PTEN · 10-Q · 2026Q1 · Full report

Income Tax Rate Changes

PATTERSON UTI ENERGY INC · 2026-04-28 · Importance 65 · Surprise 82

The company reported an effective income tax rate of 12.8% for the three months ended March 31, 2026, compared with 39.2% for the three months ended December 31, 2025 and 51.9% for the three months ended March 31, 2025, with management attributing the differences primarily to the impact of permanent differences against earnings between periods. Management is monitoring income tax developments including the OECD Pillar 2 legislation applicable in the United States and other jurisdictions and notes the One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025 with certain changes effective in 2025 and other changes effective after 2025. The company will incorporate the impacts of finalized regulations and authoritative guidance into future financial statements when applicable. The effective tax rate moves materially year-over-year and is identified as an item management continues to monitor across jurisdictions.

Key facts

• Our effective income tax rate for the three months ended March 31, 2026 was 12.8%.
• Our effective income tax rate for the three months ended December 31, 2025 was 39.2%.
• Our effective income tax rate for the three months ended March 31, 2025 was 51.9%.