Discounted Cash Flow (DCF) Analysis Levered

Patterson-UTI Energy, Inc. (PTEN)

$11.31

-0.27 (-2.33%)

All numbers are in Millions, Currency in USD

Stock DCF: 6.00 | 11.31 | overvalue

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	$ 11.31
Beta	2.287
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	14.539
Total Debt	855.65
Total Equity	2,482.50
Total Capital	3,338.15
Debt Weighting	25.63
Equity Weighting	74.37
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						145.94	141.99	138.15	134.41	130.78
SUM PV LFCF										691.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.92
Free cash flow (t + 1)	234.24
Terminal Value	2,361.30
Present Value of Terminal Value	1,344.66

Intrinsic Value

Enterprise Value	2,035.92
Net Debt	718.10
Equity Value	1,317.82
Shares Outstanding	219.50
Equity Value Per Share	6.00