Patterson-UTI Energy: 2Q26 First Take - ALERT

Research evidence excerpt

Patterson-UTI Energy: 2Q26 First Take - ALERT

J P M O R G A N North America Equity Research

29 July 2026

Patterson-UTI Energy Underweight

PTEN, PTEN US

2Q26 First Take - ALERT Price (29 Jul 26):$9.33

Oil & Gas Exploration & Production

EBITDA Results. Adj. EBITDA $232mm v. JPMe/STe of $220mm. Arun Jayaram AC

(1-212) 622-8541

JPM View: Stock Reaction – Slightly Positive. PTEN had previously arun.jayaram@jpmchase.com

preannounced positive 2Q26 results, but reported results still came in 5% ahead of Sowmya Vemulapalli

expectations. While we sensed a relatively high bar for the print, we believe the 7% (1-212) 270-4660

higher implied 3Q26 EBITDA guide vs. JPMe/STe should be enough to support a sowmya.vemulapalli@jpmchase.com

slightly positive relative day for the shares. The only fly in the ointment was a Jason Kim

meaningful FCF miss (-$100mm vs. JPMe -$26mm), owing to a significant (1-212) 622-1408

jason.b.kim@jpmchase.com

working capital headwind of $166mm, though PTEN anticipates improved free J.P. Morgan Securities LLC

cash flow in 2H26 and 2027. PTEN delivered an upside 2Q26 print, with EBITDA

of $232mm topping JPMe and STe estimates by +5% and exceeding the company’s

revised 2Q26 guidance of $220mm. This performance confirms the inflection in

U.S. shale activity and tailwinds from higher pricing and increased rig activations,

as highlighted in PTEN’s May Investor deck. The upside EBITDA print was driven

by across-the-board strength and the continuation of strong execution patterns,

with Completion Services contributing an additional $6mm, Drilling Products

$5mm, and Drilling Services $4mm. PTEN noted it has already secured new

contracts for incremental rigs and is actively preparing them for operation, while

its frac fleets are completely booked.