Notable additions propel Patterson-UTI to “monumental” Q3 2023
Buoyed by the additions of NexTier Oilfield Solutions and Ulterra Drilling Technologies, Patterson-UTI says it is happy with where the company sits heading into the final fiscal quarter of 2023 and beyond.
In its Q3 2023 report, released 7 November, the company recorded total revenue of $1 billion. Their Q3 operations included 30 days from NexTier, running from 1 September through the end of the quarter, and 48 days from Ulterra, running from 14 August through to the end. With NexTier specifically, Mr Hendricks believes they’re in a position to deliver at least $200 million in annualized synergies by Q1 2025.
“We are excited with the way these transactions position our company for long-term success, and we welcome the NexTier and Ulterra employees to the team. As we have gotten to know our new team members, we have grown more confident that these deals will strengthen our company and add value,” Mr Hendricks said.
Regarding drilling services, Patterson-UTI came out looking strong as well. Their recorded US contract drilling revenue stood at $420 million, whereas term contracts for drilling rigs provided revenue of approximately $760 million for future dayrate drilling as of 30 September. Additionally, its active rig count going forward, which saw 117 active US rigs in operation this past quarter, projects to be slightly higher than the national average.
“Our US drilling activity performed in line with our expectations during the quarter, and our rig count again outperformed the overall US industry,” said Mr Hendricks, noting that they expect to close Q4 2023 with 120 active US rigs compared to an average of 118.
