Document and Company Informatio
Document and Company Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
Document And Company Information [Abstract] | |||
Entity Registrant Name | Patterson-UTI Energy, Inc. | ||
Entity Central Index Key | 0000889900 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-06-30 | ||
Amendment Flag | false | ||
Amendment Description | n/a | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $5,581,179,402 | ||
Entity Common Stock, Shares Outstanding | 153,613,685 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Thousands | Jun. 30, 2009
| Dec. 31, 2008
|
Current assets: | ||
Cash and cash equivalents | $167,665 | $81,223 |
Accounts receivable, net of allowance for doubtful accounts of $14,481 and $9,330 at June 30, 2009 and December 31, 2008, respectively | 118,475 | 414,531 |
Federal and state income taxes receivable | 6,765 | 10,175 |
Inventory | 40,486 | 41,999 |
Deferred tax assets, net | 59,671 | 35,928 |
Other | 56,723 | 57,518 |
Total current assets | 449,785 | 641,374 |
Property and equipment, net | 2,093,609 | 1,937,112 |
Goodwill | 86,234 | 86,234 |
Deposits on equipment purchases | 13,327 | 43,944 |
Other | 8,396 | 4,153 |
Total assets | 2,651,351 | 2,712,817 |
Current liabilities: | ||
Accounts payable | 111,100 | 169,958 |
Accrued expenses | 108,603 | 132,655 |
Total current liabilities | 219,703 | 302,613 |
Deferred tax liabilities, net | 305,500 | 277,717 |
Other | 5,528 | 5,545 |
Total liabilities | 530,731 | 585,875 |
Stockholders' equity: | ||
Preferred stock, par value $.01; authorized 1,000,000 shares, no shares issued | 0 | 0 |
Common stock, par value $.01; authorized 300,000,000 shares with 180,802,252 and 180,192,093 issued and 153,615,821 and 153,094,803 outstanding at June 30, 2009 and December 31, 2008, respectively | 1,808 | 1,801 |
Additional paid-in capital | 773,617 | 765,512 |
Retained earnings | 1,953,954 | 1,970,824 |
Accumulated other comprehensive income | 9,388 | 5,774 |
Treasury stock, at cost, 27,186,431 shares and 27,097,290 shares at June 30, 2009 and December 31, 2008, respectively | (618,147) | (616,969) |
Total stockholders' equity | 2,120,620 | 2,126,942 |
Total liabilities and stockholders' equity | $2,651,351 | $2,712,817 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
In Thousands, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Allowance for doubtful accounts | $14,481 | $9,330 |
Preferred stock, par value | 0.01 | 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 180,802,252 | 180,192,093 |
Common stock, shares outstanding | 153,615,821 | 153,094,803 |
Treasury stock, shares | 27,186,431 | 27,097,290 |
Consolidated Statements of Inco
Consolidated Statements of Income (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Operating revenues: | ||||
Contract drilling | $101,716 | $416,835 | $327,420 | $836,984 |
Pressure pumping | 33,616 | 57,094 | 71,721 | 99,958 |
Drilling and completion fluids | 20,267 | 38,745 | 48,097 | 71,295 |
Oil and natural gas | 5,165 | 13,609 | 9,565 | 22,600 |
Total operating revenues | 160,764 | 526,283 | 456,803 | 1,030,837 |
Operating costs and expenses: | ||||
Contract drilling | 56,950 | 251,381 | 183,271 | 495,748 |
Pressure pumping | 22,862 | 32,506 | 49,868 | 61,011 |
Drilling and completion fluids | 19,005 | 31,449 | 43,527 | 59,982 |
Oil and natural gas | 1,820 | 3,529 | 3,796 | 5,596 |
Depreciation, depletion and impairment | 68,857 | 65,673 | 139,204 | 129,399 |
Selling, general and administrative | 16,236 | 17,747 | 32,220 | 34,743 |
Net loss (gain) on asset disposals/retirements | 176 | (2,721) | 350 | (2,535) |
Other operating expenses | 2,000 | 300 | 6,000 | 600 |
Total operating costs and expenses | 187,906 | 399,864 | 458,236 | 784,544 |
Operating income (loss) | (27,142) | 126,419 | (1,433) | 246,293 |
Other income (expense): | ||||
Interest income | 204 | 493 | 265 | 836 |
Interest expense | (839) | (63) | (1,286) | (340) |
Other | 12 | 353 | 35 | 737 |
Total other income (expense) | (623) | 783 | (986) | 1,233 |
Income (loss) before income taxes | (27,765) | 127,202 | (2,419) | 247,526 |
Income tax expense (benefit): | ||||
Current | (2,862) | 29,229 | (2,824) | 57,941 |
Deferred | (7,160) | 16,551 | 1,945 | 30,754 |
Total income tax expense (benefit) | (10,022) | 45,780 | (879) | 88,695 |
Net income (loss) | ($17,743) | $81,422 | ($1,540) | $158,831 |
Net income (loss) per common share: | ||||
Basic | -0.12 | 0.52 | -0.01 | 1.03 |
Diluted | -0.12 | 0.52 | -0.01 | 1.01 |
Weighted average number of common shares outstanding: | ||||
Basic | 151,941 | 153,978 | 151,839 | 153,289 |
Diluted | 151,941 | 155,894 | 151,839 | 155,410 |
Cash dividends per common share | 0.05 | 0.16 | 0.1 | 0.28 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity (USD $) | ||||||
In Thousands | Common Stock
