PTEN · 10-Q · 2026Q1 · Full report

Operating Expense Trends

PATTERSON UTI ENERGY INC · 2026-04-28 · Importance 71 · Surprise 82

Corporate general and administrative expense rose to $46.4 million in Q1 2026, up 9.8% YoY, driven by higher share‑based compensation related to cash‑settled liability awards and employee separation costs. Drilling Services G&A rose sharply to $7.1 million in Q1 2026 (up ~80% YoY) primarily due to internal reorganization initiatives and employee separation costs. Completion Services benefited from cost reductions, with G&A declining to $7.3 million in Q1 2026 (down 35.8% YoY). Other operating (income) expense was affected by a $4.5 million reversal of cumulative compensation costs related to performance‑based restricted stock units in Q1 2026.

Key facts

• Corporate general and administrative increased sequentially primarily due to higher share‑based compensation expense related to cash-settled liability awards and employee separation costs incurred during the first quarter of 2026.
• Interest expense, net of amount capitalized, for Corporate was $(17,485) thousand for the three months ended March 31, 2026.
• We recorded a $4.5 million reversal of cumulative compensation costs associated with certain performance-based restricted stock units during the first quarter of 2026.
• Interest income for Corporate was $2,765 thousand for the three months ended March 31, 2026.
• For the three months ended March 31, 2026, general and administrative expense in Corporate was $46,411 thousand.
• Other operating expense (income), net in the fourth quarter of 2025 reflected a favorable contract settlement for completion services.
• General and administrative expense in drilling services was $7,097 thousand for the three months ended March 31, 2026.
• General and administrative expense in completion services was $7,330 thousand for the three months ended March 31, 2026.

Impact estimates