Patterson-UTI Energy Continues M&A Streak, Latest Deal Turns This Analyst Bullish
Portfolio Pulse from Priya Nigam
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) plans to acquire Ulterra Drilling Technologies for around $800 million, following a $5.4-billion merger with Nextier Oilfield Solutions Inc (NYSE:NEX). RBC Capital Markets notes improved free cash flow metrics for PTEN after these deals. Analyst Keith Mackey upgraded PTEN from Sector Perform to Outperform, maintaining a price target of $19.
July 10, 2023 | 2:44 pm
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POSITIVE IMPACT
Patterson-UTI Energy's acquisition of Ulterra Drilling Technologies and merger with Nextier Oilfield Solutions have improved its free cash flow metrics. The company's stock rating has been upgraded to Outperform by RBC Capital Markets.
The acquisition of Ulterra Drilling Technologies and merger with Nextier Oilfield Solutions are significant moves for Patterson-UTI Energy, which have improved its financial position and led to an upgrade in its stock rating. This is likely to have a positive impact on the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Nextier Oilfield Solutions has merged with Patterson-UTI Energy, a move that has improved PTEN's free cash flow metrics.
Nextier Oilfield Solutions' merger with Patterson-UTI Energy has been noted as a positive move for PTEN, improving its financial position. However, the direct impact on NEX's stock price is not clear from the news.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50