Exhibit 99.1
For Immediate Release | Contact: | John E. Vollmer III | ||
SVP-Corporate Development | ||||
Patterson-UTI Energy, Inc. | ||||
(214) 360-7800 |
Patterson-UTI Energy Announces First Quarter Results
Net Income Nearly Triples
on 60 Percent Increase in Revenues
SNYDER, Texas – April 28, 2005 – PATTERSON-UTI ENERGY, INC. (Nasdaq: PTEN)today announced financial results for the first quarter ended March 31, 2005. Net income for the quarter increased by 188 percent to $59.7 million, or $0.35 per share, from $20.7 million, or $0.12 per share, for the quarter ended March 31, 2004. Revenues for the quarter were up by 60 percent to $350.6 million, compared to $218.8 million for the first quarter of 2004.
The Company also declared a quarterly cash dividend on its Common Stock of $0.04 per share, to be paid to holders of record on May 16, 2005 and to be paid on June 1, 2005.
Cloyce A. Talbott, Patterson-UTI’s Chief Executive Officer, commented, “The upward trend in demand for our contract drilling services continued in 2005. Average rigs operating increased during the recently completed quarter to 263 rigs, including 248 in the U.S. and 15 in Canada, compared to an average of 229 rigs operating, including 216 in the U.S. and 13 in Canada for the fourth quarter of 2004. We also achieved a sequential quarterly increase in our average revenue per operating day to $12,490 from $11,200 as the availability of land drilling rigs further diminished during the quarter. Compared to the fourth quarter of 2004, our average margin per operating day increased $1,180 to $5,070 from $3,890.
He added, “As customer demand for our contract drilling services has continued to increase and available land drilling rigs have become scarce, we have increased the pace of our rig activation efforts. We currently plan to activate approximately 30 drilling rigs during 2005, including seven that were activated during the first quarter.
“We estimate that our rig count in the U.S. will increase to an average of 256 rigs operating in April. We expect our rig count in Canada to average 4 rigs operating during April, reflecting a decline resulting from the spring breakup” Mr. Talbott concluded.
Commenting on the financial results, Mark S. Siegel, Chairman of Patterson-UTI Energy, stated, “The results for the quarter continue to demonstrate the earnings leverage we are able to achieve as rig utilization and pricing increase. While revenues for the quarter increased by 60 percent, our earnings nearly tripled.
Mr. Siegel added, “We continue to maintain a strong balance sheet and ended the quarter with $68 million in cash and cash equivalents, $202 million in working capital, and no long-term debt, after having completed the acquisition of land drilling assets from Key Energy Services, Inc. for $62 million in cash.”
All references to “earnings per share” in this press release are diluted earnings per share as defined within the Statement of Financial Accounting Standards No. 128.
The Company will hold its quarterly conference call to discuss first quarter results today at 12:00 p.m. Eastern (11:00 a.m. Central and 9:00 a.m. Pacific). This call is being Webcast and can be accessed through Patterson-UTI’s Web site at http://www.patenergy.com or at http://www.streetevents.com in the Individual Investor Center. Replay of the conference call webcast will be available at http://www.patenergy.com until May 12, 2005.
About Patterson-UTI Energy, Inc.
Patterson-UTI Energy, Inc. provides onshore contract drilling services to exploration and production companies in North America. The Company owns 396 land-based drilling rigs that operate primarily in the oil and natural gas producing regions of Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Colorado, Utah, Wyoming, Montana, North Dakota, South Dakota and western Canada. Patterson-UTI Energy, Inc. is also engaged in the businesses of pressure pumping services and drilling and completion fluid services. Additionally, the Company has an exploration and production business.
Statements made in this press release which state the Company’s or management’s intentions, beliefs, expectations or predictions for the future are forward-looking statements. It is important to note that actual results could differ materially from those discussed in such forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to, declines in oil and natural gas prices that could adversely affect demand for the Company’s services, and their associated effect on day rates, rig utilization and planned capital expenditures, adverse industry conditions, difficulty in integrating acquisitions, demand for oil and natural gas, and ability to retain management and field personnel. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings. Copies of these filings may be obtained by contacting the Company or the SEC.
