0000889900false00008899002026-02-042026-02-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________________________________
FORM 8-K
_______________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 2026
_______________________________________________
Patterson-UTI Energy, Inc.
(Exact name of Registrant as Specified in Its Charter)
_______________________________________________
Delaware1-3927075-2504748
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
10713 W. Sam Houston Pkwy N, Suite 800
Houston, Texas
 
77064
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: 281-765-7100
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
_______________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 Par ValuePTEN
The Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02 Results of Operations and Financial Condition.
On February 4, 2026, Patterson-UTI Energy, Inc. (the “Company” or “Patterson-UTI”) announced financial results for the three and twelve months ended December 31, 2025. The press release, dated February 4, 2026, is furnished as Exhibit 99.1 to this report and incorporated by reference herein.
The information furnished pursuant to Item 2.02, including Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, shall not otherwise be subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 8.01 Other Events.
To the extent required, the information included in Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 8.01.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibit is furnished herewith:
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Patterson-UTI Energy, Inc.
February 4, 2026By:/s/ C. Andrew Smith
Name: C. Andrew Smith
Title: Executive Vice President and Chief Financial Officer

Exhibit 99.1
Contact: Michael Sabella
Vice President, Investor Relations
(281) 885-7589

Patterson-UTI Energy Reports Financial Results for the Quarter Ended December 31, 2025

HOUSTON, Texas – February 4, 2026 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the quarter ended December 31, 2025.

Fourth Quarter 2025 Financial Results and Other Key Items
•Fourth Quarter 2025 Total Revenue of $1.2 billion
•Fourth Quarter 2025 Net Loss Attributable to Common Stockholders of $9 million
•Fourth Quarter 2025 Adjusted EBITDA of $221 million
•Full year 2025 Cash from Operations of $961 million, Adjusted Free Cash Flow of $416 million in 2025
•Quarterly dividend raised by 25% to $0.10 per share, payable on March 16, 2026 to holders of record as of March 2, 2026

Management Commentary

“We closed 2025 with a strong fourth quarter, delivering steady results during what is typically a seasonally soft period,” said Andy Hendricks, Chief Executive Officer. “This performance reflects strong operational execution in our core businesses and continued cost control in a challenging commodity environment. The results for 2025 highlight the margin resilience of our diversified drilling and completion operations and the effectiveness of our team in executing our strategic objectives. Despite a challenging market in 2025, we again delivered on our objective for strong free cash flow generation at all points in the cycle. I would like to thank the employees of Patterson-UTI for their hard work in 2025, and we look forward to delivering again in 2026.”

“U.S. drilling and completion activity has held relatively steady as we begin 2026,” continued Mr. Hendricks. “Oil prices have been resilient, despite increased OPEC+ supply and a subdued global economic growth forecast. In natural gas basins, growing LNG exports and rising domestic demand remain a long-term tailwind for drilling and completion activity as our customers assess the long-term outlook for the commodity.”

“We delivered another year of strong free cash flow through a disciplined, company-wide focus on cash management and capital allocation,” said Andy Smith, Chief Financial Officer. “We expect to continue delivering strong free cash flow in 2026, and given our free cash flow expectations, we are increasing our quarterly dividend by 25% to $0.10 per share. Over the past two years, we have returned approximately two-thirds of our adjusted free cash flow to investors through dividends and share repurchases, and we remain committed to returning at least 50% of our adjusted free cash flow to our shareholders.”

Drilling Services

Fourth quarter Drilling Services segment revenue totaled $361 million, with adjusted gross profit of $132 million. Our U.S. Contract Drilling operating days totaled 8,596, with an average of 93 rigs working in the quarter.

In our U.S. Contract Drilling business, our successful cost reduction measures mostly offset the revenue decrease during the quarter.

Nearly all our rigs are now equipped with our proprietary Cortex® automation applications, and we see strong demand as we continue to develop new automation software applications to further differentiate our operations. As well designs become more complex, we expect to see a continued bifurcation among service providers, and the quality of our rigs and operating platform position us favorably going forward. Given strong performance, we are experiencing ongoing success with our performance-based agreements, with customers increasingly looking to partner with drilling contractors who can enhance operational efficiency.

