NBR - Patterson-UTI Energy Focuses On Rig Upgrading To Improve Margin In The Long Run
Despite lack of demand, PTEN keeps its plans rolling
Patterson-UTI Energy (PTEN) owns and operates onshore drilling rigs and a fleet of pressure pumping equipment in North America. In the short-run, upstream operators’ capex budget is likely to remain benign, which can continue to exert pressure on drilling contractors’ margin. Despite several headwinds in the industry, PTEN is implementing its rig up-gradation program. It goes to prove management’s conviction in a turn-around in the long-run. I think PTEN’s top-line can keep improving at a moderate rate in the short-run, while its margin is