Patterson-UTI Energy Announces Second Quarter Results
SNYDER, Texas, July 28 /PRNewswire-FirstCall/ — PATTERSON-UTI ENERGY, INC. today announced financial results for the second quarter and six months ended June 30, 2005. Net income for the quarter increased to $77.7 million, or $0.45 per share, from $19.6 million, or $0.12 per share, for the quarter ended June 30, 2004. Revenues for the quarter were up by 66 percent to $389.9 million, compared to $234.5 million for the second quarter of 2004.
Net income for the six months ended June 30, 2005 more than tripled to $137.4 million, or $0.80 per share, from $40.3 million, or $0.24 per share, for the six months ended June 30, 2004. Revenues for the six months were up by 63 percent to $740.5 million, compared to $453.3 million for the first six months of 2004.
The Company also declared a quarterly cash dividend on its Common Stock of $0.04 per share, to be paid on September 1, 2005 to holders of record as of August 16, 2005.
Cloyce A. Talbott, Patterson-UTI’s Chief Executive Officer, commented, “Customer demand for our drilling services has continued to increase and available land drilling rigs remain scarce, resulting in further improvement in pricing for these services. For the recently completed quarter, our average revenue per operating day increased by $1,200 to $13,690, and our average margin per operating day increased by $1,140 to $6,210 compared to the first quarter of 2005.”
He added, “Our rig count also increased sequentially from the first quarter, with drilling activity in the U.S. more than sufficient to compensate for the decline in drilling activity in Canada due to spring breakup. During the recently completed quarter we had an average of 265 rigs operating, including 259 in the U.S. and 6 in Canada, compared to an average of 263 rigs operating, including 248 in the U.S. and 15 in Canada for the first quarter of 2005. We estimate that our rig count will increase to an average of 278 rigs operating in July, including 264 in the U.S. and 14 in Canada.
“We remain on target to activate approximately 30 drilling rigs during 2005, including 16 that have been activated so far this year. Consistent with our expectations of rig demand and our customer’s inquiries for rigs in 2006, we expect to continue our rig activation program at a similar pace next year,” Mr. Talbott concluded.
Commenting on the financial results, Mark S. Siegel, Chairman of Patterson-UTI Energy, stated, “Our results for the quarter continue to demonstrate the earnings leverage that we are able to achieve as revenues increase and daily margins improve. While revenues for the quarter increased by 66 percent, our earnings nearly quadrupled.
“For the quarter, we achieved record revenues, net income and net income per common share. And, with respect to our contract drilling segment, we achieved record average revenue per operating day, average margin per operating day and average rigs operating.”
Mr. Siegel added, “We continue to maintain a strong balance sheet and ended the quarter with approximately $70 million in cash and cash equivalents, $268 million in working capital and no long-term debt.”
All references to “earnings per share” in this press release are to diluted earnings per share as defined within the Statement of Financial Accounting Standards No. 128.
The Company will hold its quarterly conference call to discuss second quarter results today at 10:00 a.m. Eastern (9:00 a.m. Central and 7:00 a.m. Pacific). This call is being Webcast and can be accessed through Patterson-UTI’s Web site at http://www.patenergy.com/ or at http://www.streetevents.com/ in the Individual Investor Center. Replay of the conference call Webcast will be available at http://www.patenergy.com/ until August 11, 2005.
About Patterson-UTI
Patterson-UTI Energy, Inc. provides onshore contract drilling services to exploration and production companies in North America. The Company owns 398 land-based drilling rigs that operate primarily in the oil and natural gas producing regions of Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Colorado, Utah, Wyoming, Montana, North Dakota, South Dakota and western Canada. Patterson-UTI Energy, Inc. is also engaged in the businesses of pressure pumping services and drilling and completion fluid services. Additionally, the Company has an exploration and production business.
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, 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, adverse industry conditions, difficulty in integrating acquisitions, demand for oil and natural gas, 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. Copies of these filings may be obtained by contacting the Company or the SEC.