Completion Services

Fourth quarter Completion Services revenue totaled $702 million, with adjusted gross profit of $111 million.

We experienced minimal holiday-related downtime, as most customers maintained consistent completion activity compared to the third quarter. For crews where dedicated customers did take extended holiday breaks, our commercial team efficiently managed frac schedules to keep our fleets operating near full utilization. Overall, fourth quarter completion activity and pricing were steady compared to the previous quarter.



Completion Services adjusted EBITDA was higher in the second half of 2025 compared to the first half, reflecting the quality of our fleet and the investments we have made over the past year to add new technology to our portfolio, streamline operations, and improve our cost structure. We will continue to redirect capital in our completions business to high-grade our fleet over the next year. As we direct our capital towards high-grading our asset base, we are likely to have fewer fleets in operation as we continue to idle lower quality diesel assets.

During the fourth quarter, we launched our proprietary eos™ Completions Digital Platform, which advances real-time visualization, controls and data integration throughout the completions process. We have revenue generating agreements in place and see strong customer demand for Vertex™ frac automation, fully integrated data management, fuel/proppant/chemicals logistics optimization, and reservoir analytics, all of which can be deployed on any of our frac fleets. eos and Vertex should have strong growth potential in 2026 and have already shown promising results in enabling a more efficient and consistent completion operation. Together, our differentiated digital and automation platform allows us to lower both operating and maintenance costs while also delivering more consistent service quality for the customer.

Drilling Products

Fourth quarter Drilling Products revenue totaled $84 million, with adjusted gross profit of $34 million.

Revenue per industry rig in the United States remained near company record levels, reflecting our strong market position in drill bits and the continued success of our downhole tool product innovations. International revenue was down slightly compared to the third quarter due to lower-than-expected sales in the Middle East, although we delivered revenue growth in several key markets, including Latin America and Asia-Pacific.

In the fourth quarter, we opened a new manufacturing facility in Saudi Arabia and are now manufacturing drill bits in country, which should give us an advantage as growth resumes in the Middle East.

Other

Fourth quarter Other revenue totaled $5 million, with adjusted gross profit of $1 million.

Outlook

Within the Drilling Services segment for the first quarter, we expect our average U.S. rig count will be in the low-to-mid 90s. We expect adjusted gross profit within the Drilling Services segment to decline by less than 5% from the fourth quarter.

In our Completion Services segment for the first quarter, we expect adjusted gross profit to be approximately $95 million. We expect activity to decline slightly in the first quarter with an impact from first quarter winter weather.

In our Drilling Products segment for the first quarter, we expect adjusted gross profit will improve slightly compared to the fourth quarter. We expect slightly lower revenue in the United States due to lower activity, which we expect will be offset by an increase in activity and revenue from our International business.

We expect Other adjusted gross profit in the first quarter to be roughly flat compared to the fourth quarter.

For the first quarter, we expect selling, general and administrative expense to be approximately $65 million, and we expect depreciation, depletion, amortization, and impairment expense of approximately $225 million.

We continue to expect full-year 2026 capital expenditures to be less than $500 million, net of asset sales.

All references to “per share” in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260.

Fourth Quarter Earnings Conference Call

The Company’s quarterly conference call to discuss the operating results for the quarter ended December 31, 2025, is scheduled for February 5, 2026, at 9:00 a.m. Central Time. The dial-in information for participants is (800) 715-9871 (Domestic) and (646) 307-1963 (International). The conference ID for both numbers is 5526772. The call is also being webcast and can be accessed through the Investor Relations section of the Company’s website at investor.patenergy.com. A replay of the conference call will be on the Company’s website for two weeks.




