<SEC-DOCUMENT>0001564590-18-016097.txt : 20180727
<SEC-HEADER>0001564590-18-016097.hdr.sgml : 20180727
<ACCEPTANCE-DATETIME>20180625135411
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001564590-18-016097
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20180625

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PATTERSON UTI ENERGY INC
		CENTRAL INDEX KEY:			0000889900
		STANDARD INDUSTRIAL CLASSIFICATION:	DRILLING OIL & GAS WELLS [1381]
		IRS NUMBER:				752504748
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		10713 WEST SAM HOUSTON PARKWAY NORTH
		STREET 2:		SUITE 800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77064
		BUSINESS PHONE:		2817657100

	MAIL ADDRESS:	
		STREET 1:		10713 WEST SAM HOUSTON PARKWAY NORTH
		STREET 2:		SUITE 800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77064

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PATTERSON ENERGY INC
		DATE OF NAME CHANGE:	19940228
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<title>
pten-corresp.htm
</title>
</head>
<!-- NG Converter v5.0.18092.123 -->
<body>

<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Calibri;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><img src="g201806251740134379991.jpg" title="" alt="" style="width:224px;height:41px;"></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June 25, 2018</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Via EDGAR</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Securities and Exchange Commission</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Division of Corporation Finance</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100 F. Street, N.E. </p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Washington, D.C. 20549-4628</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-weight:bold;;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Attn:<font style="margin-left:36pt;"></font>Ethan Horowitz, Accounting Branch Chief</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:7.69%;">Office of Natural Resources</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:7.69%;">Re:<font style="margin-left:36pt;"></font>Patterson-UTI Energy, Inc.</p>
<p style="margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:7.69%;"><font style="margin-left:36pt;"></font>Form 10-K for Fiscal Year Ended December 31, 2017</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Filed February 20, 2018</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Form 10-Q for Fiscal Quarter Ended March 31, 2018 </p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Filed May 1, 2018 </p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Supplemental Response dated April 25, 2018</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">File No. 0-22664</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Dear Mr. Horowitz:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Set forth below are the responses of Patterson-UTI Energy, Inc. (the &#8220;<font style="font-weight:bold;font-style:italic;">Company</font>,&#8221; &#8220;<font style="font-weight:bold;font-style:italic;">we</font>,&#8221; &#8220;<font style="font-weight:bold;font-style:italic;">us</font>&#8221; or &#8220;<font style="font-weight:bold;font-style:italic;">our</font>&#8221;) to comments received from the staff of the Division of Corporation Finance (the &#8220;<font style="font-weight:bold;font-style:italic;">Staff</font>&#8221;) of the Securities and Exchange Commission (the &#8220;<font style="font-weight:bold;font-style:italic;">Commission</font>&#8221;) by letter dated June 11, 2018 with respect to the Company&#8217;s Form 10-K for the fiscal year ended December 31, 2017 filed with the Commission on February 20, 2018 (the &#8220;<font style="font-weight:bold;font-style:italic;">Form 10-K</font>&#8221;), the Company&#8217;s Form 10-Q for the fiscal quarter ended March 31, 2018 (the &#8220;<font style="font-weight:bold;font-style:italic;">Form 10-Q</font>&#8221;) and the Company&#8217;s supplemental response dated April 25, 2018 (the &#8220;<font style="font-weight:bold;font-style:italic;">Supplemental Response</font>&#8221;).</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For your convenience, each response is prefaced by the Staff&#8217;s corresponding comment in bold, italicized text.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Form 10-K for Fiscal Year Ended December 31, 2017</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Notes to Consolidated Financial Statements</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Note 14. Business Segments, page F-33</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Securities and Exchange Commission</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June 25, 2018</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Page 2</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:7.69%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">1</font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">. </font></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:italic;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;"><a name="_AEIOULastRenderedPageBreakAEIOU2"></a><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"></font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"></font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"></font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Consistent with your response to prior comment 4, clarify your disclosure to address the extent to which service offerings contribute to your operating segments. For example, dis</font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">closure in your Form 10-K states that pressure pump</font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">ing services are primarily well </font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">stimulation services, cementing services for the completion of new wells, and remedial work on existing wells, but your response indicates that well stimulation services alo</font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">ne account for more than 97% of the revenue for this segment. </font></p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-weight:bold;;font-size:12pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:7.69%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;"><font style="text-decoration:underline;">RESPONSE:</font></p></td></tr></table></div>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:7.69%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:12pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">We acknowledge the Staff&#8217;s comment.&nbsp;&nbsp;In our future filings with the Commission, including our next Form 10-K, we will clarify our disclosure to address the extent to which service offerings contribute to our operating segments similar to the following (underlined text reflects additions to the referenced Form 10-K disclosure; strike-throughs represent deletions from the referenced Form 10-K disclosure; revisions below assume no material changes to the contributions of service offerings to our pressure pumping segment):</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:12pt;margin-left:7.69%;text-indent:0%;font-style:italic;font-size:12pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">Pressure Pumping<font style="font-style:normal;"> &#8212; The Company provides pressure pumping services to oil and natural gas operators primarily in Texas and the Mid-Continent and Appalachian regions.&nbsp;&nbsp;</font><font style="text-decoration:underline;font-style:normal;">Substantially all of the revenue in the pressure pumping segment is from</font><font style="font-style:normal;"> <strike>Pres</strike><strike>sure pumping services are primarily</strike> well stimulation services (such as hydraulic fracturing) <strike>and cementing services</strike> for the completion of new wells and remedial work on existing wells.