Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Announces Quarterly Dividend of $0.10

Key Points

• Patterson-UTI Energy declared a quarterly dividend of $0.10 per share, payable September 15 to shareholders of record September 1. The dividend implies an annualized payout of $0.40 and a 4.3% yield.
• The dividend may be financially strained: the company reported a negative payout ratio of -800%, while analysts expect next year’s earnings of $0.25 per share versus the $0.40 annual dividend.
• Second-quarter results showed a $0.05-per-share loss, missing estimates by $0.01, although revenue of $1.23 billion exceeded expectations and rose 0.7% year over year. Shares opened at $9.33, below both their 50-day and 200-day moving averages.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Investors of record on Tuesday, September 1st will be given a dividend of 0.10 per share by the oil and gas company on Tuesday, September 15th. This represents a c) annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Tuesday, September 1st.

Patterson-UTI Energy has increased its dividend by an average of 0.3%annually over the last three years. Patterson-UTI Energy has a dividend payout ratio of -800.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Patterson-UTI Energy to earn $0.25 per share next year, which means the company may not be able to cover its $0.40 annual dividend with an expected future payout ratio of 160.0%.

Patterson-UTI Energy Stock Performance

Shares of PTEN stock opened at $9.33 on Thursday. The firm has a market capitalization of $3.54 billion, a price-to-earnings ratio of -30.10 and a beta of 0.62. The company has a 50 day moving average price of $10.41 and a 200 day moving average price of $9.90. Patterson-UTI Energy has a one year low of $5.10 and a one year high of $13.08. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.63 and a current ratio of 1.84.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The oil and gas company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01). The company had revenue of $1.23 billion for the quarter, compared to analysts' expectations of $1.15 billion. Patterson-UTI Energy had a negative net margin of 2.56% and a negative return on equity of 2.32%. The firm's quarterly revenue was up .7% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.13) earnings per share. Sell-side analysts anticipate that Patterson-UTI Energy will post -0.06 EPS for the current year.

Insider Activity at Patterson-UTI Energy

In other Patterson-UTI Energy news, CEO William Andrew Hendricks, Jr. sold 250,000 shares of the business's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $11.85, for a total transaction of $2,962,500.00. Following the sale, the chief executive officer directly owned 2,823,103 shares in the company, valued at approximately $33,453,770.55. The trade was a 8.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Cesar Jaime sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $12.29, for a total transaction of $122,900.00. Following the transaction, the director owned 77,462 shares in the company, valued at $952,007.98. This represents a 11.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,007,844 shares of company stock valued at $11,922,302. 2.20% of the stock is owned by corporate insiders.

Institutional Trading of Patterson-UTI Energy

Several institutional investors have recently modified their holdings of the company. Sourcerock Group LLC raised its position in Patterson-UTI Energy by 109.2% in the second quarter. Sourcerock Group LLC now owns 13,803,775 shares of the oil and gas company's stock worth $81,856,000 after acquiring an additional 7,205,652 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Patterson-UTI Energy by 110.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 10,559,219 shares of the oil and gas company's stock valued at $64,517,000 after acquiring an additional 5,551,276 shares during the last quarter. UBS Group AG grew its holdings in shares of Patterson-UTI Energy by 121.2% in the 4th quarter. UBS Group AG now owns 8,320,544 shares of the oil and gas company's stock worth $50,839,000 after acquiring an additional 4,558,445 shares during the last quarter. Millennium Management LLC raised its position in shares of Patterson-UTI Energy by 97.7% during the third quarter. Millennium Management LLC now owns 8,989,351 shares of the oil and gas company's stock worth $46,565,000 after purchasing an additional 4,442,700 shares during the period. Finally, Principal Financial Group Inc. boosted its position in shares of Patterson-UTI Energy by 92.6% in the 4th quarter. Principal Financial Group Inc. now owns 8,515,581 shares of the oil and gas company's stock valued at $52,030,000 after purchasing an additional 4,093,636 shares during the period. Institutional investors and hedge funds own 97.91% of the company's stock.

About Patterson-UTI Energy

Patterson-UTI Energy provides a comprehensive suite of onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company's core offerings include land-based drilling rigs, directional drilling, hydraulic fracturing services, downhole tool rental and well-servicing equipment. By integrating drilling and completion capabilities, Patterson-UTI Energy offers operators a streamlined solution designed to improve operational efficiency and well performance.

Headquartered in Houston, Texas, Patterson-UTI Energy traces its origins to its founding in 1978 and was later incorporated in Delaware in 1996.

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