Parker Drilling (PKDC) 8-K Parker Drilling Reports 2009 Third Quarter Earnings of $0.06 Per Share; Adjusted EPS of $0.04, Excluding Non-Routine Items

Exhibit 99

Media Contact:
Rose Maltby
281-406-2212

FOR IMMEDIATE RELEASE

Investor Contact:
Richard Bajenski
281-406-2030

Parker Drilling Reports 2009 Third Quarter Earnings of $0.06 Per Share;
Adjusted EPS of $0.04, Excluding Non-Routine Items

HOUSTON, November 3, 2009 — Parker Drilling (NYSE: PKD), a global drilling contractor and service provider, today reported results for the quarter ended Sept. 30, 2009, including net income of $7.1 million or $0.06 per diluted share on revenues of $181.4 million, compared to net income of $17.8 million or $0.16 per diluted share on revenues of $227.5 million for the prior year’s third quarter. Excluding the effect of non-routine items, the Company reported 2009 third quarter net income of $4.4 million or $0.04 per diluted share, compared to similarly adjusted 2008 third quarter net income of $21.6 million or $0.19 per diluted share.

“The results of this past quarter reflect the harsh conditions that prevailed in many of our markets as well as the durability and resilience of the Company’s strategy, business balance and geographic diversity,” said executive chairman Robert L. Parker Jr. “Through cost management actions we were able to moderate the adverse effects on our operations’ results while employing our business strategy to advance our competitive position and strengthen our business.”

Third Quarter Highlights:

• Revenues of $181.4 million were 20 percent below the prior year’s third quarter revenues of $227.5 million. Increased revenues related to project management and construction contracts partially offset declines in worldwide drilling and tool rental revenues;

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• Gross margin as a percent of revenues increased for International Drilling and Project Management and Engineering Services, compared to the prior year’s third quarter. These improvements partially offset lower gross margin profitability from Parker’s U.S. Barge Drilling and Rental Tools operations;

• The U.S. Barge Drilling segment recorded a positive gross margin for the third quarter, and improved its year-to-date gross margin to better-than-breakeven. This is a notable achievement in the industry, which has experienced a severe downturn in activity and declining dayrates;

• Parker successfully completed the sealift of the BP-owned “Liberty” rig to its operating site off Alaska’s North Slope and has initiated rig-up and commissioning activities. During the quarter Parker was awarded the operations and maintenance contract for the rig’s initial drilling program;

• The construction of the two Parker-owned arctic land rigs continues on schedule for a 2010 deployment to the North Slope to begin drilling on five-year contracts for BP;

• The Company achieved a better-than-industry average safety performance. Parker’s September year-to-date Total Recordable Incident Rate (TRIR) of 0.55 surpassed the Company’s 2008 industry-leading TRIR of 0.66.

“Our recent results reflect the severe industry downturn of the past several quarters,” said Mr. Parker. “The International Drilling, U.S. Gulf of Mexico Barge Drilling and Rental Tools segments experienced significant declines in revenues, compared to the prior year’s third quarter. This was caused by lower utilization for the international rig fleet, lower utilization and lower dayrates for the barge drilling operation, and price discounts for rental tools. Meanwhile, Project Management & Engineering Services revenues grew due to the long-term nature of our customers’ plans and programs; and Construction Contract revenues increased in line with progress on the Liberty rig. Each of these two operations achieved an increase in gross margin and gross margin as a percent of revenues.

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“Despite these difficult and challenging market conditions, our operations overall were profitable, including the contribution from our barge drilling business which recorded a 19 percent gross margin as a percent of revenues this past quarter and has achieved a positive gross margin year-to-date.

