"There is going to be some softness in the natural gas markets," CEO Andy Hendricks told investors during a quarterly earnings call.
Henry Hub natural gas futures were trading around $2.439 per mmBTU on Thursday, down from nearly $4.40 per mmBTU at the start of the year.
Other rivals, including Liberty Energy, have warned that rigs may soon be moved from natural-gas focused basins to more oily regions amid the price drop.
Still, the market for drilling and well completion equipment remains strong. Patterson said its top-performing rigs are fully utilized, and it plans to reactivate a 13th hydraulic fracturing fleet this year.
The company has also tested using hydrogen fuel to operate a drilling rig by blending it with natural gas. While the trial was successful, the cost effectiveness of the fuel is still limited, the company said.
"Overall, the economics for hydrogen, I would say, today still probably present some challenges," Hendricks said on Thursday.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ As natural gas prices tumble, new worries for U.S. shale patch ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Liz Hampton in Denver)
Messaging: Reuters Messaging: liz.hampton.reuters@reuters.net))