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 UP 46 PERCENT
SNYDER, TEXAS - APRIL 30, 2003 - PATTERSON-UTI ENERGY, INC. (NASDAQ:
PTEN), the second-largest operator of land-based oil and natural gas drilling
rigs in North America, today announced financial results for the three months
ended March 31, 2003.
The Company reported a 46 percent increase in net income to $5.8
million, or $0.07 per share, for the three-month period, compared to net income
of $3.9 million, or $0.05 per share for the quarter ended March 31, 2002.
Revenue for the quarter was $165.2 million, versus $128.2 million for the
comparable three-month period in 2002.
The results for the quarter include income in the amount of $2.5
million ($1.6 million after tax) from the collection of a disputed receivable
acquired in the 1999 merger with Norton Drilling Services, Inc., as well as a
net of tax charge of $469,000 resulting from a change in the accounting rules
(SFAS No.143) pertaining to the Company's exploration and production activities.
Cloyce A. Talbott, Patterson-UTI's Chief Executive Officer, commented,
"Demand for our drilling services continued to increase in the first quarter of
2003. Our average rigs operating increased to 176, including 15 in Canada,
compared to 140 average rigs in the fourth quarter of 2002, including 8 in
Canada. The demand for our U.S. rigs continued to increase in April 2003 and we
expect to average approximately 188 U.S. rigs operating for the month. In
Canada, drilling activity is declining due to the annual spring breakup and we
expect to average approximately 6 rigs operating during April 2003.
"Our policy of retaining our experienced field personnel and
maintaining our equipment during the downtimes has continued to benefit us by
allowing us to respond quickly and efficiently to our customers' needs. In the
first quarter, we were able to increase our average rigs operating by 26%
compared to the prior quarter, and 50% compared to the first quarter of 2002.
"With increasing utilization, we have recently begun to attain
increases in our average drilling dayrate. With these higher activity levels, we
are seeing reduced availability of skilled drilling labor. As a result, in early
April 2003 we reversed the 10% wage cuts that we implemented during the first
quarter of 2002. We believe this move back to the peak wage levels of 2001 is
appropriate to maintaining the quality of our workforce." Talbott added.
Mark S. Siegel, Chairman of Patterson-UTI Energy, stated, "Our positive
results also reflect the steadily improving conditions throughout the land
drilling industry, as the market reacts to the low natural gas storage level. We
expect a continued increase in utilization as our customers benefit from the
overall strong commodity prices and are willing to invest their increased
cash-flow in onshore drilling activities."
The Company also announced that it recently acquired two additional
land-based drilling rigs for $3.9 million in cash. The rigs have an average
depth capacity of 17,000 feet and increase the Company's rig fleet to 333. The
Company's rig count will increase to 340 upon completion of a previously
announced seven rig acquisition that is expected to be completed during the
second quarter of 2003.
The Company said that, for financial statement purposes, average rigs
operating for the quarter ended March 31, 2003 of 176 rigs was 3 rigs lower than
the 179 rigs reported in the most recent monthly press release due to an
increase in the number of days associated with turkey contracts in progress at
March 31, 2003 compared to December 31, 2002. Drilling days reported for
financial statement purposes utilize the completed contract method of accounting
on turnkey contracts. Under the completed contract method, revenues and
expenses, along with the related drilling days associated with turnkey
contracts, are recorded in the period in which the turnkey contract is
completed. Drilling days reported in the Company's monthly announcements
represent the number of days in which a Patterson-UTI drilling rig was operating
or moving under a drilling contract.
The Company will hold its quarterly conference call to discuss first
quarter results today at 10:00 a.m. Eastern (9:00 a.m. Central and 7:00 a.m.
Pacific). This call is being Webcast and can be accessed through Patterson-UTI's
Web site at www.patenergy.com or at www.streetevents.com in the Individual
Investor Center. Replay of the conference call webcast will be available at
these same websites through Wednesday, May 14, 2003.
All references to "earnings per share" set forth in this press release
are diluted earnings per share as defined within the Statement of Financial
Accounting Standards No. 128.
ABOUT PATTERSON-UTI
Patterson-UTI Energy, Inc. is the second-largest provider of onshore
contract drilling services to exploration and production companies in North
America. As noted above, the Company expects to complete the acquisition of
seven additional land-based drilling rigs during the second quarter of this
year. Upon completion of this transaction, the Company will own 340 land-based
drilling rigs that operate primarily in the oil and natural gas producing
regions of Texas, New Mexico, Oklahoma, Utah, Louisiana, Mississippi 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 a small exploration and production business that is based in Texas.
