Patterson-UTI is now trading at less than 3X my cash flow per share forecast for 2011.
It will be the first Sweet 16 member to report 3rd quarter results. EPG should be $0.50 to $0.55 for the quarter.
Based on my forecast model and the fact that PTEN is getting a lot of long-term contracts in place for its top rigs, the company will generate over $7 CFPS in 2012.
IMO: Oil prices would need to fall below $60/bbl and stay there before we'll see a significant decline in onshore drilling activity.
PTEN
Re: PTEN
IMO the market doesn't get how important PTEN's pressure pumping business is. I think it is a heck of a buy under $20.
Read this: http://seekingalpha.com/article/300786- ... urce=yahoo
Read this: http://seekingalpha.com/article/300786- ... urce=yahoo
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: PTEN
Patterson-UTI Energy Beats Q3 Revs Estimates, EPS Just Misses, Sees Strong Q4 Growth; Shares Gain 3.5% 10/27 08:25 AM
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09:25 AM EDT, 10/27/2011 (MidnightTrader) -- Patterson-UTI Energy (PTEN:$21.7925,$0.9225,4.42%) reports Q3 EPS of $0.53 on revenue of $674 million. Analysts looked for EPS of $0.56 on revenue of $673.55 million.
The company said it expects to deploy an additional 66,500 horsepower in the latter part of the fourth quarter and to add approximately 140,000 horsepower for delivery in 2012. The company also said that "despite recent concerns we have heard about our industry, our average number of rigs operating has increased by 14 rigs from July to October, and we expect continued revenue growth in both drilling and pressure pumping in the fourth quarter."Shares are up 3.50% to $21.60.
Price: 21.60, Change: +0.73, Percent Change: +3.50
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09:25 AM EDT, 10/27/2011 (MidnightTrader) -- Patterson-UTI Energy (PTEN:$21.7925,$0.9225,4.42%) reports Q3 EPS of $0.53 on revenue of $674 million. Analysts looked for EPS of $0.56 on revenue of $673.55 million.
The company said it expects to deploy an additional 66,500 horsepower in the latter part of the fourth quarter and to add approximately 140,000 horsepower for delivery in 2012. The company also said that "despite recent concerns we have heard about our industry, our average number of rigs operating has increased by 14 rigs from July to October, and we expect continued revenue growth in both drilling and pressure pumping in the fourth quarter."Shares are up 3.50% to $21.60.
Price: 21.60, Change: +0.73, Percent Change: +3.50
Re: PTEN
This is why PTEN deserves to be trading at a much higher multiple.
"Our rig count has continued to increase and we expect to average approximately 230 rigs operating in October, comprised of 218 in the United States and 12 in Canada. This represents an increase of 38 rigs as compared to October 2010.
"We have continued to increase our long-term contracts coverage and have a long-term contract revenue backlog of approximately $1.7 billion for our drilling business. Based on contracts currently in place, we expect to have an average of approximately 124 rigs operating under long-term contracts during the fourth quarter of 2011 and an average of approximately 96 rigs for 2012.
The company has more revenue locked in now than during all the years I have followed the company.
"Our rig count has continued to increase and we expect to average approximately 230 rigs operating in October, comprised of 218 in the United States and 12 in Canada. This represents an increase of 38 rigs as compared to October 2010.
"We have continued to increase our long-term contracts coverage and have a long-term contract revenue backlog of approximately $1.7 billion for our drilling business. Based on contracts currently in place, we expect to have an average of approximately 124 rigs operating under long-term contracts during the fourth quarter of 2011 and an average of approximately 96 rigs for 2012.
The company has more revenue locked in now than during all the years I have followed the company.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group