Financial Analysis

Business Combinations Ulterra Drilling Technologies, L.P. On August 14, 2023, we completed the Ulterra acquisition. Total consideration for the acquisition included the issuance of 34.9 million shares of our common stock and payment of approximately $373 million of cash (after purchase price adjustments), which based on the closing price of our common stock of $14.94 on August 14, 2023, valued the transaction at closing at approximately $894 million. The total fair value of the consideration transferred was determined as follows (in thousands, except stock price): Shares of our common stock issued to Ulterra 34,900 Our common stock price on August 14, 2023 $ 14.94 Common stock equity consideration $ 521,406 Plus net cash consideration 372,757 Total consideration transferred $ 894,163 The acquisition was accounted for as a business combination using the acquisition method. Under the acquisition method of accounting, the fair value of the consideration transferred is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date. The aggregate purchase price noted above was allocated to the major categories of assets acquired and liabilities assumed based on preliminary estimated fair values as of the date of the business combination. We applied significant judgment in estimating the fair value of assets acquired and liabilities assumed, which involved the use of significant estimates and assu …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Purchase Commitments As of December 31, 2025, we maintained letters of credit in the aggregate amount of $39.1 million primarily for the benefit of various insurance companies as collateral for retrospective premiums and retained losses that could become payable under the terms of the underlying insurance contracts and compliance with contractual obligations. These letters of credit expire annually at various times during the year and are typically renewed. As of December 31, 2025, no amounts had been drawn under the letters of credit. As of December 31, 2025, we had $37.0 million in surety bond exposure issued as financial assurance on an insurance agreement. As of December 31, 2025, we had commitments to purchase major equipment totaling approximately $47.5 million. Our completion services segment has entered into agreements to purchase minimum quantities of proppants from certain vendors. We purchased $144 million, $103 million and $135 million of proppants under take-or-pay or similar agreements during the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the remaining minimum obligation under these agreements was approximately $21.7 million, of which approximately $16.9 million and $4.8 million relate to 2026 and 2027, respectively. Lease Obligations See Note 13 for additional information on our lease obligations. Contingencies Our operations are subject to many hazards inherent in the businesses in which w …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Stock-based Compensation We use share-based payments to compensate employees and non-employee directors. We grant incentive awards in the form of restricted stock units (a small portion of which are subject to the achievement of performance conditions) and performance unit awards (which are subject to the achievement of performance conditions). Certain of these incentive awards are share-settled, and certain of these incentive awards are cash-settled. We recognize the cost of share-based payments under the fair-value-based method. The 2021 Plan was originally approved by our stockholders on June 3, 2021. Following a series of amendments to increase the number of shares available for issuance under the 2021 Plan, approximately 39.1 million shares of Common Stock are authorized for grant under the 2021 Plan. In connection with the NexTier merger, we assumed the NexTier Plan and the NexTier Oilfield Solutions Inc. (Former C&J Energy) Management Incentive Plan (the Former C&J Energy Plan and, together with the NexTier Plan, the Assumed Plans) and certain awards outstanding thereunder, which, in connection with the NexTier merger, were converted into share-based awards in respect of shares of Patterson-UTI Energy, Inc. common stock. Our share-based compensation plans at December 31, 2025 are as follows: Plan Name Shares Authorized for Grant Shares Underlying Awards Outstanding Shares Available for Grant 2021 Plan 39,074,510 8,821,122 9,144,162 NexTier Plan 145,631 Former C …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Values of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our valuation techniques require inputs that we categorize using the valuation hierarchy, which categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 - Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Other inputs that are observable directly or indirectly, such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for which there is little or no market data and for which the Company makes its own assumptions about how market participants would price the assets and liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying values of cash, cash equivalents and restricted cash, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting. The estimated