The following is a summary of the Patterson-UTI Energy, Inc. (PTEN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Patterson-UTI reported a Q1 2024 total revenue of $1.510 billion.
The net income attributable to company shareholders was $51 million, roughly $0.13 per share.
Generated $139 million in free cash flow in Q1, returning $130 million to shareholders, including a $0.08 per share dividend and repurchasing 9 million shares of $98 million.
A $10 million gain in completion services was reported due to a legal agreement with a supplier.
The company is planning cash taxes in the range of $20 million to $30 million for 2024.
Business Progress:
The company is investing in technologies to enhance the efficiency of the U.S. shale model, like drilling rig control automation, natural gas-fueled frac technology using electric pumps, well placement analytics, and new drill bit design.
Their operational integration with next year is nearly complete, marking a significant progress for the company.
Increase in demand is expected in all basins starting later this year.
The company projects international growth, offsetting typical seasonality in Canada with the spring breakup.
Fleet renewal is in progress with the focus on various solutions like Tier four DGB, electric spreads tied to 100% natural gas generators, gas recip engines, and turbine Direct Drive Systems.
Forecast for a bottom for rig margins in Q2 or Q3, 2024 while expecting incremental growth in completion services in Q3, 2024.
No current plans for additional acquisitions, focusing on integrating past acquisitions and unlocking synergies.
Anticipating increased demand for natural gas with rising LNG exports going into 2025 and 2026, particularly from the Haynesville and Permian reserves.
The company plans to continue investing in new technologies within their CapEx budget over the next few years.
Patterson-UTI will continue returning a significant amount of cash to shareholders, aiming to return at least $400 million this year through dividends and share repurchases.
More details: Patterson-UTI Energy IR
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