| Industries |
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| Construction and Engineering |
| Construction Materials |
| Construction and Farm Machinery and Heavy Trucks |
| Fertilizers and Agricultural Chemicals |
| Diversified Chemicals |
| Specialty Chemicals |
| Asset Management and Custody Banks |
| Environmental Services |
| Health Care Facilities |
| Exposures |
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| Express intent |
| Military |
| Political reform |
| Intelligence |
| Provide |
| Ease |
| Regime |
| Event Codes |
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| Yield to order |
| Promise |
| Accident |
| Solicit support |
| Host meeting |
| Sports contest |
| Agree |
| Demand |
| Promise policy support |
| Offer peace proposal |
| Grant |
| Release or return |
| Wiki | Wiki Summary |
|---|---|
| Petroleum industry | The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). |
| Oil well | An oil well is a boring in the Earth that is designed to bring petroleum oil hydrocarbons to the surface. Usually some natural gas is released as associated petroleum gas along with the oil. |
| Natural gas prices | Natural gas prices, as with other commodity prices, are mainly driven by supply and demand fundamentals. However, natural gas prices may also be linked to the price of crude oil and petroleum products, especially in continental Europe. |
| Natural gas vehicle | A natural gas vehicle (NGV) is an alternative fuel vehicle that uses compressed natural gas (CNG) or liquefied natural gas (LNG). Natural gas vehicles should not be confused with autogas vehicles powered by liquefied petroleum gas (LPG), mainly propane, a fuel with a fundamentally different composition. |
| Natural gas in Ukraine | Ukraine has been estimated to possess natural gas reserves of over 1 trillion cubic meters and in 2018 was ranked 26th among countries with proved reserves of natural gas. Its total gas reserves have been estimated at 5.4 trillion cubic meters. |
| Supply and demand | In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted. |
| Drilling rig | A drilling rig is an integrated system that drills wells, such as oil or water wells, in the earth's subsurface. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells, or they can be small enough to be moved manually by one person and such are called augers. |
| Schlumberger | Schlumberger Limited (French: [ʃlum.bɛʁˈʒe, ʃlœ̃-]) is an oilfield services company. Schlumberger employees represent more than 140 nationalities working in more than 120 countries. |
| Financial condition report | In accounting, a financial condition report (FCR) is a report on the solvency condition of an insurance company that takes into account both the current financial status, as reflected in the balance sheet, and an assessment of the ability of the company to survive future risk scenarios. Risk assessment in an FCR involves dynamic solvency testing, a type of dynamic financial analysis that simulates management response to risk scenarios, to test whether a company could remain solvent in the face of deteriorating economic conditions or major disasters. |
| Trustmark (bank) | Trustmark is a commercial bank and financial services company headquartered in Jackson, Mississippi, United States, with subsidiaries Trustmark National Bank, Trustmark Investment Advisors, and Fisher Brown Bottrell Insurance. The bank's initial predecessor, The Jackson Bank, was chartered by the State of Mississippi in 1889. |
| Financial analysis | Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business or project. \nIt is performed by professionals who prepare reports using ratios and other techniques, that make use of information taken from financial statements and other reports. |
| Arithmetic | Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today. |
| Special Activities Center | The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015. |
| Operations management | Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements. |
| Operations research | Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences. |
| Bitwise operation | In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor. |
| List of components of oil drilling rigs | This article lists the main components of a petroleum onshore drilling rig. \nOffshore drilling rigs have similar elements, but are configured with a number of different drilling systems to suit drilling in the marine environment. |
| Oil platform | An oil platform, oil rig, offshore platform, or oil and/or gas production platform is a large structure with facilities to extract, and process petroleum and natural gas that lie in rock formations beneath the seabed. Many oil platforms will also contain facilities to accommodate their workforce, although it is also common for there to be a separate accommodation platform bridge linked to the production platform. |
| Jackup rig | A jackup rig or a self-elevating unit is a type of mobile platform that consists of a buoyant hull fitted with a number of movable legs, capable of raising its hull over the surface of the sea. The buoyant hull enables transportation of the unit and all attached machinery to a desired location. |
| Drilling fluid | In geotechnical engineering, drilling fluid, also called drilling mud, is used to aid the drilling of boreholes into the earth. Often used while drilling oil and natural gas wells and on exploration drilling rigs, drilling fluids are also used for much simpler boreholes, such as water wells. |
| Submersible drilling rig | A submersible drilling rig is a marine vessel design that can be floated to location and lowered onto the sea floor for offshore drilling activities.\n\n\n== Design and operation ==\nThe submersible drilling platform is supported on large pontoon-like structures. |