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, 2005 2004 2005 2004 ——– ——– ——– ——– REVENUES $ 389,922 $ 234,510 $ 740,515 $ 453,289 COSTS AND EXPENSES Direct operating costs (excluding depreciation, depletion and impairment) 219,071 165,320 431,020 318,606 Depreciation, depletion and impairment 36,959 30,451 71,359 57,734 Selling, general and administrative 9,925 7,910 19,604 14,708 Bad debt expense 143 217 366 307 Other 1,408 (187) 1,498 (1,375) ——– ——– ——– ——– Total Costs and Expenses 267,506 203,711 523,847 389,980 ——– ——– ——– ——– OPERATING INCOME 122,416 30,799 216,668 63,309 ——– ——– ——– ——– OTHER INCOME (EXPENSE) Interest expense (57) (54) (123) (130) Interest income 634 204 1,067 455 Other 16 172 20 257 ——– ——– ——– ——– Total Other Income 593 322 964 582 ——– ——– ——– ——– INCOME BEFORE INCOME TAXES 123,009 31,121 217,632 63,891 INCOME TAXES 45,344 11,514 80,219 23,602 ——– ——– ——– ——– NET INCOME $ 77,665 $ 19,607 $ 137,413 $ 40,289 ======== ======== ======== ======== NET INCOME PER COMMON SHARE Basic $ 0.46 $ 0.12 $ 0.81 $ 0.24 ======== ======== ======== ======== Diluted $ 0.45 $ 0.12 $ 0.80 $ 0.24 ======== ======== ======== ======== AVERAGE COMMON SHARES OUTSTANDING Basic 169,992 166,681 169,378 165,211 ======== ======== ======== ======== Diluted 173,162 169,062 172,648 168,005 ======== ======== ======== ======== PATTERSON-UTI ENERGY, INC. Additional Financial and Operating Data (Unaudited) (dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 ——– ——– ——– ——- Contract Drilling: Revenues $ 329,503 $ 188,222 $ 624,892 $ 367,397 Direct operating costs (excluding depreciation) $ 180,185 $ 134,387 $ 355,651 $ 262,378 Selling, general and administrative $ 1,205 $ 1,080 $ 2,427 $ 2,175 Operating days 24,074 18,473 47,731 36,437 Average revenue per operating day $ 13.69 $ 10.19 $ 13.09 $ 10.08 Average direct operating costs per operating day $ 7.48 $ 7.27 $ 7.45 $ 7.20 Average margin per operating day $ 6.21 $ 2.92 $ 5.64 $ 2.88 Number of owned rigs at end of period 397 361 397 361 Average number of rigs owned during period 396 361 393 357 Average rigs operating 265 203 264 200 Rig utilization percentage 67% 56% 67% 56% Capital expenditures $ 69,793 $ 42,980 $ 129,128 $ 71,360 Pressure Pumping: Revenues $ 22,025 $ 14,577 $ 38,718 $ 28,827 Direct operating costs (excluding depreciation) $ 12,622 $ 8,328 $ 22,986 $ 16,416 Selling, general and administrative $ 2,192 $ 1,664 $ 4,394 $ 3,457 Total jobs 2,345 1,578 4,254 3,266 Average revenue per job $ 9.39 $ 9.24 $ 9.10 $ 8.83 Average costs per job $ 5.38 $ 5.28 $ 5.40 $ 5.03 Average margin per job $ 4.01 $ 3.96 $ 3.70 $ 3.80 Capital expenditures $ 7,075 $ 4,782 $ 14,733 $ 10,604 Drilling and Completion Fluids: Revenues $ 29,587 $ 23,424 $ 58,993 $ 41,563 Direct operating costs (excluding depreciation) $ 23,846 $ 19,837 $ 47,795 $ 35,476 Selling, general and administrative $ 2,367 $ 1,875 $ 4,562 $ 3,585 Total jobs 503 593 1,030 1,111 Average revenue per job $ 58.82 $ 39.50 $ 57.27 $ 37.41 Average costs per job $ 47.41 $ 33.45 $ 46.40 $ 31.93 Average margin per job $ 11.41 $ 6.05 $ 10.87 $ 5.48 Capital expenditures $ 766 $ 416 $ 1,352 $ 627 Oil and Natural Gas Production and Exploration: Revenues $ 8,807 $ 8,287 $ 17,912 $ 15,502 Direct operating costs (excluding depreciation, depletion and impairment) $ 2,418 $ 2,768 $ 4,588 $ 4,336 Selling, general and administrative $ 552 $ 427 $ 1,053 $ 840 Capital expenditures $ 3,407 $ 3,600 $ 8,428 $ 7,132 Corporate and Other: Selling, general and administrative $ 3,609 $ 2,864 $ 7,168 $ 4,651 Bad debt expense $ 143 $ 217 $ 366 $ 307 Other expense (income) from operations $ 1,408 $ (187) $ 1,498 $ (1,375) Capital expenditures $ 108 $ — $ 5,308 $ — Total capital expenditures, excluding acquisitions $ 81,149 $ 51,778 $ 158,949 $ 89,723 June 30, June 30, 2005 2004 ——— ——– Selected Balance Sheet Data (Unaudited): Cash and cash equivalents $ 70,077 $ 63,353 Current assets $ 437,119 $ 293,347 Total assets $ 1,517,518 $ 1,193,774 Current liabilities $ 169,479 $ 118,167 Long-term debt, less current maturities $ — $ — Working capital $ 267,640 $ 175,180
Patterson-UTI Energy, Inc.
CONTACT: John E. Vollmer III, SVP-Corporate Development of Patterson-UTIEnergy, Inc., +1-214-360-7800
Web site: http://www.patenergy.com/http://www.streetevents.com/