Patterson-UTI Energy reports $1.3 billion in third-quarter 2026 revenue
Patterson-UTI Energy reported higher sequential revenue for the quarter ended September 30, 2026, while outlining segment results, a dividend and fourth-quarter expectations.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) reported third-quarter 2026 revenue of $1.3 billion for the quarter ended September 30, 2026, a 9% sequential increase. Net income attributable to common stockholders was $28 million, while Adjusted EBITDA was $264 million.
The company also declared a quarterly dividend of $0.10 per share. It is payable on December 15, 2026, to shareholders of record as of December 1, 2026.
Drilling Services generated revenue of $417 million and adjusted gross profit of $149 million. U.S. contract drilling recorded 9,249 operating days, with an average of 101 rigs working during the quarter. Patterson-UTI Energy ended the period with 104 rigs operating.
The company said demand was strongest for rigs that had returned to service after structural upgrades. Activity growth was concentrated in oil-producing basins, particularly the Rockies and Permian, while natural gas activity was steady compared with the start of the quarter. Its Directional Drilling business also benefited from greater well complexity and increased demand.
Completion Services reported revenue of $808 million and adjusted gross profit of $133 million. Results included a mid-single-digit pricing increase from the second quarter. Total completion activity fell modestly after several fleets recorded higher non-productive time, mainly because of temporary sand availability constraints in South Texas and trucking delays in the Permian Basin.
Patterson-UTI Energy said demand was particularly strong for equipment able to use natural gas. By the end of 2026, approximately 90% of its active fleet is expected to be natural gas capable.
Drilling Products revenue was $110 million, with adjusted gross profit of $51 million. Revenue increased 21% sequentially, supported by U.S. demand and higher pricing. International revenue reached a company record for the second consecutive quarter, although the company said it continued to manage challenges associated with the conflict in the Middle East, its largest international market.
Chief Financial Officer Andy Smith said Patterson-UTI Energy generated strong free cash flow during the quarter. The company reported returning approximately $62 million to shareholders, including $24 million through share repurchases.
Management is evaluating several capital-allocation options, including strategic investments, additional cash returns to shareholders and debt reduction. The company said it intends to maintain long-term flexibility in its balance sheet.
Patterson-UTI Energy expects to operate an average of approximately 104 rigs in the United States during the fourth quarter and to finish 2026 above that level. It also anticipates additional rig reactivations in the first quarter of 2027. The company expects to incur reactivation costs and additional costs while winding down its operations in Colombia.
Management expects fourth-quarter Drilling Services adjusted gross profit of $150 million. The outlook includes continued pricing momentum, higher dayrates across all rig classes and the deployment of upgraded rigs at dayrates above the company’s current average.
For Completion Services, the company expects adjusted gross profit of $140 million in the fourth quarter. The forecast assumes activity broadly consistent with the third quarter and additional pricing improvements, while also allowing for some seasonal and holiday effects.
Patterson-UTI Energy expects fourth-quarter Drilling Products adjusted gross profit to decline 5-10% sequentially. The company primarily linked that expectation to lower drilling activity in Saudi Arabia resulting from ongoing geopolitical unrest. It expects Other adjusted gross profit to remain steady compared with the third quarter.
Chief Financial Officer Andy Smith said the company expects free cash flow to remain strong in the fourth quarter and increase meaningfully in 2027 compared with 2026. These statements are management’s forward-looking expectations and are subject to risks and uncertainties that could cause actual results to differ.
Patterson-UTI Energy’s quarterly earnings conference call is scheduled for October 29, 2026, at 9:00 a.m. Central Time. The call will also be webcast, with a replay available for one year.
Patterson-UTI Energy provides drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries. Its activities include contract drilling, integrated well completion and directional drilling services in the United States, as well as specialised bit solutions in the United States, the Middle East and other regions.
Third-quarter revenue was $1.3 billion, up 9% sequentially, with net income attributable to common stockholders of $28 million.
Adjusted EBITDA was $264 million, a non-GAAP measure that the company says should not be treated as an alternative to GAAP net income or loss.