“Business activity may have neared the bottom in the third quarter and there are tentative signs that improvement is underway,” continued Mr. Parker. “Our U.S. Gulf of Mexico barge rig utilization rate increased sequentially in each of the last two quarters, rental tool placements have risen, the number of tenders for international drilling contracts has grown and project management opportunities have expanded. There are still areas of concern — dayrates remain under pressure, tool rental rates are heavily discounted, and contract commitments are slow to develop. Overall, though, the outlook is slowly improving. I believe these are times of opportunity, when Parker Drilling can make competitive and strategic gains based on the strength of our operations and business relationships,” he concluded.

Financial Review

For the three months ended Sept. 30, 2009, Parker Drilling posted net income of $7.1 million, or $0.06 per diluted share, on revenues of $181.4 million, compared to net income of $17.8 million, or $0.16 per diluted share, on revenues of $227.5 million for the 2008 third quarter. Excluding the impact of non-routine items, adjusted net income for the 2009 third quarter was $4.4 million or $0.04 per diluted share, compared with 2008 third quarter adjusted net income of $21.6 million or $0.19 per diluted share. (The results for 2008 have been restated for the impact of the recently issued guidance related to accounting for convertible debt instruments). The results for the 2009 third quarter included non-routine net after-tax income of $2.7 million, or $0.02 per diluted share. This includes expenses related to previously disclosed investigations by the Department of Justice and the Securities and Exchange Commission regarding the Company’s utilization of the services of a customs agent in certain countries and an internal investigation regarding U.S. economic sanctions related to the Company’s operations in Turkmenistan and the write-off of a prepayment to an equipment supplier

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who went bankrupt. This was more than offset by income from the recovery of previously unutilized foreign tax credits. The results for the 2008 third quarter included non-routine net after-tax expense of $3.8 million, or $0.03 per diluted share, for non-routine items. (Details of the non-routine items are provided in the attached financial tables.)

U.S. Barge Drilling revenues for the 2009 third quarter declined 72 percent, to $12.4 million from $44.7 million for the 2008 third quarter, due to lower utilization and reduced dayrates for the Gulf of Mexico barge drilling fleet. International Drilling revenues fell 31 percent, to $64.0 million from $92.2 million, the result of lower average fleet utilization. Rental Tools revenues decreased 48 percent, to $23.9 million from $46.0 million, primarily from the decline in U.S. land and Gulf of Mexico shelf drilling activity and the impact of increased discounts. The declines were partially offset by increased demand for workover equipment, growing coverage in the active shale regions and additional offshore deep drilling accounts. Revenues for Project Management and Engineering Services increased 7 percent, to $25.9 million from $24.1 million, reflecting the contribution from a FEED (Front End Engineering & Design) study for a drilling package on the Arkutun-Dagi platform offshore Sakhalin Island, Russia and pre-operational revenues related to the BP-owned Liberty rig. Construction Contract segment revenues of $55.3 million, represents the Company’s progress on delivering, rigging-up and commissioning the Liberty rig.

Adjusted EBITDA, after non-routine items, for the 2009 third quarter was $38.1 million compared to $76.0 million in the 2008 third quarter. (Adjusted EBITDA is a non-GAAP financial measure. The calculations of adjusted EBITDA and reconciliation to the most directly comparable GAAP measure are provided in the attached financial tables).

International Drilling’s gross margin decreased 23 percent to $22.0 million from the prior year’s third quarter gross margin of $28.5 million. Gross margin as a percent of revenues was 34.4 percent in the 2009 third quarter compared to 31.0 percent in the prior year’s third quarter. The increase in gross margin percent was primarily the result of lower operating costs throughout the segment.

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Project Management and Engineering Services’ gross margin for the 2009 third quarter increased significantly to $6.4 million from $2.6 million for the prior year’s third quarter. Gross margin as a percent of revenues was 24.9 percent for the 2009 third quarter compared to 11.0 percent in the prior year’s third quarter. Much of this improvement was due to the contribution from the Arkutun-Dagi platform and Liberty rig projects and a lower level of reimbursables in the current quarter.

