Patterson-UTI climbs after RBC upgrades to 'outperform'

Nextier Oilfield Solutions

10/07/2023 12:45

** Shares of oilfield services company Patterson-UTI Energy
 PTEN.O  up 2% pre-market at $13.26 
    ** Brokerage RBC Capital Markets upgrades PTEN to
"outperform" from "sector perform" after the company announced
two deals
    ** Last week, PTEN said it would buy privately-held Ulterra
Drilling Technologies, less than a month after Patterson-UTI and
NexTier Oilfield Solutions  NEX.N  agreed to merge to form a
$5.4 bln oilfield services firm
    ** RBC says its PTEN's 2024 free cash flow (FCF) per share
metrics have improved by 3% since the announcement of the NEX
deal
    ** Brokerage also says Ulterra deal provides PTEN a foothold
in key international drill bit markets, including the Middle
East and Latin America
    ** 10 of 16 brokerages rate the stock "buy" or higher and 6
"hold"; their median PT is $17 - Refintiv data 
    ** PTEN shares down 22.7% YTD, as of Friday's close

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))