Parker Drilling (PKDC) 8-K Parker Drilling Reports Third Quarter 2008 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE	Investor Contact: Rich Bajenski 281-406-2030
Nov. 5, 2008

Parker Drilling Reports Third Quarter 2008 Results

HOUSTON, Nov. 5, 2008 — Parker Drilling Company (NYSE: PKD), a global drilling contractor and service provider, today reported financial and operating results for the third quarter 2008.

The Company earned $0.16 per diluted share, including $0.04 per diluted share adverse impact from non-routine items, as compared to $0.20 per diluted share for the third quarter of 2007. A record performance from the Company’s rental tools business and the benefit of higher dayrates and utilization in the Company’s international drilling operations were partially offset by the expected softening of the Gulf of Mexico barge rig market and a modest impact from two Gulf of Mexico hurricanes.

“Parker Drilling’s third quarter operating results demonstrate the value of our balanced business mix,” remarked Robert L. Parker Jr., chairman and chief executive officer. “Our core international markets strengthened and the newest Quail Tools locations targeting unconventional resource plays in North America continued to grow. These two segments combined accounted for more than 60 percent of our revenue in the quarter and helped to offset the impact from the Gulf of Mexico barge drilling market’s retreat from its record level of activity in 2007.

“We continue to execute key elements of our strategic growth plan,” Parker continued, “driving growth from Quail Tools’ expanded operations; commencing rig operations under new, long-term contracts in Mexico and Kazakhstan; and winning the Engineering, Procurement, Construction and Installation (EPCI) contract for the BP Liberty ultra-extended reach drilling rig in Alaska and the Front-End Engineering and Design (FEED) contract for the drilling module of the Arkutun-Dagi platform offshore Sakhalin Island in our project management segment.

“With the key elements of our strategy in place, we believe we have created a base for long-term profitable growth for Parker Drilling. As importantly, these should help us minimize the effects of the current downturn. Considering the global economic uncertainties, our strong balance sheet puts us in a solid financial position. Our cash balances, projected cash flow and existing credit facility are sufficient to fund our capital investments for the remainder of 2008 and for all of 2009.

“We remain focused on executing the key elements of our strategic growth plan — achieving profitable growth in international drilling, rental tools and project management services and being the preferred drilling contractor in the Gulf of Mexico barge rig market,” Parker concluded.

Third Quarter Earnings and Financial Review

For the three months ended September 30, 2008, Parker posted net income of $18.6 million, or $0.16 per diluted share, on revenues of $227.5 million, compared to net income of $22.7 million, or $0.20 per diluted share, on revenues of $172.2 million for the third quarter 2007. Net income in the third quarter of 2008 included $3.7 million of non-routine expenses relating to costs associated with the previously disclosed investigation by the Department of Justice regarding the Company’s utilization of the services of a customs agent in certain countries and a non-cash charge to taxes identified and accounted for under Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (FIN 48). Net income in the third quarter of 2007 included net expense of $1.6 million or $0.02 per diluted share relating to $2.4 million of debt extinguishment cost, $1.1 million provision for carrying value and a non-cash credit to tax expense of $0.5 million for potential interest and exchange rate fluctuations relating to FIN 48.

Adjusted EBITDA was $73.7 million for the third quarter 2008 compared to $74.2 million in the third quarter 2007 and up sequentially from $69.7 million in the second quarter. (Adjusted EBITDA is a non-GAAP financial measure defined below). Higher dayrates and utilization resulted in a 32 percent EBITDA improvement for Parker’s international operations over the third quarter 2007. Rental Tools achieved record EBITDA of $27.8 million, which topped the record set in the fourth quarter of 2007. EBITDA for the U.S. drilling segment was $22.9 million, compared to $33.7 million in the third quarter of 2007. For the first nine months of 2008, total EBITDA was $204.4 million, a 6 percent increase over the $192.1 million for the first nine months of 2007.

For the first nine months of 2008, Parker reported record revenues of $617.5 million and net income of $65.0 million or $0.58 per diluted share compared to revenues of $473.7 million and net income of $69.5 million or $0.63 per diluted share for the first nine months of 2007. Included in 2008 results is a net $0.4 million expense from non-routine items. Included in 2007 results are an after—tax gain of $0.07 per diluted share from the sale of two workover barge rigs in January 2007 and non-cash FIN 48 charges of $0.05 per diluted share.

The details of the non-routine items for the 2008 first, second and third quarters and year-to-date, 2006 and 2007 are available on Parker’s website and can be viewed or downloaded by going to “Investor Relations” and then to “Reconciliation of Non-Routine Items”.

Capital expenditures for the nine months ended September 30, 2008 totaled $157.3 million. Total debt was $413.2 million, and total debt to capitalization was 40 percent. The Company’s cash and cash equivalents totaled $75.3 million at September 30, 2008.