| Additional Paid-in Capital
| Treasury Stock
| Retained Earnings
| Accumulated Other Comprehensive Income
| Total
|
Shares, Beginning Balance at Dec. 31, 2007 | 177,386 | |||||
Beginning Balance at Dec. 31, 2007 | $1,773 | $703,581 | ($546,151) | $1,716,620 | $20,207 | $1,896,030 |
Comprehensive income: | ||||||
Net income (loss) | 158,831 | 158,831 | ||||
Foreign currency translation adjustment, net of tax | (2,081) | (2,081) | ||||
Total comprehensive income | 158,831 | (2,081) | 156,750 | |||
Issuance of restricted stock | 6 | (6) | ||||
Issuance of restricted stock, Shares | 577 | |||||
Forfeitures of restricted stock | (30) | |||||
Exercise of stock options | 23 | 25,344 | 25,367 | |||
Exercise of stock options, shares | 2,284 | |||||
Stock-based compensation | 10,137 | 10,137 | ||||
Tax benefit (expense) related to stock-based compensation | 16,068 | 16,068 | ||||
Payment of cash dividends | (43,504) | (43,504) | ||||
Purchase of treasury stock | (4,559) | (4,559) | ||||
Ending Balance at Jun. 30, 2008 | 1,802 | 755,124 | (550,710) | 1,831,947 | 18,126 | 2,056,289 |
Shares, Ending Balance at Jun. 30, 2008 | 180,217 | |||||
Comprehensive income: | ||||||
Shares, Beginning Balance at Dec. 31, 2008 | 180,192 | |||||
Beginning Balance at Dec. 31, 2008 | 1,801 | 765,512 | (616,969) | 1,970,824 | 5,774 | 2,126,942 |
Comprehensive income: | ||||||
Net income (loss) | (1,540) | (1,540) | ||||
Foreign currency translation adjustment, net of tax | 3,614 | 3,614 | ||||
Total comprehensive income | (1,540) | 3,614 | 2,074 | |||
Issuance of restricted stock | 6 | (6) | ||||
Issuance of restricted stock, Shares | 588 | |||||
Vesting of restricted stock units | 6 | |||||
Forfeitures of restricted stock | (32) | |||||
Exercise of stock options | 1 | 270 | 271 | |||
Exercise of stock options, shares | 48 | |||||
Stock-based compensation | 9,608 | 9,608 | ||||
Tax benefit (expense) related to stock-based compensation | (1,767) | (1,767) | ||||
Payment of cash dividends | (15,330) | (15,330) | ||||
Purchase of treasury stock | (1,178) | (1,178) | ||||
Ending Balance at Jun. 30, 2009 | $1,808 | $773,617 | ($618,147) | $1,953,954 | $9,388 | $2,120,620 |
Shares, Ending Balance at Jun. 30, 2009 | 180,802 |
1_Consolidated Statement of Cha
Consolidated Statement of Changes in Stockholders Equity (Parenthetical) (Accumulated Other Comprehensive Income, USD $) | |
In Thousands | Total
|
Tax effect of foreign currency translation adjustment | $1,206 |
Tax effect of foreign currency translation adjustment | $2,095 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash flows from operating activities: | ||
Net income (loss) | ($1,540) | $158,831 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and impairment | 139,204 | 129,399 |
Provision for bad debts | 6,000 | 600 |
Dry holes and abandonments | 118 | 600 |
Deferred income tax expense | 1,945 | 30,754 |
Stock-based compensation expense | 9,608 | 10,137 |
Net loss (gain) on asset disposals/retirements | 350 | (2,535) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 290,501 | (19,609) |
Income taxes receivable/payable | 3,595 | (19,923) |
Inventory and other assets | 4,031 | (2,912) |
Accounts payable | (74,914) | 14,929 |
Accrued expenses | (24,113) | (13,960) |
Other liabilities | (17) | (13,035) |
Net cash provided by operating activities | 354,768 | 273,276 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (246,549) | (176,162) |
Proceeds from disposal of assets | 713 | 4,429 |
Net cash used in investing activities | (245,836) | (171,733) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (1,178) | (4,559) |
Dividends paid | (15,330) | (43,504) |
Tax benefit (expense) related to stock-based compensation | (1,767) | 16,068 |
Repayment of borrowings under line of credit | 0 | (50,000) |
Line of credit issuance costs | (6,169) | 0 |
Proceeds from exercise of stock options | 271 | 25,367 |
Net cash used in financing activities | (24,173) | (56,628) |
Effect of foreign exchange rate changes on cash | 1,683 | (117) |
Net increase in cash and cash equivalents | 86,442 | 44,798 |
Cash and cash equivalents at beginning of period | 81,223 | 17,434 |
Cash and cash equivalents at end of period | 167,665 | 62,232 |
Net cash (paid) received during the period for: | ||
Interest expense | (517) | (444) |
Income taxes | 8,075 | (60,025) |
Non-cash investing and financing activities: | ||
Net increase (decrease) in payables for purchases of property and equipment | 15,964 | (7,119) |
Net decrease in deposits on equipment purchases | $30,616 | $1,223 |
Basis of Consolidation and Pres
Basis of Consolidation and Presentation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Basis of Consolidation and Presentation [Abstract] | |
