SNYDER, Texas, Feb. 14 /PRNewswire-FirstCall/ -- PATTERSON-UTI ENERGY,
INC. (Nasdaq: PTEN) today announced financial results for the three and
twelve months ended December 31, 2007. Net income for the three-month
period totaled $85.1 million, or $0.55 per share, compared to $156 million,
or $0.97 per share for the three months ended December 31, 2006. Revenues
for the three months ended December 31, 2007 were $521 million, compared to
$638 million for the fourth quarter of 2006.
Net income for the year ended December 31, 2007 totaled $439 million,
or $2.79 per share, compared to net income of $673 million, or $4.02 per
share for the year ended December 31, 2006. Revenues for 2007 were $2.1
billion, compared to $2.5 billion for 2006.
The Company also declared a quarterly cash dividend on its Common Stock
of $0.12 per share, to be paid on March 28, 2008 to holders of record as of
March 12, 2008.
Douglas J. Wall, Patterson-UTI's Chief Executive Officer, stated, "In
our drilling business, average revenue per operating day during the fourth
quarter increased to $19,250, up slightly from $19,150 in the third quarter
of 2007. Average direct operating costs per operating day were $11,110 for
the fourth quarter, compared to $10,840 for the third quarter of 2007.
Higher Canadian drilling activity increased average revenue and direct
costs per operating day. Average revenue per day in the U.S., excluding the
benefit of a term contract buyout, decreased approximately $200 compared to
the third quarter of 2007."
Mr. Wall said, "For the quarter ended December 31, 2007, the Company
had an average of 241 drilling rigs operating, including 231 rigs in the
U.S. and 10 rigs in Canada. This compares to an average of 243 drilling
rigs operating, including 234 rigs in the U.S. and 9 rigs in Canada, for
the third quarter of 2007. We currently expect that our rig count for the
first quarter of 2008 will be similar to the fourth quarter of 2007."
"We have continued to expand our pressure pumping business which
completed its most successful year. It again achieved record results in
2007 with an increase of 43% in operating income compared to the prior
year," Mr. Wall added.
Mark S. Siegel, Chairman of Patterson-UTI, stated, "We have continued
to make significant investments in our drilling rig fleet, bringing our
four-year total to more than $1.5 billion. We have significantly upgraded
our drilling rig fleet, including deploying approximately 70 new and
like-new rigs. In 2008, we plan to invest approximately $480 million in our
businesses, including continuation of our rig fleet upgrades and expansion
of our pressure pumping operations in Appalachia."
Mr. Siegel added, "We believe the long-term upward trend in the number
of wells drilled will continue, as it is the principal mechanism to meet
demand for natural gas and to offset steep decline rates. We expect this
increase in demand and the slowdown of new rigs entering the market will
ultimately correct the current oversupply of drilling rigs available. We
believe that sustained natural gas prices, at current or higher levels,
support our expectation for increased drilling activity. We have
approximately 90 currently marketable land drilling rigs available in the
U.S. to reactivate for our customers needs."
"We also believe our strong balance sheet and our commitment to invest
in our rig fleet and pressure pumping business will continue to serve our
Company and its shareholders well in the future. During 2007, the Company
purchased 3,329,119 shares of the Company's Common Stock for an aggregate
cost of $70.8 million and paid cash dividends of $68.6 million," Mr. Siegel
added.
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 will hold its quarterly
conference call to discuss fourth 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 through February 28, 2008 at http://www.patenergy.com and
telephone replay of the call will be available through February 18, 2008.
About Patterson-UTI Energy, Inc.
Patterson-UTI Energy, Inc. provides onshore contract drilling services
to exploration and production companies in North America. The Company has
approximately 350 currently marketable land-based drilling rigs that
operate primarily in the oil and natural gas producing regions of Texas,
New Mexico, Oklahoma, Arkansas, Louisiana, Mississippi, Colorado, Utah,
Wyoming, Montana, North Dakota, South Dakota, Pennsylvania 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 working interests in oil and natural gas
properties.