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.
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Income (Unaudited)
(in thousands, except per share data)
<Table>
<Caption>
Three Months Ended
March 31,
2003 2002
------------ ------------
REVENUES $ 165,239 $ 128,223
COSTS AND EXPENSES
Direct operating costs (excluding depreciation, depletion and amortization) 126,894 93,292
Depreciation, depletion and amortization 24,136 22,202
Selling, general and administrative 6,894 6,343
Bad debt expense 80 --
Other (2,609) (42)
------------ ------------
Total Costs and Expenses 155,395 121,795
------------ ------------
OPERATING INCOME 9,844 6,428
OTHER INCOME (EXPENSE)
Interest expense (72) (111)
Interest income 260 225
Other 8 17
------------ ------------
Total Other Income 196 131
------------ ------------
INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 10,040 6,559
INCOME TAXES 3,815 2,624
------------ ------------
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE 6,225 3,935
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, net of $287 income tax (469) --
------------ ------------
NET INCOME $ 5,756 $ 3,935
============ ============
NET INCOME PER COMMON SHARE
BASIC:
Income before cumulative effect of change in
accounting principle $ 0.08 $ 0.05
Cumulative effect of change in accounting principle (0.01) --
------------ ------------
Net Income $ 0.07 $ 0.05
============ ============
DILUTED:
Income before cumulative effect of change in
accounting principle $ 0.08 $ 0.05
Cumulative effect of change in accounting principle (0.01) --
------------ ------------
Net Income $ 0.07 $ 0.05
============ ============
AVERAGE COMMON SHARES OUTSTANDING
Basic 80,163 77,412
============ ============
Diluted 82,085 79,894
============ ============
</Table>
PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data (Unaudited)
(dollars in thousands)
<Table>
<Caption>
Three Months Ended
March 31,
2003 2002
------------ ------------
EBITDA, excluding income of $2.5 million for the three $ 31,528 $ 28,630
months in 2003
Total capital expenditures, excluding acquisitions $ 19,533 $ 26,308
Contract Drilling:
Revenues $ 135,581 $ 101,940
Direct operating costs (excluding depreciation and amortization) $ 106,428 $ 73,432
Selling, general and administrative $ 1,135 $ 1,183
Operating days 15,869 10,550
Average revenue per operating day $ 8.54 $ 9.66
Average direct operating costs per operating day $ 6.71 $ 6.96
Average margin per operating day $ 1.83 $ 2.70
Number of owned rigs at end of period 331 324
Average number of rigs owned during period 329 320
Average rigs operating 176 117
Rig utilization percentage 54% 37%
Capital expenditures $ 13,539 $ 21,667
Drilling and Completion Fluids:
Revenues $ 15,848 $ 16,146
Direct operating costs (excluding depreciation and amortization) $ 14,381 $ 14,723
Selling, general and administrative $ 1,777 $ 1,727
Total jobs 486 321
Average revenue per job $ 32.61 $ 50.30
Average costs per job $ 29.59 $ 45.87
Average margin per job $ 3.02 $ 4.43
Capital expenditures $ 131 $ 663
Pressure Pumping:
Revenues $ 8,511 $ 7,428
Direct operating costs (excluding depreciation) $ 5,006 $ 4,157
Selling, general and administrative $ 1,511 $ 1,181
Total jobs 1,061 839
Average revenue per job $ 8.02 $ 8.85
Average costs per job $ 4.72 $ 4.95
Average margin per job $ 3.30 $ 3.90
Capital expenditures $ 3,713 $ 936
Oil and Natural Gas Production and Exploration:
Revenues $ 5,299 $ 2,709
Direct operating costs (excluding depreciation and depletion) $ 1,079 $ 980
Selling, general and administrative $ 382 $ 453
Capital expenditures $ 2,150 $ 3,042
Corporate and Other:
Selling, general and administrative $ 2,089 $ 1,799
Bad debt expense $ 80 $ --
Other $ (2,609) $ (42)
</Table>
<Table>
<Caption>
March 31, March 31,
2003 2002
------------ ------------
Selected Balance Sheet Data:
Cash and cash equivalents $ 70,796 $ 58,357
Current assets $ 251,084 $ 192,292
Total assets $ 964,741 $ 886,003
Current liabilities $ 83,999 $ 67,204
Long-term debt, less current maturities $ -- $ --
Working capital $ 167,085 $ 125,088
</Table>