Patterson-UTI expects rig counts, completions activity to rise…

By Arathy Somasekhar

HOUSTON, July 27 (Reuters) – Oilfield service provider Patterson-UTI energy on Thursday said it expects rig count and frac activity to improve later in the year and in 2024.

U.S.shale producers slashed drilling and well completions in the second quarter, cutting demand for equipment and services. However, interbola with U.S. crude prices climbing back to $80 per barrel, service companies are betting on a recovery in demand.

“We believe the industry rig count is near a bottom,” said Andy Hendricks, CEO of Patterson-UTI Energy, adding that the company expects additional rig releases in the next few weeks before it recovers later in the year.

On the pressure pumping side, Hendricks said activity has already reached a trough in July.

The comments echoed the view of rival Nextier Oilfield Solutions which said it expects fracking demand to recover next year.

Patterson-UTI, which is in the process of merging with Nextier, on Wednesday reported quarterly profit of 45 cents, 1 cent ahead of analysts’ estimates.(Reporting by Arathy Somasekhar in Houston; editing by Jonathan Oatis)