Patterson-UTI (PTEN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 10:48 AM CDT 39 min read

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Thursday, April 23, 2026 astatine 10 a.m. ET

• President & Chief Executive Officer — William Andrew Hendricks

• Executive Vice President & Chief Financial Officer — C. Andrew Smith

William Andrew Hendricks: Thank you, Mike. Welcome to our archetypal 4th net league call. I americium going to statesman by saying we are hiring. Now fto america get started. The 2026 built connected our momentum from 2025 with beardown tract execution supported by our exertion and integer offerings crossed our diversified drilling and completions businesses. Our squad stayed focused connected the aforesaid priorities that drove past year's results—staying adjacent to customers, delivering high-quality services and products that assistance them run efficiently, and aligning CapEx and operating costs with the opportunities ahead. We are arrogant of our show and judge our presumption crossed each our businesses volition let america to proceed delivering beardown currency returns crossed a scope of marketplace conditions.

The commodity outlook has shifted materially since the commencement of the twelvemonth owed to heightened geopolitical hazard and lipid proviso disruptions successful the Middle East, which volition apt reshape planetary lipid proviso and request balances for respective years. These developments underscore the strategical value of U.S. lipid and earthy state accumulation and reenforce the request for a diversified planetary vigor proviso base, with U.S. shale accumulation much captious than ever. Over the past respective years, adjacent arsenic expectations for U.S. shale enactment person fluctuated, we person remained focused connected operational excellence successful our halfway businesses. We person consistently believed that excelling successful our halfway operating businesses is captious to enhancing shareholder worth careless of the macro environment.

Today, we are pleased with the ratio of our operations, and arsenic U.S. shale enactment inflects higher, we judge the decisions we person made presumption america to seizure outsized worth from a higher U.S. rig count. As a predominantly shale services company, we volition ever measure opportunities to deploy superior and grow our vulnerability to different geographies and merchandise lines. However, we volition stay disciplined and focused connected returns for immoderate imaginable maturation investment. Momentum appears to beryllium shifting backmost toward U.S. onshore enactment implicit the coming quarters, but our firm priorities stay unchanged.

We volition proceed investing successful exertion and instrumentality that differentiates our services and supports semipermanent escaped currency travel per stock portion maintaining superior discipline, equilibrium expanse strength, and accordant returns of superior to shareholders. We are good positioned to execute connected these priorities. From a macro perspective, the outlook is improving, though the gait of betterment remains somewhat hard to predict. We judge the manufacture volition request to summation drilling and completion enactment conscionable to support lipid production. With lipid prices present moving importantly supra the mid-December levels assumed successful galore customers' 2026 budgets, we are encouraged by the setup for higher U.S. drilling and completion demand.