Bronco Drilling 8-K Bronco Drilling Company, Inc. Announces Third Quarter 2006 Results

Exhibit 99.1

Bronco Drilling Company, Inc. Announces Third Quarter 2006 Results

OKLAHOMA CITY, November 1, 2006 (BUSINESS WIRE)—Bronco Drilling Company, Inc., (Nasdaq/NM:BRNC), announced today financial and operational results for the three months ended September 30, 2006.

Revenues for the third quarter of 2006 were a record $79.8 million compared to $67.1 million for the second quarter of 2006 and $18.6 million for the third quarter of 2005. Average operating rigs for the third quarter of 2006 grew to 47 from 43 for the previous quarter. The growth in rigs is due to the continued refurbishment and deployment of rigs from the Company’s inventory. Revenue days for the quarter increased to 4,039 from 3,631 for the previous quarter and from 1,284 for the third quarter of 2005. Utilization for the third quarter of 2006 was 94% compared to 92% for the previous quarter and 91% for the third quarter of 2005. Average daily cash margins for the quarter ended September 30, 2006, were $10,207 compared to $9,347 for the previous quarter and $5,945 for the third quarter of 2005. Net income for the third quarter of 2006 was $17.4 million compared to $14.7 million for the previous quarter and a $5.1 million net loss for the third quarter of 2005. The Company generated record EBITDA of $36.6 million for the third quarter of 2006 compared to $30.6 million for the previous quarter. The Company’s fully diluted earnings per share for the quarter ended September 30, 2006, was $0.70.

Conference Call

Bronco Drilling’s management will host a conference call to discuss the third quarter results on Wednesday, November 1, 2006 at 11:00 a.m. Eastern Time. Individuals interested in participating in the call should call at least five minutes prior to the call. Participants should use the dial-in # 866-831-6243 or the International Dial-in # 617-213-8855 and the pass code 84482080. The conference call will also be available via the Internet athttp://phx.corporate-ir.net/phoenix.zhtml?c=191804&p=irol-IRHome. Please go to the website at least fifteen minutes prior to the call to register, download and install any necessary software. For those who cannot listen to the live call, a replay will be available through November 15, 2006 at 888-286-8010 or internationally at 617-801-6888 using the passcode 56585676. Also, an archive of the webcast will be available at the following linkhttp://phx.corporate-ir.net/phoenix.zhtml?c=191804&p=irol-IRHome.

About Bronco Drilling

Bronco Drilling Company, Inc. is a publicly held company headquartered in Oklahoma City, Oklahoma, and is a provider of contract land drilling services to oil and natural gas exploration and production companies. Bronco’s common stock is quoted on The Nasdaq Global Market under the symbol “BRNC.” For more information about Bronco Drilling Company, Inc., visithttp://www.broncodrill.com.

Bronco Drilling Company, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except share par value)

	September 30, 2006		December 31, 2005
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	3,309	$	17,039
Receivables
Trade, net of allowance for doubtful accounts of $334 and $330 in 2006 and 2005, respectively		58,650		35,078
Contract drilling in progress		2,814		1,226
Current deferred income taxes		126		125
Prepaid expenses		1,371		485
Total current assets		66,270		53,953
PROPERTY AND EQUIPMENT—AT COST
Drilling rigs and related equipment		367,870		252,709
Transportation, office and other equipment		25,656		14,149
		393,526		266,858
Less accumulated depreciation		35,655		15,965
		357,871		250,893
OTHER ASSETS
Goodwill		21,280		20,774
Restricted cash		2,231		2,184
Intangibles, net, and other		3,465		2,716
		26,976		25,674
	$	451,117	$	330,520
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	16,388	$	10,847
Accrued liabilities
Payroll related		5,733		2,737
Deferred revenue and other		3,793		3,062
Income tax payable		5,748		1,372
Note payable		—		7,503
Current maturities of long-term debt		440		8,012
Total current liabilities		32,102		33,533
LONG-TERM DEBT, less current maturities		63,880		36,310
DEFERRED INCOME TAXES		32,200		21,341
COMMITMENTS AND CONTINGENCIES (Notes 5 and 7)
SHAREHOLDERS’ EQUITY
Common stock, $.01 par value, 100,000 shares authorized; 24,940 and 23,165 shares issued and outstanding at September 30, 2006 and December 31, 2005		250		232
Additional paid-in capital		278,657		238,557
Retained earnings		44,028		547
Total shareholders’ equity		322,935		239,336
	$	451,117	$	330,520