fair valu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill During the twelve months ended December 31, 2025, there were no additions or impairments to goodwill. As of December 31, 2025 and December 31, 2024, our goodwill balances by operating segment were as follows (in thousands): Completion Services Drilling Products Total Balance, December 31, 2024 and 2025 $ 36,885 $ 450,503 $ 487,388 Goodwill is evaluated at least annually on July 31, or more frequently when events or circumstances occur indicating recorded goodwill may be impaired. Goodwill is tested at the reporting unit level, which is at or one level below our operating segments. We determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value after considering qualitative, market and other factors. Any necessary goodwill impairment is determined using a quantitative impairment test. If the resulting fair value of goodwill is less than the carrying value of goodwill, an impairment loss would be recognized for the amount of the shortfall. The fair value of a reporting unit is determined using significant unobservable inputs, or level 3 in the fair value hierarchy. These inputs are based on forecasts and significant judgment. We determined our drilling products operating segment consists of a single reporting unit to which the goodwill from our 2023 acquisition of Ulterra was allocated. We determined our completion services operating segment consisted of two reporting units: completi …

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Income Taxes Income (loss) before income taxes for the United States and non-U.S. jurisdictions for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands): 2025 2024 2023 Income (loss) before income taxes: United States $ (72,151) $ (946,388) $ 315,897 Non-U.S. (30,840) (10,558) (8,793) $ (102,991) $ (956,946) $ 307,104 Components of the income tax provision applicable to federal, state and foreign income taxes for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands): 2025 2024 2023 Federal income tax expense (benefit): Current $ 1,460 $ 417 $ Deferred (3,740) (1,390) 44,369 (2,280) (973) 44,369 State income tax expense (benefit): Current 4,804 4,882 7,002 Deferred (13,623) (1,412) 11,279 (8,819) 3,470 18,281 Foreign income tax expense (benefit): Current 5,476 5,269 1,578 Deferred (4,314) 1,687 (3,076) 1,162 6,956 (1,498) Total income tax expense (benefit): Current 11,740 10,568 8,580 Deferred (21,677) (1,115) 52,572 Total income tax expense $ (9,937) $ 9,453 $ 61,152 Effective January 1, 2025, we adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance has been applied prospectively. Accordingly, the enhanced disaggregation of income tax rate reconciliation items is presented only for the year ended December 31, 2025. Prior periods continue to reflect disclosures under the previous guidance. The differences between the statutory U.S. federal income tax rate and the effective income t …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases ASC Topic 842 Leases We have operating and finance leases primarily for office locations, including for both field locations and corporate offices, certain operating equipment, and light duty vehicles. The terms and conditions for these leases vary by the type of underlying asset. Operating leases have remaining lease terms of approximately one month to eight years as of December 31, 2025, and finance leases have remaining lease terms of approximately one month to four years as of December 31, 2025. Lease expense consisted of the following for the years ended December 31, 2025, 2024 and 2023 (in thousands): Year Ended December 31, 2025 2024 2023 Operating lease cost $ 21,022 $ 18,147 $ 10,073 Finance lease cost: Amortization of right-of-use assets 7,364 21,394 6,360 Interest on lease liabilities 1,542 2,255 1,395 Total finance lease cost 8,906 23,649 7,755 Short-term lease expense (1) 234 360 2,278 Total lease expense (2) $ 30,162 $ 42,156 $ 20,106 (1) Short-term lease expense represents expense related to leases with a contract term of one year or less. (2) Operating lease expense is recorded in operating costs for the respective segments and within selling, general and administrative, amortization of right-of-use assets is recorded within depreciation, depletion, amortization and impairment, and interest on lease liabilities is recorded within interest expense in our consolidated statements of operations. Supplemental cash flow information related to leases for the y …

