Patterson Up After Fracking Work Beats Estimates: Houston MoverDavid Wethe
Patterson-UTI Energy Inc. climbed the most in more than three years after reporting sales from hydraulic fracturing work that surpassed analysts’ expectations.
Patterson rose 10 percent to $22.90 at the close in New York, the biggest gain for the Houston-based company since April 21, 2009.
Fourth-quarter hydraulic fracturing revenue rose 16 percent from the third quarter to $212 million, the company said in a statement. That’s higher than the $177 million expected from Scott Gruber, an analyst at Sanford C. Bernstein & Co. in New York, according to a note to investors.
“Patterson posted encouraging 4Q results suggesting activity in North America is recovering and Patterson is gaining share, with particularly good results for pressure pumping,” Gruber wrote today.
The company provides drilling rigs and a pressure-pumping technique known as hydraulic fracturing, which blasts water mixed with sand and chemicals underground to free trapped hydrocarbons from shale formations.
The company said it added 13,500 horsepower of fracking equipment in a quarter when several fracking service providers have stopped adding gear and are parking some unused equipment, according to the statement.
“Congratulations, guys, on making all the other pressure pumpers look like dorks,” Marshall Adkins, an analyst at Raymond James & Associates Inc. in Houston, said today on a company conference call with analysts and investors.