Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q2 2023 Results Conference Call July 27, 2023 10:00 AM ET

Company Participants

Mike Drickamer - VP, IR

Andy Hendricks - President, CEO & Director

Andrew Smith - EVP & CFO

Mike Holcomb - Chief Operating Officer

Conference Call Participants

Arun Jayaram - JPMorgan

Kurt Hallead - Benchmark

Derek Podhaizer - Barclays

Keith MacKey - RBC Capital Markets

Saurabh Pant - Bank of America

Jim Rollyson - Raymond James

John Daniel - Daniel Energy Partners

Dan Kutz - Morgan Stanley

Operator

Thank you for standing by. At this time, I would like to welcome everyone to the Patterson-UTI Energy Second Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remark, there will be a question-and-answer session. [Operator Instructions] Thank you.

Mike Drickamer, Vice President of Events to Relations. You may begin your conference.

Mike Drickamer

Thank you, Cheryl. Good morning. And on behalf of Patterson-UTI Energy, I'd like to welcome you to today's conference call to discuss the results for the three months ended June 30, 2023. Participating in today's call will be Andy Hendricks, Chief Executive Officer; Andy Smith, Chief Financial Officer; and Mike Holcomb, Chief Operating Officer.

A quick reminder that statements made in this conference call that state the Company's or management's plans, intentions, targets, beliefs, expectations or predictions for the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties as disclosed in the Company's SEC filings, which should cause the Company's actual results to differ materially.

The Company undertakes no obligation to publicly update or revise any forward-looking statements. Statements made in this conference call include non-GAAP financial measures. Required reconciliations to GAAP financial measures are included on our website, patenergy.com and in the Company's press release issued prior to this conference call.

And now, it is my pleasure to turn the call over to Andy Hendricks for some opening remarks. Andy?

Andy Hendricks

Thanks Mike. Good morning, and welcome to Patterson-UTI's second quarter conference call. Our drilling business performed very well with sequential increases in both revenues and margins. Contract renewals favorably impacted our average revenue and adjusted margin on a per day basis, offsetting the slight decline in our rig count.

The improvement in contract drilling revenues and margin during the second quarter met our expectation and our rig count outperformed the broader industry decrease. The decline in industry activity had a more significant impact on our pressure pumping business with volatility and white space impacting results.