PTEN

Patterson - UTI Energy Inc.

Energy


Presented:10/01/2014
Price:$32.10
Cap:$4.69B
Current Price:$7.89
Cap:$3.10B

Presented

Date10/01/2014
Price$32.10
Market Cap$4.69B
Ent Value$5.26B
P/E Ratio16.88x
Book Value$20.05
Div Yield2.1%
Shares O/S146.13M
Ave Daily Vol260,000
Short Int3.16%

Current

Price$7.89
Market Cap$3.10B
Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to major and independent oil and natural gas operators in the United States and Canada. The company operates through three segments: Contract Drilling, Pressure Pumping, and Oil and Natural Gas. The Contract Drilling segment markets its contract drilling services primarily in Texas, New Mexico, Louisiana, Oklahoma, Colorado, Utah, Wyoming, Montana, North Dakota, Alaska, Pennsylvania, Ohio, West Virginia, and western and northern Canada. As of December 31, 2013, this segment had a drilling fleet of 279 marketable land-based drilling rigs. The Pressure Pumping segment offers pressure pumping services that consist of well stimulation and cementing for the completion of new wells and remedial work on existing wells, as well as hydraulic and nitrogen fracturing, cementing, and acid pumping services in Texas and the Appalachian region. The Oil and Natural Gas segment owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.

Publicly traded companies mentioned herein: Halliburton Co (HAL), Patterson-UTI Energy Inc. (PTEN)

Highlights

The presenter is short shares of Patterson-UTI Energy (PTEN) and believes the Street’s expectations for $2.40-2.50 of EPS in 2015 are unreachable. The consensus appears to be assuming that margins on pressure pumping jobs will be substantially higher y-o-y, making PTEN’s business dependent on huge price increases.

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Idea Discussion

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