Business UpdateMay 26, 2026, 08:07 AM
Patterson-UTI Expects Q2 Adj. EBITDA ~$220M; Raises 2026 Capex to ~$600M
AI Summary
Patterson-UTI Energy provided an investor presentation detailing a positive business outlook. The company expects Q2 2026 consolidated adjusted EBITDA to be approximately $220 million and revised its 2026 capital expenditures, net of asset sales, to ~$600 million to support growth. Drilling Services anticipates exiting Q2 with 95 active rigs, increasing to over 100 by year-end, with leading edge dayrates rising. Completion Services is experiencing stronger pricing tailwinds than expected, with further improvements projected for Q3. Additionally, the company plans to redeem all of its 3.95% Senior Notes due 2028 around June 4, 2026.
Key Highlights
- Expected Q2 2026 consolidated adjusted EBITDA of approximately $220 million.
- 2026 Capital Expenditures, net of asset sales, now expected to be ~$600 million.
- Drilling Services expects to exit Q2 with 95 active rigs and 100+ by end of 2026.
- Leading edge dayrates for drilling services increased mid-single digit percentage from early 2026.
- Completion Services experiencing stronger positive pricing tailwinds in Q2 than anticipated.
- Company expects to incur $5-10 million in Q2 for rig reactivations and mobilizations.
- Patterson-UTI expects to redeem all 3.95% Senior Notes due 2028 on or about June 4, 2026.
- Committed to annually return at least 50% of adjusted free cash flow to investors.
Price Impact
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