Patterson-UTI Energy, Inc. (PTEN): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the key players in the energy sector and how they operate? Let's dive into Patterson-UTI Energy, Inc. (PTEN), a substantial land rig drilling contractor in the United States, to uncover its history, ownership structure, mission, and revenue streams. With a trailing 12-month revenue of $5.38B as of December 31, 2024, and a significant presence in North American drilling and completion services, how does this company maintain its competitive edge?

From its roots in 1978 to its current standing with a market capitalization of $2.22B as of April 11, 2025, what pivotal moments shaped Patterson-UTI Energy into the industry leader it is today? Read on to explore the multifaceted aspects of PTEN's operations and discover how it generates revenue in the dynamic energy market.

Patterson-UTI Energy, Inc. (PTEN) History

Patterson-UTI Energy, Inc. Founding Timeline

Year established

The company's roots trace back to the late 1970s and early 1980s through the establishment of its predecessor companies. However, the formal merger that created the modern company occurred in 2001.

Original location

The company is headquartered in Houston, Texas.

Founding team members

While the specific 'founding team members' relate to the 2001 merger, key figures associated with the predecessor companies and the merger include individuals who held leadership positions at those entities. However, specific names aren't highlighted in available documentation.

Initial capital/funding

Information regarding the initial capital or funding specifically for the 2001 merger is not detailed in the provided context. The merger itself involved the combination of existing entities, each with their own financial structures.

Patterson-UTI Energy, Inc. Evolution Milestones

Patterson-UTI Energy, Inc. Transformative Moments

• Strategic Acquisitions: The company has grown significantly through acquisitions, expanding its service offerings and geographic presence. These acquisitions have allowed the company to offer a broader range of services and operate in more regions.
• Focus on Technology: invests in advanced drilling technologies to improve efficiency and safety.
• Mergers: The merger with NexTier Oilfield Solutions in 2023 is a transformative moment as it significantly broadened the company's service offerings to include well completion services, creating a more diversified and integrated oilfield services company.

For additional insights into the company's financial standing, see: Breaking Down Patterson-UTI Energy, Inc. (PTEN) Financial Health: Key Insights for Investors

Patterson-UTI Energy, Inc. (PTEN) Ownership Structure

As a publicly traded company, the ownership of Patterson-UTI Energy, Inc. is distributed among a mix of institutional investors, individual shareholders, and company insiders. The distribution of shares influences the company's governance and strategic direction.

Patterson-UTI Energy, Inc. Current Status

Patterson-UTI Energy, Inc. operates as a publicly held company, meaning its shares are traded on a stock exchange and available for purchase by the general public. This status requires the company to adhere to certain regulatory standards and reporting requirements, ensuring transparency for investors and stakeholders. More insights about PTEN investor profile can be found here: Exploring Patterson-UTI Energy, Inc. (PTEN) Investor Profile: Who’s Buying and Why?

Patterson-UTI Energy, Inc. Ownership Breakdown

The following table provides an overview of the ownership structure of Patterson-UTI Energy, Inc., detailing the major types of shareholders and their approximate ownership percentages based on the most recent data.

Patterson-UTI Energy, Inc. Leadership

The leadership team at Patterson-UTI Energy, Inc. is responsible for the strategic direction and operational management of the company. Key figures include:

• Michael Holcomb: President and Chief Executive Officer
• Andy Smith: Chief Financial Officer

These individuals, along with other members of the executive team and the board of directors, guide the company's activities and ensure its alignment with shareholder interests.

Patterson-UTI Energy, Inc. (PTEN) Mission and Values

Patterson-UTI Energy, Inc. aims to be a leading provider of oilfield services through innovation, efficiency, and a commitment to safety and sustainability. The company's core values emphasize integrity, teamwork, and delivering exceptional value to its customers and stakeholders.

Patterson-UTI Energy, Inc.'s Core Purpose

Official mission statement

While a specific, formal mission statement for Patterson-UTI Energy, Inc. isn't explicitly available in recent sources, their actions and stated priorities reflect an overarching mission focused on:

• Providing comprehensive drilling and pressure pumping services to the oil and natural gas industry.
• Committing to safety, operational excellence, and technological innovation.
• Creating value for shareholders, employees, and the communities in which they operate.

Vision statement

Similarly, a specific vision statement is not formally published. However, based on Patterson-UTI Energy, Inc.'s strategic initiatives and industry positioning, a deduced vision statement would likely include:

• Being recognized as a premier partner in the oil and gas industry, known for its advanced technology and reliable service.
• Driving efficiency and sustainability in energy production through continuous improvement and innovation.
• Expanding its service offerings and geographic reach to meet the evolving needs of its customers.

Company slogan/tagline

Patterson-UTI Energy, Inc. does not have a widely publicized official slogan or tagline. Instead, they emphasize their value proposition through:

• Focus on technology and integrated services.
• Commitment to safety and environmental responsibility.
• Building strong relationships with customers and partners.

To gain more insights into the company's operations and investor profile, check out: Exploring Patterson-UTI Energy, Inc. (PTEN) Investor Profile: Who’s Buying and Why?

Patterson-UTI Energy, Inc. (PTEN) How It Works

Patterson-UTI Energy, Inc. operates as a provider of drilling and pressure pumping services to exploration and production companies in North America.