Basis of Consolidation and Presentation | 1. Basis of Consolidation and Presentation The unaudited interim consolidated financial statements include the accounts of Patterson-UTI Energy, Inc. (the Company) and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Except for wholly-owned subsidiaries, the Company has no controlling financial interests in any entity which would require consolidation. The unaudited interim consolidated financial statements have been prepared by management of the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes the disclosures included either on the face of the financial statements or herein are sufficient to make the information presented not misleading. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair statement of the information in conformity with accounting principles generally accepted in the United States have been included. The Unaudited Consolidated Balance Sheet as of December31, 2008, as presented herein, was derived from the audited consolidated balance sheet of the Company, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Companys Annual Report on Form 10-K for the fiscal year ended December31, 2008. The results of operations for the three and six months ended June30, 2009 are not necessarily indicative of the results to be expected for the full year. The U.S. dollar is the functional currency for all of the Companys operations except for its Canadian operations, which uses the Canadian dollar as its functional currency. The effects of exchange rate changes are reflected in accumulated other comprehensive income, which is a separate component of stockholders equity. The Company has performed an evaluation of subsequent events through August4, 2009 at the time of issuance of the unaudited consolidated financial statements. The Company provides a dual presentation of its net income (loss)per common share in its Unaudited Consolidated Statements of Income: Basic net income (loss)per common share (Basic EPS) and diluted net income (loss)per common share (Diluted EPS). The Company adopted the provisions of FASB Staff Position No.EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (FSP EITF 03-6-1) in the quarter ended March31, 2009. FSP EITF 03-6-1 clarifies that share-based payment awards that entitle their holders to receive non-forfeitable dividends before vesting should be considered participating securities and, as such, should be included in the calculation of earnings-per-share using the two-class |
Stock based Compensation
Stock based Compensation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Stock-Based Compensation [Abstract] | |
Stock-based Compensation | 2. Stock-based Compensation The Company recognizes the cost of share-based awards under the fair-value-based method. The Company uses share-based awards to compensate employees and non-employee directors. All share-based awards have been equity instruments in the form of stock options, restricted stock or restricted stock units and have included service and, in certain cases, performance conditions. The Company issues shares of common stock when vested stock options are exercised, when restricted stock is granted and when restricted stock units vest. Stock Options. The Company estimates the grant date fair values of stock options using the Black-Scholes-Merton valuation model (Black-Scholes). Volatility assumptions are based on the historic volatility of the Companys common stock over the most recent period equal to the expected term of the options as of the date the options are granted. The expected term assumptions are based on the Companys experience with respect to employee stock option activity. Dividend yield assumptions are based on the expected dividends at the time the options are granted. The risk-free interest rate assumptions are determined by reference to United States Treasury yields. Weighted-average assumptions used to estimate the grant date fair values for stock options granted in the three and six month periods ended June30, 2009 and 2008 follow: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Volatility 50.02 % 35.74 % 49.91 % 35.73 % Expected term (in years) 4.00 4.00 4.00 4.00 Dividend yield 1.52 % 1.64 % 1.68 % 1.68 % Risk-free interest rate 1.68 % 2.92 % 1.66 % 2.94 % Stock option activity from January1, 2009 to June30, 2009 follows: Weighted Average Underlying Exercise Shares Price Outstanding at January1, 2009 5,933,572 $ 21.20 Granted 1,022,500 $ 13.11 Exercised (47,600 ) $ 5.69 Expired $ Outstanding at June30, 2009 6,908,472 $ 20.11 Exercisable at June30, 2009 5,022,389 $ 20.74 Restricted Stock. For all restricted stock awards to date, shares of common stock were issued when the awards were made. Non-vested shares are subject to forfeiture for failure to fulfill service conditions and, in certain cases, performance conditions. Non-forfeitable dividends are paid on non-vested shares of restricted stock. For restricted stock awards made prior to 2008, the Company used the graded-vesting attribution method to recognize periodic compensation cost over the vesting period. For restricted stock awards made in 2008 and thereafter, the Company uses the straight-line method to recognize periodic compensation cost over the vesting period. Restricted stock activity from January1, 2009 to June30, 2009 follows: Weighted Average Grant Date Shares Fair Value Non-vested restricted st |