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Long-Term Debt Long-term debt consisted of the following at December 31, 2025 and 2024 (in thousands): Effective Interest Rate December 31, 2025 December 31, 2024 3.95% Senior Notes Due 2028 4.03% $ 482,505 $ 482,505 5.15% Senior Notes Due 2029 5.26% 344,895 344,895 7.15% Senior Notes Due 2033 7.28% 400,000 400,000 Equipment Loans Due 2025 (1) 5.25% 6,395 1,227,400 1,233,795 Less deferred financing costs and discounts (6,362) (7,637) Less current portion (6,388) Total $ 1,221,038 $ 1,219,770 (1) The borrowings outstanding under the Equipment Loans were paid off in full in June 2025. Credit Agreement On January 31, 2025, we entered into the Second Amended and Restated Credit Agreement with the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent, and the other parties thereto (the Credit Agreement). The Credit Agreement amended and restated our Amended and Restated Credit Agreement dated as of March 27, 2018. The commitments under the Credit Agreement are $500 million, and the loans and commitments under the Credit Agreement mature on January 31, 2030. The Credit Agreement provides for a committed senior unsecured credit facility that permits aggregate revolving credit borrowings of up to $500 million, with a letter of credit sub-facility of $100 million and a swing line sub-facility that, at any time outstanding, is limited to the lesser of $50 million and the amount of the swing line providers unused commitment. Subject to customary condi …

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Recently Adopted Accounting Standards In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07 to improve reportable segment disclosure requirements and enhance disclosures about significant segment expenses. We adopted this new accounting pronouncement effective January 1, 2024 and expanded our consolidated financial statement disclosures in order to comply with the update. See Note 17 for details. In December 2023, the FASB issued ASU 2023-09 to improve income tax disclosure. We adopted this accounting pronouncement effective January 1, 2025, on a prospective basis. The adoption did not have a material impact on our consolidated financial position, results of operations, or cash flows, but resulted in expanded disclosures within the Income Taxes footnote. See Note 14 for details. Recently Issued Accounting Standards In November 2024, the FASB issued ASU 2024-03 to expand disclosure requirements related to certain income statement expenses, which requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. This guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact this pronouncement will have on our consolidated financial statements. In July 2025, the FASB iss …

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Employee Benefits We maintain a 401(k) defined contribution retirement plan for all eligible employees. Our operating results include expenses of approximately $35.7 million in 2025, $34.6 million in 2024 and $18.7 million in 2023 for our contributions to the plan.

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Revenues ASC Topic 606 Revenue from Contracts with Customers Drilling Services and Completion Services r evenue is recognized based on our customers ability to benefit from our services in an amount that reflects the consideration we expect to receive in exchange for those services. This typically happens when the service is performed. The services we provide represent a series of distinct services, generally provided daily, that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period, generally measured in days, and our efforts in providing services are incurred relatively evenly over the period of performance, revenue is recognized as we provide services to the customer. Drilling Services revenue primarily consists of daywork drilling contracts for which related revenues and expenses are recognized as services are performed. For certain contracts, we receive payments for the mobilization of rigs and other drilling equipment. We defer revenue and related direct operating expense related to mobilizations and recognize those revenues and expenses on a straight-line basis as drilling services are provided. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred and are recorded in Drilling Services operating expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). For certain contr …

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Business Segments Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who has ultimate responsibility for evaluating operating performance, allocating resources, and making strategic and operational decisions for the company. Our business is organized based on the services and products we provided in three segments: (i) drilling services, (ii) completion services, and (iii) drilling products. The CODM evaluates segment performance based primarily on segment operating income (loss). This measure is used to assess operating results and to make decisions regarding the allocation of resources among segments. Drilling Services represents our contract drilling, directional drilling, oilfield technology and electrical controls and automation businesses. Completion Services represents our hydraulic fracturing, completion support services, wireline and pumpdown services, and cementing businesses. Drilling Products represents our manufacturing and distribution of drill bits business. Our results for the year ended December 31, 2025 and December 31, 2024 are not comparable for our Completion Services and Drilling Products reportable segments because results for 2023 include a partial period beginning on the closing date for each transaction. Geographic Information Consolidated revenues by country based on sales destination of the products or services for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands): Year Ended December 31, 2025 202 