Land driller Patterson-UTI
Clearly, Patterson's daily per-rig revenue of $19,250 is a far cry from Helmerich & Payne's
How is this solid pricing possible? There are two things that Patterson has done to shore up its fleet's competitiveness. First is the straightforward approach of ordering new iron, such as National Oilwell Varco's
Perhaps subtler is Patterson's steady overhaul of its existing rigs' capacity over the years. Management noted that big efficiency gains have been achieved by simply equipping rigs with big, high-horsepower pumps. This is a reference to mud pumps, which circulate a heavy fluid, or mud, during drilling. More power makes for more pleasant pumping.
Complementing Patterson's drilling competency is its powerful position in Appalachian pressure pumping. Pressure pumping has been no picnic for BJ Services
So don't pity Patterson. Its performance is way beyond passable.
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Fool contributor Toby Shute doesn't have a position in any company mentioned. The Motley Fool's disclosure policy never feels the pressure.