| Offshore drilling | Offshore drilling is a mechanical process where a wellbore is drilled below the seabed. It is typically carried out in order to explore for and subsequently extract petroleum that lies in rock formations beneath the seabed. |
| Monopolistic competition | Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. |
| Patterson-UTI | Patterson-UTI Energy provides land drilling and pressure pumping services, directional drilling, rental equipment and technology to clients in the United States and western Canada.Patterson-UTI Companies include:\n\nPatterson-UTI Drilling\nUniversal Pressure Pumping\nMS Directional\nGreat Plains Oilfield Rental\nWarrior Rig Technologies\nCurrent Power Solutions\nSuperior QC\n\n\n== History ==\nPatterson Drilling Company was founded in 1978 by Cloyce Talbott and Glenn Patterson.In 2001, Patterson Drilling acquired UTI Energy and renamed the company Patterson-UTI Energy.In September 2014, the company acquired Texas-based pressure pumping assets.In September 2016, the company acquired Warrior Rig.In April 2017, the company acquired Seventy Seven Energy. The deal included Seventy Seven's affiliates: Great Plains Oilfield Rental, Nomac Drilling (now part of Patterson-UTI Drilling), and Performance Technologies (now part of Universal Pressure Pumping).In October 2017, the company acquired MS Energy Services (now MS Directional).In February 2018, the company acquired Superior QC, a provider of software used to improve the accuracy of horizontal wellbore placement.In October 2018, the company acquired Current Power Solutions, Inc.In October 2021, Patterson-UTI announced that it has completed the previously announced acquisition of Pioneer Energy Services. |
| Competitive learning | Competitive learning is a form of unsupervised learning in artificial neural networks, in which nodes compete for the right to respond to a subset of the input data. A variant of Hebbian learning, competitive learning works by increasing the specialization of each node in the network. |
| Precision Drilling | Precision Drilling Corporation is the largest drilling rig contractor in Canada, also providing oil field rental and supplies.\n\n\n== History ==\nPrecision Drilling Ltd. |
| Competition law | Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. |
| Cournot competition | Cournot competition is an economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide on independently of each other and at the same time. It is named after Antoine Augustin Cournot (1801–1877) who was inspired by observing competition in a spring water duopoly. |
| Climbing competition | A climbing competition (or comp) is usually held indoors on purpose built climbing walls. There are three main types of climbing competition: lead, speed, and bouldering. |
| Additional Mathematics | Additional Mathematics is a qualification in mathematics, commonly taken by students in high-school (or GCSE exam takers in the United Kingdom). It is applied to a range of problems set out in a different format and wider content to the standard Mathematics at the same level. |
| Latin Extended Additional | Latin Extended Additional is a Unicode block.\nThe characters in this block are mostly precomposed combinations of Latin letters with one or more general diacritical marks. |
| Additionality | Additionality is the property of an activity being additional by adding something new to the context. It is a determination of whether an intervention has an effect when compared to a baseline. |
| Additional director general of police | Additional Director General of Police (ADGP) is an Indian Police Service rank. Though having the maximum possible 3-star police rank just like Director General of Police, ADGP's are considered same to DGP's. |
| Mergers and acquisitions | In corporate finance, mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities. As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position. |
| Liability insurance | Liability insurance (also called third-party insurance) is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy.\nOriginally, individual companies that faced a common peril formed a group and created a self-help fund out of which to pay compensation should any member incur loss (in other words, a mutual insurance arrangement). |
| Risk Factors |
|---|
| PATTERSON UTI ENERGY INC Item 1A Risk Factors |
| From time to time, we make written or oral forward-looking statements, including statements contained in this Annual Report on Form 10-K, our other filings with the SEC, press releases and reports to stockholders |
| These forward-looking statements are made pursuant to the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995 |
| These statements include, without limitation, statements relating to liquidity, financing of operations, sources and sufficiency of funds and impact of inflation |
| The words “believes,” “budgeted,” “expects,” “project,” “will,” “could,” “may,” “plans,” “intends,” “strategy,” or “anticipates,” and similar expressions are used to identify our forward-looking statements |
| We do not undertake to update, revise, or correct any of our forward-looking information |
| We include the following cautionary statement in accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statement made by us, or on our behalf |
| The factors identified in this cautionary statement are important factors (but not necessarily all of the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by us, or on our behalf |