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity Cash Dividend On February 4, 2026, our Board of Directors approved a cash dividend on our common stock in the amount of $0.10 per share to be paid on March 16, 2026 to holders of record as of March 2, 2026 . The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of our debt agreements and other factors. Our Board of Directors may, without advance notice, reduce or suspend our dividend for any reason, including to improve our financial flexibility and position our company for long-term success. There can be no assurance that we will pay a dividend in the future. Share Repurchases and Acquisitions In September 2013, our Board of Directors approved a stock buyback program. In February 2024, our Board of Directors approved an increase of the authorization under the stock buyback program to allow for an aggregate of $1.0 billion of future share repurchases. All purchases executed to date have been through open market transactions. Purchases under the buyback program are made at managements discretion, at prevailing prices, subject to market conditions and other factors. Purchases may be made at any time without prior notice. There is no expiration date associated with the buyback program. As of December 31, 2025, we had remaining authorization to purchase approximately $694 million of our outstanding common …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Purchase Commitments As of March 31, 2026, we maintained letters of credit in the aggregate amount of $32.4 million primarily for the benefit of various insurance companies as collateral for retrospective premiums and retained losses that could become payable under the terms of the underlying insurance contracts and compliance with contractual obligations. These letters of credit expire annually at various times during the year and are typically renewed. As of March 31, 2026, no amounts had been drawn under the letters of credit. As of March 31, 2026, we had $37.0 million in surety bond exposure issued as financial assurance on an insurance agreement. As of March 31, 2026, we had commitments to purchase major equipment totaling approximately $128 million. Our completion services segment has entered into agreements to purchase minimum quantities of proppants from certain vendors. As of March 31, 2026, the remaining minimum obligation under these agreements was approximately $21.7 million, of which approximately $16.9 million and $4.8 million relate to the remainder of 2026 and 2027, respectively. Contingencies Certain subsidiaries we acquired in the Ulterra acquisition are defendants in a claim brought by a subsidiary of NOV Inc. alleging breach of a license agreement related to certain patents. Such subsidiaries have asserted defenses to the claim and are defending vigorously against this claim. On February 6, 2023, Grant Prideco, Inc., ReedHycal …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Stock-based Compensation We use share-based payments to compensate employees and non-employee directors. We grant incentive awards in the form of restricted stock units (a small portion of which are subject to the achievement of performance conditions) and performance unit awards (which are subject to the achievement of performance conditions). Certain of these incentive awards are share-settled, and certain of these incentive awards are cash-settled. See Note 12 in Notes to consolidated financial statements in Item 8 of our Annual Report for further description of the various types of stock-based compensation awards and the applicable award terms and accounting. Stock Options No stock options have been granted since 2016. There was no stock option activity from January 1, 2026 to March 31, 2026. Restricted Stock Units (Equity Based) Share-settled restricted stock unit activity from January 1, 2026 to March 31, 2026 follows: Time Based Shares Performance Based Shares Weighted Average Grant Date Fair Value Per Share Non-vested restricted stock units outstanding at January 1, 2026 6,673,838 409,890 $ 8.06 Granted 269,226 $ 6.11 Performance based restricted stock units settled (1) (331,675) $ 14.10 Vested (352,164) $ 9.51 Forfeited (51,567) $ 7.80 Non-vested restricted stock units outstanding at March 31, 2026 6,539,333 78,215 $ 7.60 (1) Performance based restricted stock units reached the end of their performance period in February 2026, and no shares were issued to settle such …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Values of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our valuation techniques require inputs that we categorize using the valuation hierarchy established in ASC 820-10, which categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 - Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Other inputs that are observable directly or indirectly, such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for which there is little or no market data and for which we make our own assumptions about how market participants would price the assets and liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying values of cash, cash equivalents and restricted cash, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting. The est …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill During the three months ended March 31, 2026, there were no additions or impairments to goodwill. As of March 31, 2026 and December 31, 2025, our goodwill balances by operating segment were as follows (in thousands): Completion Services Drilling Products Total Balance, March 31, 2026 and December 31, 2025 $ 36,885 $ 450,503 $ 487,388 Goodwill is evaluated at least annually on July 31, or more frequently when events or circumstances occur indicating recorded goodwill may be impaired. As of March 31, 2026, we determined there were no events that would indicate the carrying value of goodwill may not be recoverable or that potential impairment exists. Intangible Assets The following table presents the gross carrying amount and accumulated amortization of our intangible assets as of March 31, 2026 and December 31, 2025 (in thousands): March 31, 2026 December 31, 2025 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 782,888 $ (183,594) $ 599,294 $ 783,259 $ (166,135) $ 617,124 Developed technology 202,771 (106,721) 96,050 202,771 (96,689) 106,082 Trade name 101,000 (25,906) 75,094 101,000 (23,406) 77,594 Other 23,721 (9,942) 13,779 22,729 (8,719) 14,010 Intangible assets, net $ 1,110,380 $ (326,163) $ 784,217 $ 1,109,759 $ (294,949) $ 814,810 Amortization expense on intangible assets of approximately $31.8 million and $30.8 million wa …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Our effective income tax rate fluctuates from the U.S. statutory tax rate based on, among other factors, changes in pretax income in jurisdictions with varying statutory tax rates, the impact of U.S. state and local taxes, the realizability of deferred tax assets and other differences related to the recognition of income and expense between GAAP and tax accounting. Our effective income tax rate for the three months ended March 31, 2026 was 12.8%, compared with 51.9% for the three months ended March 31, 2025. The difference in effective income tax rates between the periods was primarily attributable to the impact of permanent differences against earnings between periods. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized, and when necessary, valuation allowances are provided. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We assess the realizability of our deferred tax assets quarterly and consider carryback availability, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. We continue to monitor income tax developments, including OECD Pillar 2 legislation, in the United States and other countries where we have legal …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Long-Term Debt Long-term debt consisted of the following at March 31, 2026 and December 31, 2025 (in thousands): March 31, 2026 December 31, 2025 3.95% Senior Notes Due 2028 $ 482,505 $ 482,505 5.15% Senior Notes Due 2029 344,895 344,895 7.15% Senior Notes Due 2033 400,000 400,000 1,227,400 1,227,400 Less deferred financing costs and discounts (6,037) (6,362) Total $ 1,221,363 $ 1,221,038 Credit Agreement On January 31, 2025, we entered into the Second Amended and Restated Credit Agreement with the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent, and the other parties thereto (the Credit Agreement). The Credit Agreement amended and restated our Amended and Restated Credit Agreement dated as of March 27, 2018. As of March 31, 2026, the commitments under the Credit Agreement were $500 million, and the loans and commitments under the Credit Agreement would mature on January 31, 2030. See Note 16 for details on an amendment to the Credit Agreement in April 2026. The Credit Agreement contains representations, warranties, affirmative and negative covenants and events of default and associated remedies that we believe are customary for agreements of this nature. We were in compliance with the covenants at March 31, 2026. As of March 31, 2026, we had no borrowings outstanding under our Credit Agreement. We had $2.8 million in letters of credit outstanding under the Credit Agreement at March 31, 2026 and, as a result, had available borrowing c …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards In December 2023, the FASB issued ASU 2023-09 to improve income tax disclosure. We adopted this accounting pronouncement effective January 1, 2025, on a prospective basis with the first disclosure enhancements reflected in our Annual Report on Form 10-K for the year ended December 31, 2025. The adoption did not have a material impact on our consolidated financial position, results of operations, or cash flows, but resulted in expanded disclosures within the Income Taxes footnote. In July 2025, the FASB issued ASU 2025-05 to provide entities the option to use a practical expedient to assume balance sheet conditions remain unchanged when developing forecasts for estimating expected credit losses. This guidance is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. We adopted this new guidance on January 1, 2026, and there was no material impact on our consolidated financial statements. Recently Issued Accounting Standards In November 2024, the FASB issued ASU 2024-03 to expand disclosure requirements related to certain income statement