Patterson-UTI Energy (Patterson-UTI Energy) Operating Income : $429 Mil (TTM As of Mar. 2024)

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What is Patterson-UTI Energy Operating Income?

Patterson-UTI Energy's Operating Income for the three months ended in Mar. 2024 was $104 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $429 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Patterson-UTI Energy's Operating Income for the three months ended in Mar. 2024 was $104 Mil. Patterson-UTI Energy's Revenue for the three months ended in Mar. 2024 was $1,510 Mil. Therefore, Patterson-UTI Energy's Operating Margin % for the quarter that ended in Mar. 2024 was 6.92%.

Patterson-UTI Energy's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Patterson-UTI Energy's annualized ROC % for the quarter that ended in Mar. 2024 was 4.75%. Patterson-UTI Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 9.68%.

Patterson-UTI Energy Operating Income Historical Data

The historical data trend for Patterson-UTI Energy's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Patterson-UTI Energy Operating Income Chart

Patterson-UTI Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-438.09

-458.86

-667.19

213.10

450.87

Patterson-UTI Energy Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															125.96	112.52	79.89	132.50	104.46

Patterson-UTI Energy Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $429 Mil.

Patterson-UTI Energy (NAS:PTEN) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Patterson-UTI Energy's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	417.852 * ( 1 - 27.89% )	/	( (6415.545	+	6277.474)	/ 2 )
=	301.3130772	/	6346.5095
=	4.75 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7420.031	-	814.378	-	( 190.108	-	max(0, 1050.435	-	1485.698	+	190.108	))
=	6415.545

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7226.188	-	778.467	-	( 170.247	-	max(0, 916.901	-	1354.702	+	170.247	))
=	6277.474

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Patterson-UTI Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	360.152	/	( ( (3479.544 + max(256.947, 0))	+	(3445.362 + max(258.998, 0)) )	/	2 )
=	360.152	/	( ( 3736.491	+	3704.36 )	/	2 )
=	360.152	/	3720.4255
=	9.68 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(971.091	+	180.805	+	85.739)	-	(814.378	+	98.914	+	67.396)
=	256.947

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(872.773	+	183.178	+	71.895)	-	(778.467	+	22.016	+	68.365)
=	258.998

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Patterson-UTI Energy's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	104.463	/	1510.36
	=	6.92 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Patterson-UTI Energy Operating Income Related Terms

Thank you for viewing the detailed overview of Patterson-UTI Energy's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Patterson-UTI Energy (Patterson-UTI Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Patterson-UTI Energy Inc (NAS:PTEN) » Definitions » Operating Income

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Address

10713 West Sam Houston Parkway North, Suite 800, Houston, TX, USA, 77064

Website

https://www.patenergy.com

Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States and maintains moderately sized pressure-pumping operations primarily in Texas and the Appalachian region, plus some modest operations in Colombia. It also provides directional drilling services and tool rental services in most U.S. onshore oil and gas basins.

Executives

Tiffany Thom Cepak	director	C/O PATTERSON-UTI ENERGY, INC., 10713 WEST SAM HOUSTON PARKWAY NORTH, SU, HOUSTON TX 77064
Charles Andrew Smith	officer: EVP & Chief Financial Officer	13627 COMELY LANE, HOUSTON TX 77079
Seth David Wexler	officer: GENERAL COUNSEL AND SECRETARY	450 GEARS ROAD, SUITE 500, HOUSTON TX 77067
James Carl Stewart	director	1800 POST OAK BLVD., SUITE 450, HOUSTON TX 77056
James Michael Holcomb	officer: President-Drilling Subsidiary	450 GEARS ROAD, SUITE 500, HOUSTON TX 77067
Amy H Nelson	director	2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Drummond Robert Wayne Jr	director	1301 MCKINNEY ST, STE 1800, HOUSTON TX 77010
Leslie Ann Beyer	director	C/O NATURAL GAS SERVICES GROUP., INC., 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
Gary M. Halverson	director	1333 WEST LOOP SOUTH, SUITE 1700, HOUSTON TX 77027
Matthew Gillard	officer: President-Completions	3990 ROGERDALE RD., HOUSTON TX 77042
Blackstone Management Associates Vii L.l.c.	10 percent owner	C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Bcp Vii/bep Ii Holdings Manager L.l.c.	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Energy Management Associates Ii L.l.c.	10 percent owner	C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Bep Diamond Aggregator L.p.	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Ema Ii L.l.c.	10 percent owner	C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154