About Patterson-UTI

Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as “anticipate,” “believe,” “budgeted,” "continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “pursue,” “see,” “should,” “strategy,” “target,” or “will,” and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: adverse oil and natural gas industry conditions, including the impact of commodity price volatility on industry outlook; global economic conditions, including inflationary pressures and risks of economic downturns or recessions in the United States and elsewhere; volatility in customer spending and in oil and natural gas prices that could adversely affect demand for Patterson-UTI’s services and their associated effect on rates; excess supply of drilling and completions equipment, including as a result of reactivation, improvement or construction; competition and demand for Patterson-UTI’s services; the impact of the ongoing Ukraine/Russia and Middle East conflicts and instability in other international regions; strength and financial resources of competitors; utilization, margins and planned capital expenditures; ability to obtain insurance coverage on commercially reasonable terms and liabilities from operational risks for which Patterson-UTI does not have and receive full indemnification or insurance; operating hazards attendant to the oil and natural gas business; failure by customers to pay or satisfy their contractual obligations (particularly with respect to fixed-term contracts); the ability to realize backlog; specialization of methods, equipment and services and new technologies, including the ability to develop and obtain satisfactory returns from new technology and the risk of obsolescence of existing technologies; the ability to attract and retain management and field personnel; loss of key customers; shortages, delays in delivery, and interruptions in supply, of equipment and materials; cybersecurity events; difficulty in building and deploying new equipment; complications with the design or implementation of Patterson-UTI’s new enterprise resource planning system; governmental regulation, including climate legislation, regulation and other related risks; environmental, social and governance practices, including the perception thereof; environmental risks and ability to satisfy future environmental costs; technology-related disputes; legal proceedings and actions by governmental or other regulatory agencies; changes to tax, tariff and import/export regulations and sanctions by the United States or other countries, including the impacts of any sustained escalation or changes in tariff levels or trade-related disputes; the ability to effectively identify and enter new markets or pursue strategic acquisitions; public health crises, pandemics and epidemics; weather; operating costs; expansion and development trends of the oil and natural gas industry; financial flexibility, including availability of capital and the ability to repay indebtedness when due; adverse credit and equity market conditions; our return of capital to stockholders, including timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; stock price volatility; and compliance with covenants under Patterson-UTI’s debt agreements.

Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.




PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)

December 31,
2025		December 31,
2024
ASSETS
Current assets:
Cash, cash equivalents and restricted cash$420,642 $241,293 
Accounts receivable, net723,277 763,806 
Inventory160,280 167,023 
Other current assets113,892 123,193 
Total current assets1,418,091 1,295,315 
Property and equipment, net2,711,037 3,010,342 
Goodwill487,388 487,388 
Intangible assets, net814,810 929,610 
Other assets139,140 110,811 
Total assets$5,570,466 $5,833,466 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$470,782 $421,318 
Accrued liabilities366,488 385,751 
Other current liabilities 26,372 34,924 
Total current liabilities863,642 841,993 
Long-term debt, net1,221,038 1,219,770 
Deferred tax liabilities, net215,818 238,097 
Other liabilities45,253 57,762 
Total liabilities2,345,751 2,357,622 
Stockholders’ equity:
Stockholders’ equity attributable to controlling interests3,218,538 3,465,823 
Noncontrolling interest6,177 10,021 
Total equity3,224,715 3,475,844 
Total liabilities and stockholders’ equity$5,570,466 $5,833,466 


PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31,September 30,December 31,December 31,
20252025202420252024
REVENUES$1,150,813 $1,175,954 $1,162,135 $4,826,624 $5,377,911 
COSTS AND EXPENSES:
Direct operating costs871,892 893,833 859,659 3,656,502 3,919,869 
Depreciation, depletion, amortization and impairment220,942 225,598 254,599 940,264 1,171,873 
Impairment of goodwill— — — — 885,240 
Selling, general and administrative62,058 61,976 73,079 255,072 268,337 
Merger and integration expense6 90 3,460 1,016 33,037 
Other operating expense (income), net(3,850)22,511 2,673 14,600 (10,708)
Total operating costs and expenses1,151,048 1,204,008 1,193,470 4,867,454 6,267,648 
OPERATING INCOME (LOSS)(235)(28,054)(31,335)(40,830)(889,737)
OTHER INCOME (EXPENSE):
Interest income2,433 1,480 928 6,649 5,729 
Interest expense, net of amount capitalized(17,678)(17,488)(17,725)(70,508)(71,963)
Other income (expense)354 1,020 (1,333)1,698 (975)
Total other income (expense)(14,891)(14,988)(18,130)(62,161)(67,209)
INCOME (LOSS) BEFORE INCOME TAXES(15,126)(43,042)(49,465)(102,991)(956,946)
INCOME TAX EXPENSE (BENEFIT)(5,929)(6,592)1,927 (9,937)9,453 
NET INCOME (LOSS)(9,197)(36,450)(51,392)(93,054)(966,399)
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST(103)(48)190 581 1,632 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$(9,094)$(36,402)$(51,582)$(93,635)$(968,031)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER COMMON SHARE:
Basic$(0.02)$(0.10)$(0.13)$(0.24)$(2.44)
Diluted$(0.02)$(0.10)$(0.13)$(0.24)$(2.44)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic379,243382,819389,450383,465397,196
Diluted379,243382,819389,450383,465397,196
CASH DIVIDENDS PER COMMON SHARE$0.08 $0.08 $0.08 $0.32 $0.32 


PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Twelve Months Ended
December 31,
20252024
Cash flows from operating activities:
Net income (loss)$(93,054)$(966,399)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization and impairment940,264 1,171,873 
Impairment of goodwill— 885,240 
Deferred income tax expense (benefit)(21,677)(1,765)
Stock-based compensation39,286 46,352 
Net (gain) loss on asset disposals(693)(3,688)
Other737 7,936 
Changes in operating assets and liabilities96,356 35,987 
Net cash provided by operating activities961,219 1,175,536 
Cash flows from investing activities:
Purchases of property and equipment(589,029)(678,386)
Investment in unconsolidated affiliate(10,500)— 
Proceeds from disposal of assets, including insurance recoveries44,117 25,832 
Other(11,741)(2,190)
Net cash used in investing activities(567,153)(654,744)
Cash flows from financing activities:
Purchases of treasury stock(69,636)(290,427)
Dividends paid(122,453)(126,791)
Proceeds from revolving credit facility— 50,000 
Repayment of revolving credit facility— (50,000)
Payments on finance leases(7,823)(45,484)
Other(10,820)(12,290)
Net cash used in financing activities(210,732)(474,992)
Effect of foreign exchange rate changes on cash, cash equivalents
  and restricted cash
(3,985)2,813 
Net change in cash, cash equivalents and restricted cash179,349 48,613 
Cash, cash equivalents and restricted cash at beginning of period241,293 192,680 
Cash, cash equivalents and restricted cash at end of period$420,642 $241,293 


PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)

