New York, June 4, 2026, 16:05 (EDT)
Patterson-UTI Energy Inc. traded up 3.1% to $12.39 late Thursday, beating the U.S. market as oil-related prices slipped. The SPDR S&P 500 ETF added 0.4%. The United States Oil Fund, which tracks crude futures, lost 2.9%.
Patterson-UTI’s move pushed it past Halliburton, which rose 0.6%, and brought it near Baker Hughes, up 2.9%. SLB added 2.0%. Oilfield services tracked higher. The VanEck Oil Services ETF climbed 1.9%. The SPDR S&P Oil & Gas Equipment & Services ETF was up 2.2%.
Why it matters now: oil’s move isn’t tracking prices directly. Brent and U.S. crude settled down about 3% Thursday as traders weighed hopes for an Iran deal tied to an Israel-Lebanon ceasefire. But U.S. crude stockpiles dropped by 8 million barrels last week on strong exports and refinery runs, according to Reuters.
Shale drillers are facing a shrinking backlog. Drilled-but-uncompleted wells, or DUCs, dropped to the lowest level since at least 2013, Reuters said last week. Matthew Bernstein at Rystad said the low number means finishing new wells quickly is “largely unfeasible.” Brandon Myers of Novi Labs described DUCs as a “shock absorber.” Reuters
Patterson-UTI’s May investor deck laid out the plan. The company said it looked to end the second quarter with 95 active U.S. rigs, target more than 100 by the end of the year, and was talking with public and private customers to add rigs in the back half. Patterson said leading-edge dayrates—the daily rig prices—were up by a mid-single-digit percentage since early 2026.
Patterson-UTI is guiding for second-quarter adjusted EBITDA of around $220 million. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, with further adjustments for items management says aren’t part of the core business. The company set 2026 net capital spending at about $600 million, factoring in asset sales. Growth capex is expected to benefit the business mainly from 2027 onward.
Patterson-UTI posted first-quarter revenue of $1.1 billion in April, booking a net loss to common stockholders of $25 million and adjusted EBITDA of $205 million. CEO Andy Hendricks called the second quarter a “market inflection.” CFO Andy Smith pointed to “strong free cash flow potential” for the year. Patterson-UTI Energy Investors
Rigs have edged higher, but it’s still a slow climb. Baker Hughes said the U.S. rig count came to 562 as of May 29, up four for the week. But that’s still one rig less than the same week last year.
Patterson-UTI (PTEN) is pushing debt maturities out, but at a higher rate. The company said in a May SEC filing it agreed to sell $500 million of 6.050% senior notes due 2036. Proceeds are for redeeming about $482.5 million of 3.95% senior notes due 2028, plus cash and possible borrowings under its revolving credit line. The move means more expensive debt, but extra time to pay.
The rally could still run into trouble. Oil prices could fall, customer approvals could slow, or passing higher costs along might hit a wall, all of which could chill rig reactivations. Patterson-UTI has said second-quarter reactivation and mobilization costs are running $5 million to $10 million. Right now, the market is trading the stock like customers want activity, not just higher crude.