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PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements Of Income (Unaudited)
(in thousands, except per share amounts)
Three Months Ended | ||||||||
March 31, | ||||||||
2005 | 2004 | |||||||
REVENUES | $ | 350,593 | $ | 218,779 | ||||
COSTS AND EXPENSES | ||||||||
Direct operating costs (excluding depreciation, depletion and impairment) | 211,949 | 153,286 | ||||||
Depreciation, depletion and impairment | 34,400 | 27,283 | ||||||
Selling, general and administrative | 9,679 | 6,798 | ||||||
Bad debt expense | 223 | 90 | ||||||
Other | 90 | (1,188 | ) | |||||
Total Costs and Expenses | 256,341 | 186,269 | ||||||
OPERATING INCOME | 94,252 | 32,510 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest expense | (66 | ) | (76 | ) | ||||
Interest income | 433 | 251 | ||||||
Other | 4 | 85 | ||||||
Total Other Income | 371 | 260 | ||||||
INCOME BEFORE INCOME TAXES | 94,623 | 32,770 | ||||||
INCOME TAXES | 34,875 | 12,088 | ||||||
NET INCOME | $ | 59,748 | $ | 20,682 | ||||
NET INCOME PER COMMON SHARE | ||||||||
Basic | $ | 0.35 | $ | 0.13 | ||||
Diluted | $ | 0.35 | $ | 0.12 | ||||
AVERAGE COMMON SHARES OUTSTANDING | ||||||||
Basic | 168,757 | 163,748 | ||||||
Diluted | 171,742 | 167,234 | ||||||
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PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data (Unaudited)
(dollars in thousands)
Three Months Ended | ||||||||
March 31, | ||||||||
2005 | 2004 | |||||||
Contract Drilling: | ||||||||
Revenues | $ | 295,389 | $ | 179,175 | ||||
Direct operating costs (excluding depreciation) | $ | 175,466 | $ | 127,991 | ||||
Selling, general and administrative | $ | 1,222 | $ | 1,095 | ||||
Operating days | 23,657 | 17,964 | ||||||
Average revenue per operating day | $ | 12.49 | $ | 9.97 | ||||
Average direct operating costs per operating day | $ | 7.42 | $ | 7.12 | ||||
Average margin per operating day | $ | 5.07 | $ | 2.85 | ||||
Number of owned rigs at end of period | 396 | 361 | ||||||
Average number of rigs owned during period | 391 | 353 | ||||||
Average rigs operating | 263 | 197 | ||||||
Rig utilization percentage | 67 | % | 56 | % | ||||
Capital expenditures | $ | 59,335 | $ | 28,380 | ||||
Pressure Pumping: | ||||||||
Revenues | $ | 16,693 | $ | 14,250 | ||||
Direct operating costs (excluding depreciation) | $ | 10,364 | $ | 8,088 | ||||
Selling, general and administrative | $ | 2,202 | $ | 1,793 | ||||
Total jobs | 1,909 | 1,688 | ||||||
Average revenue per job | $ | 8.74 | $ | 8.44 | ||||
Average costs per job | $ | 5.43 | $ | 4.79 | ||||
Average margin per job | $ | 3.31 | $ | 3.65 | ||||
Capital expenditures | $ | 7,658 | $ | 5,822 | ||||
Drilling and Completion Fluids: | ||||||||
Revenues | $ | 29,406 | $ | 18,139 | ||||
Direct operating costs (excluding depreciation) | $ | 23,949 | $ | 15,639 | ||||
Selling, general and administrative | $ | 2,195 | $ | 1,710 | ||||
Total jobs | 527 | 518 | ||||||
Average revenue per job | $ | 55.80 | $ | 35.02 | ||||
Average costs per job | $ | 45.44 | $ | 30.19 | ||||
Average margin per job | $ | 10.36 | $ | 4.83 | ||||
Capital expenditures | $ | 586 | $ | 211 | ||||
Oil and Natural Gas Production and Exploration: | ||||||||
Revenues | $ | 9,105 | $ | 7,215 | ||||
Direct operating costs (excluding depreciation, depletion and impairment) | $ | 2,170 | $ | 1,568 | ||||
Selling, general and administrative | $ | 501 | $ | 413 | ||||
Capital expenditures | $ | 5,021 | $ | 3,532 | ||||
Corporate and Other: | ||||||||
Selling, general and administrative | $ | 3,559 | $ | 1,787 | ||||
Bad debt expense | $ | 223 | $ | 90 | ||||
Other income from operations | $ | (90 | ) | $ | 1,188 | |||
Capital expenditures | $ | 5,200 | $ | — | ||||
Total capital expenditures, excluding acquisitions | $ | 77,800 | $ | 37,945 |
March 31, | March 31, | |||||||
2005 | 2004 | |||||||
Selected Balance Sheet Data (Unaudited): | ||||||||
Cash and cash equivalents | $ | 68,296 | $ | 92,192 | ||||
Current assets | $ | 400,013 | $ | 318,626 | ||||
Total assets | $ | 1,437,068 | $ | 1,188,698 | ||||
Current liabilities | $ | 197,830 | $ | 126,233 | ||||
Long-term debt, less current maturities | $ | — | $ | — | ||||
Working capital | $ | 202,183 | $ | 192,393 |
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