Bronco Drilling 8-K Bronco Drilling Company, Inc. Announces Fourth Quarter and Fiscal Year 2006 Results

Exhibit 99.1

Bronco Drilling Company, Inc. Announces Fourth Quarter and Fiscal Year 2006 Results

OKLAHOMA CITY, February 22, 2007 (BUSINESS WIRE)—Bronco Drilling Company, Inc., (Nasdaq/NM:BRNC), announced today financial and operational results for the three months and year ended December 31, 2006.

Revenues for the fourth quarter of 2006 were $82.5 million compared to $79.8 million for the third quarter of 2006 and $39.0 million for the fourth quarter of 2005. Average operating rigs for the fourth quarter of 2006 grew to 50 from 47 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 4,176 from 4,039 for the previous quarter and from 2,530 for the fourth quarter of 2005. Utilization for the fourth quarter of 2006 was 91% compared to 94% for the previous quarter and 97% for the fourth quarter of 2005. Average daily cash margins for the quarter ended December 31, 2006, were $10,142 compared to $10,207 for the previous quarter and $7,192 for the fourth quarter of 2005. Net income for the fourth quarter of 2006 was $16.4 million (see note below regarding non-recurring charge) compared to $17.4 million for the previous quarter and $6.8 million for the fourth quarter of 2005. The Company generated record EBITDA of $38.5 million for the fourth quarter of 2006 compared to $36.6 million for the previous quarter and $14.7 million for the fourth quarter of 2005.

The Company’s fully diluted earnings per share for the quarter ended December 31, 2006, was $0.66. This number includes a non-recurring charge related to an increase in the effective tax rate the Company uses to compute its deferred tax liability. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the Company expects to recover or settle those temporary differences. In accordance with Statement of Financial Accounting Standards No. 109, the Company reflects in income the effect of a change in tax rates on deferred tax assets and liabilities in the period during which the change occurs. Excluding the non-recurring charge, fully diluted earnings per share would be $0.72.

Revenues for the year ended December 31, 2006 were $285.8 million compared to $77.9 million for the year ended 2005. Average operating rigs for 2006 grew to 45 from 17 for the previous year. Revenue days for the year increased to 15,202 from 5,782 for the previous year. Utilization for the year ended December 31, 2006 was 93% compared to 95% for 2005. Average daily cash margins for 2006 were $9,618 compared to $5,740 for the previous year. Net income for 2006 was $59.8 million compared to $5.1 million for 2005. The Company generated EBITDA of $130.0 million in 2006 compared to $22.2 million for the previous year. The Company’s fully diluted earnings per share for the year ended December 31, 2006, was $2.43 compared to $.31 for 2005.

Conference Call

Bronco Drilling’s management will host a conference call to discuss the third quarter results on Thursday February 22, 2007 at 11:00 a.m. Eastern Time. To participate in the call, dial 866-356-3377 or internationally dial 617-597-5392 using the participant code 42694079. Individuals interested in participating in the call should call at least five minutes prior to the call. The

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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 May 31, 2007 at 888-286-8010 or internationally at 617-801-6888 using the passcode 40496711. 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.

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Bronco Drilling Company, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except share par value)

	December 31,
	2006		2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	10,608	$	17,039
Receivables
Trade, net of allowance for doubtful accounts of $400 and $330 in 2006 and 2005, respectively		60,282		35,078
Contract drilling in progress		2,135		1,226
Current deferred income taxes		155		125
Prepaid expenses		338		485
Total current assets		73,518		53,953
PROPERTY AND EQUIPMENT—AT COST
Drilling rigs and related equipment		396,499		252,709
Transportation, office and other equipment		29,928		14,149
		426,427		266,858
Less accumulated depreciation		44,505		15,965
		381,922		250,893
OTHER ASSETS
Goodwill		21,280		20,774
Restricted cash		2,600		2,184
Intangibles, net, and other		3,314		2,716
		27,194		25,674
	$	482,634	$	330,520
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	19,823	$	10,847
Accrued liabilities
Payroll related		7,587		2,737
Deferred revenue and other		4,180		3,062
Income tax payable		3,724		1,372
Note payable		—		7,503
Current maturities of long-term debt		636		8,012
Total current liabilities		35,950		33,533
LONG-TERM DEBT, less current maturities		64,091		36,310
DEFERRED INCOME TAXES		42,608		21,341
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDERS’ EQUITY
Common stock, $.01 par value, 100,000 shares authorized; 24,938 shares and 23,165 issued and outstanding at December 31, 2006 and 2005		250		232
Additional paid-in capital		279,355		238,557
Retained earnings		60,380		547
Total stockholders’ equity		339,985		239,336
	$	482,634	$	330,520

