Patterson-UTI Energy Announces Record Third Quarter Results
Net Income Up 268 Percent on 81 Percent Increase in Revenues
SNYDER, Texas – October 27, 2005 – PATTERSON-UTI ENERGY, INC. (Nasdaq: PTEN)today announced financial results for the third quarter and nine months ended September 30, 2005. Net income for the quarter increased by 268 percent to $110 million, or $0.63 per share, from $30 million, or $0.18 per share, for the quarter ended September 30, 2004. Revenues for the quarter were up by 81 percent to $469 million, compared to $259 million for the third quarter of 2004.
Net income for the nine months ended September 30, 2005 increased by 252 percent to $248 million, or $1.43 per share, from $70 million, or $0.42 per share, for the nine months ended September 30, 2004. Revenues for the nine months were up by 70 percent to $1.2 billion, compared to $712 million for the first nine months of 2004.
The Company also declared a quarterly cash dividend on its Common Stock of $0.04 per share, to be paid on December 1, 2005 to holders of record as of November 15, 2005.
Cloyce A. Talbott, Patterson-UTI’s Chief Executive Officer, commented, “The combination of continuing strong demand for our drilling services, coupled with the ongoing scarcity of land-based drilling rigs, has resulted in further increases in pricing for these services. Our average revenue per operating day for the recently completed quarter increased by $1,720 to $15,410, and our average margin per operating day increased by $1,400 to $7,610 compared to the second quarter of 2005.”
He added, “Our rig count also increased sequentially from the second quarter, with rig utilization increasing to 71 percent, compared to 67 percent for the previous quarter. During the recently completed quarter we had an average of 283 rigs operating, including 269 in the U.S. and 14 in Canada, compared to an average of 265 rigs operating, including 259 in the U.S. and 6 in Canada for the second quarter of 2005. We estimate that our rig count will increase to an average of 288 rigs operating in October, including 271 in the U.S. and 17 in Canada.
“We continue to remain on target to activate approximately 30 drilling rigs during 2005, including 22 that have been activated so far this year. Based upon customer inquiries for rigs in 2006 and our expectations of rig demand, we plan to continue to activate rigs at a similar pace next year,” Mr. Talbott added.
Commenting on the financial results, Mark S. Siegel, Chairman of Patterson-UTI Energy, stated, “The results for the recently completed quarter reflect the continued strong performance by our contract drilling segment, which once again achieved record average revenue per operating day, average margin per operating day and average rigs operating.
“Moreover, our revenues, net income and net income per common share also hit new highs in the third quarter of 2005. While revenues were up by 81 percent compared to the third quarter of 2004, our net income increased by 268 percent. These results continue to demonstrate the earnings leverage we are able to achieve as rig utilization and pricing increase.
Mr. Siegel added, “We continue to maintain a strong balance sheet and ended the quarter with approximately $131 million in cash and cash equivalents, $321 million in working capital and no long-term debt.”
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 third quarter results today at 11:00 a.m. Eastern (10:00 a.m. Central and 8:00 a.m. Pacific). This call is being Webcast and can be accessed through Patterson-UTI’s Web site atwww.patenergy.com or atwww.streetevents.com in the Individual Investor Center. Replay of the conference call Webcast will be available until November 10, 2005 atwww.patenergy.com and telephone replay of the call will be available through October 30, 2005.
About Patterson-UTI
Patterson-UTI Energy, Inc. provides onshore contract drilling services to exploration and production companies in North America. The Company owns 403 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.
