Patterson-UTI Energy Reports Financial Results for Three and Six Months
Ended June 30, 2009
HOUSTON, July 30 /PRNewswire-FirstCall/ — Patterson-UTI Energy, Inc.
(NASDAQ:PTEN) today reported financial results for the three and six months
ended June 30, 2009. The Company reported a net loss for the second quarter
of 2009 of $17.7 million, or $0.12 per share, compared to net income of
$81.4 million, or $0.52 per share, for second quarter of 2008. Revenues for
the quarter ended June 30, 2009 were $161 million, compared to $526 million
for the quarter ended June 30, 2008.
The Company reported a net loss of $1.5 million, or $0.01 per share, for the
six months ended June 30, 2009, compared to net income of $159 million, or
$1.01 per share, for the six months ended June 30, 2008. Revenues for the
first six months of 2009 were $457 million, compared to $1.0 billion for the
first six months of 2008.
Douglas J. Wall, Patterson-UTI’s Chief Executive Officer, stated, “The
continuing weakness in natural gas prices has resulted in low levels of
drilling activity, which is reflected in our financial and operating results
for the second quarter of 2009. We had an average of 63 rigs operating in
the second quarter ended June 30, 2009, comprised of 61 in the United States
and 2 in Canada, compared to an average of 127 rigs operating in the first
quarter of 2009, including 116 in the United States and 11 in Canada. Due
to a recent increase in spot-rate rig activity, we currently have 68 rigs
operating, including 66 in the United States and 2 in Canada.”
Mr. Wall added, “Average revenue per operating day for the three months
ended June 30, 2009 was $17,780, compared to average revenue per operating
day of $19,670 for the three months ended March 31, 2009. Average direct
operating costs per operating day for the second quarter of 2009 were $9,960
compared to $11,010 for the three months ended March 31, 2009. As a result,
average margin per operating day in the second quarter of 2009 was $7,820,
compared to $8,660 for the first quarter of 2009.
“Our average rig count in the second quarter included 7 rigs that earned
standby revenues of $7.5 million. Rigs on standby earn a discounted dayrate
as they do not have crews and have lower costs. Accordingly, these standby
rigs reduced both average revenue and direct operating costs per operating
day during the second quarter. Average revenues per operating day were also
impacted by delays in the delivery of some of our newbuild rigs.
“During the second quarter of 2009 we had an average of approximately 32
rigs operating under term contracts (including 7 rigs earning standby
revenues). We expect to have an average of approximately 29 rigs (including
3 rigs earning standby revenues) under term contracts for the remainder of
the year. We expect to have an average of approximately 28 rigs in 2010 and
21 rigs in 2011 under existing long-term contracts.
“We have activated eleven new Apex(TM) rigs so far this year. We currently
have multi-year contracts for ten additional new advanced technology
Apex(TM) rigs,” he concluded.
Mark S. Siegel, Chairman of Patterson-UTI stated, “As we have said, the
severe downturn in our industry affected all of our regions and all sizes of
rigs. We have reduced costs and streamlined operations so as to align our
business units with current market conditions.
“We have recently experienced an increase in demand for our rigs under spot
rate contracts. Accordingly, our rig count has increased in July, but our
average revenues per operating day are being reduced since these spot rate
contracts have lower dayrates than our long-term contracts.”
Mr. Siegel added, “We have been through these cycles before and believe that
we are well-positioned for the opportunities that may arise during this
period. Our balance sheet at June 30, 2009 remains strong with $168 million
in cash and no debt.”
The Company declared a quarterly cash dividend on its common stock of $0.05
per share, to be paid on September 30, 2009 to holders of record as of
September 15, 2009.
All references to “net income per share” in this press release are diluted
earnings per common share as defined within Statement of Financial
Accounting Standards No. 128.
The Company’s quarterly conference call to discuss the operating results for
the three and six-month periods ended June 30, 2009 is scheduled for July
30, 2009 at 10:00 a.m. (EDT) / 9:00 a.m. (CDT) / 7:00 a.m. (PDT). The
dial-in information for participants is 800-573-4840 (Domestic) and
617-224-4326 (International). The Passcode for both numbers is 46742116.
The call is also being webcast and can be accessed through the Investor
Relations section at www.patenergy.com. Webcast participants should log on
10-15 minutes prior to the scheduled start time. Replay of the conference
call will be available through August 3, 2009 at www.patenergy.com and at
888-286-8010 (Domestic) and 617-801-6888 (International). The Passcode for
both numbers is 20896768.
About Patterson-UTI
Patterson-UTI Energy, Inc. provides onshore contract drilling services to
exploration and production companies in North America. The Company has
approximately 350 marketable land-based drilling rigs that operate primarily
in the oil and natural gas producing regions of Texas, New Mexico, Oklahoma,
Arkansas, Louisiana, Mississippi, Alabama, Colorado, Arizona, Utah, Wyoming,
Montana, North Dakota, South Dakota, Pennsylvania, West Virginia and western
Canada. Patterson-UTI Energy, Inc. is also engaged in the businesses of
pressure pumping services and drilling and completion fluid services.
Statements made in this press release which state the Company’s or
management’s intentions, beliefs, expectations or predictions for the future
are forward-looking statements. It is important to note that actual results
could differ materially from those discussed in such forward-looking
statements. Important factors that could cause actual results to differ
materially include, but are not limited to, deterioration in the global
economic environment, declines in oil and natural gas prices that could
adversely affect demand for the Company’s services, and their associated
effect on day rates, rig utilization and planned capital expenditures,
excess availability of land drilling rigs, including as a result of the
reactivation or construction of new land drilling rigs, adverse industry
conditions, difficulty in integrating acquisitions, demand for oil and
natural gas, shortages of rig equipment and ability to retain management and
field personnel. Additional information concerning factors that could cause
actual results to differ materially from those in the forward-looking
statements is contained from time to time in the Company’s SEC filings,
which may be obtained by contacting the Company or the SEC. These filings
are also available through the Company’s web site at
http://www.patenergy.com/ or through the SEC’s Electronic Data Gathering and
Analysis Retrieval System (EDGAR) at http://www.sec.gov/. We undertake no
obligation to publicly update or revise any forward-looking statement.
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Income (Unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008