Patterson-UTI Energy beats third-quarter earnings forecasts and guides to about 104 U.S. rigs

Revenue was $1.34B against $1.33B expected, and the driller declared a quarterly dividend of $0.10 per share.

Patterson-UTI Energy posted third-quarter earnings of $0.07 a share on a GAAP basis, $0.03 above forecasts, and says it expects to average about 104 rigs in the U.S. in the fourth quarter. It expects to exit the year above that level. Revenue was $1.34B, against $1.33B expected.

The rig count is the larger part of the news. The company had earlier expected about 100 U.S. rigs in the third quarter, so the new figure points to a step up in onshore activity. Management also cited likely rig reactivations and more demand for completion work in 2027, a view that rests on its talks with customers. Drilling Services adjusted gross profit is expected to be about $150 million in the fourth quarter.

Completion Services adjusted gross profit should be about $140 million, with activity broadly in line with the third quarter. Other segment profit is expected to be steady. Drilling Products profit is expected to fall 5% to 10% from the third quarter on lower activity in Saudi Arabia. The Middle East is the company's largest international market, and it has flagged ongoing challenges there.

For the fourth quarter, the company expects general and administrative expense of about $70 million and depreciation, depletion, amortization and impairment expense of about $220 million. The board declared a quarterly dividend of $0.10 per share, payable December 15, 2026 to holders of record on December 1, 2026.

Chief Financial Officer Andy Smith said: "We generated strong free cash flow during the quarter, reinforcing our confidence in our outlook." He added that free cash flow is expected to increase meaningfully in 2027.