Lack of Demand Is a Concern, But Company Management Shows Confidence
Patterson-UTI Energy (PTEN) owns and operates onshore drilling rigs and a fleet of pressure pumping equipment in North America. PTEN has combined a steady dividend payment with an enhanced share repurchase plan. These steps exude the management’s confidence in the company’s ability to generate sustainable margin. Over a more extended period, when the energy environment recovers, returns from the stock can improve. Investors might want to wait and watch before taking a call to buy.
Although many upstream companies have pruned FY2019