2024-05-02 15:28:13 ET
Patterson-UTI Energy, Inc. (PTEN)
Q1 2024 Earnings Conference Call
May 02, 2024, 10:00 ET
Company Participants
Mike Sabella - VP, IR
Andy Hendricks - President, CEO & Director
Andy Smith - CFO & EVP
Conference Call Participants
Luke Lemoine - Piper Sandler
Jim Rollyson - Raymond James
Scott Gruber - Citigroup
Alexa Petrick - Goldman Sachs
Derek Podhaizer - Barclays Capital
Arun Jayaram - JPMorgan
Stephen Gengaro - Stifel
Saurabh Pant - Bank of America Merrill Lynch
Waqar Syed - ATB Capital Markets
Keith MacKey - RBC Capital Markets
John Daniel - Daniel Energy Partners
Presentation
Operator
Ladies and gentlemen, welcome to the Patterson UTI First Quarter 2024 conference call. [Operator Instructions]. As a reminder, today's call is being recorded. I will now hand today's call over to Mike Sabella, Vice President of Investor Relations. Please go ahead, sir.
Mike Sabella
Thank you, operator. Good morning and welcome to Patterson-UTI earnings conference call to discuss our first quarter 2024 results with me today are Andy Hendricks, President and Chief Executive Officer; and Andy Smith, Chief Financial Officer.
As a reminder, statements that are made in this conference call that refer to the Company's or management's plans, intentions, targets, beliefs, expectations or predictions for the future are considered forward looking statements. These forward looking statements are subject to risks and uncertainties as disclosed in the company's SEC filings, which could cause the Company's actual results to differ materially. The Company take no obligation to publicly update or revise any forward-looking statements.
Statements made in this conference call include non-GAAP financial measures. The required reconciliations to GAAP financial measures are included on our website, PAT. energy.com and in the Company's press release issued prior to this conference call. I will now turn the call over to Andy Hendricks, President, Patterson-UTI as Chief Executive Officer.
Andy Hendricks
Thank you, Mike, and welcome to Patterson Thiago First Quarter Conference Call. First quarter unfolded, largely as we anticipated with another quarter of strong free cash flow. The steady environment continued in the oil basins with activity and production relatively consistent with late last year and natural gas basins. Our customers are being impacted by weak natural gas prices, and they are responding by reducing activity as we expected. Against this backdrop, Patterson UTI delivered strong results during the quarter, and we met our guidance in each of our operating segments. The results in the first quarter demonstrate the free cash flow generating capabilities of the Company, even as we invest to maintain our position as a long-term winner in the U.S. shale drilling and completion. And we expect to continue returning a significant amount of cash to shareholders bifurcation amongst oilfield product and service providers is presenting an opportunity for high-quality companies to generate strong free cash flow even in a slightly softening market. We are investing in technologies that enhance the efficiency of the U.S. shale model, and this should improve the returns and free cash flow profile of our company. Over the long term, our customers are recognizing and rewarding providers that have a differentiated service offering and Patterson-UTI stands amongst the leaders across multiple product and service lines. Differentiation has defined this cycle, and we believe that if we invest in the right technologies and deliver consistent and repeatable top-quality product for our customers. We will be rewarded with higher activity and utilization, and our results are the best evidence....
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Patterson-UTI Energy, Inc. (PTEN) Q1 2024 Earnings Call Transcript