Discounted Cash Flow (DCF) Analysis Levered
Patterson-UTI Energy, Inc. (PTEN)
$14.56
-0.57 (-3.77%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 3,327 | 2,470.68 | 1,124.25 | 1,357.08 | 2,647.59 | 2,883.03 | 3,139.40 | 3,418.57 | 3,722.57 | 4,053.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 730.67 | 696.20 | 278.86 | 95.50 | 566.19 | 596.02 | 649.02 | 706.73 | 769.58 | 838.01 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -641.46 | -347.51 | -145.48 | -166.32 | -436.80 | -432.68 | -471.16 | -513.06 | -558.68 | -608.36 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 89.21 | 348.69 | 133.38 | -70.82 | 129.39 | 163.33 | 177.86 | 193.67 | 210.89 | 229.65 |
Weighted Average Cost Of Capital
| Share price | $ 14.56 |
|---|---|
| Beta | 2.392 |
| Diluted Shares Outstanding | 219.50 |
| Cost of Debt | |
| Tax Rate | 7.87 |
| After-tax Cost of Debt | 4.33% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 15.886 |
| Total Debt | 855.65 |
| Total Equity | 3,195.86 |
| Total Capital | 4,051.52 |
| Debt Weighting | 21.12 |
| Equity Weighting | 78.88 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 3,327 | 2,470.68 | 1,124.25 | 1,357.08 | 2,647.59 | 2,883.03 | 3,139.40 | 3,418.57 | 3,722.57 | 4,053.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 730.67 | 696.20 | 278.86 | 95.50 | 566.19 | 596.02 | 649.02 | 706.73 | 769.58 | 838.01 |
| Capital Expenditure | -641.46 | -347.51 | -145.48 | -166.32 | -436.80 | -432.68 | -471.16 | -513.06 | -558.68 | -608.36 |
| Free Cash Flow | 89.21 | 348.69 | 133.38 | -70.82 | 129.39 | 163.33 | 177.86 | 193.67 | 210.89 | 229.65 |
| WACC | ||||||||||
| PV LFCF | 143.97 | 138.18 | 132.63 | 127.31 | 122.19 | |||||
| SUM PV LFCF | 664.28 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 13.45 |
| Free cash flow (t + 1) | 234.24 |
| Terminal Value | 2,045.78 |
| Present Value of Terminal Value | 1,088.52 |
Intrinsic Value
| Enterprise Value | 1,752.80 |
|---|---|
| Net Debt | 718.10 |
| Equity Value | 1,034.70 |
| Shares Outstanding | 219.50 |
| Equity Value Per Share | 4.71 |