History
Patterson-UTI grew from a driller into a larger oilfield services group through debt-funded and share-funded deals, including SSE, Pioneer, Ulterra and NexTier, roughly 2.5 times its 2016 share count.
2010-2016: Building a bank-and-notes funding base
The record opens in July 2010, when Patterson-UTI agreed to buy pressure pumping (pumping fluids into wells to crack rock) and electric wireline assets from Key Energy Services subsidiaries for about $237.7 million in cash. To help pay, it signed a 364-day, $250 million term loan with Wells Fargo. In August 2010 it replaced its 2009 bank agreement with a $500 million facility: a $400 million revolver and a $100 million term loan, which it drew in full. In October it sold $300 million of 4.97% Series A notes due 2020 in a private placement.
In October 2011 the company deregistered its securities, ending its obligation to file reports with the SEC. In June 2012 it sold another $300 million of notes, 4.27% Series B due 2022, using most of the money to pay off its bank revolver and term loan. In September 2012 it set up a new $600 million five-year facility with margins 50 basis points better than before. Shares on issue fell from about 155.8 million at the end of 2011 to 145.9 million at the end of 2012, though the beats do not explain the fall.
The record then goes quiet until March 2015, when a $200 million term loan repaid $150 million of revolver borrowings. In July 2016 the company amended its credit agreement, repaid its bank term loans, and lowered its maximum debt-to-capitalization ratio to 40%. About $70 million remained outstanding on the revolver.
2016-2018: Seventy Seven Energy and new shares
On December 12, 2016 Patterson-UTI agreed to buy Seventy Seven Energy (SSE) by issuing up to 49,559,000 new shares. The filing valued the deal at about $1.42 billion and said former SSE holders would own up to about 25% of the combined company. A $150 million bridge facility was committed to repay some SSE debt.
In January 2017 the company sold 18,170,000 new shares at $26.45 each, raising about $471 million to repay SSE's debt. It also agreed to use about $95.8 million of the $100 million increase option on its revolver, taking commitments to about $595.8 million. By April 2017 four lawsuits had been filed over the merger, which the company called without merit, and it expected the deal to close on April 20. Shares on issue rose from about 148 million at the end of 2016 to about 222 million at the end of 2017.
In October 2017 it bought Multi-Shot, LLC (MS Energy Services), a directional drilling business (steering the drill bit), for $75 million in cash and 8,798,391 new shares valued at about $262 million. In January 2018 it sold $525 million of 3.95% notes due 2028, mainly to repay bank borrowings. In March 2018 it replaced its credit agreement with a new revolver of up to $600 million maturing in 2023, with a 50% debt-to-capitalization limit.
2019-2021: Refinancing, a downturn and Pioneer
In 2019 the company replaced its older private notes. In August it signed a term loan of up to $150 million to prepay the Series A notes, at roughly $309 million including premium. In November it closed a $350 million offering of 5.15% notes due 2029 and gave notice to prepay the Series B notes, at roughly $316 million including premium.
In 2020 business fell sharply. In the second quarter it made a net loss of $150 million on revenue of $250 million, against $676 million a year earlier. It closed its Canadian drilling operations and put them up for sale, expected about $100 million of annual cost cuts, and reported liquidity of $847 million. In April 2020 it adopted a stockholder rights plan, amended in July so that BlackRock and Vanguard would not count as acquirers while they stayed under 20%.
In July 2021 it agreed to buy Pioneer Energy Services. The deal closed on October 1, 2021 for about 26.3 million shares and $30 million in cash, with Pioneer's debt retired. The press release valued it at about $278 million including debt retirement. Shares on issue rose from about 187.6 million at the end of 2020 to about 215.1 million at the end of 2021.
2023-2026: Ulterra, NexTier and refinancing
In June 2023 Patterson-UTI agreed to an all-stock purchase of NexTier Oilfield Solutions, at 0.7520 Patterson-UTI shares per NexTier share. In July it agreed to buy Ulterra Drilling Technologies, a maker of drill bits, for 34.9 million new shares plus $370 million in cash. The Ulterra deal closed on August 14, 2023, with the cash funded from cash on hand and $325 million borrowed on the revolver.
The NexTier merger closed on September 1, 2023, after both companies' stockholders approved it on August 30. The board grew to 11 members. The company borrowed $95 million on its revolver to repay NexTier's debt and had $420 million outstanding on the revolver at August 31. Shares on issue rose from about 213.6 million at the end of 2022 to about 411.2 million at the end of 2023. On September 13 it issued $400 million of 7.15% notes due 2033 to repay revolver borrowings, and gave notice to end a new $300 million term loan.
In January 2025 it replaced its revolver with a $500 million facility maturing in January 2030, expandable by up to $200 million. On May 19, 2026 it completed a $500 million offering of 6.050% notes due 2036, intending to use the proceeds to redeem the 3.95% notes due 2028 and for general purposes. As of that date, the redemption had been stated as an intent, not reported as done, and the status of the NexTier integration and the Ulterra earnout was not reported.
Written from the 31 story beats below (2010 to 19 May 2026), which come from the company's own announcements and filings.