Patterson-UTI Energy, Inc. (NASDAQ: PTEN) last week announced its financial results for the quarter and six months ending June 30, 2021. The company reported a net loss of $0.55 per share ($103 million) in the second quarter of the year, compared to a net loss of $0.81 per share ($150 million) for a similar period in 2020. In addition, revenues for the second quarter of 2021 were $292 million, compared to $250 million in a similar period last year.
Recovering from a drastic downturn in 2020
For the six months ending June 30, 2021, the company made a net loss of $1.12 per share ($210 million) compared to a $3.10 per share (4585 million) net loss in a similar period last year. Revenues for the six months ending on June 30, 2021, were $533 million, compared to last year’s $696 million.
The financial results for the quarter and six-month period ending June 30, 2021, include pretax acquisition-related expenses of $1.1 million ($1.0 million after-tax) related to the pending acquisition of Pioneer Energy Services.
According to Andy Hendricks, Patterson-UTI’s C.E.O., the company’s financial results continue to improve as drilling and completion activity rebounds from the drastic downturn in 2020. The company’s activity has steadily improved from last summer’s lows and expects increasing activity and pricing in the second half of 2021 based on continuing customer conversations about 2Q2021.
Patterson-UTI drilling venture
Mr. Hendricks continued by saying that the company’s mean rig count in the second quarter moved from 69 rigs in the first quarter to 73 rigs in drilling. He added that the company expects its average to increase to 81 rigs during the third quarter and 83 rigs in the last quarter.
The average rig per day in 2Q2021 was $6,250. In contrast, the rig operating cost per day increased relative to the first quarter primarily due to a sales and use tax refund in the first quarter that did not recur, a smaller portion of rigs on low-cost standby status, and higher rig reactivation expenses. As a result, the average rig revenue per day for 2Q2021 was $21,210.