PTEN · 10-Q · 2026Q1 · Full report
Supply Chain Commitments
PATTERSON UTI ENERGY INC · 2026-04-28 · Importance 50 · Surprise 24
As of March 31, 2026 Patterson-UTI had commitments to purchase major equipment totaling approximately $128 million, reflecting near‑term capital procurement plans. The completion services segment has minimum proppant purchase agreements with a remaining obligation of approximately $21.7 million (about $16.9 million for the remainder of 2026 and $4.8 million for 2027). Management warns of supply‑side pressures from tariffs, trade policy uncertainty and inflation that could increase input costs for drill pipe, parts and electronics. The filing also references higher raw material costs (notably tungsten powder for certain matrix bit applications) as drivers of higher capex and operating cost pressures in drilling products.
Key facts
- As of March 31, 2026 commitments to purchase major equipment totaled approximately $128 million.
- As of March 31, 2026, remaining minimum obligation under proppant purchase agreements was approximately $21.7 million, of which approximately $16.9 million relates to the remainder of 2026 and $4.8 million relates to 2027.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | -1.9% | As of March 31, 2026 commitments to purchase major equipment totaled approximately $128 million. |
| liability | negative | committed | -0.3% | As of March 31, 2026, remaining minimum obligation under proppant purchase agreements was approximately $21.7 million, of which… |