PTEN · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

PATTERSON UTI ENERGY INC · 2026-04-28 · Importance 71 · Surprise 60

As of March 31, 2026 the company had commitments under its Credit Agreement totaling $500 million and available borrowing capacity of approximately $497 million; the Credit Agreement loans and commitments were scheduled to mature on January 31, 2030. On April 24, 2026 the company entered into an assignment and amendment that (i) extended the maturity date for $450 million of revolving credit commitments from January 31, 2030 to January 31, 2031 (with up to two one-year extension options subject to conditions) and (ii) assigned $25 million of commitments from HSBC to JPMorgan Chase. The company had $1.2 billion of outstanding long-term notes at March 31, 2026 (composed of $483 million 2028 Notes, $345 million 2029 Notes and $400 million 2033 Notes) and reported net interest expense of approximately $14.7 million for the three months ended March 31, 2026. Management states it was in compliance with covenant requirements at March 31, 2026 but notes the Credit Agreement contains customary covenants and events of default that could affect liquidity if not satisfied.

Key facts

• On April 24, 2026, we entered into Assignment and Amendment No. 1 to Second Amended and Restated Credit Agreement which extends the maturity date for $450 million of revolving credit commitments from January 31, 2030 to January 31, 2031 and allows two one-year extension requests subject to certain conditions.

Impact estimates