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, 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 Year Ended
December 31, December 31,
2007 2006 2007 2006
--------- -------- ---------- -----------
REVENUES $520,533 $638,382 $2,114,194 $2,546,586
COSTS AND EXPENSES
Direct operating costs
(excluding depreciation,
depletion and
impairment) 305,241 318,277 1,188,039 1,243,502
Depreciation, depletion
and impairment 66,805 56,125 249,206 196,370
Selling, general and
administrative 17,039 15,637 64,623 55,065
Embezzlement costs
(recoveries) (875) 140 (43,955) 3,081
(Gain) loss on disposal
of assets 58 4,256 (16,545) 3,819
Other operating expenses 950 1,200 2,550 5,585
--------- -------- ---------- -----------
Total Costs and
Expenses 389,218 395,635 1,443,918 1,507,422
--------- -------- ---------- -----------
OPERATING INCOME 131,315 242,747 670,276 1,039,164
--------- -------- ---------- -----------
OTHER INCOME (EXPENSE)
Interest expense (236) (1,126) (2,187) (1,602)
Interest income 438 346 2,355 5,925
Other 118 116 363 347
--------- -------- ---------- -----------
Total Other Income 320 (664) 531 4,670
--------- -------- ---------- -----------
INCOME BEFORE INCOME TAXES
AND CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE 131,635 242,083 670,807 1,043,834
INCOME TAX EXPENSE 46,529 85,765 232,168 371,267
--------- -------- ---------- -----------
INCOME BEFORE CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 85,106 156,318 438,639 672,567
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE, NET OF RELATED
TAX EXPENSE OF $398 - - - 687
--------- -------- ---------- -----------
NET INCOME $85,106 $156,318 $438,639 $673,254
========= ======== ========== ===========
NET INCOME PER COMMON SHARE
Basic $0.56 $0.99 $2.83 $4.08
========= ======== ========== ===========
Diluted $0.55 $0.97 $2.79 $4.02
========= ======== ========== ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic 153,196 158,347 154,755 165,159
========= ======== ========== ===========
Diluted 155,416 160,760 156,997 167,413
========= ======== ========== ===========
CASH DIVIDENDS PER COMMON
SHARE $0.12 $0.08 $0.44 $0.28
========= ======== ========== ===========
PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data (Unaudited)
(dollars in thousands)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
--------- -------- ---------- -----------
Contract Drilling:
Revenues $426,642 $553,270 $1,741,647 $2,169,370
Direct operating costs
(excluding
depreciation) $246,347 $264,980 $963,150 $1,002,001
Selling, general and
administrative $1,426 $1,975 $5,893 $7,313
Depreciation $57,737 $46,843 $213,812 $168,607
Operating income $121,132 $239,472 $558,792 $991,449
Operating days 22,164 26,657 89,095 108,192
Average revenue per
operating day $19.25 $20.76 $19.55 $20.05
Average direct operating
costs per operating day $11.11 $9.94 $10.81 $9.26
Average margin per
operating day $8.13 $10.81 $8.74 $10.79
Average rigs operating 241 290 244 296
Capital expenditures $136,125 $153,922 $539,506 $531,087
Pressure Pumping:
Revenues $54,138 $37,871 $202,812 $145,671
Direct operating costs
(excluding
depreciation) $29,663 $21,210 $105,273 $77,755
Selling, general and
administrative $5,213 $3,597 $18,971 $13,185
Depreciation $4,077 $2,821 $14,311 $9,896
Operating income $15,185 $10,243 $64,257 $44,835
Total jobs 3,617 2,806 14,094 11,650
Average revenue per job $14.97 $13.50 $14.39 $12.50
Average costs per job $8.20 $7.56 $7.47 $6.67
Average margin per job $6.77 $5.94 $6.92 $5.83
Capital expenditures $5,904 $13,891 $47,582 $41,262
Drilling and Completion
Fluids:
Revenues $30,323 $37,137 $128,098 $192,358
Direct operating costs
(excluding
depreciation) $26,580 $29,954 $108,752 $150,372
Selling, general and
administrative $2,639 $2,756 $9,958 $10,521
Depreciation $739 $706 $2,860 $2,706
Operating income $365 $3,721 $6,528 $28,759
Capital expenditures $501 $1,170 $3,082 $4,222
Oil and Natural Gas
Production and
Exploration:
Revenues $9,430 $10,104 $41,637 $39,187
Direct operating costs
(excluding
depreciation, depletion
and impairment) $2,651 $2,133 $10,864 $13,374
Selling, general and
administrative $348 $735 $2,365 $2,785
Depreciation, depletion
and impairment $4,049 $5,553 $17,410 $14,368
Operating income $2,382 $1,683 $10,998 $8,660
Capital expenditures $3,712 $5,499 $17,516 $21,198
Corporate and Other:
Selling, general and
administrative $7,413 $6,574 $27,436 $21,261
Depreciation $203 $202 $813 $793
Other operating expenses $950 $1,200 $2,550 $5,585
(Gain) loss on disposal
of assets $58 $4,256 $(16,545) $3,819
Embezzlement costs
(recoveries) $(875) $140 $(43,955) $3,081
Capital expenditures $- $15 $- $150
Total capital expenditures $146,242 $174,497 $607,686 $597,919
December 31, December 31,
2007 2006
---------- ------------
Selected Balance Sheet
Data (Unaudited):
Cash and cash equivalents $17,434 $13,385
Current assets $522,785 $652,670
Total assets $2,465,199 $2,192,503
Current liabilities $295,208 $317,618
Long-term debt $50,000 $120,000
Working capital $227,577 $335,052
SOURCE Patterson-UTI Energy, Inc.
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Related links:
http://www.patenergy.com
http://www.prnewswire.com/comp/133286.html/
CONTACT:
John E. Vollmer III, SVP & Chief Financial
Officer of Patterson-UTI Energy, Inc., +1-214-360-7800
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