Drilling Activity To Drop, But Fracking May Stabilize in Q3
Patterson-UTI Energy (PTEN) has a couple of difficult quarters ahead, although it can financially withstand the pressure. Low utilization in the post-pandemic energy market will continue to see the company losing rigs in the next four quarters. After reducing its pressure pumping activity severely in Q1, the management expects the business to turn cash-flow positive. However, the segment operating margin, having already crashed in Q2, does not offer cheer to the investors. I do not see its performance improving much in the