This is why you guys pay me the Big Bucks!
I remain very bullish on the onshore drillers as a group. What I believe the market has missed on PTEN (except for Global Hunter) is the significant upside in their oilfield services subsidiary. You should all read my company profile on PTEN which can be found under the Sweet 16, just click on the PTEN logo.
I do believe that PTEN will be at or above $40/share by year-end. They are going to report a very strong first quarter an their outlook is quite bullish.
PTEN
Re: PTEN
6:22AM Patterson-UTI beats by $0.02, beats on revs (PTEN) 30.90 : Reports Q1 (Mar) earnings of $0.46 per share, $0.02 better than the Thomson Reuters consensus of $0.44; revenues rose 108.5% year/year to $567 mln vs the $551.5 mln consensus. "Activity in our drilling business continued to increase in the first quarter. Our average number of rigs operating increased to 207, including 192 in the United States and 15 in Canada. This compares to an average of 194 rigs operating in the fourth quarter of 2010, including 182 in the United States and 12 in Canada."
7:24AM Helmerich & Payne misses by $0.04, beats on revs (HP) 69.98 : Reports Q2 (Mar) earnings of $0.93 per share, excluding non-recurring items, $0.04 worse than the Thomson Reuters consensus of $0.97; revenues rose 38.3% year/year to $604 mln vs the $592.4 mln consensus. Co also announced today that it signed contracts to build and operate eight additional FlexRigs, bringing to 14 the number of additional FlexRig commitments announced since the Company's January 27, 2011, earnings release. These rigs will be built and operated in the U.S. under multi-year term contracts that provide attractive dayrates and economic returns. Since March 2010, the co has announced contracts for the construction of 45 new build FlexRigs, of which 26 have been completed. The remaining 19 rigs are expected to be delivered during calendar 2011.
7:24AM Helmerich & Payne misses by $0.04, beats on revs (HP) 69.98 : Reports Q2 (Mar) earnings of $0.93 per share, excluding non-recurring items, $0.04 worse than the Thomson Reuters consensus of $0.97; revenues rose 38.3% year/year to $604 mln vs the $592.4 mln consensus. Co also announced today that it signed contracts to build and operate eight additional FlexRigs, bringing to 14 the number of additional FlexRig commitments announced since the Company's January 27, 2011, earnings release. These rigs will be built and operated in the U.S. under multi-year term contracts that provide attractive dayrates and economic returns. Since March 2010, the co has announced contracts for the construction of 45 new build FlexRigs, of which 26 have been completed. The remaining 19 rigs are expected to be delivered during calendar 2011.
Re: PTEN
what a joke--gs is king of manipulators, imo. 
Analyst Actions: Patterson-UTI Energy Upgraded to Neutral from Sell at Goldman Sachs 04/28 07:23 AM
08:23 AM Eastern Daylight Time, 04/28/2011 (MidnightTrader) -- Patterson-UTI Energy (PTEN:$30.90,00$-0.30,00-0.96%) is reportedly upgraded to Neutral from Sell at Goldman Sachs.
The firm believes the the cycle has been pushed out in the second half of 2012 and that risk/reward is balanced.
Price target is raised to $35 from $25.
Price: 30.90, Change: 0, Percent Change: 0
http://www.midnighttrader.com
Analyst Actions: Patterson-UTI Energy Upgraded to Neutral from Sell at Goldman Sachs 04/28 07:23 AM
08:23 AM Eastern Daylight Time, 04/28/2011 (MidnightTrader) -- Patterson-UTI Energy (PTEN:$30.90,00$-0.30,00-0.96%) is reportedly upgraded to Neutral from Sell at Goldman Sachs.
The firm believes the the cycle has been pushed out in the second half of 2012 and that risk/reward is balanced.
Price target is raised to $35 from $25.
Price: 30.90, Change: 0, Percent Change: 0
http://www.midnighttrader.com
Re: PTEN
6:22AM Patterson-UTI beats by $0.02, beats on revs (PTEN) 30.90 : Reports Q1 (Mar) earnings of $0.46 per share, $0.02 better than the Thomson Reuters consensus of $0.44; revenues rose 108.5% year/year to $567 mln vs the $551.5 mln consensus. "Activity in our drilling business continued to increase in the first quarter. Our average number of rigs operating increased to 207, including 192 in the United States and 15 in Canada. This compares to an average of 194 rigs operating in the fourth quarter of 2010, including 182 in the United States and 12 in Canada."
EPG came in 5 cents per share above my forecast but cash flow per share (much more important) came in slightly below. I need to adjust my DD&A rate and current/deferred income tax split. I have a meeting today but I should be able to work on PTEN later today.
The most important news is that their active rig count and dayrates continue to move higher. The average dayrate for Q1 was $20,240 which is above my forecast.
PTEN’s Apex rigs are in very high demand and get very high dayrates.
Target price of $45 is reasonable for this one.
EPG came in 5 cents per share above my forecast but cash flow per share (much more important) came in slightly below. I need to adjust my DD&A rate and current/deferred income tax split. I have a meeting today but I should be able to work on PTEN later today.
The most important news is that their active rig count and dayrates continue to move higher. The average dayrate for Q1 was $20,240 which is above my forecast.
PTEN’s Apex rigs are in very high demand and get very high dayrates.
Target price of $45 is reasonable for this one.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group