Patterson-UTI Energy, Inc. (NASDAQ: PTEN) has reported its financial results for the quarter ended June 30, 2024. The company's total revenue for the period stood at $1.3 billion, with net income attributable to common stockholders of $11 million, or $0.03 per share.
Adjusted EBITDA for the quarter was $324 million, excluding $11 million in merger and integration expenses. Year-to-date through June 30, 2024, the company generated cash from operations of $563 million and free cash flow of $206 million.
In terms of shareholder returns, the company returned $164 million to shareholders in the second quarter and $295 million in the first half of the year. It confirmed its expectation to return at least $400 million to shareholders in 2024. Patterson-UTI also used $132 million to repurchase 12 million shares in the second quarter and had $819 million in remaining share repurchase authorization as of June 30, 2024.
The company declared a quarterly dividend on its common stock of $0.08 per share, payable on September 16, 2024, to holders of record as of September 3, 2024.
In terms of operational performance, Patterson-UTI's U.S. contract drilling beat expectations on strong margins, with revenue per day for the highest quality rigs remaining steady in the first half of the year. The company's electric frac technology delivered strong operational results and was well-received by customers. However, there were short-term activity declines in the natural gas basins.
The drilling services segment reported total revenue of $440 million, with the U.S. contract drilling revenue at $378 million. The average rig revenue per operating day in U.S. contract drilling was $36,430 in the quarter.
Completion services revenue totaled $805 million in the second quarter, with revenue and adjusted gross profit impacted by slightly higher than anticipated calendar white space across several fleets. Patterson-UTI continued to grow its electric frac equipment and expects it to increase as a percentage of pump hours in the third quarter.
Drilling products revenue totaled $86 million, with most of the decline in revenue attributed to normal spring breakup in Canada. However, the segment reported additional market share gains and margin growth.
Looking ahead, the company expects relatively steady industry drilling activity for the rest of the year. It anticipates customers to continue using completion activity to manage annual budgets, impacting frac activity. In the drilling services segment, it expects U.S. contract drilling to operate an average of 108 U.S. rigs in the third quarter, with adjusted gross profit per operating day of approximately $15,000.
Patterson-UTI remains committed to delivering industry leading capital efficiency and free cash flow no matter the macro scenario and is optimistic about its future growth opportunities.
The company's quarterly conference call to discuss the operating results for the quarter ended June 30, 2024, is scheduled for July 25, 2024, at 9:00 a.m. Central Time. The market has reacted to these announcements by moving the company's shares -2.5% to a price of $9.93. Check out the company's full 8-K submission here.
