UPDATE: Miller Tabak Downgrades Patterson UTI to Sell

Miller Tabak lowers its rating on Patterson UTI

to Sell from Buy to Sell on reduced earnings estimates and competitor shares with similar valuation for more optimal oil exposure. Miller Tabak says, "PTEN is more exposed to the decline of gas rigs than others in our coverage, particularly to the Marcellus shale where activity is expected to trend lower through 2012. We do not expect Marcellus drilling to fall steeply this year with continued support from the need to meet drilling requirements to hold acreage in the dry gas portions of the play and from a focus on liquids rich natural gas in southwestern Pa. But, the combination of a gradual activity downtrend in increased capacity in the region has already hit pricing particularly for fracturing and is likely to continue to exert downward pressure on frac pricing in the region as 2012 progresses and probably into 2013." PTEN closed at $18.90 a share on Friday.