&A runs ~$67 million, with depreciation at ~$220 million.31
The earnings conference call featured analysts from BofA Securities, Piper Sandler, Raymond James, Citigroup, Stifel, JPMorgan, RBC Capital Markets, Capital One, Barclays, Morgan Stanley, Johnson Rice, and Daniel Energy Partners.33
