PATTERSON UTI ENERGY INCPTEN
PATTERSON UTI ENERGY INC Segments Disclosure
Business Segments
Our Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer, who has ultimate responsibility for evaluating operating performance, allocating resources, and making strategic and operational decisions for the company. Our business is organized based on the services and products we provided in three segments: (i) drilling services, (ii) completion services, and (iii) drilling products. The CODM evaluates segment performance based primarily on segment operating income (loss). This measure is used to assess operating results and to make decisions regarding the allocation of resources among segments.
Drilling Services — represents our contract drilling, directional drilling, oilfield technology and electrical controls and automation businesses.
Completion Services — represents our hydraulic fracturing, completion support services, wireline and pumpdown services, and cementing businesses.
Drilling Products — represents our manufacturing and distribution of drill bits business.
Our results for the year ended December 31, 2025 and December 31, 2024 are not comparable for our Completion Services and Drilling Products reportable segments because results for 2023 include a partial period beginning on the closing date for each transaction.
Geographic Information
Consolidated revenues by country based on sales destination of the products or services for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenue: | |||||||||||||||||
| United States | $ | 4,689,212 | $ | 5,249,154 | $ | 4,057,212 | |||||||||||
| Canada | 34,748 | 33,518 | 12,501 | ||||||||||||||
| Colombia | 27,555 | 12,223 | 48,592 | ||||||||||||||
| Other Countries | 75,109 | 83,016 | 28,151 | ||||||||||||||
| Total revenues | $ | 4,826,624 | $ | 5,377,911 | $ | 4,146,456 | |||||||||||
Property and equipment, net by country based on the location for the years ended December 31, 2025 and 2024 are as follows (in thousands):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Property and equipment, net: | |||||||||||
| United States | $ | 2,687,359 | $ | 2,950,342 | |||||||
| Canada | 11,612 | 12,695 | |||||||||
| Colombia | 4,418 | 35,154 | |||||||||
| Other Countries | 7,648 | 12,151 | |||||||||
| Property and equipment, net | $ | 2,711,037 | $ | 3,010,342 | |||||||
Major Customer — During 2025, one customer accounted for approximately $597 million or approximately 12% of our consolidated operating revenues. These revenues were earned in the drilling services, completion services, and drilling products businesses. During 2024, one customer accounted for approximately $605 million or 11% of our consolidated operating revenues. These revenues were earned in the drilling services, completion services and drilling products businesses. During 2023, one customer accounted for approximately $588 million or 14% of our consolidated operating revenues. These revenues were earned in both drilling services and completion services businesses.
The following tables summarize selected financial information relating to our business segments (in thousands):
| Drilling Services | Completion Services | Drilling Products | Total | ||||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Revenues from external customers | $ | 1,557,642 | $ | 2,892,247 | $ | 343,707 | $ | 4,793,596 | |||||||||||||||
Direct operating costs (1) | 977,234 | 2,461,539 | 196,130 | 3,634,903 | |||||||||||||||||||
| Selling, general and administrative | 16,079 | 39,816 | 33,167 | 89,062 | |||||||||||||||||||
Depreciation, amortization and impairment (1) | 366,763 | 463,599 | 88,301 | 918,663 | |||||||||||||||||||
Other segment items (2) | 530 | 6,700 | — | 7,230 | |||||||||||||||||||
Segment operating income (loss) (3) | $ | 197,036 | $ | (79,407) | $ | 26,109 | $ | 143,738 | |||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||||||||
| Total segment revenues from external customers | $ | 4,793,596 | |||||||||||||||||||||
Other revenues (4) | 33,028 | ||||||||||||||||||||||
| Total consolidated revenues | $ | 4,826,624 | |||||||||||||||||||||
| Reconciliation to consolidated income (loss) before income taxes: | |||||||||||||||||||||||
Segment operating income (loss) (3) | $ | 143,738 | |||||||||||||||||||||
Other (4) | (1,907) | ||||||||||||||||||||||
| Corporate | (182,661) | ||||||||||||||||||||||
| Interest income | 6,649 | ||||||||||||||||||||||
| Interest expense | (70,508) | ||||||||||||||||||||||
| Other income (expense) | 1,698 | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | (102,991) | |||||||||||||||||||||
| Drilling Services | Completion Services | Drilling Products | Total | ||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Revenues from external customers | $ | 1,727,810 | $ | 3,232,785 | $ | 351,651 | $ | 5,312,246 | |||||||||||||||