&nbsp;&nbsp;Well stimulation involves processes inside a well designed to enhance the flow of oil, natural gas, or other desired substances from the well.&nbsp;&nbsp;</font><font style="text-decoration:underline;font-style:normal;">The Company also provides cementing services through its pressure pumping segment.</font><font style="font-style:normal;">&nbsp;&nbsp;Cementing is the process of inserting material between the wall of the well bore and the casing to support and stabilize the casing.</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Form 10-Q for Fiscal Quarter Ended March 31, 2018 </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations, page 28 </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Management Overview, page 29</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:7.69%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">2</font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">. </font></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:italic;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;"><a name="_AEIOULastRenderedPageBreakAEIOU3"></a>You state that the addition of new technology drilling rigs to the market, combined with a reduction in the drilling of vertical wells, has resulted in excess capacity of older technology drilling rigs and that the utilization of some older technology drilling rigs has been hampered by their lack of capability to compete for work in unconventional resource plays. In light of these factors and your customers&#8217; needs for drilling horizontal wells in shale and other unconventional resource plays, tell us about your evaluation of older technology drilling rigs pursuant to FASB ASC 360-10-35-21. </p></td></tr></table></div>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Securities and Exchange Commission</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June 25, 2018</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Page 3</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:7.69%;white-space:nowrap"></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:italic;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;"><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Include information in your response regarding your current expectations for demand for drilling services by rig type and a discussion of any significant changes in the ma</font><font style="font-weight:bold;font-style:italic;font-size:12pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">rketability of older technology drilling rigs that have occurred in recent periods. </font></p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:7.69%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;"><font style="text-decoration:underline;">RESPONSE:</font></p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-weight:bold;;font-size:12pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:5.24%;white-space:nowrap">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
<td valign="top" style="width:2.46%;white-space:nowrap">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
<td valign="top">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;"><font style="color:#000000;">We acknowledge the Staff&#8217;s comment. We respectfully note for the Staff that the disclosure cited in the Staff&#8217;s comment was intended as a general commentary on industry trends and conditions. While some mechanical drilling rigs remain in the marketplace, the Company has already retired all of its mechanical drilling rigs (which were less capable of competing for work in unconventional resource plays). </font>As disclosed in Note 4 of the Notes to Consolidated Financial Statements in our Form 10-K,<font style="color:#000000;"> the Company periodically evaluates its drilling rigs and assesses impairment based on the relevant accounting guidance, including FASB ASC 360-10-35-21.&nbsp;&nbsp;</font>&nbsp;&nbsp;</p></td></tr></table></div>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-2.46%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Regarding demand for services by rig type, demand for &#8220;super-spec&#8221; rigs is currently strong, and the Company has completed eight major upgrades of rigs to super-spec classification during 2018 and has plans to complete at least four additional major upgrades during the year.&nbsp;&nbsp;Demand for the Company&#8217;s non-super-spec rigs has remained relatively stable in the last year<font style="color:#000000;">.&nbsp;&nbsp;As discussed above, the Company has retired all of its mechanical rigs, and the Company believes that mechanical rigs will generally experience a lower level of demand as the industry continues to shift away from the drilling of vertical wells.</font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">******<br /></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Securities and Exchange Commission</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June 25, 2018</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Page 4</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU4"></a><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We look forward to answering any questions you may have on our responses and providing you with any additional information you may require. Please direct any questions or comments to </font><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">me,</font><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> at </font><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(281) 765-7100.</font><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:50%;">Very truly yours,</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:50%;">PATTERSON-UTI ENERGY, INC.</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:50%;">By:<font style="margin-left:36pt;"></font><font style="text-decoration:underline;">/s/ C. Andrew Smith</font><font style="text-decoration:underline;margin-left:234pt;"></font><font style="text-decoration:underline;margin-left:270pt;"></font><font style="text-decoration:underline;margin-left:36pt;"></font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:50%;">Name:<font style="margin-left:36pt;">C. Andrew Smith</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:50%;">Title:<font style="margin-left:36pt;">Executive Vice President and Chief </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:50%;"><font style="margin-left:36pt;">Financial Officer </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cc:<font style="margin-left:36pt;">Seth D. Wexler, Senior Vice President, General Counsel and Corporate Secretary</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:50%;">&nbsp;</p></body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>g201806251740134379991.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g201806251740134379991.jpg
M_]C_X  02D9)1@ ! 0$ 8 !@  #_VP!#  @&!@<&!0@'!P<)"0@*#!0-# L+
M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#<I+# Q-#0T'R<Y/3@R/"XS-#+_
MVP!# 0D)"0P+#!@-#1@R(1PA,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R
M,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C+_P  1"  J .$# 2(  A$! Q$!_\0
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M]:T:**Z4DE9'BRE*<G*3NV%%%%,D**** "BBB@ HHHH **** "BBB@ HHHH
M*PV\'>'&O[F_;1K,W5T&$\OE_-)N^]GUS6Y10!B7_A#P[JDDLE]HUG</-()9
M&>,$LX7:&/OCBGQ>%=!@14BTFU15>&08CZ-$,1GZJ.E;%% &-;>$_#]E=3W-
MMH]G#/<!UE=(@"P?[P^A[BKKZ582:?#8/:1-:0>7Y4)7Y4\L@I@>Q48^E7**
M ,Q?#NC*8B-,M?W2RHF8P<+*<R#Z,221WS46G^%- TH1"PTFUM_)E,R&./!5
1RI7=]=I(^E;%% !1110!_]D!

end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
