EX-99.2 3 pten-ex99_2.htm EX-99.2 EX-99.2

Exhibit 99.2

PATTERSON-UTI ENERGY, INC.

Non-GAAP Financial Measures

Recast Adjusted Gross Margin

(unaudited, dollars in thousands)

 

 

Three Months Ended

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

Drilling Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

489,659

 

 

$

477,727

 

 

$

461,491

 

 

$

418,025

 

 

$

363,034

 

 

$

302,270

 

Less direct operating costs

 

(281,573

)

 

 

(281,261

)

 

 

(284,587

)

 

 

(279,232

)

 

 

(245,395

)

 

 

(216,690

)

Less depreciation, amortization and impairment

 

(90,400

)

 

 

(91,293

)

 

 

(91,161

)

 

 

(88,199

)

 

 

(89,073

)

 

 

(85,683

)

GAAP gross margin

 

117,686

 

 

 

105,173

 

 

 

85,743

 

 

 

50,594

 

 

 

28,566

 

 

 

(103

)

Depreciation, amortization and impairment

 

90,400

 

 

 

91,293

 

 

 

91,161

 

 

 

88,199

 

 

 

89,073

 

 

 

85,683

 

Adjusted gross margin (1)

$

208,086

 

 

$

196,466

 

 

$

176,904

 

 

$

138,793

 

 

$

117,639

 

 

$

85,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

250,241

 

 

$

293,268

 

 

$

306,783

 

 

$

287,664

 

 

$

238,376

 

 

$

189,590

 

Less direct operating costs

 

(196,473

)

 

 

(220,116

)

 

 

(220,758

)

 

 

(211,704

)

 

 

(191,455

)

 

 

(157,468

)

Less depreciation, amortization and impairment

 

(25,976

)

 

 

(26,025

)

 

 

(24,918

)

 

 

(24,746

)

 

 

(24,713

)

 

 

(23,785

)

GAAP gross margin

 

27,792

 

 

 

47,127

 

 

 

61,107

 

 

 

51,214

 

 

 

22,208

 

 

 

8,337

 

Depreciation, amortization and impairment

 

25,976

 

 

 

26,025

 

 

 

24,918

 

 

 

24,746

 

 

 

24,713

 

 

 

23,785

 

Adjusted gross margin (1)

$

53,768

 

 

$

73,152

 

 

$

86,025

 

 

$

75,960

 

 

$

46,921

 

 

$

32,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Less direct operating costs

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Less depreciation, amortization and impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

GAAP gross margin

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Depreciation, amortization and impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted gross margin (1)

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

18,985

 

 

$

20,807

 

 

$

20,202

 

 

$

21,814

 

 

$

20,828

 

 

$

17,515

 

Less direct operating costs

 

(10,039

)

 

 

(11,282

)

 

 

(10,472

)

 

 

(9,685

)

 

 

(10,050

)

 

 

(9,054

)

Less depreciation, depletion, amortization and
  impairment

 

(9,304

)

 

 

(7,323

)

 

 

(6,001

)

 

 

(7,920

)

 

 

(6,494

)

 

 

(6,081

)

GAAP gross margin

 

(358

)

 

 

2,202

 

 

 

3,729

 

 

 

4,209

 

 

 

4,284

 

 

 

2,380

 

Depreciation, depletion, amortization and
  impairment

 

9,304

 

 

 

7,323

 

 

 

6,001

 

 

 

7,920

 

 

 

6,494

 

 

 

6,081

 

Adjusted gross margin (1)

$

8,946

 

 

$

9,525

 

 

$

9,730

 

 

$

12,129

 

 

$

10,778

 

 

$

8,461

 

 

(1)
We define “Adjusted gross margin” as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Adjusted gross margin is included as a supplemental disclosure because it is a useful indicator of our operating performance.