Outlook & Key Projects
Management expects momentum to strengthen further in Q3 as drilling and completion activity continue to build alongside higher commodity prices. Drilling Services is expected to average approximately 100 active rigs during the third quarter, while Completion Services should benefit from near-full utilization, additional pricing gains, and continued demand for Emerald natural gas direct-drive fleets.
Although capital expenditures were increased during Q2 to support long-term growth, investment remains focused on high-return natural gas-powered equipment while active horsepower is expected to remain unchanged through year-end.
The Segment Results Analyzed
PTEN’s Completion Services remained the primary growth engine during the quarter. Revenue increased approximately 11% sequentially, while adjusted gross profit expanded 25%, driven by higher pressure pumping utilization, improved pricing, and continued growth in integrated completion services.
Drilling Services revenue increased about 6% as operating days improved through the quarter, although adjusted gross profit declined due to costs associated with the Colombia exit. Drilling Products also delivered a strong quarter, with revenue increasing approximately 14% sequentially and adjusted gross profit improving 13%, reflecting record international activity and resilient U.S. demand.
Cash Flows and Dividend
PTEN continued investing for the upcycle, maintaining its FY2026 capital expenditure guidance of ~$600 million while funding growth initiatives in drilling and completions. Management expects FCF to improve during 2H 2026 as working capital normalizes, with FY2026 FCF still projected to exceed total dividend payments. The company maintained its quarterly dividend at $0.10 per share, reflecting confidence in the durability of future cash generation.
Thanks for reading the PTEN Take Three, designed to give you three critical takeaways from PTEN's earnings report. Soon, we will present a second update on PTEN earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.
