Patterson-UTI (PTEN): Among the Best Oil and Gas Stocks for Dividend Income

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is included among the 12 Best Oil and Gas Dividend Stocks to Buy Now.

Patterson-UTI (PTEN): Among the Best Oil and Gas Stocks for Dividend Income

A drilling site in the wilds of nature, highlighting the company’s commitment to exploration.

Following its 2023 acquisition of Nextier, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has emerged as a dominant player in US drilling and completions, boasting the country’s largest pressure pumping fleet. The company returned $51 million to shareholders in the first quarter of 2025, including $20 million for share repurchases. PTEN also declared a quarterly dividend of $0.08 per share in April and offers an attractive annual dividend yield of 5.37% as of the writing of this piece.

Over the 18 months from September 30, 2023, through March 31, 2025, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) used approximately $387 million to repurchase shares and reduced its share count by 8%. The company still has $741 million in remaining share repurchase authorization as of the end of the first quarter of 2025. PTEN revealed in its investor presentation last month that it has a target to return at least 50% of this adjusted free cash flow to shareholders, supported by a strong capital structure with no senior note maturities until 2028.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries.

While we acknowledge the potential of PTEN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PTEN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.