Patterson-UTI Energy reports third-quarter earnings of $0.07 a share, expects more U.S. rigs working

Patterson-UTI Energy reported third-quarter earnings of $0.07 a share, $0.03 above what was expected. The company also expects more of its drilling rigs to be working in the United States in the fourth quarter.

Patterson-UTI expects to average about 104 rigs working in the U.S. during the fourth quarter, and to end the year above that level. It had earlier expected about 100 U.S. rigs in the third quarter. Drilling Services adjusted gross profit, a measure of earnings from that business before some costs, is expected at about $150 million. Completion Services, which prepares wells for production, is expected at about $140 million, with activity broadly in line with the third quarter.

"We generated strong free cash flow during the quarter, reinforcing our confidence in our outlook," said Andy Smith, Chief Financial Officer. Free cash flow is the cash left after spending on operations and equipment. Smith said free cash flow is expected to increase meaningfully in 2027.

The company expects Drilling Products adjusted gross profit to fall 5% to 10% from the third quarter, reflecting lower expected activity in Saudi Arabia. Other segments are expected to hold steady. Fourth-quarter general and administrative expense is expected at about $70 million, and depreciation, depletion, amortization and impairment at about $220 million.

The company's board declared a quarterly dividend of $0.10 per share, payable December 15, 2026, to holders of record on December 1, 2026.

For investors, the rig outlook carries more weight than the earnings beat. A rise from about 100 rigs to about 104 points to a step up in onshore activity. Management also said it expects rig reactivations and more completion work in 2027, though that view rests on discussions with customers. The main offset is the Middle East, which the company calls its largest international market and where it has flagged ongoing challenges.