Patterson-UTI Energy provides onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company was founded in 1978 and is based in Houston, Texas.
PTEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Patterson Uti Energy Inc. To summarize, we found that Patterson Uti Energy Inc ranked in the 96th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 5831% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PTEN, they are:
In the past 4.76 years, Patterson Uti Energy Inc has a compound free cash flow growth rate of 1.05%; that's better than 82.43% of cash flow producing equities in the Energy sector, where it is classified.
40% of the company's capital comes from equity, which is greater than merely 21.48% of stocks in our cash flow based forecasting set.
Patterson Uti Energy Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -12.62. This coverage rate is greater than that of only 7.25% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Patterson Uti Energy Inc? See GPP, SNMP, AM, PBFX, and DNR.
Patterson-UTI Energy (PTEN) announced an average of 65 drilling rigs operating for the month of June vs. 80 in May.For the quarter ending June, the Company had an average of 82 drilling rigs operating. PTEN -0.6% premarket to $3.48Source: Press Release...
Chesapeake Energy Corp's bankruptcy will pile more pain onto leading energy service and pipeline companies whose revenues were already being slammed during the latest collapse in oil prices, according to energy analysts and corporate filings. Chesapeake, the sixth-largest U.S. natural gas producer, sought protection from creditors on Sunday in U.S. Bankruptcy Court for Southern District of Texas in the biggest oil and gas bankruptcy in five years. Williams Cos, Energy Transfer and Crestwood Equity Partners have contracts with Chesapeake that face rate cuts or rejections in bankruptcy court, said Ryan Smith, a senior director at energy information provider East Daley Capital.
In this article we will check out the progression of hedge fund sentiment towards Patterson-UTI Energy, Inc. (NASDAQ:PTEN) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and […]