Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Q2 2022 Earnings Conference Call July 28, 2022 10:00 AM ET

Company Participants

Mike Drickamer - VP, IR

Andy Hendricks - CEO

Andy Smith - CFO

Conference Call Participants

Chase Mulvehill - Bank of America

Derek Podhaizer - Barclays

Don Crist - Johnson Rice

Sean Mitchell - Daniel Energy Partners

Keith Mackey - RBC Capital Markets

Operator

Good morning. My name is David and I'll be your conference operator today. At this time I'll like to welcome everyone to the Patterson-UTI Energy Second Quarter 2022 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. Mike Drickamer, Vice president of Investor Relations. You may begin your conference.

Mike Drickamer

Thank you, David. 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, 2022. Participating in today’s call will be Andy Hendricks, Chief Executive Officer; and Andy Smith, Chief Financial Officer.

A quick reminder that statements made in this conference call that state the company’s or management’s plans, intentions, 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 could cause the company’s actual results to differ materially. The company undertakes no obligation to publicly update or revise any forward-looking statement. Statements made in this conference call include non-GAAP financial measures. The required reconciliations to GAAP financial measures are included on our website www.patenergy.com and in the company’s press release issued prior to this conference call.

And now, it’s 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. Thank you for joining us today. I am pleased with our outstanding second quarter results as we've achieved significant increases in activity and pricing. Market fundamentals are strong and demand is increasing for drilling and completions equipment and services. On top of that that, the industry supply remains constrained. We expect a strong market for our services to continue and we anticipate further improvements in pricing and activity. Therefore we're increasing our forecast for 2022 consolidated adjusted EBITDA which we now expect will exceed $600 million. We're also slightly increasing our 2022 CapEx forecast to $390 million due to increasing activity including long lead items for rigs that were returned to work in 2023 along with cost inflation.