U.S. Barge Drilling reported a gross margin of $2.3 million for the 2009 third quarter, the result of cost management actions and fleet deployment initiatives put in place to counter the low level of activity in the market. The third quarter performance is in line with the Company’s objective to enhance its position as the leading and preferred contractor in the U.S. Gulf of Mexico barge drilling market and achieve a better-than-breakeven cash flow for this segment this year.

The decline in gross margin for Rental Tools, to $11.7 million for the 2009 third quarter from $27.8 million for the prior year’s third quarter, reflected a decline in overall demand due to reduced drilling activity in the U.S. land market and Gulf of Mexico shelf. This led to competitive discounting of rental rates that has impacted the segment’s gross margin and gross margin as a percent of revenues.

For the first nine months of 2009, Parker reported a 7 percent decline in revenues, to $577.1 million from $617.5 million for the same period in the prior year. Adjusted EBITDA, excluding non-routine items, declined 37 percent, to $132.3 million from $210.0 million for the comparable period. Earnings per diluted share, excluding non-routine items, was $0.15, down from $0.56 for the same period of 2008.

Operations Review

• Average utilization of international rigs, both land and barge rigs, for the 2009 third quarter was 61 percent, compared to 84 percent for the prior year’s third quarter and 68 percent for the 2009 second quarter. (Average utilization for each international region’s rig fleet by quarter is available in the “Rig Utilization Schedule” posted on Parker’s website under “Investor Relations” at ”Quarterly Support Materials”.)

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• The Company’s Americas region operated at 75 percent average utilization, with eight of ten rigs having worked during the period, including one rig that began work in September on a multi-well contract. Seven of the ten rigs in this region have commitments to work into 2010.

• Parker’s twelve rigs located in the Commonwealth of Independent States / Africa Middle East (CIS / AME) region achieved average utilization of 69 percent, with nine rigs having worked during the period. Seven of the twelve rigs in the CIS / AME region are operating under contracts that extend beyond 2009.

• The eight-rig Parker fleet located in the Asia Pacific region operated at 40 percent average utilization, with four of the eight rigs having worked during the period. One rig began work in August under a new term contract. While most contracts in this region are for short duration projects, three rigs are committed to programs that extend into 2010.

• Average utilization for the Company’s Gulf of Mexico barge rigs for the 2009 third quarter was 33 percent, compared to 79��percent for the prior year’s third quarter and 30 percent for the 2009 second quarter. Currently, barge rig utilization is 53 percent. The Company’s barge dayrates in the Gulf of Mexico averaged $26,200 during the 2009 third quarter, compared to $39,900 per day in the 2008 third quarter and $29,800 per day in the 2009 second quarter. (Average dayrates for each classification of barge by quarter are available in the “Dayrates — GOM” schedule posted on Parker’s website under “Investor Relations” at “Quarterly Support Materials”.)

• Rental tool revenues slowed in all the established regions, partially offset by business from our new operation in Pennsylvania, serving the Marcellus shale play. The greatest declines occurred in the regions serving primarily conventional oil or gas drilling operators while the downturn was less severe in the regions with major gas or oil shale plays, such as the Haynesville, Barnett, Fayetteville and Bakken shale areas.

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• In Project Management and Engineering Services, rig-up and commissioning of the BP-owned Liberty rig in Alaska was underway following the rig’s successful delivery to the satellite drilling island off the North Slope of Alaska. In addition, we continued work on the FEED study for the Arkutun-Dagi platform’s drilling package.

Capital expenditures for the three months ended Sept. 30, 2009 totaled $32.9 million, including $9.1 million for the construction of Parker’s two newbuild arctic land rigs for Alaska, and $5.4 million for tubular goods and other rental equipment.

At the end of the period total debt was $425.7 million and the Company’s total debt-to-capitalization ratio was 41.5 percent. Adjusted for the Company’s cash and cash equivalents balance of $94.4 million, Parker’s ratio of net-debt-to-net capitalization was 35.6 percent, compared to 31.6 percent at the end of 2008. The Company’s $50 million term loan began to amortize on Sept. 30, 2009 at $3.0 million per quarter. The remaining components of the Company’s debt do not mature until 2012 and 2013.