Patterson-UTI Energy declared a $0.10 per share quarterly dividend payable on December 15, 2026.
The company expects fourth-quarter adjusted gross profit of $150 million from Drilling Services and $140 million from Completion Services.
Fourth-quarter Drilling Products adjusted gross profit is expected to decline 5-10% sequentially, primarily because of lower drilling activity in Saudi Arabia.
Patterson-UTI Energy reported financial results for the quarter ended September 30, 2026. It reported third-quarter total revenue of $1.3 billion, net income attributable to common stockholders of $28 million and Adjusted EBITDA of $264 million.
Patterson-UTI Energy reported third-quarter total revenue of $1.3 billion, a 9% sequential increase, net income attributable to common stockholders of $28 million and Adjusted EBITDA of $264 million. Adjusted EBITDA is a non-GAAP financial measure, and the company says it should not be construed as an alternative to GAAP net income or loss.
Patterson-UTI Energy declared a quarterly dividend of $0.10 per share. The dividend is payable on December 15, 2026 to holders of record as of December 1, 2026.
Patterson-UTI Energy said increased U.S. onshore drilling and completion demand supported stronger pricing and returns. The company also cited investments in its fleet, digital and automation capabilities, increased demand for upgraded rigs and positive pricing momentum in Completion Services.
Drilling Services generated revenue of $417 million and adjusted gross profit of $149 million. U.S. Contract Drilling operating days totalled 9,249, with an average of 101 rigs operating, while the company exited the quarter with 104 rigs operating.
Completion Services generated revenue of $808 million and adjusted gross profit of $133 million, supported by a mid-single-digit pricing increase compared with the second quarter. Total completion activity declined modestly because several fleets experienced elevated non-productive time, primarily due to temporary sand availability constraints in South Texas and trucking delays in the Permian Basin.
Drilling Products generated third-quarter revenue of $110 million and adjusted gross profit of $51 million. The company said revenue increased 21% sequentially, with strong U.S. demand supporting higher pricing and international revenue reaching a company record for the second consecutive quarter.
Patterson-UTI Energy said it generated strong free cash flow during the quarter and returned approximately $62 million to shareholders, including $24 million for share repurchases. Andy Smith, Chief Financial Officer, said the company is evaluating high-return strategic investments, additional cash returns to shareholders and debt reduction while maintaining long-term balance-sheet flexibility.
Andy Smith, Patterson-UTI Energy's Chief Financial Officer, said the company expects free cash flow to remain strong in the fourth quarter and increase meaningfully in 2027 compared with 2026. This is management's outlook and is subject to the risks and uncertainties described in the company's forward-looking statement.
Patterson-UTI Energy expects to operate an average of approximately 104 rigs in the United States during the fourth quarter and exit 2026 above that level. The company also anticipates additional rig reactivations in the first quarter of 2027, while noting that reactivation costs and additional costs from winding down operations in Colombia are expected.
Patterson-UTI Energy expects Drilling Services adjusted gross profit of $150 million in the fourth quarter. The company expects results to benefit from continued pricing momentum, including higher dayrates across all rig classes and the deployment of upgraded rigs at dayrates above its current average, but it also expects reactivation costs during the quarter.
Patterson-UTI Energy expects fourth-quarter Completion Services adjusted gross profit of $140 million, supported by activity levels broadly consistent with the third quarter and additional pricing improvements. The company anticipates some seasonal and holiday impact, although it said this currently appears likely to be less pronounced than in prior fourth quarters.
Patterson-UTI Energy expects fourth-quarter Drilling Products adjusted gross profit to decline 5-10% sequentially. The company primarily attributes this expectation to lower drilling activity in Saudi Arabia due to ongoing geopolitical unrest in the region.
Patterson-UTI Energy's quarterly conference call is scheduled for October 29, 2026, at 9:00 a.m. Central Time. The call will also be webcast through the Investor Relations section of the company's website, and a replay will be available on the website for one year.
Patterson-UTI Energy provides drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries. Its activities include contract drilling, integrated well completion and directional drilling services in the United States, plus specialised bit solutions in the United States, Middle East and many other regions around the world.