| Where any such forward-looking statement includes a statement of the assumptions or bases underlying such forward-looking statement, we caution that, while we believe such assumptions or bases to be reasonable and make them in good faith, assumed facts or bases almost always vary from actual results |
| The differences between assumed facts or bases and actual results can be material, depending upon the circumstances |
| Where, in any forward-looking statement, we express an expectation or belief as to the future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis |
| However, there can be no assurance that the statement of expectation or belief will result, or be achieved or accomplished |
| 11 _________________________________________________________________ [49]Table of Contents Taking this into account, the following are identified as important risk factors currently applicable to, or which could readily be applicable to, us: We are Dependent on the Oil and Natural Gas Industry and Market Prices for Oil and Natural Gas |
| Our revenue, profitability and rate of growth are substantially dependent upon prevailing prices for oil and natural gas |
| For many years, oil and natural gas prices and, therefore, the level of drilling, exploration, development and production, have been extremely volatile |
| Prices are affected by: • market supply and demand, • international military, political and economic conditions, and • the ability of the Organization of Petroleum Exporting Countries, commonly known as OPEC, to set and maintain production and price targets |
| Natural gas prices fell from an average of dlra6dtta23 per Mcf in the first quarter of 2001 to an average of dlra2dtta51 per Mcf for the same period in 2002 |
| During this same period, the average number of our rigs operating dropped by approximately 50prca |
| The average market price of natural gas improved from dlra3dtta36 in 2002 to dlra8dtta98 in 2005 resulting in an increase in demand for our drilling services |
| We expect oil and natural gas prices to continue to be volatile and to affect our financial condition and operations and ability to access sources of capital |
| A significant decrease in expected market prices for natural gas could result in a material decrease in demand for drilling rigs and reduction in our operating results |
| The North American land drilling industry has experienced periods of downturn in demand over the last decade |
| During these periods, there have been substantially more drilling rigs available than necessary to meet demand |
| As a result, drilling contractors have had difficulty sustaining profit margins during the downturn periods |
| In addition to adverse effects that future declines in demand could have on us, ongoing factors which could adversely affect utilization rates and pricing, even in an environment of high oil and natural gas prices and increased drilling activity, include: • movement of drilling rigs from region to region, • reactivation of land-based drilling rigs, or • construction of new drilling rigs |
| We cannot predict either the future level of demand for our contract drilling services or future conditions in the oil and natural gas contract drilling business |
| During periods of increased demand for drilling services, the industry has experienced shortages of drill pipe, replacement parts and other related rig equipment |
| These shortages can cause the price of these items to increase significantly and require that orders for the items be placed well in advance of expected use |
| These price increases and delays in delivery may require us to increase capital and repairs expenditures in our contract drilling segment |
| Severe shortages could impair our ability to operate our drilling rigs |
| 12 _________________________________________________________________ [50]Table of Contents The Various Business Segments in Which We Operate Are Highly Competitive with Excess Capacity which may Adversely Affect Our Operating Results |
| Our land drilling and pressure pumping businesses are highly competitive |
| While not the conditions at present, often times, available land drilling rigs and pressure pumping equipment exceed the demand for such equipment |
| This excess capacity has resulted in substantial competition for drilling and pressure pumping contracts |
| The fact that drilling rigs and pressure pumping equipment are mobile and can be moved from one market to another in response to market conditions heightens the competition in the industry |
| We believe that price competition for drilling and pressure pumping contracts will continue for the foreseeable future due to the existence of available rigs and pressure pumping equipment |
| In recent years, many drilling and pressure pumping companies have consolidated or merged with other companies |
| Although this consolidation has decreased the total number of competitors, we believe the competition for drilling and pressure pumping services will continue to be intense |
| The drilling and completion fluids services industry is highly competitive |
| Price is generally the most important factor |
| Other competitive factors include the availability of chemicals and experienced personnel, the reputation of the fluids services provider in the drilling industry and relationships with customers |
| Some of our competitors have substantially more resources and longer operating histories than we have |
| During periods of increasing demand for contract drilling services, the industry experiences shortages of qualified drilling rig personnel |
| During these periods, our ability to attract and retain sufficient qualified personnel to market and operate our drilling rigs is adversely affected which negatively impacts both our operations and profitability |