Direct operating costs (1) | 1,029,591 | 2,658,170 | 191,107 | 3,878,868 | |||||||||||||||||||
| Selling, general and administrative | 16,502 | 41,557 | 35,860 | 93,919 | |||||||||||||||||||
Depreciation, amortization and impairment (1) | 477,398 | 564,155 | 100,610 | 1,142,163 | |||||||||||||||||||
| Impairment of goodwill | — | 885,240 | — | 885,240 | |||||||||||||||||||
Other segment items (2) | — | (17,792) | — | (17,792) | |||||||||||||||||||
Segment operating income (loss) (3) | $ | 204,319 | $ | (898,545) | $ | 24,074 | $ | (670,152) | |||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||||||||
| Total segment revenues from external customers | $ | 5,312,246 | |||||||||||||||||||||
Other revenues (4) | 65,665 | ||||||||||||||||||||||
| Total consolidated revenues | $ | 5,377,911 | |||||||||||||||||||||
| Reconciliation to consolidated income (loss) before income taxes: | |||||||||||||||||||||||
Segment operating income (loss) (3) | $ | (670,152) | |||||||||||||||||||||
Other (4) | (87) | ||||||||||||||||||||||
| Corporate | (219,498) | ||||||||||||||||||||||
| Interest income | 5,729 | ||||||||||||||||||||||
| Interest expense | (71,963) | ||||||||||||||||||||||
| Other income (expense) | (975) | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | (956,946) | |||||||||||||||||||||
| Drilling Services | Completion Services | Drilling Products | Total | ||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Revenues from external customers | $ | 1,919,759 | $ | 2,017,440 | $ | 134,679 | $ | 4,071,878 | |||||||||||||||
Direct operating costs (1) | 1,119,200 | 1,567,940 | 81,555 | 2,768,695 | |||||||||||||||||||
| Selling, general and administrative | 15,014 | 26,050 | 11,158 | 52,222 | |||||||||||||||||||
Depreciation, amortization and impairment (1) | 364,312 | 283,230 | 48,467 | 696,009 | |||||||||||||||||||
Other segment items (2) | (769) | — | — | (769) | |||||||||||||||||||
Segment operating income (loss) (3) | $ | 422,002 | $ | 140,220 | $ | (6,501) | $ | 555,721 | |||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||||||||
| Total segment revenues from external customers | $ | 4,071,878 | |||||||||||||||||||||
Other revenues (4) | 74,578 | ||||||||||||||||||||||
| Total consolidated revenues | $ | 4,146,456 | |||||||||||||||||||||
| Reconciliation to consolidated income (loss) before income taxes: | |||||||||||||||||||||||
Segment operating income (loss) (3) | $ | 555,721 | |||||||||||||||||||||
Other (4) | 2,829 | ||||||||||||||||||||||
| Corporate | (206,596) | ||||||||||||||||||||||
| Interest income | 6,122 | ||||||||||||||||||||||
| Interest expense | (52,870) | ||||||||||||||||||||||
| Other income (expense) | 1,898 | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | 307,104 | |||||||||||||||||||||
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(2) Other segment items for each reportable segment includes other operating expenses (income), such as legal accruals and settlements, and income (loss) from an unconsolidated joint venture.
(3) Segment operating income (loss) is our measure of segment profitability. It is defined as revenue less operating expenses, selling, general and administrative expenses, depreciation, amortization and impairment expense, impairment of goodwill and other operating expenses (income).
(4) Other includes our oilfield rentals business, prior to its divestiture in April 2025, and oil and natural gas working interests.
Other business segment information
(1) Corporate assets primarily include cash on hand and certain property and equipment.| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Capital expenditures: | |||||||||||||||||
| Drilling Services | $ | 236,517 | $ | 264,667 | $ | 334,780 | |||||||||||
| Completion Services | 271,528 | 320,329 | 214,746 | ||||||||||||||
| Drilling Products | 61,421 | 61,687 | 24,572 | ||||||||||||||
| Segment capital expenditures | $ | 569,466 | $ | 646,683 | $ | 574,098 | |||||||||||
| Other | 10,954 | 21,813 | 24,645 | ||||||||||||||
| Corporate | 8,609 | 9,890 | 16,947 | ||||||||||||||
| Total capital expenditures | $ | 589,029 | $ | 678,386 | $ | 615,690 | |||||||||||
| Identifiable assets: | |||||||||||||||||
| Drilling Services | $ | 1,865,598 | $ | 2,047,986 | $ | 2,368,604 | |||||||||||
| Completion Services | 2,341,232 | 2,468,707 | 3,835,699 | ||||||||||||||
| Drilling Products | 1,018,867 | 966,200 | 1,011,870 | ||||||||||||||
| Segment assets | $ | 5,225,697 | $ | 5,482,893 | $ | 7,216,173 | |||||||||||
| Other | 29,418 | 55,580 | 59,221 | ||||||||||||||
Corporate (1) | 315,351 | 294,993 | 144,637 | ||||||||||||||
| Total assets | $ | 5,570,466 | $ | 5,833,466 | $ | 7,420,031 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 13, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 13, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 13, 2017 | |
| 2015 | Feb 10, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.