PTEN · 10-Q · 2026Q1 · Full report

Macroeconomic Factors Impact

PATTERSON UTI ENERGY INC · 2026-04-28 · Importance 47 · Surprise 48

The company identifies commodity price volatility, geopolitical events and trade policy uncertainty as primary drivers of demand for its services; oil averaged $72.74/bbl in Q1 2026 (vs. $59.62/bbl in Q4 2025) and closed at $91.06/bbl on April 20, 2026, while Henry Hub natural gas averaged $4.71/MMBtu in Q1 2026 (vs. $3.73/MMBtu in Q4 2025). Management notes high market volatility in Q1 2026 driven largely by instability in the Middle East (including the conflict with Iran) that could support increased North American activity in H2 2026 as operators reassess capital allocation. The company discloses a U.S. contract drilling backlog of approximately $260 million as of March 31, 2026, of which ~7% is reasonably expected to remain at March 31, 2027. Management explicitly links E&P capital budgets and broader macroeconomic conditions to its revenues, profitability and cash flows and warns that prolonged low commodity prices or reduced access to capital by customers could materially reduce demand for its services.

Key facts

• Oil prices averaged $59.62 per barrel in the fourth quarter of 2025.
• Natural gas prices averaged $3.73 per MMBtu in the fourth quarter of 2025 based on the Henry Hub Spot Market Price.
• As of March 31, 2026, oil prices averaged $72.74 per barrel in the first quarter of 2026.
• Oil prices closed at $91.06 per barrel on April 20, 2026.
• Natural gas prices averaged $4.71 per MMBtu in the first quarter of 2026 based on the Henry Hub Spot Market Price.
• Natural gas prices closed at $2.81 per MMBtu on April 20, 2026 based on the Henry Hub Spot Market Price.