Onshore contract driller, Patterson-UTI Energy Inc. (NASDAQ: PTEN) has completed the purchase of pressure pumping operations − based in East Texas – from a privately held firm.
Patterson-UTI revealed that the purchase comprised 31,500 horsepower of hydraulic fracturing equipment. The acquisition has provided the company with a new operational base to efficiently carry out drilling activities in East Texas and Louisiana. Considering this buyout, the total capacity of the company's hydraulic fracturing equipment is roughly 790,000 horsepower.
Patterson-UTI's rig data shows that almost 50% of its U.S. horizontal drilling rigs are located in Texas. The added pressure pumping operations should support the company's existing pressure pumping operations that provide well services in the Permian, Barnett and Eagle Ford basins. The company also has a significant presence in the Marcellus and Utica shale plays.
Patterson-UTI is a major onshore contract driller in the U.S. with approximately 330 land-based rigs that operate primarily in the oil and natural gas producing regions of North America.
New and well-maintained rigs, along with other advanced equipment, provide Patterson-UTI an edge over its competitors and help it to endure the ongoing volatility. Moreover, Patterson-UTI's growing premium land rig fleet and the expected rise in demand for such services should lead to an uptrend in share price over the near term.
Patterson-UTI currently holds a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months.
One can also look at players in the same industry like Pioneer Energy Services Corp. (NYSE: PES), Nabors Industries Ltd. (NYSE: NBR) and Parker Drilling Co. (NYSE: PKD). Pioneer Energy sports a Zacks Rank #1 (Strong Buy), while Nabors Industries and Parker Drilling carry the same rank as Patterson-UTI.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
PATTERSON-UTI (NASDAQ: PTEN): Free Stock Analysis Report
NABORS IND (NYSE: NBR): Free Stock Analysis Report
PIONEER EGY SVC (NYSE: PES): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research