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Bronco Drilling Company, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2006			2005			2006			2005
REVENUES
Contract drilling revenues	$	79,814		$	18,640		$	203,351		$	38,875
EXPENSES
Contract drilling		38,586			11,007			99,481			23,880
Depreciation and amortization		8,134			2,003			21,119			4,854
General and administrative		4,691			5,647			11,741			6,767
		51,411			18,657			132,341			35,501
Income (loss) from operations		28,403			(17	)		71,010			3,374
OTHER INCOME (EXPENSE)
Interest expense		(526	)		(344	)		(647	)		(652	)
Loss from early extinguishment of debt		—			(993	)		(1,000	)		(993	)
Interest income		1			192			123			203
Other		54			7			185			41
		(471	)		(1,138	)		(1,339	)		(1,401	)
Income (loss) before income taxes		27,932			(1,155	)		69,671			1,973
Income tax expense		10,527			3,919			26,190			3,688
NET INCOME (LOSS)	$	17,405		$	(5,074	)	$	43,481		$	(1,715	)
Income (loss) per common share-Basic	$	0.70		$	(0.31	)	$	1.78		$	(0.12	)
Income (loss) per common share-Diluted	$	0.70		$	(0.31	)	$	1.77		$	(0.12	)
Weighted average number of shares outstanding-Basic		24,940			16,239			24,467			14,330
Weighted average number of shares outstanding-Diluted		24,974			16,285			24,505			14,346
PRO FORMA INFORMATION (unaudited):
Historical income (loss) from operations before income taxes				$	(1,155	)				$	1,973
Pro forma provision for income taxes					(435	)					1,181
Pro forma income (loss) from operations				$	(720	)				$	792
Pro forma income (loss) per common share-Basic				$	(0.04	)				$	0.06
Pro forma income (loss) per common share-Diluted				$	(0.04	)				$	0.06
Weighted average number of shares outstanding-Basic					16,239						14,330
Weighted average number of shares outstanding-Diluted					16,285						14,346

Non-GAAP Financial Measures

This press release includes a presentation of average daily cash margin and EBITDA which are not financial measures recognized under generally accepted accounting principles, or GAAP. Average daily cash margin is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus income tax expense, other income, general

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and administrative expense and depreciation and amortization, and divided by revenue days for the period. EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus interest expense, income tax expense and depreciation and amortization. We have presented average daily cash margin and EBITDA because we use these metrics as an integral part of our internal reporting to measure our performance and to evaluate the performance of our senior management. We consider these metrics to be important indicators of the operational strength of our business. A limitation of these metrics, however, is that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business. Management evaluates the costs of such tangible and intangible assets and the impact of related impairments through other financial measures, such as capital expenditures, investment spending and return on capital. Therefore, we believe that average daily cash margin and EBITDA provide useful information to our investors regarding our performance and overall results of operations. Neither average daily cash margin nor EBITDA is intended to be a performance measure that should be regarded as an alternative to, or more meaningful than, either net income as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. In addition, neither of these metrics is intended to represent funds available for dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements.

The following presents a reconciliation of average daily cash margin and EBITDA to net income, the most directly comparable GAAP financial measure (in thousands, except revenue days and average daily cash margin):

	Three Months Ended September 30,					Three Months Ended June 30, 2006
	2006		2005
	(Unaudited)					(Unaudited)
Reconciliation of average dailycash margin to net income:
Net income	$	17,405	$	(5,074	)	$	14,729
Income tax expense		10,527		3,919			8,747
Other income		471		1,138			82
General and administrative		4,691		5,647			3,576
Depreciation and amortization		8,134		2,003			6,805
Drilling margin		41,227		7,633			33,939
Revenue days		4,039		1,284			3,631
Daily cash margin	$	10,207	$	5,945		$	9,347

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	Three Months Ended
	September 30, 2006		June 30, 2006
	(Unaudited)
Calculation of EBITDA:
Net income	$	17,405	$	14,729
Interest expense		526		280
Income tax expense		10,527		8,747
Depreciation and amortization		8,134		6,805
EBITDA	$	36,592	$	30,561

Contact:	Bob Jarvis
	Investor Relations
	Bronco Drilling Company
	(405) 242-4444 EXT: 102
	bjarvis@broncodrill.com

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