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Research Alert: Pten: U.s. Headwinds Persist In Q1; Revenues Fall 13%

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Patterson-UTI Energy Inc. (PTEN) delivered a Q1 2026 operating loss of $0.06/share vs. breakeven results in Q1 2025, beating the consensus estimate by $0.04. Total revenues of $1.12B fell 13% Y/Y with double-digit declines in both Completion Services (down 11% to $680M) and Drilling Services (down 15% to $352M). We think the bull case for PTEN rests on the U.S. industry responding to the Middle East war with a sizable hike in upstream capex. The company noted upstream customers continue to prioritize shareholder returns over reinvestment into the oilfield, which in our view is a secular problem. U.S. operating days dropped 13%, adjusted operating margins narrowed 120 bps to 18.4%, and adjusted EBITDA fell 18% to $205M. Free cash flow turned negative at -$53M vs. +$46M in the prior year, while cash balances dwindled 20% to $337M. Given uncertainty over war duration following the February 28 onset, we find it difficult to conclude that U.S. E&Ps will abandon their prior spending restraint.

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