Increases Quarterly Dividend
HOUSTON, May 1 /PRNewswire-FirstCall/ -- PATTERSON-UTI ENERGY, INC.
(Nasdaq: PTEN) today reported net income of $77.4 million, or $0.50 per
share, for the three months ended March 31, 2008, compared to net income of
$116 million, or $0.73 per share, for the three months ended March 31,
2007. Revenues for the first three months of 2008 were $505 million,
compared to $547 million for the first three months of 2007.
The Company also declared a quarterly cash dividend on its Common Stock
of $0.16 per share, to be paid on June 27, 2008, to holders of record as of
June 12, 2008.
Commenting on the first quarter's results, Douglas J. Wall,
Patterson-UTI's Chief Executive Officer, stated, "Average revenue per
operating day for the first three months of 2008 was $18,900, compared to
$19,250 for the three months ended December 31, 2007. Average direct
operating costs per operating day for the quarter decreased to $10,990,
compared to $11,110 for the fourth quarter of 2007.
Mr. Wall added, "For the three months ended March 31, 2008, the Company
had an average of 244 rigs operating, including 232 in the U.S. and 12 in
Canada. This compares to an average of 241 rigs operating for the fourth
quarter of 2007, including 231 in the U.S. and 10 in Canada."
"In our U.S. land drilling operations, we have recently seen an
increase in activity and a stabilization of dayrates. We estimate that our
rig count in the U.S. increased in April 2008 to an average of 238 rigs
operating. Canadian drilling activities are being affected by the annual
spring break up and soft market conditions. As a result, our Canadian
drilling operations had very few operating days during April 2008,
averaging zero rigs operating for the month."
"Our pressure pumping operations in Appalachia were negatively impacted
by wet locations that resulted from a lack of consistently cold weather.
Accordingly, many jobs scheduled for the first quarter were postponed. As
location conditions have improved, we have seen a significant pick up in
this business," Mr. Wall added.
Mark S. Siegel, Chairman of Patterson-UTI stated, "Recently, we have
seen a number of encouraging signs in the marketplace. With the price of
natural gas increasing in 2008, we have begun to see an increase in U.S.
drilling activity. If natural gas prices remain at current levels, we
expect to see the activation of additional rigs and an increase in the
number of wells drilled."
Mr. Siegel added, "During the last few years we have spent
approximately $1.5 billion on our contract drilling business. We have
significantly upgraded our drilling rig fleet, including the deployment of
approximately 75 new and like-new rigs, so that our fleet is well-matched
to expected future drilling activity, with its increasing emphasis on
unconventional plays. We are well positioned to meet expected increases in
rig demand with the deployment of our remaining new rigs, our continuing
rig upgrade program and our existing idle capacity."
"We are pleased to increase the quarterly cash dividend for the fourth
consecutive year, bringing the current annual dividend yield to more than
2% and showing our continued commitment to return capital to our
shareholders. Our balance sheet as of March 31, 2008 continues to be
strong, with no long-term debt and working capital of approximately $257
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 first
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. Webcast
participants should go to one of the web addresses above 10-15 minutes
prior to the scheduled start time. Replay of the conference call webcast
will be available at these sites through Thursday, May 15, 2008.
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 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, Alabama, 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 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, 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
March 31,
2008 2007
---------- ----------
REVENUES $ 504,554 $ 547,101
COSTS AND EXPENSES
Direct operating costs (excluding
depreciation, depletion and impairment) 303,472 295,974
Depreciation, depletion and impairment 63,726 55,931
Selling, general and administrative 16,996 14,669
Loss on disposal of assets 186 202
Other operating expenses 300 600
---------- ----------
Total Costs and Expenses 384,680 367,376
---------- ----------
OPERATING INCOME 119,874 179,725
---------- ----------
OTHER INCOME (EXPENSE)
Interest expense (277) (763)
Interest income 343 369
Other 384 94
---------- ----------
Total Other Income (Expense) 450 (300)
---------- ----------
INCOME BEFORE INCOME TAXES 120,324 179,425
INCOME TAX EXPENSE 42,915 63,624
---------- ----------
NET INCOME $ 77,409 $ 115,801
========== ==========
NET INCOME PER COMMON SHARE
Basic $ 0.51 $ 0.75
========== ==========
Diluted $ 0.50 $ 0.73
========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
Basic 152,600 155,387
========== ==========
Diluted 155,055 157,742
========== ==========
CASH DIVIDENDS PER COMMON SHARE $ 0.12 $ 0.08
========== ==========
PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data (Unaudited)
(dollars in thousands)
Three Months Ended
March 31,
2008 2007
---------- ----------
Contract Drilling:
Revenues $ 420,149 $ 467,498
Direct operating costs (excluding depreciation) $ 244,367 $ 246,154
Selling, general and administrative $ 1,524 $ 1,451
Depreciation $ 55,872 $ 48,188
Operating income $ 118,386 $ 171,705
Operating days 22,233 22,972
Average revenue per operating day $ 18.90 $ 20.35
Average direct operating costs per
operating day $ 10.99 $ 10.72
Average margin per operating day $ 7.91 $ 9.64
Average rigs operating 244 255
Capital expenditures $ 67,211 $ 153,276
Pressure Pumping:
Revenues $ 42,864 $ 38,584
Direct operating costs (excluding depreciation) $ 28,505 $ 21,151
Selling, general and administrative $ 5,607 $ 4,068
Depreciation $ 4,300 $ 3,124
Operating income $ 4,452 $ 10,241
Total jobs 2,911 2,839
Average revenue per job $ 14.72 $ 13.59
Average costs per job $ 9.79 $ 7.45
Average margin per job $ 4.93 $ 6.14
Capital expenditures $ 12,959 $ 16,425
Drilling and Completion Fluids:
Revenues $ 32,550 $ 30,760
Direct operating costs (excluding depreciation) $ 28,533 $ 25,391
Selling, general and administrative $ 2,626 $ 2,397
Depreciation $ 724 $ 696
Operating income $ 667 $ 2,276
Capital expenditures $ 8 $ 1,098
Oil and Natural Gas Production and Exploration:
Revenues $ 8,991 $ 10,259
Direct operating costs (excluding depreciation,
depletion and impairment) $ 2,067 $ 3,278
Selling, general and administrative $ - $ 648
Depreciation, depletion and impairment $ 2,627 $ 3,720
Operating income $ 4,297 $ 2,613
Capital expenditures $ 4,428 $ 5,032
Corporate and Other:
Selling, general and administrative $ 7,239 $ 6,105
Depreciation $ 203 $ 203
Other operating expenses $ 300 $ 600
Loss on disposal of assets $ 186 $ 202
Total capital expenditures $ 84,606 $ 175,831
March 31, December 31,
2008 2007
Selected Balance Sheet Data (Unaudited): ---------- ----------
Cash and cash equivalents $ 50,327 $ 17,434
Current assets $ 551,968 $ 522,785
Total assets $2,492,442 $2,465,199
Current liabilities $ 294,645 $ 295,208
Borrowings outstanding under line of credit $ - $ 50,000
Working capital $ 257,323 $ 227,577
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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