Who Owns Patterson-UTI Company?

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Who Really Controls Patterson-UTI?

Ever wondered who truly steers the ship at Patterson-UTI, a major player in the energy sector? Unraveling the Patterson-UTI SWOT Analysis of its ownership structure is key to understanding its strategic moves and financial health. From its humble beginnings to its current market position, the evolution of its ownership tells a compelling story of growth and influence.

Understanding the Patterson-UTI ownership landscape is crucial for anyone tracking PTEN stock or interested in the energy industry. The company's ownership structure, shaped by mergers and strategic decisions, directly impacts its operational strategies and responsiveness to market demands. Knowing who owns Patterson-UTI offers valuable insights into the company's future, including the influence of major shareholders and the decisions of Patterson-UTI executives.

The story of Patterson-UTI begins in 1978 with the establishment of Patterson Drilling Company, Inc. by Cloyce A. Talbott and A. Glenn Patterson. This marked the initial step in what would become a significant player in the energy sector. The founders' backgrounds and early decisions shaped the company's trajectory from its inception.

Cloyce A. Talbott, a petroleum engineering graduate from Texas Tech University, brought experience from Standard Oil Company of Texas to the venture. A. Glenn Patterson, with a business degree from Angelo State University, joined Talbott in co-founding the company. Their combined expertise laid the foundation for what would evolve into a major drilling operation.

Initially, Patterson Drilling Company operated as a land-based drilling firm. The company started with a modest fleet of just nine drilling rigs. Although the exact equity split between Talbott and Patterson at the beginning is not publicly available, their roles as founders indicate substantial initial control over the company's direction and operations.

Early Operations

Patterson Drilling Company began with a small fleet of nine drilling rigs. This marked the beginning of its operations in the energy sector.

Name Change

In 1984, the company changed its name to Patterson Energy, though it continued to operate as Patterson Drilling.

IPO Preparation

By the summer of 1992, as it prepared for its initial public offering (IPO), Patterson Energy owned and operated 11 drilling rigs.

Subsidiary Establishment

During this period, two wholly-owned subsidiaries, Patterson Petroleum, Inc. and Patterson Petroleum Trading Company, Inc., were established.

Early Vision

The establishment of subsidiaries solidified the founders' early vision for a diversified energy services company.

Navigating Challenges

The company successfully navigated challenging periods in the energy sector during the 1980s.

The initial ownership structure of the Patterson-UTI company was heavily influenced by its founders, Cloyce A. Talbott and A. Glenn Patterson. While specific details about their initial equity stakes are not available, their roles as co-founders suggest significant early control. The company's early years were marked by expansion and strategic moves, including the establishment of subsidiaries. For more insights into the company's operations and financial performance, you can read about the Revenue Streams & Business Model of Patterson-UTI.

Key Takeaways

The founders, Cloyce A. Talbott and A. Glenn Patterson, established Patterson Drilling Company in 1978.

• Patterson Energy was the company's name in 1984.
• By 1992, the company owned and operated 11 drilling rigs.
• The company's early vision included the establishment of subsidiaries.
• The founders' leadership was crucial during the company's initial years.

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The evolution of Patterson-UTI's ownership has been marked by key milestones since its 1993 IPO. Both Patterson Energy and UTI Energy went public that year. A pivotal event was the 2001 merger between Patterson Energy, Inc. and UTI Energy Corp., which resulted in Patterson becoming the surviving entity. This merger created a combined entity with a market capitalization of $2.6 billion, making it the second-largest contract drilling firm in North America at the time.

The company's strategic direction has been shaped by a series of acquisitions. These include Questor Drilling Corp. in 1994, Tucker Drilling Company in 1996, Wes-Tex Drilling Co. in 1997, and the significant acquisition of Pioneer Energy Services for approximately $295 million in 2021. In July 2023, Patterson-UTI also acquired Ulterra, a manufacturer of polycrystalline diamond compact drill bits. These acquisitions have expanded Patterson-UTI's market position and service offerings in the oil and gas drilling and completions sectors.

As of May 2025, the majority of PTEN stock is held by institutional investors. Approximately 89.87% of the company's shares are owned by institutional investors, 2.64% by insiders, and 7.49% by public companies and individual investors. This indicates a significant concentration of ownership among large asset managers and investment funds, which can influence company strategy and governance. Major institutional shareholders include BlackRock, Inc., holding 14.40% of ownership as of April 2025 filings, Vanguard Group Inc., and State Street Corp.

