Patterson-UTI Power, Inc. PTEN reported adjusted internet loss per share of 56 cents, narrower than the Zacks Consensus Estimate of 58 cents. The outperformance displays better-than-expected outcomes from the contract drilling section as decrease prices helped prop up margins. Particularly, common rig value per day in its largest unit fell to $11,690 within the third quarter from $14,030 a yr in the past. Nonetheless, the loss was wider than the year-earlier quarter’s lack of 17 cents resulting from a free fall in U.S. drilling exercise.Revenues of $250.Four million beat the Zacks Consensus Estimate of $232 million on higher-than-expected gross sales from the contract drilling enterprise. To be exact, revenues from the section got here in at $171.1 million, above the Zacks Consensus Estimate of $160 million.
Patterson-UTI’s gross sales nevertheless declined 62.9% from the year-ago quarter.
PattersonUTI Power, Inc. price, Consensus and EPS Shock
PattersonUTI Power, Inc. price-consensus-eps-surprise-chart | PattersonUTI Power, Inc. Quote
Segmental Efficiency
Contract Drilling: This section’s revenues totaled $171.1 million, down 50.8% yr over yr. In the meantime, the unit misplaced $30.7 million within the second quarter in comparison with a revenue of $16.5 million within the year-earlier quarter – tormented by a fall in each the working days (from 14,385 to 7,450) and the variety of rigs operational (from 158 to 82).On a optimistic notice, common rig margin per day improved 10.9% yr over yr to $11,280. Whereas common rig revenues per working day decreased to $22,970 from $24,200 within the second quarter of 2019, it was greater than offset by a 16.7% fall in common each day rig working prices.Strain Pumping: Revenues of $59.5 million dropped 76.3% from the year-ago gross sales of $251 million as exercise nosedived. Furthermore, the section’s working loss widened to $68.6 million from $14.Four million within the second quarter of 2019.Directional Drilling: The unit’s revenues totaled $11.7 million, down 76.6% yr over yr resulting from considerably decrease rig rely. Consequently, the section noticed its working loss worsen to $14.Four million in opposition to the a lot narrower $5.Three million loss within the corresponding quarter of 2019.Different Operations: Revenues got here in at $Eight million, 69.8% under the year-ago quarter determine of $26.Four million. Moreover, the unit incurred a wider quarterly lack of $10.Four million in opposition to the lack of $7.Three million recorded in year-ago quarter. The deterioration was primarily on account of curtailed operation.
Capital Expenditure & Monetary Place
In the course of the quarter, Patterson-UTI spent roughly $49.7 million on capital applications (as in opposition to $96.9 million within the second quarter of 2019). As of Jun 30, 2020, Patterson-UTI had $246.Eight million in cash and cash equivalents and $967.1 million in long-term debt.
Steering & Outlook
Patterson-UTI administration stated that its rig rely has remained pretty regular of late and is unlikely to go down.For the third quarter of 2020, the corporate forecasts roughly $8,600 in common margin per working day for the contract drilling unit. The onshore driller expects a median of 51 rigs to be operational beneath time period contracts through the interval and 38 for the following 4 quarters.Within the strain pumping division, Patterson-UTI sees a slight uptick in fracturing jobs. This could result in a 10% sequential enchancment in revenues with expectations of optimistic cash movement. Shifting on to the directional drilling unit, the corporate initiatives revenues of roughly $10 million and gross margin of roughly break-even.Lastly, Patterson-UTI, which closed Canadian drilling operations through the quarter, nonetheless forecasts full-year capital expenditure to return in at roughly $140 million, 60% under the 2019 spending of $348 million.
Zacks Rank & Key Picks
Patterson-UTI holds a Zacks Rank #3 (Maintain).In the meantime, traders within the power area might take a look at some higher choices like Chevron CVX, Bonanza Creek Power, Inc. BCEI and USA Compression Companions, LP USAC that sport a Zacks Rank #1 (Robust Purchase).
You possibly can see the entire listing of at the moment’s Zacks #1 Rank (Robust Purchase) stocks right here.
Over 30 days, San Ramon, CA-based Chevron has seen the Zacks Consensus Estimate for 2020 improve 196.3%.
Bonanza Creek Power has a superb earnings shock historical past having surpassed estimates in every of the final 4 quarters, the typical being 8.7%.
USA Compression Companions has a 100% monitor of outperforming estimates during the last 4 quarters at a median price of 162.5%.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
