Patterson-UTI Targets Argentina's Shale Boom Through Strategic Rig Lease Deal with Archer

2026-01-15 companies

Houston, Thursday, 15 January 2026.
Patterson-UTI expands its global footprint by leasing two high-specification rigs from its U.S. fleet to Archer for Argentina’s massive Vaca Muerta shale field, commencing mid-2026.

Operational Shift to South America

In a decisive move to capitalize on international demand for unconventional drilling assets, Patterson-UTI Energy, Inc. (NASDAQ: PTEN) announced on January 15, 2026, a multi-year agreement to lease two of its APEX 1500® drilling rigs to DLS Archer Ltd. S.A., a division of Archer Ltd [1][3]. These high-specification rigs are scheduled to commence operations in Argentina’s Vaca Muerta formation by mid-2026 [1][4]. The equipment will be sourced directly from Patterson-UTI’s existing fleet in the United States, allowing the company to reallocate assets to a region experiencing robust growth in shale development [2][3]. Under the terms of the agreement, Archer will assume full financial responsibility for the preparation, upgrade, and mobilization costs associated with transporting the rigs to South America [2][4].

Strategic Alignment in Vaca Muerta

This lease agreement is integral to supporting Archer’s operations under a seven-rig contract with YPF S.A., which was previously announced in December 2025 [1][5]. By deploying these assets, both companies aim to optimize drilling efficiency in the non-conventional fields of the Vaca Muerta basin [5]. Gerardo Molinaro, Archer’s Vice President of Land Drilling, noted that the addition of these high-spec rigs strengthens their ability to execute the newly awarded YPF contract and meet rising market demand [5]. For Patterson-UTI, the deal represents a disciplined expansion of its international footprint, complementing its established presence in Argentina through its drilling products division, which includes Ulterra drill bits [3]. Mike Holcomb, Patterson-UTI’s Chief Operating Officer, emphasized that the company’s asset quality is well-suited for the region’s growing unconventional drilling requirements [1][3].

Financial Performance and Market Reaction

The announcement comes as Patterson-UTI navigates a complex market environment. As of the last market close, PTEN shares were trading at $7.13, which represents a premium of roughly 19.631% over the company’s 200-day moving average of $5.96 [4]. The company currently holds a market capitalization of approximately $2.7 billion [6]. In terms of domestic activity, Patterson-UTI reported an average of 93 drilling rigs operating in the United States during December 2025 [4]. Investors are now looking toward the company’s fourth-quarter 2025 earnings call, which has been scheduled for February 5, 2026, to gauge the broader financial impact of these strategic shifts [4].

Sources

Oilfield services Vaca Muerta