Onshore contract driller
Patterson-UTI Energy Inc.
) reported better-than-expected fourth-quarter 2013 results,
owing to improved average rig revenue per operating day along
with increased gross margin in the Contract Drilling business
unit. The results were however partially offset by hike in
ATHLON ENERGY (ATHL): Free Stock Analysis
CABOT OIL & GAS (COG): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
To read this article on Zacks.com click here.
Patterson-UTI's earnings per share (EPS) (excluding non-cash
charge related to the retirement of mechanical drilling rigs)
came in at 28 cents, beating the Zacks Consensus Estimate of 22
cents. The figure however decreased 30.0% from the year-ago
profits of 40 cents.
Revenues of $658.8 million surpassed the Zacks Consensus Estimate
of $654.0 million and were 0.9% higher than $652.8 million
recorded in the year-ago quarter.
Patterson-UTI approved 10 cents per share of quarterly cash
dividends, representing a significant sequential hike of 100.0%.
The new dividend will be payable on Mar 27, 2014 to the
shareholders of record as of Mar 12, 2014.
The company reported fourth-quarter 2013 earnings on Feb 6, 2014,
before the opening bell. Following the better-than-expected
results along with the dividend increase news, the company closed
at $27.87 per share on Thursday, reflecting a significant hike of
13.4% from the closing price on the previous day.
For the year ended Dec 31, 2013, Patterson-UTI reported earnings
of $1.07 per share against a profit of $1.90 in 2012. The figure
also failed to beat the Zacks Consensus Estimate of $1.13 per
share. Revenues of $2.7 billion decreased marginally from the
Rig Count Statistics
The number of operational rigs of Patterson-UTI during the
reported quarter averaged 192 (183 located in the U.S. and 9 in
Canada) compared with 205 in the fourth quarter of 2012.
This segment's revenues totaled $412.7 million (62.6% of the
total revenue), down 3.0% year over year. Adjusted average
revenues per operating day was $23,170, up 3.2% year over year,
however, average direct costs per operating day increased a
nominal 0.5% year over year to $13,510. Gross margin for the
segment came in at 42.0%, an improvement from the year-ago
The segment's operating profit decreased to $30.4 million from
$69.1 million in the year-ago quarter, owing to significant hike
in depreciation, amortization and impairment costs.
Revenues of $234.2 million were up 10.5% year over year. However,
the segment's operating profit fell to $11.6 million from $34.2
million in the prior-year quarter on decreased level of activity.
Oil & Natural Gas:
Revenues were $11.9 million, down 23.5% from the year-ago
quarter. Moreover, operating income of $2.8 million decreased
60.8% from fourth-quarter 2012 due to reduced
Direct operating costs
The company reported direct operating expenses of $426.1 million,
indicating a 5.3% hike from $404.7 million reported in the
During fourth-quarter 2013, Patterson-UTI repurchased roughly 0.9
million shares. Moreover, in full-year 2013, Patterson-UTI
repurchased shares worth $85.8 million.
Capital Expenditure & Balance Sheet
During the quarter, Patterson-UTI spent approximately $179.1
million on capital programs (against $229.6 million in the fourth
quarter of 2012). As of Dec 31, 2013, the company had $249.5
million in cash and $692.5 million in long-term debt (including
Patterson-UTI currently retains a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy
Helmerich & Payne Inc.
Cabot Oil & Gas Corporation
Athlon Energy Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).