Patterson-UTI Energy, Inc.'s Product/Service Portfolio

Patterson-UTI Energy, Inc.'s Operational Framework

Patterson-UTI Energy, Inc. (PTEN) focuses on delivering comprehensive drilling and pressure pumping solutions to oil and gas exploration and production companies. Their operations are structured to ensure efficiency, safety, and technological advancement.

• Contract Drilling Services: PTEN owns and operates a fleet of drilling rigs, providing services to exploration and production companies. These rigs are designed with advanced technologies such as walking capabilities and integrated data systems to enhance drilling efficiency and safety.
• Pressure Pumping Services: The company offers hydraulic fracturing services, which are critical for enhancing oil and gas production from shale formations. This involves high-pressure pumping and real-time data monitoring to optimize fracturing operations.
• Integrated Service Model: PTEN provides an integrated service model, combining drilling, pressure pumping, and other related services. This approach helps streamline operations for clients, reducing costs and improving overall efficiency.
• Technology and Innovation: The company invests in research and development to enhance its technological capabilities. This includes developing more efficient drilling techniques, improving data analytics, and enhancing safety measures.

Patterson-UTI Energy, Inc.'s Strategic Advantages

Patterson-UTI Energy, Inc. maintains a competitive edge in the oilfield services sector through several key strategic advantages:

• Advanced Technology: PTEN's investment in advanced drilling technologies and data analytics provides a competitive advantage, enabling more efficient and safer operations.
• Integrated Service Offerings: By offering a comprehensive suite of services, PTEN can streamline operations for its clients, reducing costs and improving overall efficiency.
• Strong Customer Relationships: The company focuses on building and maintaining strong relationships with its clients, which leads to repeat business and long-term contracts.
• Geographic Footprint: With operations in key oil and gas regions, PTEN is well-positioned to serve a wide range of clients and capitalize on regional growth opportunities.

For more information about the company's values, review: Mission Statement, Vision, & Core Values of Patterson-UTI Energy, Inc. (PTEN).

Patterson-UTI Energy, Inc. (PTEN) How It Makes Money

Patterson-UTI Energy, Inc. primarily generates revenue through its drilling services and directional drilling services. The company also earns revenue from its contract drilling business.

Patterson-UTI Energy, Inc.'s Revenue Breakdown

Patterson-UTI Energy, Inc. merged with NexTier Oilfield Solutions in late 2023, therefore it is challenging to provide precise revenue breakdowns for specific segments of Patterson-UTI Energy, Inc. as of April 2025 using exclusively 2024 data. However, a general overview can be given based on the business activities of the company:

Patterson-UTI Energy, Inc.'s Business Economics

Patterson-UTI Energy, Inc.'s business economics are influenced by several key factors:

• Dayrates for Drilling Rigs: The prices Patterson-UTI Energy, Inc. charges for its drilling rigs significantly impact its revenue. These dayrates are sensitive to the supply and demand dynamics within the oil and gas industry.
• Drilling Activity Levels: The overall level of drilling activity in major oil and gas basins directly affects the demand for Patterson-UTI Energy, Inc.'s services. Higher activity translates to increased utilization of their rigs and services.
• Technological Advancements: Innovation in drilling technologies can provide a competitive edge. Companies that adopt and implement advanced technologies may command higher prices and greater market share.
• Operational Efficiency: Managing operational costs, such as rig maintenance and labor, is crucial for profitability. Efficient operations can improve margins even when dayrates are under pressure.
• Mergers and Acquisitions: Patterson-UTI Energy, Inc.’s merger with NexTier Oilfield Solutions in late 2023 changes the business economics of the company by creating economies of scale.

Patterson-UTI Energy, Inc.'s Financial Performance

Key aspects of Patterson-UTI Energy, Inc.'s financial performance include:

• Revenue Trends: Monitoring the growth or decline in revenue from its various service lines provides insights into the company's ability to capitalize on market opportunities.
• Profit Margins: Analyzing gross and net profit margins indicates the efficiency of operations and the ability to manage costs effectively.
• Capital Expenditures: Investments in new rigs or upgrades to existing equipment reflect the company's commitment to maintaining a competitive fleet and its expectations for future demand.
• Debt Levels: Managing debt is critical, especially in a cyclical industry. High debt levels can constrain the company's ability to invest in growth or weather downturns.
• Cash Flow: Strong cash flow from operations is essential for funding capital expenditures, repaying debt, and potentially returning value to shareholders through dividends or share repurchases.

For more information about Patterson-UTI Energy, Inc., you might be interested in: Mission Statement, Vision, & Core Values of Patterson-UTI Energy, Inc. (PTEN).

Patterson-UTI Energy, Inc. (PTEN) Market Position & Future Outlook

Patterson-UTI Energy, Inc. operates within the competitive oilfield services sector, facing both opportunities for growth and significant challenges. The company's future success hinges on its ability to capitalize on technological advancements and adapt to fluctuating market conditions. For more in-depth insights, check out: Exploring Patterson-UTI Energy, Inc. (PTEN) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

Patterson-UTI Energy, Inc. holds a significant position in the oilfield services industry, characterized by:

• A large fleet of drilling rigs, providing a strong base for operations.
• Focus on technological innovation to improve drilling efficiency and reduce costs.
• Strategic positioning in key shale plays across the United States.
• Commitment to safety and environmental stewardship.