PTEN · 10-Q · 2026Q1 · Full report

Impact of Inflation and Trade Policies

PATTERSON UTI ENERGY INC · 2026-04-28 · Importance 13 · Surprise 6

Management cites moderate inflationary pressures and uncertainty from enacted and proposed trade policies and tariffs (U.S. and other governments) as contributors to higher costs for certain goods, services and labor and notes trade tensions during 2025 weakened global economic conditions. The company specifically warns that prolonged trade tensions could increase costs for products and raw materials such as drill pipe, parts and electronics, and that it is actively monitoring sourcing trends for labor, supplies and equipment. As of March 31, 2026 the company also had commitments to purchase major equipment totaling approximately $128 million and minimum proppant purchase obligations of approximately $21.7 million (of which $16.9 million relates to the remainder of 2026), which could be exposed to supply/price impacts from tariffs or inflation. Management states it will monitor these macro drivers as they may affect operating costs and capital spending decisions.