Conference Call

Parker Drilling has scheduled a conference call at 10:00 a.m. CST (11:00 a.m. EST) on Tuesday, November 3, 2009 to discuss 2009 third quarter results. Those interested in listening to the call by telephone may do so by dialing (480) 629-9722. Alternatively, the call can be accessed through the Investor Relations section of the Company’s Web site at http://www.parkerdrilling.com. A replay of the call will be available by telephone from November 3 through November 11 by dialing (303) 590-3030 and using the access code 4171242#, and for 12 months on the Company’s Web site.

This release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Acts. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including earnings per share guidance, the outlook for rig utilization and dayrates, general industry conditions including demand for drilling and customer spending and the factors affecting demand, competitive advantages including cost effective integrated solutions and technological innovation, future technological innovation, future operating results of the Company’s rigs and rental tool operations, capital expenditures, expansion and growth opportunities, asset sales, successful negotiation and execution of contracts, strengthening of financial position, increase in market share and other such

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matters, are forward-looking statements. Although the Company believes that its expectations stated in this release are based on reasonable assumptions, actual results may differ materially from those expressed or implied in the forward-looking statements due to certain risk factors, including the ongoing credit crisis which has created volatility in oil and natural gas prices and could result in reduced demand for drilling services. For a detailed discussion of risk factors that could cause actual results to differ materially from the Company’s expectations, please refer to the Company’s reports filed with the SEC, and in particular, the report onForm 10-K for the year ended December 31, 2008. Each forward-looking statement speaks only as of the date of this release, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.

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PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets

	September 30, 2009			December 31, 2008
	(Unaudited)
	(Dollars in Thousands)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	94,431		$	172,298
Accounts and Notes Receivable, Net		196,039			186,164
Rig Materials and Supplies		28,901			30,241
Deferred Costs		6,989			7,804
Deferred Income Taxes		9,735			9,735
Other Current Assets		76,669			67,049
TOTAL CURRENT ASSETS		412,764			473,291
PROPERTY, PLANT AND EQUIPMENT, NET		702,820			675,548
OTHER ASSETS
Deferred Income Taxes		38,458			22,956
Other Assets		36,375			33,925
TOTAL OTHER ASSETS		74,833			56,881
TOTAL ASSETS	$	1,190,417		$	1,205,720
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt	$	12,000		$	6,000
Accounts Payable and Accrued Liabilities		137,483			152,528
TOTAL CURRENT LIABILITIES		149,483			158,528
LONG-TERM DEBT		413,692			435,394
LONG-TERM DEFERRED TAX LIABILITY		8,178			8,230
OTHER LONG-TERM LIABILITIES		19,719			21,396
STOCKHOLDERS’ EQUITY		599,345			582,172
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,190,417		$	1,205,720
Current Ratio		2.76			2.99
Total Debt as a Percent of Capitalization		42	%		43	%
Book Value Per Common Share	$	5.16		$	5.13

PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
	(Dollars in Thousands)						(Dollars in Thousands)
REVENUES:
International Drilling	$	63,966		$	92,226		$	220,626		$	238,885
U.S. Drilling		12,350			44,743			35,095			139,999
Project Management and Engineering Services		25,869			24,089			81,814			72,219
Construction Contract		55,325			20,421			149,642			40,501
Rental Tools		23,899			45,975			89,948			125,858
TOTAL REVENUES		181,409			227,454			577,125			617,462
OPERATING EXPENSES:
International Drilling		41,964			63,682			140,628			172,915
U.S. Drilling		10,057			21,850			34,821			65,502
Project Management and Engineering Services		19,420			21,451			63,597			61,819
Construction Contract		52,203			19,323			142,117			38,373
Rental Tools		12,232			18,166			41,438			50,014
Depreciation and Amortization		29,307			30,663			85,382			84,995
TOTAL OPERATING EXPENSES		165,183			175,135			507,983			473,618
TOTAL OPERATING GROSS MARGIN		16,226			52,319			69,142			143,844
General and Administrative Expense		(9,812	)		(9,271	)		(33,998	)		(24,420	)
Provision for Reduction in Carrying Value of Certain Assets		(2,757	)		—			(2,757	)		—
Gain on Disposition of Assets, Net		1,225			799			2,007			2,014
TOTAL OPERATING INCOME		4,882			43,847			34,394			121,438
OTHER INCOME AND (EXPENSE):
Interest Expense		(7,093	)		(7,026	)		(22,663	)		(20,908	)
Interest Income		435			383			895			1,121
Equity in Loss of Unconsolidated Joint Venture and Related Charges, net of tax		—			—			—			(1,105	)
Other Income (Expense)		(285	)		299			(365	)		503
TOTAL OTHER INCOME AND (EXPENSE)		(6,943	)		(6,344	)		(22,133	)		(20,389	)
INCOME (LOSS) BEFORE INCOME TAXES		(2,061	)		37,503			12,261			101,049
INCOME TAX EXPENSE (BENEFIT)
Current		1,325			14,179			14,224			13,024
Deferred		(10,480	)		5,494			(15,554	)		25,096
TOTAL INCOME TAX EXPENSE (BENEFIT)		(9,155	)		19,673			(1,330	)		38,120
NET INCOME	$	7,094		$	17,830		$	13,591		$	62,929
EARNINGS PER SHARE — BASIC
Net Income	$	0.06		$	0.16		$	0.12		$	0.57
EARNINGS PER SHARE — DILUTED
Net Income	$	0.06		$	0.16		$	0.12		$	0.56
NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER SHARE
Basic		113,263,123			111,756,322			112,905,172			111,243,745
Diluted		115,237,348			112,647,450			114,604,108			112,324,566

PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)

	Three Months Ended
	September 30,						June 30,
	2009			2008			2009
	(Dollars in Thousands)
REVENUES:
International Drilling	$	63,966		$	92,226		$	79,279
U.S. Drilling		12,350			44,743			12,889
Project Management and Engineering Services		25,869			24,089			23,891
Construction Contract		55,325			20,421			77,572
Rental Tools		23,899			45,975			28,160
Total Revenues		181,409			227,454			221,791
OPERATING EXPENSES:
International Drilling		41,964			63,682			48,887
U.S. Drilling		10,057			21,850			11,628
Project Management and Engineering Services		19,420			21,451			18,283
Construction Contract		52,203			19,323			74,000
Rental Tools		12,232			18,166			12,752
Total Operating Expenses		135,876			144,472			165,550
OPERATING GROSS MARGIN:
International Drilling		22,002			28,544			30,392
U.S. Drilling		2,293			22,893			1,261
Project Management and Engineering Services		6,449			2,638			5,608
Construction Contract		3,122			1,098			3,572
Rental Tools		11,667			27,809			15,408
Depreciation and Amortization		(29,307	)		(30,663	)		(28,951	)
Total Operating Gross Margin		16,226			52,319			27,290
General and Administrative Expense		(9,812	)		(9,271	)		(11,126	)
Provision for Reduction in Carrying Value of Certain Assets		(2,757	)		—			—
Gain on Disposition of Assets, Net		1,225			799			704
TOTAL OPERATING INCOME	$	4,882		$	43,847		$	16,868

Marketable Rig Count Summary
As of September 30, 2009

	Total
U.S. Gulf of Mexico Barge Rigs
Workover		2
Intermediate		3
Deep		10
Total U.S. Gulf of Mexico Barge Rigs		15
International Land and Barge Rigs
Asia Pacific		8
Americas		10
CIS/AME		12
Other		1
Total International Land and Barge Rigs		31
Total Marketable Rigs		46