expenses, which requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. This guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. We are curre …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenues ASC Topic 606 Revenue from Contracts with Customers Drilling Services and Completion Services revenue is recognized based on our customers ability to benefit from our services in an amount that reflects the consideration we expect to receive in exchange for those services. This typically happens when the service is performed. The services we provide represent a series of distinct services, generally provided daily, that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period, generally measured in days, and our efforts in providing services are incurred relatively evenly over the period of performance, revenue is recognized as we provide services to the customer. Drilling Services revenue primarily consists of daywork drilling contracts for which related revenues and expenses are recognized as services are performed. For certain contracts, we receive payments for the mobilization of rigs and other drilling equipment. We defer revenue and related direct operating expense related to mobilizations and recognize those revenues and expenses on a straight-line basis as drilling services are provided. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred and are recorded in Drilling Services operating expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). For certain contra …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segments Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who has ultimate responsibility for evaluating operating performance, allocating resources and making strategic and operational decisions for the company. Our business is organized based on the services and products we provide in three segments: (i) drilling services, (ii) completion services and (iii) drilling products. The CODM evaluates segment performance based primarily on segment operating income (loss). This measure is used to assess operating results and to make decisions regarding the allocation of resources among segments. Drilling Services represents our contract drilling, directional drilling, oilfield technology and electrical controls and automation businesses. Completion Services represents our hydraulic fracturing, completion support services, wireline and pumpdown services and cementing businesses. Drilling Products represents our manufacturing and distribution of drill bits business. The following tables summarize selected financial information relating to our business segments (in thousands): Drilling Services Completion Services Drilling Products Total For the three months ended March 31, 2026 Revenues from external customers $ 351,717 $ 679,587 $ 79,797 $ 1,111,101 Direct operating costs (1) 217,861 581,486 46,924 846,271 General and administrative 7,097 7,330 7,923 22,350 Depreciation, amortization and impairment (1) 83,944 111,472 19,846 215,262 Other segment ite …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity Cash Dividend On April 22, 2026, our Board of Directors approved a cash dividend on our common stock in the amount of $0.10 per share to be paid on June 15, 2026 to holders of record as of June 1, 2026. The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of our debt agreements and other factors. Our Board of Directors may, without advance notice, reduce or suspend our dividend for any reason, including to improve our financial flexibility and position our company for long-term success. There can be no assurance that we will pay a dividend in the future. Share Repurchases and Acquisitions In September 2013, our Board of Directors approved a stock buyback program. In February 2024, our Board of Directors approved an increase of the authorization under the stock buyback program to allow for an aggregate of $1.0 billion of future share repurchases. All purchases executed to date have been through open market transactions. Purchases under the buyback program are made at managements discretion, at prevailing prices, subject to market conditions and other factors. Purchases may be made at any time without prior notice. There is no expiration date associated with the buyback program. As of March 31, 2026, we had remaining authorization to purchase approximately $694 million of our outstanding common stock un …

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Subsequent Events Credit Agreement Amendment On April 24, 2026, we entered into the Assignment and Amendment No. 1 to Second Amended and Restated Credit Agreement, which amended the Second Amended and Restated Credit Agreement, whereby, among other things, (i) extends the maturity date for $450 million of revolving credit commitments of certain lenders under the Credit Agreement from January 31, 2030 to January 31, 2031, but we may request two one-year extensions, subject to the satisfaction of certain conditions, and (ii) assigns $25 million of the revolving credit commitments from HSBC Bank USA, N.A., to JPMorgan Chase Bank, N.A., in each case, on the terms and subject to the conditions set forth therein. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing