PattersonUTI Energy Inc. (PTEN, Financial) filed Quarterly Report for the period ended 2011-09-30.
Pattersonuti Energy Inc. has a market cap of $3.39 billion; its shares were traded at around $21.77 with a P/E ratio of 11.46 and P/S ratio of 2.32. The dividend yield of Pattersonuti Energy Inc. stocks is 0.92%. Pattersonuti Energy Inc. had an annual average earning growth of 13.9% over the past 10 years.
Total revenues increased as a result of increased production and higher prices for oil and liquids. Average daily production increased primarily due to the addition of new wells. Depletion and impairment expense in 2011 includes approximately $1.4 million of oil and natural gas property impairments compared to approximately $119,000 of oil and natural gas property impairments in 2010. Depletion expense increased approximately $627,000 in 2011 compared to 2010 primarily due to increased oil production.
Revenues and direct operating costs increased in 2011 compared to 2010 as a result of an increase in the number of operating days and increases in average revenue and direct operating costs per operating day. Average revenue per operating day increased in 2011 primarily due to increases in contractual dayrates. Average direct operating costs per operating day increased in 2011 due primarily to higher repairs, maintenance and labor costs. These costs increased primarily as a result of cost inflation in our industry and, in connection with operating our conventional rig fleet, high levels of repairs and maintenance. The increase in operating days was largely due to increased demand resulting from higher oil prices. Capital expenditures were incurred in 2011 and 2010 to build new drilling rigs, to modify and upgrade our drilling rigs and to acquire additional related equipment such as top drives, drill pipe, drill collars, engines, fluid circulating systems, rig hoisting systems and safety enhancement equipment. Depreciation expense increased as a result of capital expenditures. Depreciation and impairment expense included approximately $4.3 million in 2011 and approximately $4.2 million in 2010 of impairment charges related to drilling equipment on drilling rigs that were removed from our marketable fleet. We removed 22 rigs from our marketable fleet in 2011 and removed four rigs from our marketable fleet in 2010.
Total revenues increased as a result of increased production and higher prices for oil and liquids. Oil production increased primarily due to the addition of new wells. Depletion and impairment expense in 2011 includes approximately $2.8 million of oil and natural gas property impairments compared to approximately $789,000 of oil and natural gas property impairments in 2010. Depletion expense increased approximately $2.5 million in 2011 compared to 2010 primarily due to increased oil production.
Our revenue, profitability, financial condition and rate of growth are substantially dependent upon prevailing prices for oil and natural gas and expectations about future pricing. For many years, oil and natural gas prices and markets have been extremely volatile. Prices are affected by market supply and demand factors as well as international military, political and economic conditions, and the ability of OPEC to set and maintain production and price targets. All of these factors are beyond our control. Historically, market prices for natural gas have had the greatest impact on demand for our contract services. During 2008, the monthly average market price of natural gas (monthly average Henry Hub price as reported by the United States Energy Information Administration) peaked in June at $13.06 per Mcf before rapidly declining to an average of $5.99 per Mcf in December. In 2009, the monthly average market price of natural gas declined further to a low of $3.06 per Mcf in September. This decline in the market price of natural gas resulted in our customers significantly reducing their drilling activities beginning in the fourth quarter of 2008, and drilling activities remained low throughout 2009 before beginning to recover in 2010. Since then, oil prices have risen significantly and activity levels have increased substantially in shale and other plays directed at oil and liquids. Construction of new land drilling rigs in the United States during the last ten years has significantly contributed to excess capacity. As a result of these factors, our average number of rigs operating has declined from historic highs. We expect oil and natural gas prices to continue to be volatile and to affect our financial condition, operations and ability to access sources of capital. Low market prices for oil and natural gas would likely result in lower demand for our drilling rigs and pressure pumping services and adversely affect our operating results, financial condition and cash flows.
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Pattersonuti Energy Inc. has a market cap of $3.39 billion; its shares were traded at around $21.77 with a P/E ratio of 11.46 and P/S ratio of 2.32. The dividend yield of Pattersonuti Energy Inc. stocks is 0.92%. Pattersonuti Energy Inc. had an annual average earning growth of 13.9% over the past 10 years.
Highlight of Business Operations:
Revenues and direct operating costs increased in 2011 compared to 2010 as a result of an increase in the number of operating days and increases in average revenue and direct operating costs per operating day. Average revenue per operating day increased in 2011 primarily due to increases in contractual dayrates. Average direct operating costs per operating day increased in 2011 due primarily to higher repairs, maintenance and labor costs. These costs increased primarily as a result of cost inflation in our industry and, in connection with operating our conventional rig fleet, high levels of repairs and maintenance. The increase in operating days was largely due to increased demand resulting from higher oil prices. Capital expenditures were incurred in 2011 and 2010 to build new drilling rigs, to modify and upgrade our drilling rigs and to acquire additional related equipment such as top drives, drill pipe, drill collars, engines, fluid circulating systems, rig hoisting systems and safety enhancement equipment. Depreciation expense increased as a result of capital expenditures. Depreciation and impairment expense included approximately $4.3 million in 2011 and approximately $705,000 in 2010 of impairment charges related to drilling equipment on drilling rigs that were removed from our marketable fleet. We removed 22 rigs from our marketable fleet in 2011 and removed two rigs from our marketable fleet in 2010.Total revenues increased as a result of increased production and higher prices for oil and liquids. Average daily production increased primarily due to the addition of new wells. Depletion and impairment expense in 2011 includes approximately $1.4 million of oil and natural gas property impairments compared to approximately $119,000 of oil and natural gas property impairments in 2010. Depletion expense increased approximately $627,000 in 2011 compared to 2010 primarily due to increased oil production.
Revenues and direct operating costs increased in 2011 compared to 2010 as a result of an increase in the number of operating days and increases in average revenue and direct operating costs per operating day. Average revenue per operating day increased in 2011 primarily due to increases in contractual dayrates. Average direct operating costs per operating day increased in 2011 due primarily to higher repairs, maintenance and labor costs. These costs increased primarily as a result of cost inflation in our industry and, in connection with operating our conventional rig fleet, high levels of repairs and maintenance. The increase in operating days was largely due to increased demand resulting from higher oil prices. Capital expenditures were incurred in 2011 and 2010 to build new drilling rigs, to modify and upgrade our drilling rigs and to acquire additional related equipment such as top drives, drill pipe, drill collars, engines, fluid circulating systems, rig hoisting systems and safety enhancement equipment. Depreciation expense increased as a result of capital expenditures. Depreciation and impairment expense included approximately $4.3 million in 2011 and approximately $4.2 million in 2010 of impairment charges related to drilling equipment on drilling rigs that were removed from our marketable fleet. We removed 22 rigs from our marketable fleet in 2011 and removed four rigs from our marketable fleet in 2010.
Total revenues increased as a result of increased production and higher prices for oil and liquids. Oil production increased primarily due to the addition of new wells. Depletion and impairment expense in 2011 includes approximately $2.8 million of oil and natural gas property impairments compared to approximately $789,000 of oil and natural gas property impairments in 2010. Depletion expense increased approximately $2.5 million in 2011 compared to 2010 primarily due to increased oil production.
Our revenue, profitability, financial condition and rate of growth are substantially dependent upon prevailing prices for oil and natural gas and expectations about future pricing. For many years, oil and natural gas prices and markets have been extremely volatile. Prices are affected by market supply and demand factors as well as international military, political and economic conditions, and the ability of OPEC to set and maintain production and price targets. All of these factors are beyond our control. Historically, market prices for natural gas have had the greatest impact on demand for our contract services. During 2008, the monthly average market price of natural gas (monthly average Henry Hub price as reported by the United States Energy Information Administration) peaked in June at $13.06 per Mcf before rapidly declining to an average of $5.99 per Mcf in December. In 2009, the monthly average market price of natural gas declined further to a low of $3.06 per Mcf in September. This decline in the market price of natural gas resulted in our customers significantly reducing their drilling activities beginning in the fourth quarter of 2008, and drilling activities remained low throughout 2009 before beginning to recover in 2010. Since then, oil prices have risen significantly and activity levels have increased substantially in shale and other plays directed at oil and liquids. Construction of new land drilling rigs in the United States during the last ten years has significantly contributed to excess capacity. As a result of these factors, our average number of rigs operating has declined from historic highs. We expect oil and natural gas prices to continue to be volatile and to affect our financial condition, operations and ability to access sources of capital. Low market prices for oil and natural gas would likely result in lower demand for our drilling rigs and pressure pumping services and adversely affect our operating results, financial condition and cash flows.
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