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Discounted Cash Flow (DCF) Analysis Unlevered


Patterson-UTI Energy Inc.

Patterson-UTI Energy Inc. (PTEN)

Energy

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,716.033,182.381,891.29915.952,356.923,327.274,149.105,173.936,451.898,045.5110,032.75
Revenue (%)
EBITDA 922.371,002.77458.83212.59493.07600.571,050.551,310.041,633.622,037.122,540.29
EBITDA (%)
EBIT 324.84284.19-405.87-455.87-290.37-315.76-498.72-621.91-775.52-967.07-1,205.94
EBIT (%)
Depreciation 597.53718.58864.70668.46783.44916.331,549.281,931.952,409.143,004.193,746.23
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 249.6042.96113.2935.1742.90244.89204.55255.07318.08396.64494.61
Total Cash (%)
Account Receivables 451.40663.53219.58148.11580.27558.98737.71919.931,147.151,430.491,783.82
Account Receivables (%)
Inventories 21.1932.1414.7520.1569.0665.5566.8083.30103.88129.53161.53
Inventories (%)
Accounts Payable 173.28382.5282.84125.67319.60288.81406.20506.53631.64787.66982.21
Accounts Payable (%)
Capital Expenditure -652.12-1,019.00-723.04-97.92-506.03-594.25-997.86-1,244.33-1,551.68-1,934.95-2,412.88
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 7.89
Diluted Shares Outstanding 218.64
Cost of Debt
Tax Rate 12.52
After-tax Cost of Debt -0.58
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.35
Total Debt 1,119.20
Total Equity 1,725.09
Total Capital 2,844.30
Debt Weighting 39.35
Equity Weighting 60.65
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,716.033,182.381,891.29915.952,356.923,327.274,149.105,173.936,451.898,045.5110,032.75
EBITDA 922.371,002.77458.83212.59493.07600.571,050.551,310.041,633.622,037.122,540.29
EBIT 324.84284.19-405.87-455.87-290.37-315.76-498.72-621.91-775.52-967.07-1,205.94
Tax Rate 36.58%36.03%33.44%35.78%101.80%12.52%42.69%42.69%42.69%42.69%42.69%
EBIAT 206.02181.79-270.14-292.745.24-276.24-285.81-356.40-444.43-554.21-691.09
Depreciation 597.53718.58864.70668.46783.44916.331,549.281,931.952,409.143,004.193,746.23
Accounts Receivable --212.12443.9571.47-432.1721.29-178.73-182.21-227.22-283.35-353.33
Inventories --10.9617.39-5.40-48.913.51-1.25-16.50-20.58-25.66-31.99
Accounts Payable -209.24-299.6842.83193.93-30.79117.39100.33125.11156.02194.55
Capital Expenditure -366.88-295.96-625.12408.1288.22403.61246.47307.35383.27477.93
UFCF 803.551,253.41460.25-140.50909.65722.321,604.491,723.632,149.372,680.273,342.29
WACC
PV UFCF 1,461.011,429.161,622.811,842.692,092.36
SUM PV UFCF 7,818.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.82
Free cash flow (t + 1) 3,475.98
Terminal Value 59,724.81
Present Value of Terminal Value 37,389.32

Intrinsic Value

Enterprise Value 45,208.21
Net Debt 874.32
Equity Value 44,333.89
Shares Outstanding 218.64
Equity Value Per Share 202.77