Why This Fund’s $8 Million Patterson-UTI Bet Looks Like a Bullish Oil Recovery Trade
Key Points
Lisanti Capital Growth bought 896,470 shares of Patterson-UTI Energy in the first quarter; the estimated trade size was $7.67 million based on quarterly average prices.
The quarter-end position value increased by $9.71 million, reflecting both the new stake and stock price movements.
The transaction represented a 1.93% change in fund assets under management (AUM).
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On May 6, 2026, Lisanti Capital Growth disclosed a new position in Patterson-UTI Energy (NASDAQ:PTEN), acquiring 896,470 shares in an estimated $7.67 million trade based on quarterly average pricing.
What happened
According to the SEC filing dated May 6, 2026, Lisanti Capital Growth initiated a new position in Patterson-UTI Energy (NASDAQ:PTEN) by acquiring 896,470 shares. The estimated value of the trade was $7.67 million, calculated using the average closing price during the first quarter of 2026. The quarter-end valuation of the stake stood at $9.71 million, reflecting both the position size and price performance during the period.
What else to know
- This was a new position, representing 2.45% of the fund’s 13F reportable assets under management at quarter-end.
- Top holdings after the filing:
- NASDAQ: FIVE: $9.74 million (2.5% of AUM)
- NASDAQ: PTEN: $9.71 million (2.5% of AUM)
- NYSE: CRS: $8.27 million (2.1% of AUM)
- NYSE: MOD: $8.08 million (2.0% of AUM)
- NASDAQ: BTSG: $8.07 million (2.0% of AUM)
- As of May 6, 2026, shares of Patterson-UTI Energy were priced at $11.58, up about 120% over the past year and significantly outperforming the S&P 500 by about 90 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.66 billion |
| Net income (TTM) | ($119.27 million) |
| Dividend yield | 3% |
| Price (as of May 6, 2026) | $11.58 |
Company snapshot
- Patterson-UTI Energy provides contract drilling, pressure pumping, and directional drilling services, with a focus on onshore oil and gas operations in the United States and select international markets.
- The company generates revenue primarily from drilling contracts, well stimulation, and related oilfield services, leveraging a large fleet of land-based rigs and specialized equipment.
- Its primary customers are oil and natural gas exploration and production companies seeking efficient, technologically advanced drilling and completion solutions.
Patterson-UTI Energy is a leading provider of onshore contract drilling and pressure pumping services, operating a substantial fleet and serving major oil and gas regions across North America. The company differentiates itself through integrated service offerings, advanced drilling technology, and a broad geographic footprint. Its scale and technical expertise position it to support complex drilling projects and adapt to evolving customer needs in the energy sector.
What this transaction means for investors
This purchase looks like it could be a bet that the oilfield services cycle still has room to run, even after Patterson-UTI shares more than doubled over the past year. The stock’s rally has already priced in a lot of optimism, but management’s latest commentary suggests activity levels may finally be stabilizing after a choppy stretch for the industry.
Patterson-UTI reported first-quarter revenue of $1.1 billion and adjusted EBITDA of $205 million, while executives pointed to improving commodity prices and stronger customer demand heading into the second quarter. Management also said it plans to reactivate drilling rigs later this quarter and expects additional rigs to come back online in the second half of 2026.
That said, the quarter was not flawless. The company posted a net loss of roughly $25 million, while completion services revenue slipped from the prior year amid weather disruptions and softer activity earlier in the quarter.
Still, for the longer-term, if oil prices stay supportive and rig utilization improves as management expects, Patterson-UTI could still have operating leverage left despite the stock’s huge move over the past year, and that might be why Lisanti Capital Growth bought in last quarter.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Modine Manufacturing. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy.
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