 Three Months Ended Twelve Months Ended
 December 31,September 30,December 31,December 31,
 20252025202420252024
Drilling Services
Revenues$360,777 $380,200 $408,385 $1,557,642 $1,727,810 
Direct operating costs$228,426 $246,407 $245,480 $977,234 $1,029,591 
Adjusted gross profit (1)
$132,351 $133,793 $162,905 $580,408 $698,219 
Depreciation, amortization and impairment$85,044 $84,100 $85,174 $366,763 $477,398 
Selling, general and administrative$4,013 $3,969 $4,741 $16,079 $16,502 
Other operating expense (income), net$298 $8,600 $— $530 $— 
Operating income (loss)$42,996 $37,124 $72,990 $197,036 $204,319 
Operating days – U.S. (2)
8,5968,7379,61736,37140,899
Capital expenditures$61,194 $46,691 $54,321 $236,517 $264,667 
Completion Services
Revenues$701,560 $705,275 $650,848 $2,892,247 $3,232,785 
Direct operating costs$590,657 $594,118 $555,527 $2,461,539 $2,658,170 
Adjusted gross profit (1)
$110,903 $111,157 $95,321 $430,708 $574,615 
Depreciation, amortization and impairment$110,941 $117,058 $135,852 $463,599 $564,155 
Impairment of goodwill$— $— $— $— $885,240 
Selling, general and administrative$9,863 $8,821 $9,703 $39,816 $41,557 
Other operating expense (income), net$(6,300)$13,000 $— $6,700 $(17,792)
Operating income (loss)$(3,601)$(27,722)$(50,234)$(79,407)$(898,545)
Capital expenditures$59,069 $81,301 $61,469 $271,528 $320,329 
Drilling Products
Revenues$83,774 $85,880 $86,522 $343,707 $351,651 
Direct operating costs$49,590 $50,265 $49,186 $196,130 $191,107 
Adjusted gross profit (1)
$34,184 $35,615 $37,336 $147,577 $160,544 
Depreciation, amortization and impairment$20,515 $21,326 $27,328 $88,301 $100,610 
Selling, general and administrative$6,911 $8,486 $10,209 $33,167 $35,860 
Operating income (loss)$6,758 $5,803 $(201)$26,109 $24,074 
Capital expenditures$14,616 $13,331 $15,834 $61,421 $61,687 
Other (3)
Revenues$4,702 $4,599 $16,380 $33,028 $65,665 
Direct operating costs$3,219 $3,043 $9,466 $21,599 $41,001 
Adjusted gross profit (1)
$1,483 $1,556 $6,914 $11,429 $24,664 
Depreciation, depletion, amortization and impairment$2,429 $923 $4,790 $13,226 $24,043 
Selling, general and administrative$1 $(177)$59 $110 $708 
Operating income (loss)$(947)$810 $2,065 $(1,907)$(87)
Capital expenditures$3,411 $2,145 $2,894 $10,954 $21,813 
Corporate
Depreciation$2,013 $2,191 $1,455 $8,375 $5,667 
Selling, general and administrative$41,270 $40,877 $48,367 $165,900 $173,710 
Merger and integration expense$6 $90 $3,460 $1,016 $33,037 
Other operating expense (income), net$2,152 $911 $2,673 $7,370 $7,084 
Capital expenditures$223 $1,011 $5,832 $8,609 $9,890 
Total Capital Expenditures$138,513 $144,479 $140,350 $589,029 $678,386 
(1)Adjusted gross profit is defined as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense, which does not include impairment of goodwill). See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
(2)Operational data relates to our contract drilling business. A rig is considered to be operating if it is earning revenue pursuant to a contract on a given day.
(3)Other includes our oilfield rentals business, prior to its divestiture in April 2025, and oil and natural gas working interests.


PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted EBITDA
(unaudited, dollars in thousands)
Three Months Ended Twelve Months Ended
December 31,September 30,December 31,December 31,
20252025202420252024
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) (1):
Net income (loss)$(9,197)$(36,450)$(51,392)$(93,054)$(966,399)
Income tax expense (benefit)(5,929)(6,592)1,927 (9,937)9,453 
Net interest expense15,245 16,008 16,797 63,859 66,234 
Depreciation, depletion, amortization and impairment220,942 225,598 254,599 940,264 1,171,873 
Legal accruals and settlements— 20,000 — 15,415 (17,792)
Impairment of goodwill— — — — 885,240 
Merger and integration expense6 90 3,460 1,016 33,037 
Adjusted EBITDA$221,067 $218,654 $225,391 $917,563 $1,181,646 
Total revenues$1,150,813 $1,175,954 $1,162,135 $4,826,624 $5,377,911 
Adjusted EBITDA by Operating Segment:
Drilling Services$128,040 $128,224 $158,164 $566,214 $681,717 
Completion Services107,340 102,336 85,618 397,192 533,058 
Drilling Products27,273 27,129 27,127 114,410 124,684 
Other1,482 1,733 6,855 11,319 23,956 
Corporate(43,068)(40,768)(52,373)(171,572)(181,769)
Adjusted EBITDA$221,067 $218,654 $225,391 $917,563 $1,181,646 
(1)Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by accounting principles generally accepted in the United States of America (“GAAP”). We define Adjusted EBITDA as net income (loss) plus income tax expense (benefit), net interest expense, depreciation, depletion, amortization and impairment expense, legal accruals and settlements, impairment of goodwill, and merger and integration expense. We present Adjusted EBITDA as a supplemental disclosure because we believe it provides to both management and investors additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies.


PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Free Cash Flow
(unaudited, dollars in thousands)
Twelve Months Ended
December 31,
20252024
Adjusted Free Cash Flow (1):
Net cash provided by operating activities$961,219 $1,175,536 
Less capital expenditures(589,029)(678,386)
Plus proceeds from disposal of assets, including insurance recoveries44,117 25,832 
Adjusted free cash flow$416,307 $522,982 
(1)We define adjusted free cash flow as net cash provided by operating activities less capital expenditures, plus proceeds from disposal of assets, including insurance recoveries. We present adjusted free cash flow as a supplemental disclosure because we believe that it is an important liquidity measure and that it is useful to investors and management as a measure of the company’s ability to generate cash flow, after reinvesting in the company, that could be available for financing cash flows, such as dividend payments, share repurchases and/or repurchases of long-term indebtedness. Our computations of adjusted free cash flow may not be the same as similarly titled measures of other companies. Adjusted free cash flow is not intended to represent our residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flows from operations reported in accordance with GAAP.


PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit
(unaudited, dollars in thousands)
Three Months Ended Twelve Months Ended
December 31,September 30,December 31,December 31,
20252025202420252024
Drilling Services
Revenues$360,777 $380,200 $408,385 $1,557,642 $1,727,810 
Less direct operating costs(228,426)(246,407)(245,480)(977,234)(1,029,591)
Less depreciation, amortization and impairment(85,044)(84,100)(85,174)(366,763)(477,398)
GAAP gross profit (loss)47,307 49,693 77,731 213,645 220,821 
Depreciation, amortization and impairment85,044 84,100 85,174 366,763 477,398 
Adjusted gross profit (1)
$132,351 $133,793 $162,905 $580,408 $698,219 
Completion Services
Revenues$701,560 $705,275 $650,848 $2,892,247 $3,232,785 
Less direct operating costs(590,657)(594,118)(555,527)(2,461,539)(2,658,170)
Less depreciation, amortization and impairment(110,941)(117,058)(135,852)(463,599)(564,155)
GAAP gross profit (loss)(38)(5,901)(40,531)(32,891)10,460 
Depreciation, amortization and impairment110,941 117,058 135,852 463,599 564,155 
Adjusted gross profit (1)
$110,903 $111,157 $95,321 $430,708 $574,615 
Drilling Products
Revenues$83,774 $85,880 $86,522 $343,707 $351,651 
Less direct operating costs(49,590)(50,265)(49,186)(196,130)(191,107)
Less depreciation, amortization and impairment(20,515)(21,326)(27,328)(88,301)(100,610)
GAAP gross profit (loss)13,669 14,289 10,008 59,276 59,934 
Depreciation, amortization and impairment20,515 21,326 27,328 88,301 100,610 
Adjusted gross profit (1)
$34,184 $35,615 $37,336 $147,577 $160,544 
Other
Revenues$4,702 $4,599 $16,380 $33,028 $65,665 
Less direct operating costs(3,219)(3,043)(9,466)(21,599)(41,001)
Less depreciation, depletion, amortization and impairment(2,429)(923)(4,790)(13,226)(24,043)
GAAP gross profit (loss)(946)633 2,124 (1,797)621 
Depreciation, depletion, amortization and impairment2,429 923 4,790 13,226 24,043 
Adjusted gross profit (1)
$1,483 $1,556 $6,914 $11,429 $24,664 
(1)We define “Adjusted gross profit” as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense, which does not include impairment of goodwill). Adjusted gross profit is included as a supplemental disclosure because it is a useful indicator of our operating performance.