Property and Equipment
Property and Equipment | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Property and Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consisted of the following at June30, 2009 and December31, 2008 (in thousands): June 30, December 31, 2009 2008 Equipment $ 3,151,517 $ 2,897,431 Oil and natural gas properties 89,117 89,809 Buildings 65,271 61,529 Land 10,220 10,196 3,316,125 3,058,965 Less accumulated depreciation and depletion (1,222,516 ) (1,121,853 ) Property and equipment, net $ 2,093,609 $ 1,937,112 |
Business Segments
Business Segments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Business Segments [Abstract] | |
Business Segments | 4. Business Segments The Companys revenues, operating profits and identifiable assets are primarily attributable to four business segments: (i)contract drilling of oil and natural gas wells, (ii)pressure pumping services, (iii)drilling and completion fluid services and (iv)the investment, on a working interest basis, in oil and natural gas properties. Each of these segments represents a distinct type of business based upon the type and nature of services and products offered. These segments have separate management teams which report to the Companys chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. Separate financial data for each of our four business segments is provided in the table below (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Revenues: Contract drilling (a) $ 101,917 $ 417,874 $ 327,739 $ 838,826 Pressure pumping 33,616 57,094 71,721 99,958 Drilling and completion fluids (b) 20,267 38,746 48,097 71,346 Oil and natural gas 5,165 13,609 9,565 22,600 Total segment revenues 160,965 527,323 457,122 1,032,730 Elimination of intercompany revenues (a)(b) (201 ) (1,040 ) (319 ) (1,893 ) Total revenues $ 160,764 $ 526,283 $ 456,803 $ 1,030,837 Income (loss)before income taxes: Contract drilling $ (14,885 ) $ 106,795 $ 26,126 $ 225,181 Pressure pumping (898 ) 14,277 (1,773 ) 18,729 Drilling and completion fluids (1,095 ) 4,055 (577 ) 4,722 Oil and natural gas 558 7,173 (2,998 ) 11,470 (16,320 ) 132,300 20,778 260,102 Corporate and other (10,646 ) (8,602 ) (21,861 ) (16,344 ) Net gain (loss)on asset disposals/retirements (c) (176 ) 2,721 (350 ) 2,535 Interest income 204 493 265 836 Interest expense (839 ) (63 ) (1,286 ) (340 ) Other 12 353 35 737 Income (loss)before income taxes $ (27,765 ) $ 127,202 $ (2,419 ) $ 247,526 June 30, December 31, 2009 2008 Identifiable assets: Contract drilling $ 2,116,820 $ 2,255,421 Pressure pumping 213,917 210,805 Drilling and completion fluids 69,787 99,433 Oil and natural gas 25,020 31,760 Corporate and other (d) 225,807 115,398 Total assets $ 2,651,351 $ 2,712,817 (a) Includes contract drilling intercompany revenues of approximately $201,000 and $1.0million for the |
Goodwill
Goodwill | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Goodwill [Abstract] | |
Goodwill | 5. Goodwill Goodwill is evaluated at least annually to determine if the fair value of recorded goodwill has decreased below its carrying value. For purposes of impairment testing, goodwill is evaluated at the reporting unit level. The Companys reporting units for impairment testing have been determined to be its operating segments. As of June30, 2009 and December31, 2008 the Company had goodwill of $86.2million, all in its contract drilling reporting unit. In the event that market conditions remain weak, the Company may be required to record an impairment of goodwill in its contract drilling reporting unit in the future, and such impairment could be material. |
Accrued Expenses
Accrued Expenses | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consisted of the following at June30, 2009 and December31, 2008 (in thousands): June 30, December 31, 2009 2008 Salaries, wages, payroll taxes and benefits $ 11,417 $ 30,334 Workers compensation liability 67,367 70,439 Sales, use and other taxes 12,784 12,015 Insurance, other than workers compensation 13,397 14,209 Other 3,638 5,658 $ 108,603 $ 132,655 |
Asset Retirement Obligation
