PTEN Filings — Patterson Uti Energy Inc - FilingSpy
PTEN
Patterson Uti Energy Inc
A provider of drilling, completion, and drilling-product services to oil and gas operators, mostly in the U.S. and parts of Latin America. Through its Ulterra business, it also makes PDC drill bits sold in over 30 countries. Born in 2001 from a "merger of equals" between Patterson Drilling (founded in West Texas in 1978) and UTI Energy, the name simply joins the two. Fun fact: the Ulterra brand name blends "ultra" with "terra," Latin for earth—meaning "beyond the earth."
Patterson-UTI Q2 revenue rose 10% sequentially to $1.23B on higher completions, but a $20M Colombia exit charge pushed the company to its fifth straight quarterly operating loss.
A seasonal rebound in completions lifted , but one-off costs kept the in the red. Revenue rose 10% sequentially to $1.23 billion, yet a $20 million charge for exiting Colombian drilling operations and rig reactivation costs drove a $7.0 million operating loss. The company guided for higher profit across all segments next quarter, betting that a rising U.S. rig count and near-full frac utilization will finally restore .
Key takeaways
Consolidated rose 9.9% sequentially to $1.23 billion, driven by a 10.9% increase in Completion Services as fracturing activity rebounded from Q1 winter disruptions.
Completion Services rose 25.3% sequentially to $122.9 million, with pumping hours up 6% and improved efficiency offsetting lower sand and chemical sales.
Drilling Services fell 14.9% sequentially to $113.9 million, as a $20.0 million charge for exiting Colombian operations and rig reactivation costs more than offset higher directional drilling .
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 10% sequentially to $1.23B on higher completion activity and oil prices, while Colombia exit costs pressured margins.
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Consolidated increased 10% sequentially to $1.23 billion, driven by a 10.9% rise in Completion Services and a 6.2% increase in Drilling Services.
The company issued $500 million of 6.05% senior notes due 2036 and used the proceeds to fully redeem its 2028 Notes, resulting in a $0.9 million .
fell 59.9% to $56.1 million, and was negative $99.8 million, reflecting lower earnings and the Colombia exit costs.
The NOV patent-license dispute remains on appeal; Ulterra filed its response to NOV's opening brief in July 2026, with the Federal Circuit ruling still pending.
What changed
The Q1 2026 watch item on whether the U.S. rig count would stabilize in Q2 was partially answered: Drilling Services U.S. operating days rose 6.2% sequentially, and management guided for a rising rig count in Q3, suggesting the decline may be finding a floor.
The Q1 2026 watch item on Completion Services was resolved: the guided sequential increase materialized as a 25.3% rise to $122.9 million, exceeding the seasonal rebound flagged as a possibility.
worsened from negative $52.8 million in Q1 to negative $99.8 million in Q2, moving further from the $500 million full-year capital expenditure plan and raising the bar for the second half.
The NOV appeal timeline advanced as expected: Ulterra filed its response in July 2026, keeping the case on track for a Federal Circuit decision, though no ruling has been issued.
What to watch
Whether the guided sequential increase in Q3 across all three segments materializes, and whether it is sufficient to return the company to positive after five consecutive quarters of losses.
The trajectory of the U.S. rig count against management's expectation of a rise in Q3, and whether the drilling dayrate can hold as activity recovers.
generation in Q3 against the $500 million full-year capital expenditure plan, given the negative $152.6 million cumulative free cash flow through the first half of 2026.
The Federal Circuit's ruling on NOV's appeal of the summary judgment that eliminated claimed patent royalties, which could reinstate a material financial liability if reversed.
Completion Services surged 25.3% sequentially to $122.9 million as fracturing activity rebounded from Q1 winter disruptions, with pumping hours up 6%.
Drilling Services fell 14.9% sequentially to $113.9 million, as a $20.0 million charge for exiting Colombian operations and rig reactivation costs more than offset higher directional drilling .
The company issued $500 million of 6.05% senior notes due 2036 and used the proceeds to fully redeem its 2028 Notes, resulting in a $0.9 million non-cash loss on debt extinguishment.
Management expects Q3 2026 to increase sequentially across all three segments, supported by a rising U.S. rig count, near-full frac utilization, and seasonal recovery in Canada.
Quantitative and Qualitative Disclosures About Market Risk
The company reports no material change in market risk and minimal foreign-exchange exposure, with 98% of H1 2026 revenue in USD.
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There have been no material changes in the company's exposure to market risk since the Annual Report.
As of June 30, 2026, the company had $2.3 million in outstanding under the Credit Agreement, leaving about $498 million in available borrowing capacity.
Under the 2015 Reimbursement Agreement, the company must reimburse Scotiabank on demand for any disbursed letter-of-credit amounts and pay interest at the plus 2.00% per annum on unpaid amounts.
Approximately 98% of in the first half of 2026 was denominated in U.S. dollars, so the company does not believe it is significantly exposed to foreign currency exchange rate risk.
Some foreign-currency exposure arises where U.S.-dollar revenues have local-currency costs, or where foreign-currency revenues have U.S.-dollar costs.
Ulterra won a final judgment against NOV’s patent-license claims; NOV has appealed to the Federal Circuit.
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NOV sued Ulterra in February 2023, alleging breach of a license agreement and seeking royalties since October 2021 tied to U.S. Patent No. 8,721,752.
Ulterra counterclaimed for declaratory judgments of non-infringement, no royalties, patent expiration, and no breach of contract, and removed the case to federal court.
In late 2025, the court resolved dispositive motions in Ulterra’s favor and entered a Final Judgment for Ulterra on November 25, 2025.
NOV acknowledged the rulings prevent it from collecting any of the royalties it had alleged were owed and filed a Notice of Appeal on December 12, 2025.
The appeal is pending before the Federal Circuit; NOV filed its opening brief in April 2026 and Ulterra filed its response in July 2026.
The company states that other routine legal proceedings are not expected to have a material adverse effect on its financial condition, cash flows, or results of operations.