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Bronco Drilling Company, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

	Years Ended December 31,
	2006			2005			2004
REVENUES
Contract drilling revenues, including 4%, 3% and 0% to related parties	$	285,828		$	77,885		$	21,873
EXPENSES
Contract drilling		139,607			44,695			18,670
Depreciation and amortization		30,335			9,143			3,695
General and administrative		15,709			9,395			1,714
		185,651			63,233			24,079
Income (loss) from operations		100,177			14,652			(2,206	)
OTHER INCOME (EXPENSE)
Interest expense		(1,736	)		(1,415	)		(285	)
Loss from early extinguishment of debt		(1,000	)		(2,062	)		—
Interest income		164			432			10
Other		284			53			—
		(2,288	)		(2,992	)		(275	)
Income (loss) before income taxes		97,889			11,660			(2,481	)
Income tax expense		38,056			6,529			285
NET INCOME (LOSS)	$	59,833		$	5,131		$	(2,766	)
Income per common share-Basic	$	2.43		$	0.32
Income per common share-Diluted	$	2.43		$	0.31
Weighted average number of shares outstanding-Basic		24,585			16,259
Weighted average number of shares outstanding-Diluted		24,623			16,306
PRO FORMA INFORMATION (unaudited):
Historical income (loss) before income taxes				$	11,660		$	(2,481	)
Pro forma provision (benefit) for income taxes					4,396			(935	)
Pro forma income (loss)				$	7,264		$	(1,546	)
Pro forma income (loss) per common share-Basic and Diluted				$	0.45		$	(0.12	)
Weighted average number of shares outstanding-Basic					16,259			13,360
Weighted average number of shares outstanding-Diluted					16,306			13,360

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Bronco Drilling Company Inc.

Quarterly Results

Year Ended December 31, 2006

(Amounts in thousands, except per share amounts)

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Revenues	$	56,387	$	67,151	$	79,814	$	82,476
Income from operations		19,252		23,598		28,403		28,924
Income tax expense		6,915		8,747		10,527		11,867
Net income		11,347		14,729		17,405		16,352
Income per share:
Basic		0.48		0.59		0.70		0.66
Diluted		0.48		0.59		0.70		0.66

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 expense, general 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.

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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 December 31,				Three Months Ended September 30, 2006
	2006		2005
	(Unaudited)				(Unaudited)
Reconciliation of average daily
cash margin to net income:
Net income	$	16,352	$	6,845	$	17,405
Income tax expense		11,867		2,842		10,527
Other expense		705		1,591		471
General and administrative		3,968		2,628		4,691
Depreciation and amortization		9,459		4,288		8,134
Drilling margin		42,351		18,194		41,228
Revenue days		4,176		2,530		4,039
Average daily cash margin	$	10,142	$	7,192	$	10,207

	Year Ended December 31,
	2006		2005
Reconciliation of average daily cash margin to net income:
Net income	$	59,833	$	5,131
Income tax expense		38,056		6,529
Other expense		2,288		2,992
General and administrative		15,709		9,395
Depreciation and amortization		30,335		9,143
Drilling margin		146,221		33,190
Revenue days		15,202		5,782
Average daily cash margin	$	9,618	$	5,740

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	Three Months Ended December 31,				Three Months Ended September 30,
	2006		2005		2006
	(Unaudited)				(Unaudited)
Calculation of EBITDA:
Net income	$	16,352	$	6,845	$	17,405
Interest expense		844		763		526
Income tax expense		11,867		2,842		10,527
Depreciation and amortization		9,459		4,288		8,134
EBITDA	$	38,522	$	14,738	$	36,592

	Year Ended December 31,
	2006		2005
Calculation of EBITDA:
Net income	$	59,833	$	5,131
Interest expense		1,736		1,415
Income tax expense		38,056		6,529
Depreciation and amortization		30,335		9,143
EBITDA	$	129,960	$	22,218

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

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