Key Takeaways on Patterson-UTI Ownership

The ownership structure of Patterson-UTI is largely dominated by institutional investors, reflecting a trend in the energy sector.

• BlackRock, Inc. is a major shareholder, holding a significant percentage of the company's stock.
• Mergers and acquisitions have played a crucial role in shaping Patterson-UTI's market position.
• Understanding the Patterson-UTI ownership structure is important for investors.
• The company's strategic decisions are influenced by its major shareholders.

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The Board of Directors of Patterson-UTI Energy, Inc. oversees the company's strategic direction and governance. Directors serve until the next annual stockholder meeting, with elections decided by a plurality of votes. As of June 5, 2025, the board comprised eleven members.

Key figures on the board include Curtis W. Huff, Chairman since June 2020 and a director since May 2001, and William A. (Andy) Hendricks, Jr., President and CEO since October 2012. Mark S. Siegel, and James C. Stewart, and Amy H. Nelson also hold significant roles. Understanding who owns Patterson-UTI is crucial for investors and stakeholders.

The voting structure for Patterson-UTI's common stock is one-share-one-vote. Special meetings can be called by the Board, the CEO, the President, or holders of a majority of the outstanding stock. The company's Restated Certificate of Incorporation, dated June 6, 2024, outlines the corporate governance framework. For more insights, consider exploring the Growth Strategy of Patterson-UTI.

Patterson-UTI Ownership and Board Structure

The Board of Directors plays a vital role in the company's governance and strategic decisions. Understanding the board's composition and the voting structure is key for investors.

• Directors are elected to serve until the next annual meeting.
• Each share of common stock grants one vote.
• Major shareholders like BlackRock and Vanguard influence decision-making.
• The Restated Certificate of Incorporation details governance.

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Over the past few years, the ownership structure of the Patterson-UTI company has seen significant changes, primarily due to strategic mergers and acquisitions. The merger with NexTier Oilfield Solutions Inc., finalized in June 2023, was a pivotal move. This led to the issuance of Patterson-UTI common stock to NexTier stockholders, altering the company's shareholder base and strategic direction.

Ownership trends show that institutional investors continue to hold a dominant position in Patterson-UTI. As of May 2025, institutional investors held approximately 89.87% of the company's stock. Key players such as BlackRock, Inc. and Vanguard Group Inc. maintained substantial positions, reflecting the confidence of institutional investors in the company's future. This concentration of ownership by institutional investors is a key characteristic of Patterson-UTI's current ownership profile.

Insider ownership, though a smaller percentage, is also a relevant factor. CEO William Andrew Hendricks, Jr. increased his direct ownership by acquiring 25,000 shares in March 2025, bringing his total to 2,482,592 shares. However, some insiders have sold shares in the past 24 months. The company is also actively returning capital to shareholders. In the first quarter of 2025, Patterson-UTI returned $51 million to shareholders, including repurchasing $20 million of shares. As of March 31, 2025, there was a remaining share repurchase authorization of $741 million.

Institutional Investors

Institutional investors, such as BlackRock and Vanguard, hold a significant portion of Patterson-UTI shares. This indicates strong confidence from major financial institutions in the company's performance and future prospects. The substantial holdings by these entities often influence market perception and stock valuation.

Insider Activity

Insider transactions, such as share purchases and sales by executives, offer insights into the company's internal perspective. Recent actions by the CEO and other insiders provide signals regarding their confidence in the company's direction. Monitoring these activities can help investors assess the leadership's view on the company's value.

Capital Allocation

Patterson-UTI's commitment to returning capital to shareholders through dividends and share repurchases demonstrates its focus on shareholder value. These actions can boost investor confidence and potentially increase the stock's appeal, especially in a sector where capital efficiency is key. In Q1 2025, they returned $51 million to shareholders.

Market Outlook

The company's management anticipates steady activity, with potential adjustments based on oil prices. This outlook, combined with ongoing share buybacks and dividend payments, shapes the future ownership landscape. Investors should monitor these factors to understand the company's strategic direction and financial health.

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