Is PATTERSON UTI ENERGY INC (PTEN) Halal?

NASDAQ Energy United States $4.3B
✗ NOT HALAL
Confidence: 90/100
PATTERSON UTI ENERGY INC (PTEN) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 37.6% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. PATTERSON UTI ENERGY INC operates in the Energy sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 37.6%
/ 30%
12.3%
/ 30%
22.8%
/ 30%
0.14%
/ 5%
✗ NOT HALAL
DJIM 37.6%
/ 33%
12.3%
/ 33%
22.8%
/ 33%
0.14%
/ 5%
✗ NOT HALAL
MSCI 23.0%
/ 33%
7.5%
/ 33%
13.9%
/ 33%
0.14%
/ 5%
✓ HALAL
S&P 37.6%
/ 33%
12.3%
/ 33%
22.8%
/ 33%
0.14%
/ 5%
✗ NOT HALAL
FTSE 23.0%
/ 33%
7.5%
/ 33%
13.9%
/ 50%
0.14%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.24
Dividend Yield
352.0%
Payout: 213.3%
P/B Ratio
1.3
EV/EBITDA
5.8
EV: $5.2B
Revenue
$4.8B
Growth: -1.0%
Beta
0.7
Low volatility
Current Ratio
1.6

Profitability

Gross Margin 24.2%
Operating Margin -2.4%
Net Margin -1.9%
Return on Equity (ROE) -2.8%
Return on Assets (ROA) -0.4%

Cash Flow & Balance Sheet

Operating Cash Flow$961M
Free Cash Flow$372M
Total Debt$1.3B
Debt-to-Equity39.7
Current Ratio1.6
Total Assets$5.6B

Price & Trading

Last Close$11.26
50-Day MA$8.78
200-Day MA$6.65
Avg Volume11.0M
Beta0.7
52-Week Range
$5.10
$11.58

About PATTERSON UTI ENERGY INC (PTEN)

CEO
Mr. William Andrew Hendricks Jr.
Employees
7,900
Sector
Energy
Industry
Oil & Gas Drilling
Country
United States
Exchange
NASDAQ
Market Cap
$4.3B
Currency
USD

Patterson-UTI Energy, Inc., through its subsidiaries, provides drilling and completion services to oil and natural gas exploration and production companies in the United States, Canada, Colombia, and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment engages in the provision of contract and directional drilling, and measurement-while-drilling (MWD) services in onshore oil and natural gas basins; supply and rental of downhole performance motors, such as Mpact drilling motors, and Mpower MWD systems; electrical controls and automation to the energy, marine, and mining industries; rig fleet evaluation; and drilling technology service. This segment also provides software and services, such as MWD Survey Fault Detection, Isolation and Recovery (FDIR) services, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; and HiFi Guidance that utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, equipment, materials, and cementing, as well as involved in the power solutions natural gas fueling, and last mile logistics and storage businesses. The Drilling Products segment engages in the design, manufacture, sale, and rental of matrix and steel-bodied polycrystalline diamond compact drill bits. It also rents oilfield tools; and offers specialized services for land-based oil and natural gas drilling, completion, and workover activities. The company was founded in 1978 and is headquartered in Houston, Texas.

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Frequently Asked Questions

Is PATTERSON UTI ENERGY INC (PTEN) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), PATTERSON UTI ENERGY INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is PATTERSON UTI ENERGY INC's debt ratio?

PATTERSON UTI ENERGY INC's debt ratio is 37.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 23.0%.

What are PATTERSON UTI ENERGY INC's key financial metrics?

PATTERSON UTI ENERGY INC has a market capitalization of $4.3B, and revenue of $4.8B. The company maintains a gross margin of 24.2% and a net margin of -1.9%. Return on equity stands at -2.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.