Patterson-UTI Energy, Inc.

Total reported revenue for the quarter was $1,228,000,000, up 10% compared to the first quarter. Net loss attributable to common shareholders was $20 million, or $0.05 per share; this included $21 million of non-cash charges tied to exiting Contract Drilling in Colombia and $5 million related to a minority-interest write-down. Adjusted EBITDA was $232 million, and weighted average shares were 380 million. Segment results: Drilling Services revenue was $374 million with adjusted gross profit of $114 million ($134 million excluding Colombia non-cash charges); Completion Services revenue was $754 million with adjusted gross profit of $123 million; Drilling Products revenue was $91 million with adjusted gross profit of $37 million; Other revenue was $9 million with adjusted gross profit of $7 million. For Q3, management guided to Drilling Services adjusted gross profit of about $145 million, Completion Services about $140 million, Drilling Products about $40 million, Other adjusted gross profit of about $5 million, G&A of about $70 million, and DD&A/impairment of about $225 million. The company also said 2026 capital expenditures net of asset-sale proceeds are expected to be about $600 million, Q2 capex was $156 million, cash ended at $203 million with no borrowings on the $500 million revolver, and interest expense is now expected to be about $20 million per quarter after the note refinance. Management reiterated that 2026 adjusted free cash flow should more than fund dividend payments and that 2026 adjusted free cash flow should still cover the dividend even after working capital build and higher capex.

Andy Hendricks framed the quarter as evidence that Patterson-UTI’s technology, fleet quality, and execution are winning business in a tightening market. He emphasized that higher-spec rigs, natural-gas-powered completion equipment, and digital/automation capabilities are increasingly what customers want, and he said the company is investing in assets that can earn premium pricing and returns. His tone was constructive and confident, especially on 2H26 into 2027, saying the company expects further profitability growth as the newly announced growth capital is deployed.

Andy Smith focused on the numbers and the cash picture. He walked through the $1.228 billion of revenue, $232 million of adjusted EBITDA, the $20 million net loss, and the Colombia-related non-cash charges, then gave segment revenue and adjusted gross profit for each business. He said working capital was a cash use in the first half, but should become a source of cash in the second half, reiterated 2026 adjusted free cash flow should more than fund dividends, noted $203 million of cash and no revolver borrowings, and said interest expense should run about $20 million per quarter after refinancing 2028 notes out to 2036.

Analysts pressed on how long the drilling and frac momentum can last, how much visibility Patterson-UTI has on reactivated rigs and long-term contracts, and whether completions pricing gains are sustainable. Management said reactivated rigs are going to longer programs, often with six-month-or-longer contracts and visibility into 2027, while public E&P discussions are still firming up. On completions, management said the market is effectively sold out at the high end, pricing increases landed in Q2 and should continue in Q3/Q4, and the added demand from roughly 50 rigs already added to the industry has not yet fully shown up in completions.