Asset Retirement Obligation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation | 7. Asset Retirement Obligation Statement of Financial Accounting Standards No.143, Accounting for Asset Retirement Obligations, requires that the Company record a liability for the estimated costs to be incurred in connection with the abandonment of oil and natural gas properties in the future. This liability is included in the caption Other in the liabilities section of the Companys consolidated balance sheet. The following table describes the changes to the Companys asset retirement obligations during the six months ended June30, 2009 and 2008 (in thousands): 2009 2008 Balance at beginning of year $ 3,047 $ 1,593 Liabilities incurred 93 261 Liabilities settled (172 ) (207 ) Accretion expense 59 29 Revision in estimated costs of plugging oil and natural gas wells (14 ) 1,025 Asset retirement obligation at end of period $ 3,013 $ 2,701 |
Borrowings Under Line of Credit
Borrowings Under Line of Credit | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Borrowings Under Line of Credit [Abstract] | |
Borrowings Under Line of Credit | 8. Borrowings Under Line of Credit The Company entered into an unsecured revolving line of credit (LOC) on March20, 2009 with a maximum borrowing capacity of $220million, including a letter of credit sublimit of $150million and a swing line sublimit of $40million. In addition, the aggregate borrowing and letter of credit capacity under the LOC may, subject to the terms and conditions set forth therein including the receipt of additional commitments from lenders, be increased up to a maximum amount not to exceed $450million. On June19, 2009, the Company entered into a Commitment Increase and Joinder Agreement to increase the maximum borrowing capacity to $240million. Interest is paid on the outstanding principal amount of LOC borrowings at a floating rate based on, at the Companys election, LIBOR or a base rate. The margin on LIBOR loans ranges from 3.00% to 4.00% and the margin on base rate loans ranges from 2.00% to 3.00%, based on the Companys debt to capitalization ratio. At June30, 2009, the margin on LIBOR loans would have been 3.00% and the margin on base rate loans would have been 2.00%. Any outstanding borrowings must be repaid at maturity on January31, 2012 and letters of credit may remain in effect up to six months after such maturity date. This LOC facility includes various fees, including a commitment fee on the actual daily unused commitment (the commitment fee rate was 1.00% at June30, 2009). The Company incurred line of credit issuance costs of approximately $6.2million during the six months ended June30, 2009 in connection with the LOC. These costs are being amortized over the contractual term of the LOC as an adjustment to interest expense. There are customary representations, warranties, restrictions and covenants associated with the LOC. Financial covenants provide for a maximum debt to capitalization ratio and a minimum interest coverage ratio. The Company does not expect that the restrictions and covenants will impact its ability to operate or react to opportunities that might arise. As of June30, 2009, the Company had no borrowings outstanding under the LOC. The Company had $46.3million in letters of credit outstanding at June30, 2009 and, as a result, had available borrowing capacity of approximately $194million at that date. Each domestic subsidiary of the Company has unconditionally guaranteed the existing and future obligations of the Company and each other guarantor under the LOC and related loan documents, as well as obligations of the Company and its subsidiaries under any interest rate swap contracts that may be entered into with lenders party to the LOC. |
Commitments Contingencies and O
Commitments Contingencies and Other Matters | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Commitments, Contingencies and Other Matters [Abstract] | |
Commitments, Contingencies and Other Matters | 9. Commitments, Contingencies and Other Matters Commitments As of June30, 2009, the Company maintained letters of credit in the aggregate amount of $46.3million for the benefit of various insurance companies as collateral for retrospective premiums and retained losses which could become payable under the terms of the underlying insurance contracts. These letters of credit expire at various times during the calendar year and are typically renewed annually. As of June30, 2009, no amounts had been drawn under the letters of credit. As of June30, 2009, the Company had commitments to purchase approximately $154million of major equipment. The Company is party to various legal proceedings arising in the normal course of its business. The Company does not believe that the outcome of these proceedings, either individually or in the aggregate, will have a material adverse effect on its financial condition, results of operations or cash flows. |
Stockholders Equity
Stockholders Equity | |
1/1/2009 - 6/30/2009
