Bronco Drilling 8K , Inc. Announces Third Quarter 2007 Results | SEC 1 Nov 07

&# 160; ;

0; Exhibit 99.1

Bronco Drilling Company, Inc. Announces Third Quarter 2007 Results

OKLAHOMA CITY, November 1, 2007 (BUSINESS WIRE)—Bronco Drilling Company, Inc., (Nasdaq/GM:BRNC), announced today financial and operational results for the three and nine months ended September 30, 2007.

Revenues for the third quarter of 2007 were $76.3 million compared to $74.7 million for the second quarter and $79.8 million for the third quarter of 2006. Average marketed rigs for the third quarter of 2007 grew to 53 from 52 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 3,739 from 3,624 for the previous quarter and decreased from 4,039 for the third quarter of 2006. Utilization for the third quarter of 2007 was 76% compared to 76% for the previous quarter and 94% for the third quarter of 2006. Average daily cash margins for the quarter ended September 30, 2007, were $8,373 compared to $7,941 for the previous quarter and $10,207 for the third quarter of 2006. Net income for the third quarter of 2007 was $11.1 million compared to $8.7 million for the previous quarter and $17.4 million for the third quarter of 2006. The Company generated EBITDA of $28.3 million for the third quarter of 2007 compared to $25.8 million for the previous quarter and $36.6 million for the third quarter of 2006.

The Company’s fully diluted earnings per share for the quarter ended September 30, 2007, was $0.42 based on 26.1 million shares. This number includes a non-recurring reduction in depreciation expense due to a change in useful life associated with a portion of the company’s equipment. Excluding the non-recurring item, fully diluted earnings per share would be $0.38.

Conference Call

Bronco Drilling’s management will host a conference call to discuss the third quarter results on Thursday, November 1, 2007 at 11:00 a.m. Eastern Time. To participate in the call, dial 866-510-0710 or internationally dial 617-597-5378 using the participant code 66399427. Individuals interested in participating in the call should call at least five minutes prior to the call. The conference call will also be available via the Internet at http://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 December 1, 2007 at 888-286-8010 or internationally at 617-801-6888 using the passcode 93010154. Also, an archive of the webcast will be available at the following link http://phx.corporatir.net/phoenix.zhtml?c=191804&p=irol-IRHome.

About Bronco Drilling

Bronco Drilling Company, Inc., a publicly held company headquartered in Edmond, Oklahoma, is a provider of contract land drilling and workover 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., visit http://www.broncodrill.com.

-1-

Bronco Drilling Company, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except share par value)

	September 30,		December 31,
	2007		2006
ASSETS	(Unaudited)

CURRENT ASSETS
Cash and cash equivalents	$	1,671	$	10,608
Receivables
Trade and other, net of allowance for doubtful accounts of
$714 and $400 in 2007 and 2006, respectively		66,208		60,282
Contract drilling in progress		1,410		1,989
Income tax receivable		1,820		-
Current deferred income taxes		220		155
Prepaid expenses		1,158		338

Total current assets		72,487		73,372

PROPERTY AND EQUIPMENT - AT COST
Drilling rigs and related equipment		477,558		396,499
Transportation, office and other equipment		40,678		29,928
		518,236		426,427
Less accumulated depreciation		73,289		44,505
		444,947		381,922

OTHER ASSETS
Goodwill		21,936		21,280
Restricted cash and deposit		2,745		2,600
Intangibles, net, and other		5,620		3,314
		30,301		27,194

	$	547,735	$	482,488

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable	$	19,557	$	19,677
Accrued liabilities
Payroll related		7,223		7,587
Deferred revenue and other		3,869		4,180
Income tax payable		-		3,724
Current maturities of long-term debt		1,034		636

Total current liabilities		31,683		35,804

LONG-TERM DEBT, less current maturities		61,639		64,091

DEFERRED INCOME TAXES		65,459		42,608

COMMITMENTS AND CONTINGENCIES (Note 6)

STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 100,000 shares authorized;
26,031 and 24,938 shares issued and outstanding
at September 30, 2007 and December 31, 2006		261		250

Additional paid-in capital		297,144		279,355

Retained earnings		91,549		60,380
Total stockholders' equity		388,954		339,985

	$	547,735	$	482,488

The accompanying notes are an integral part of these statements.

-2-

Bronco Drilling Company, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
	(Unaudited)						(Unaudited)
REVENUES
Contract drilling revenues, including
0%, 4%, 1% and 4% to related parties	$	70,441		$	79,814		$	214,311		$	203,351
Well service		5,845			-			15,676			-
		76,286			79,814			229,987			203,351
EXPENSES
Contract drilling		39,135			38,586			120,448			99,481
Well service		3,931			-			9,853			-
Depreciation and amortization		9,219			8,134			31,317			21,119
General and administrative		5,353			4,691			15,444			11,741
		57,638			51,411			177,062			132,341

Income from operations		18,648			28,403			52,925			71,010

OTHER INCOME (EXPENSE)
Interest expense		(1,009	)		(526	)		(3,071	)		(647	)
Loss from early extinguishment of debt		-			-			-			(1,000	)
Interest income		366			1			617			123
Other		72			54			238			185
		(571	)		(471	)		(2,216	)		(1,339	)
Income before income taxes		18,077			27,932			50,709			69,671
Income tax expense		7,009			10,527			19,540			26,190

NET INCOME	$	11,068		$	17,405		$	31,169		$	43,481

Income per common share-Basic	$	0.43		$	0.70		$	1.20		$	1.78

Income per common share-Diluted	$	0.42		$	0.70		$	1.20		$	1.77

Weighted average number of shares outstanding-Basic		26,025			24,940			25,984			24,467

Weighted average number of shares outstanding-Diluted		26,126			24,974			26,064			24,505

The accompanying notes are an integral part of these statements.

-3-

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, minus well service revenue, plus well service expense, 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.

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					Three Months Ended
	September 30,					June 30,
	2007			2006		2007
	(Unaudited)					(Unaudited)
Reconciliation of average daily
cash margin to net income:
Net income	$	11,068		$	17,405	$	8,714
Well service revenue		(5,845	)		-		(5,429	)
Well service expense		3,931			-		3,280
Income tax expense		7,009			10,527		5,428
Other expense		571			471		491
General and administrative		5,353			4,691		5,399
Depreciation and amortization		9,219			8,134		10,894

Drilling margin		31,306			41,228		28,777

Revenue days		3,739			4,039		3,624

Average daily cash margin	$	8,373		$	10,207	$	7,941

	Three Months Ended				Three Months Ended
	September 30,				June 30,
	2007		2006		2007
	(Unaudited)				(Unaudited)
Calculation of EBITDA:
Net income	$	11,068	$	17,405	$	8,714
Interest expense		1,009		526		795
Income tax expense		7,009		10,527		5,428
Depreciation and amortization		9,219		8,134		10,894

EBITDA	$	28,305	$	36,592	$	25,831

Contact:

Bob Jarvis

Investor Relations

Bronco Drilling Company

(405) 242-4444 EXT: 102

bjarvis@broncodrill.com

-4-

Bronco Drilling Inactive 8-KBronco Drilling Company, Inc. Announces Third Quarter 2007 Results