Discounted Cash Flow (DCF) Analysis Levered

Patterson-UTI Energy, Inc. (PTEN)

$16

-0.20 (-1.23%)

All numbers are in Millions, Currency in USD

Stock DCF: -2.78 | 16 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	2,356.68	3,327	2,470.68	1,124.25	1,357.08	1,294.82	1,235.41	1,178.73	1,124.65	1,073.05
Revenue (%)
Operating Cash Flow	300.71	730.67	696.20	278.86	95.50	245.35	234.09	223.35	213.10	203.32
Operating Cash Flow (%)
Capital Expenditure	-567.09	-641.46	-347.51	-145.48	-166.32	-213.92	-204.10	-194.74	-185.80	-177.28
Capital Expenditure (%)
Free Cash Flow	-266.38	89.21	348.69	133.38	-70.82	31.43	29.99	28.61	27.30	26.05

Weighted Average Cost Of Capital

Share price	$ 16
Beta	2.628
Diluted Shares Outstanding	188.01
Cost of Debt
Tax Rate	9.06
After-tax Cost of Debt	4.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.290
Total Debt	877.32
Total Equity	3,008.21
Total Capital	3,885.53
Debt Weighting	22.58
Equity Weighting	77.42
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	2,356.68	3,327	2,470.68	1,124.25	1,357.08	1,294.82	1,235.41	1,178.73	1,124.65	1,073.05
Operating Cash Flow	300.71	730.67	696.20	278.86	95.50	245.35	234.09	223.35	213.10	203.32
Capital Expenditure	-567.09	-641.46	-347.51	-145.48	-166.32	-213.92	-204.10	-194.74	-185.80	-177.28
Free Cash Flow	-266.38	89.21	348.69	133.38	-70.82	31.43	29.99	28.61	27.30	26.05
WACC
PV LFCF						27.86	23.56	19.92	16.85	14.25
SUM PV LFCF										102.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.82
Free cash flow (t + 1)	26.57
Terminal Value	245.54
Present Value of Terminal Value	134.33

Intrinsic Value

Enterprise Value	236.77
Net Debt	759.80
Equity Value	-523.02
Shares Outstanding	188.01
Equity Value Per Share	-2.78