1
PATTERSON-UTI ENERGY, INC. Condensed Consolidated Statements Of Income (Unaudited) (in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2005
2004
2005
2004
REVENUES
$
468,739
$
259,174
$
1,209,254
$
712,463
COSTS AND EXPENSES
Direct operating costs (excluding depreciation, depletion and impairment)
245,045
172,629
676,065
491,235
Depreciation, depletion and impairment
39,216
30,789
110,575
88,523
Selling, general and administrative
10,571
8,309
30,175
23,017
Bad debt expense
50
192
416
499
Other
346
(153
)
1,844
(1,528
)
Total Costs and Expenses
295,228
211,766
819,075
601,746
OPERATING INCOME
173,511
47,408
390,179
110,717
OTHER INCOME (EXPENSE)
Interest expense
(56
)
(75
)
(179
)
(205
)
Interest income
944
233
2,011
688
Other
19
56
39
313
Total Other Income
907
214
1,871
796
INCOME BEFORE INCOME TAXES
174,418
47,622
392,050
111,513
INCOME TAXES
64,283
17,658
144,502
41,260
NET INCOME
$
110,135
$
29,964
$
247,548
$
70,253
NET INCOME PER COMMON SHARE
Basic
$
0.64
$
0.18
$
1.46
$
0.42
Diluted
$
0.63
$
0.18
$
1.43
$
0.42
AVERAGE COMMON SHARES OUTSTANDING
Basic
171,613
167,006
169,846
165,744
Diluted
174,587
169,664
173,211
168,795
2
PATTERSON-UTI ENERGY, INC. Additional Financial and Operating Data (Unaudited) (dollars in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2005
2004
2005
2004
Contract Drilling:
Revenues
$
401,046
$
206,454
$
1,025,938
$
573,851
Direct operating costs (excluding depreciation)
$
202,956
$
140,608
$
558,607
$
402,986
Selling, general and administrative
$
1,292
$
1,092
$
3,719
$
3,267
Operating days
26,015
19,855
73,746
56,292
Average revenue per operating day
$
15.41
$
10.40
$
13.91
$
10.19
Average direct operating costs per operating day
$
7.80
$
7.08
$
7.57
$
7.16
Average margin per operating day
$
7.61
$
3.32
$
6.34
$
3.03
Number of owned rigs at end of period
403
361
403
361
Average number of rigs owned during period
398
361
395
358
Average rigs operating
283
216
270
205
Rig utilization percentage
71
%
60
%
68
%
57
%
Capital expenditures
$
95,539
$
40,511
$
224,667
$
111,871
Pressure Pumping:
Revenues
$
27,640
$
19,663
$
66,358
$
48,490
Direct operating costs (excluding depreciation)
$
15,662
$
10,455
$
38,648
$
26,871
Selling, general and administrative
$
2,464
$
1,725
$
6,858
$
5,182
Total jobs
2,714
2,200
6,968
5,466
Average revenue per job
$
10.18
$
8.94
$
9.52
$
8.87
Average costs per job
$
5.77
$
4.75
$
5.55
$
4.92
Average margin per job
$
4.41
$
4.19
$
3.97
$
3.95
Capital expenditures
$
5,865
$
3,508
$
20,598
$
14,112
Drilling and Completion Fluids:
Revenues
$
29,819
$
23,455
$
88,812
$
65,018
Direct operating costs (excluding depreciation)
$
24,062
$
19,851
$
71,857
$
55,327
Selling, general and administrative
$
2,402
$
1,965
$
6,964
$
5,550
Other expense from operations
$
200
$
—
$
200
$
—
Total jobs
485
550
1,515
1,661
Average revenue per job
$
61.48
$
42.65
$
58.62
$
39.14
Average costs per job
$
49.61
$
36.09
$
47.43
$
33.31
Average margin per job
$
11.87
$
6.56
$
11.19
$
5.83
Capital expenditures
$
687
$
354
$
2,039
$
981
Oil and Natural Gas Production and Exploration:
Revenues
$
10,234
$
9,602
$
28,146
$
25,104
Direct operating costs (excluding depreciation, depletion and impairment)
$
2,365
$
1,715
$
6,953
$
6,051
Selling, general and administrative
$
545
$
484
$
1,598
$
1,324
Capital expenditures
$
3,858
$
2,739
$
12,286
$
9,871
Corporate and Other:
Selling, general and administrative
$
3,868
$
3,043
$
11,036
$
7,694
Bad debt expense
$
50
$
192
$
416
$
499
Other expense (income) from operations
$
146
$
(153
)
$
1,644
$
(1,528
)
Capital expenditures
$
—
$
—
$
5,308
$
—
Total capital expenditures, excluding acquisitions
$
105,949
$
47,112
$
264,898
$
136,835
September 30,
September 30,
2005
2004
Selected Balance Sheet Data (Unaudited):
Cash and cash equivalents
$
131,211
$
69,766
Current assets
$
561,529
$
330,521
Total assets
$
1,716,481
$
1,249,828
Current liabilities
$
240,646
$
134,520
Long-term debt, less current maturities
$
—
$
—
Working capital
$
320,883
$
196,001
3
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.