Average utilization for the Gulf of Mexico barge rigs for the third quarter 2008 was 79 percent, compared to the 83 percent reported for the third quarter 2007 and the 91 percent reported for the second quarter 2008. Current barge rig utilization is 67 percent. The Company’s deep drilling barge dayrates in the Gulf

of Mexico averaged $44,300 per day during the third quarter 2008, compared to $47,900 per day in the third quarter 2007 and $43,300 per day in the second quarter 2008. (Average dayrates for each classification of barge by quarter are available on Parker’s website and can be viewed or downloaded by going to “Investor Relations” and then to “Dayrates — GOM.”)

With three rigs mobilizing under contracts secured in the second quarter, including the addition of newbuild rig 269 in Kazakhstan, average utilization of international land rigs for the third quarter 2008 increased to 82 percent, up from the 75 percent reported for the second quarter 2008 and the third quarter 2007.

Operations Highlights

• Rig 121 mobilized for a four-year contract in northern Mexico and spud in September, bringing the total number of contracted Parker rigs in Mexico to eight.

• Rig 269, the first of Parker’s newbuild high-efficiency class land rigs, mobilized to Kazakhstan and spud in August, joining land rig 247. Parker now has eight contracted rigs in Kazakhstan.

• As discussed above, the Company announced two new contracts in its project management business. In July, Parker announced a new EPCI contract for the land-based BP Liberty rig, designed to drill ultra extended-reach wells to offshore targets in the Liberty field of the Alaskan Beaufort Sea, and in August, the company announced a new FEED contract to design the drilling package for the Sakhalin-1 Arkutun-Dagi offshore platform.

Parker Drilling has scheduled a conference call at 10 a.m. CST (11 a.m. EST) on Wednesday, Nov. 5, 2008 to discuss third quarter 2008 results. Those interested in listening to the call by telephone may do so by dialing (303) 262-2053. Alternatively, the call can be accessed live through the Investor Relations section of the Company’s Web site athttp://www.parkerdrilling.com. A replay of the call can be accessed on the Company’s Web site for 12 months, or by telephone from Nov. 5 through Nov. 12 by dialing (800) 405-2236 and using the access code 11120913#.

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 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 on Form 10-K for the year ended December 31, 2007 and the risk factors in

our Form 10-Q for the period ended June 30, 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.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
	(Dollars in Thousands)
REVENUES:
U.S. Drilling	$	44,743		$	56,918		$	139,999		$	174,375
International Drilling		92,226			58,857			238,885			143,834
Project Management and Engineering Services		24,089			20,922			72,219			58,633
Construction Contract		20,421			—			40,501			—
Rental Tools		45,975			35,500			125,858			96,905
TOTAL REVENUES		227,454			172,197			617,462			473,747
OPERATING EXPENSES:
U.S. Drilling		21,850			23,208			65,502			74,101
International Drilling		63,682			37,288			172,915			101,853
Project Management and Engineering Services		21,451			16,685			61,819			49,004
Construction Contract		19,323			—			38,373			—
Rental Tools		18,166			14,579			50,014			38,263
Depreciation and Amortization		30,663			23,043			84,995			60,744
TOTAL OPERATING EXPENSES		175,135			114,803			473,618			323,965
TOTAL OPERATING GROSS MARGIN		52,319			57,394			143,844			149,782
General and Administrative Expense		(9,271	)		(6,246	)		(24,420	)		(18,380	)
Provision for Reduction in Carrying Value of Certain Assets		—			(1,091	)		—			(1,091	)
Gain on Disposition of Assets, Net		799			543			2,014			17,216
TOTAL OPERATING INCOME		43,847			50,600			121,438			147,527
OTHER INCOME AND (EXPENSE):
Interest Expense		(5,820	)		(7,576	)		(17,386	)		(19,891	)
Change in Fair Value of Derivative Positions		—			(262	)		—			(671	)
Interest Income		383			2,080			1,121			5,576
Loss on Extinguishment of Debt		—			(2,396	)		—			(2,396	)
Equity in Loss of Unconsolidated Joint Venture and Related Charges, Net of Taxes		—			(1,123	)		(1,105	)		(1,123	)
Minority Interest		—			—			—			(1,000	)
Other Income		299			510			503			587
TOTAL OTHER INCOME AND (EXPENSE)		(5,138	)		(8,767	)		(16,867	)		(18,918	)
INCOME BEFORE INCOME TAXES		38,709			41,833			104,571			128,609
INCOME TAX EXPENSE:
Current Tax Expense		14,179			14,598			13,024			43,223
Deferred Tax Expense		5,979			4,582			26,512			15,879
TOTAL INCOME TAX EXPENSE		20,158			19,180			39,536			59,102
NET INCOME	$	18,551		$	22,653		$	65,035		$	69,507
EARNINGS PER SHARE — BASIC
Net Income	$	0.17		$	0.21		$	0.58		$	0.64
EARNINGS PER SHARE — DILUTED
Net Income	$	0.16		$	0.20		$	0.58		$	0.63
NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER SHARE
Basic		111,756,322			110,270,207			111,243,745			109,269,867
Diluted		112,647,450			111,278,430			112,324,566			110,522,914

PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Dollars in Thousands)

	September 30, 2008			December 31, 2007
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	75,277		$	60,124
Accounts and Notes Receivable, Net		217,104			166,706
Rig Materials and Supplies		29,914			24,264
Deferred Costs		8,528			7,795
Deferred Income Taxes		9,424			9,423
Other Current Assets		40,871			54,871
TOTAL CURRENT ASSETS		381,118			323,183
PROPERTY, PLANT AND EQUIPMENT, NET		653,119			585,888
OTHER ASSETS
Goodwill		100,315			100,315
Deferred Income Taxes		11,838			40,121
Other Assets		31,753			27,480
TOTAL OTHER ASSETS		143,906			167,916
TOTAL ASSETS	$	1,178,143		$	1,076,987
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt	$	3,000		$	20,000
Accounts Payable and Accrued Liabilities		127,762			104,180
TOTAL CURRENT LIABILITIES		130,762			124,180
LONG-TERM DEBT		410,235			353,721
LONG-TERM DEFERRED TAX LIABILITY		8,506			8,044
OTHER LONG-TERM LIABILITIES		20,820			56,318
STOCKHOLDERS’ EQUITY		607,820			534,724
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,178,143		$	1,076,987
Current Ratio		2.91			2.60
Total Long-Term Debt as a Percent of Capitalization		40	%		41	%
Book Value Per Common Share	$	5.36		$	4.78

PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)

	Three Months Ended
	September 30,						June 30,
	2008			2007			2008
	(Dollars in Thousands)
REVENUES:
U.S. Offshore Drilling	$	44,743		$	55,416		$	49,368
U.S. Land Drilling		—			1,502			—
International Land Drilling		74,940			48,836			64,255
International Offshore Drilling		17,286			10,021			13,664
Project Management and Engineering Services		24,089			20,922			28,951
Construction Contract		20,421			—			20,080
Rental Tools		45,975			35,500			40,412
Total Revenues		227,454			172,197			216,730
OPERATING EXPENSES:
U.S. Offshore Drilling		21,850			22,103			22,130
U.S. Land Drilling		—			1,105			—
International Land Drilling		57,564			30,636			50,659
International Offshore Drilling		6,118			6,652			5,953
Project Management and Engineering Services		21,451			16,685			24,707
Construction Contract		19,323			—			19,050
Rental Tools		18,166			14,579			16,030
Total Operating Expenses		144,472			91,760			138,529
OPERATING GROSS MARGIN:
U.S. Offshore Drilling		22,893			33,313			27,238
U.S. Land Drilling		—			397			—
International Land Drilling		17,376			18,200			13,596
International Offshore Drilling		11,168			3,369			7,711
Project Management and Engineering Services		2,638			4,237			4,244
Construction Contract		1,098			—			1,030
Rental Tools		27,809			20,921			24,382
Depreciation and Amortization		(30,663	)		(23,043	)		(28,166	)
Total Operating Gross Margin		52,319			57,394			50,035
General and Administrative Expense		(9,271	)		(6,246	)		(8,481	)
Provision for Reduction in Carrying Value of Certain Assets		—			(1,091	)		—
Gain on Disposition of Assets, Net		799			543			636
TOTAL OPERATING INCOME	$	43,847		$	50,600		$	42,190

Marketable Rig Count Summary
As of September 30, 2008

	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 Rigs
Asia Pacific	8
Africa — Middle East	2
Latin America	9
CIS	9
Total International Land Rigs	28
International Barge Rigs
Mexico	1
Caspian Sea	1
Total International Barge Rigs	2
Total Marketable Rigs	45

Adjusted EBITDA
(Unaudited)
(Dollars in Thousands)

	Three Months Ending
	September 30, 2008			June 30, 2008			March 31, 2008			December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006
Net Income from Continuing Operations	$	18,551		$	22,596		$	23,888		$	34,571		$	22,653		$	16,860		$	29,994		$	37,168		$	18,639
Adjustments:
Income Tax (Benefit) Expense		20,158			14,232			5,146			(21,379	)		19,180			15,813			24,109			(5,954	)		13,173
Total Other Income and Expense		5,138			5,362			6,367			30,264			8,767			4,231			5,920			3,554			8,741
Loss/(Gain) on Disposition of Assets, Net		(799	)		(636	)		(579	)		784			(543	)		(269	)		(16,404	)		(672	)		(4,328	)
Depreciation and Amortization		30,663			28,166			26,166			25,059			23,043			19,642			18,059			17,605			16,993
Provision for Reduction in Carrying Value of Certain Assets		—			—			—			371			1,091			—			—			—			—
Adjusted EBITDA	$	73,711		$	69,720		$	60,988		$	69,670		$	74,191		$	56,277		$	61,678		$	51,701		$	53,218