Patterson-UTI Energy ( NASDAQ: PTEN ) stock gained 12.5% to a near five-month high on Thursday after the oilfield services firm posted better-than-expected Q3 results and raised its guidance for 2022 adj. earnings.
The company now expects 2022 consolidated adj. EBITDA of over $650M vs. prior outlook of more than $600M.
Q4 rig count in the U.S. is projected to average 132 rigs, with an average of 81 rigs operating under term contracts.
Patterson-UTI ( PTEN ) also raised its 2022 capex outlook to ~$425M to factor in ramping up of customer-funded rig upgrades for delivery in 2023 and acquisition of additional pumps with tier 4 engines vs. its earlier forecast of $390M.
The firm reported Q3 EPS of $0.28 vs. $0.10 in Q3 2021. Revenue more than doubled to $727.5M, led by a two-fold increase in contract drilling revenue (at $356M).
"Contract drilling revenues and margins improved during Q3 as leading edge day rates continued to strengthen, and we benefited from contract renewals with more favorable pricing," said CEO Andy Hendricks.
Q3 average rig count in the U.S. increased to 128 rigs.
Patterson-UTI ( PTEN ) also doubled its quarterly dividend to $0.08/share and increased its stock buyback authorization to $300M.
The firm is targeting to return 50% of free cash flow to shareholders through dividends and buybacks.
Shares of Patterson-UTI ( PTEN ) nearly doubled in value ( +95% ) YTD.
For further details see:
Patterson-UTI Energy stock gains over 12% on earnings topper, upbeat outlook