Patterson-UTI Energy (PTEN) 8-K Results of Operations and Financial Condition

Exhibit 99.2

PATTERSON-UTI ENERGY, INC.

Non-GAAP Financial Measures

Recast Adjusted Gross Margin

(unaudited, dollars in thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			March 31,
	2023			2023			2022			2022			2022			2022
Drilling Services
Revenues	$	489,659		$	477,727		$	461,491		$	418,025		$	363,034		$	302,270
Less direct operating costs		(281,573	)		(281,261	)		(284,587	)		(279,232	)		(245,395	)		(216,690	)
Less depreciation, amortization and impairment		(90,400	)		(91,293	)		(91,161	)		(88,199	)		(89,073	)		(85,683	)
GAAP gross margin		117,686			105,173			85,743			50,594			28,566			(103	)
Depreciation, amortization and impairment		90,400			91,293			91,161			88,199			89,073			85,683
Adjusted gross margin (1)	$	208,086		$	196,466		$	176,904		$	138,793		$	117,639		$	85,580
Completion Services
Revenues	$	250,241		$	293,268		$	306,783		$	287,664		$	238,376		$	189,590
Less direct operating costs		(196,473	)		(220,116	)		(220,758	)		(211,704	)		(191,455	)		(157,468	)
Less depreciation, amortization and impairment		(25,976	)		(26,025	)		(24,918	)		(24,746	)		(24,713	)		(23,785	)
GAAP gross margin		27,792			47,127			61,107			51,214			22,208			8,337
Depreciation, amortization and impairment		25,976			26,025			24,918			24,746			24,713			23,785
Adjusted gross margin (1)	$	53,768		$	73,152		$	86,025		$	75,960		$	46,921		$	32,122
Drilling Products
Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Less direct operating costs		—			—			—			—			—			—
Less depreciation, amortization and impairment		—			—			—			—			—			—
GAAP gross margin		—			—			—			—			—			—
Depreciation, amortization and impairment		—			—			—			—			—			—
Adjusted gross margin (1)	$	—		$	—		$	—		$	—		$	—		$	—
Other
Revenues	$	18,985		$	20,807		$	20,202		$	21,814		$	20,828		$	17,515
Less direct operating costs		(10,039	)		(11,282	)		(10,472	)		(9,685	)		(10,050	)		(9,054	)
Less depreciation, depletion, amortization and   impairment		(9,304	)		(7,323	)		(6,001	)		(7,920	)		(6,494	)		(6,081	)
GAAP gross margin		(358	)		2,202			3,729			4,209			4,284			2,380
Depreciation, depletion, amortization and   impairment		9,304			7,323			6,001			7,920			6,494			6,081
Adjusted gross margin (1)	$	8,946		$	9,525		$	9,730		$	12,129		$	10,778		$	8,461

(1)

We define “Adjusted gross margin” as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Adjusted gross margin is included as a supplemental disclosure because it is a useful indicator of our operating performance.