USD / shares | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders Equity Cash Dividends The Company paid cash dividends during the six months ended June30, 2008 and 2009 as follows: 2008: Per Share Total (in thousands) Paid on March28, 2008 $ 0.12 $ 18,493 Paid on June27, 2008 0.16 $ 25,011 Total cash dividends $ 0.28 $ 43,504 2009: Per Share Total (in thousands) Paid on March31, 2009 $ 0.05 $ 7,655 Paid on June30, 2009 0.05 7,675 Total cash dividends $ 0.10 $ 15,330 On July29, 2009, the Companys Board of Directors approved a cash dividend on its common stock in the amount of $0.05 per share to be paid on September30, 2009 to holders of record as of September15, 2009. The amount and timing of all future dividend payments, if any, is subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Companys credit facilities and other factors. On August1, 2007, the Companys Board of Directors approved a stock buyback program (Program), authorizing purchases of up to $250million of the Companys common stock in open market or privately negotiated transactions. During the six months ended June30, 2009, the Company purchased 3,324 shares of its common stock under the Program at a cost of approximately $46,000. As of June30, 2009, the Company is authorized to purchase approximately $113million of the Companys outstanding common stock under the Program. Shares purchased under the Program are accounted for as treasury stock. The Company purchased 85,817 shares of stock from employees during the six months ended June 30, 2009 on dates that corresponded with the vesting of restricted stock. These shares were purchased at fair market value to provide employees with the funds necessary to satisfy payroll tax withholding obligations and have been accounted for as treasury stock. The total purchase price for these shares was approximately $1.1million. These purchases were made pursuant to the terms of the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan and not pursuant to the Program. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | 11. Recently Issued Accounting Standards In September 2006, the FASB issued Statement No. 157, Fair Value Measurements (FAS 157). FAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. The initial application of FAS 157 was limited to financial assets and liabilities and became effective on January 1, 2008 for the Company. The impact of the initial application of FAS 157 was not material. On January 1, 2009, the Company adopted FAS 157 on a prospective basis for non-financial assets and liabilities that are not measured at fair value on a recurring basis. The application of FAS 157 to the Companys non-financial assets and liabilities is primarily limited to assets acquired and liabilities assumed in a business combination, asset retirement obligations and asset impairments, including goodwill and long-lived assets. This application of FAS 157 has not had a material impact on the Company. In December2007, the FASB issued Statement No.141(R), Business Combinations (FAS 141(R)) and Statement No.160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.51 (FAS 160). FAS 141(R) is a revision of Statement No.141, Business Combinations, and calls for significant changes from current practice in accounting for business combinations. FAS 141(R) is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December15, 2008. FAS 160 amends ARB 51 to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. FAS 160 is effective for fiscal years beginning on or after December15, 2008. Both FAS 141(R) and FAS 160 became effective for the Company on January1, 2009. The application of FAS 141(R) and FAS 160 did not have a material impact on the Company. In June2008, the FASB issued FASB Staff Position No.EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (FSP EITF 03-6-1). FSP EITF 03-6-1 clarifies that share-based payment awards that entitle their holders to receive non-forfeitable dividends before vesting should be considered participating securities and, as such, should be included in the calculation of basic earnings-per-share using the two-class method. Certain of the Companys share-based payment awards entitle the holders to receive non-forfeitable dividends. FSP EITF 03-6-1 is effective for financial statements issued for fiscal years beginning after December15, 2008, as well as interim periods within those years and became effective for the Company on January1, 2009. The impact of the adoption of FSP EITF 03-6-1 is discussed in Note 1. In December2008, the SEC issued a Final Rule, Modernization of Oil and Gas Reporting (Final Rule). The Final Rule revises certain oil and gas reporting disclosures in RegulationS-K and RegulationS-X under the Securities Act of 1933, as amended (the Securities Act) and the Securities Exchange Act of 1934, as a |