| Operationally, it is more difficult to hire qualified personnel which adversely affects our ability to mobilize inactive rigs in response to the increased demand for our contract drilling services |
| Additionally, wage rates for drilling personnel are likely to increase, resulting in greater operating costs |
| Continued Growth Through Rig Acquisition is Not Assured |
| We have increased our drilling rig fleet over the past several years through mergers and acquisitions |
| The land drilling industry has experienced significant consolidation over the past several years, and there can be no assurance that acquisition opportunities will continue to be available |
| Additionally, we are likely to continue to face intense competition from other companies for available acquisition opportunities |
| There can be no assurance that we will: • have sufficient capital resources to complete additional acquisitions, • successfully integrate acquired operations and assets, • effectively manage the growth and increased size, • successfully deploy idle or stacked rigs, • maintain the crews and market share to operate drilling rigs acquired, or • successfully improve our financial condition, results of operations, business or prospects in any material manner as a result of any completed acquisition |
| We may incur substantial indebtedness to finance future acquisitions and also may issue equity securities or convertible securities in connection with any such acquisitions |
| Debt service requirements could represent a significant burden on our results of operations and financial condition and the issuance of additional equity would be dilutive to existing stockholders |
| Also, continued growth could strain our management, operations, employees and other resources |
| Our operations are subject to many hazards inherent in the contract drilling, pressure pumping, and drilling and completion fluids businesses, which in turn could cause personal injury or death, work stoppage, or serious damage to our equipment |
| Our operations could also cause environmental and reservoir damages |
| We maintain insurance coverage and have indemnification agreements with many of our customers |
| However, there is no assurance that such insurance or indemnification agreements would adequately protect us against liability or losses from all consequences of the hazards |
| Additionally, there can be no assurance that insurance would be available to cover any or all of these risks, or, even if available, that insurance premiums or other costs would not rise significantly in the future, so as to make such insurance prohibitive |
| We have elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies |
| For example, we maintain a dlra1dtta0 million per occurrence deductible on our workers’ compensation insurance and our general liability insurance coverages |
| These levels of self-insurance expose us to increased operating costs and risks |
| The drilling of oil and natural gas wells is subject to various Federal, state, foreign, and local laws, rules and regulations |
| The cost of compliance with these laws and regulations could be substantial |
| Failure to comply with these requirements could expose us to substantial civil and criminal penalties |
| In addition, Federal law imposes a variety of regulations on “responsible parties” related to the prevention of oil spills and liability for damages from such spills |
| Our operations and facilities are subject to numerous state and Federal environmental laws, rules and regulations, including, without limitation, laws concerning the containment and disposal of hazardous substances, oil field waste and other waste materials, the use of underground storage tanks and the use of underground injection wells |
| Some of Our Contract Drilling Services are Done Under Turnkey and Footage Contracts, Which are Financially Risky |
| A portion of our contract drilling is performed under turnkey and footage contracts, which involve significant risks |
| Under turnkey drilling contracts, we contract to drill a well to a certain depth under specified conditions at a fixed price |
| Under footage contracts, we contract to drill a well to a certain depth under specified conditions at a fixed price per foot |
| The risk to us under these types of drilling contracts are greater than on a well drilled on a daywork basis |
| Unlike daywork contracts, we must bear the cost of services until the target depth is reached |
| In addition, we must assume most of the risk associated with the drilling operations, generally assumed by the operator of the well on a daywork contract, including blowouts, loss of hole from fire, machinery breakdowns and abnormal drilling conditions |
| Accordingly, if severe drilling problems are encountered in drilling wells under such contracts, we could suffer substantial losses |
| We are a Delaware corporation subject to the Delaware General Corporation Law, including Section 203, an anti-takeover law enacted in 1988 |
| We have also enacted certain anti-takeover measures, including a stockholders’ rights plan |
| In addition, our Board of Directors has the authority to issue up to one million shares of preferred stock and to determine the price, rights (including voting rights), conversion ratios, preferences and privileges of that stock without further vote or action by the holders of the common stock |
| As a result of these measures and others, potential acquirers might find it more difficult or be discouraged from attempting to effect an acquisition transaction with us |
| This may deprive holders of our securities of certain opportunities to sell or otherwise dispose of the securities at above-market prices pursuant to any such transactions |