Adjusted EBITDA
(Unaudited)
(Dollars in Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			September 30,
	2009			2009			2009			2008			2008			2008			2008			2007			2007
Previously Reported Net Income (Loss)	$	7,094		$	4,391		$	2,106		$	(39,477	)	$	18,551		$	22,596		$	23,888		$	34,571		$	22,653
Restated Interest Expense, Net of Tax — Per APB 14-1		—			—			—			(724	)		(721	)		(699	)		(686	)		(670	)		(562	)
Restated Net Income (Loss)		7,094			4,391			2,106			(40,201	)		17,830			21,897			23,202			33,901			22,091
Adjustments:
Income Tax (Benefit) Expense		(9,155	)		5,079			2,746			(31,178	)		19,673			13,762			4,685			(21,830	)		18,803
Total Other Income and Expense		6,943			7,398			7,792			9,121			6,344			6,531			7,514			31,385			9,706
Loss/(Gain) on Disposition of Assets, Net		(1,225	)		(704	)		(78	)		(683	)		(799	)		(636	)		(579	)		784			(543	)
Impairment of Goodwill																	—			—			—			100,315
Depreciation and Amortization		29,307			28,951			27,124			31,961			30,663			28,166			26,166			25,059			23,043
Provision for Reduction in Carrying Value of Certain Assets		2,757			—			—			—			—			—			—			371			1,091
Adjusted EBITDA	$	35,721		$	45,115		$	39,690		$	69,335		$	73,711		$	69,720		$	60,988		$	69,670		$	74,191
Adjustments:
Non-routine Items		2,402			4,048			5,308			6,279			2,264			2,885			441			—			—
Adjusted EBITDA after Net Non-routine Items	$	38,123		$	49,163		$	44,998		$	75,614		$	75,975		$	72,605		$	61,429		$	69,670		$	74,191

PARKER DRILLING COMPANY AND SUBSIDIARIES
Reconciliation of Non-Routine Items *
(Unaudited)
(Dollars in Thousands, except Per Share)

	Three Months Ending			Nine Months Ending
	September 30, 2009			September 30, 2009
Net income	$	7,094		$	13,591
Earnings per diluted share	$	0.06		$	0.12
Adjustments:
Provision for reduction in carrying value	$	2,757		$	2,757
DOJ investigation		2,402			11,758
Total adjustments	$	5,159		$	14,515
Tax effect of pre-tax non-routine adjustments		(1,806	)		(5,080	)
Income tax provision adjustment		(6,053	)		(6,053	)
Net non-routine adjustments	$	(2,700	)	$	3,382
Adjusted net income	$	4,394		$	16,973
Adjusted earnings per diluted share	$	0.04		$	0.15

	Three Months Ending			Nine Months Ending
	September 30, 2008			September 30, 2008
Previously reported net income	$	18,551		$	65,035
Previously reported earnings per diluted share	$	0.16		$	0.58
Restated interest expense, net of tax — per APB 14-1	$	(721	)	$	(2,106	)
Restated net income	$	17,830		$	62,929
Restated earnings per share	$	0.16		$	0.56
Adjustments:
Saudi Arabia	$	—		$	1,105
FIN 48 tax benefit — Kazakhstan		—			(10,560	)
PNG tax		—			4,127
Other FIN 48 adjustments		2,407			2,407
DOJ investigation		2,264			5,590
Total adjustments	$	4,671		$	2,669
Tax effect of non-routine adjustments		(899	)		(2,219	)
Net non-routine adjustments	$	3,772		$	450
Adjusted net income	$	21,602		$	63,379
Adjusted earnings per diluted share	$	0.19		$	0.56

* Adjusted net income, a non-GAAP financial measure, excludes items that management believes are of a non-routine nature and which detract from an understanding of normal operating performance and comparisons with other periods. Management also believes that results excluding these items are more comparable to estimates provided by securities analysts and used by them in evaluating the Company’s performance.