HOUSTON, July 27, 2017 /PRNewswire/
-- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today
reported financial results for the three and six months ended
June 30, 2017. Reported
financial results for the three and six months include the
post-merger contribution from Seventy Seven Energy following the
completion of the merger on April 20,
2017. References to prior periods reflect reported financial
results from Patterson-UTI on a standalone basis.
Including the charges discussed below, the Company reported a
net loss of $92.2 million, or
$0.46 per share, for the second
quarter of 2017, compared to a net loss of $85.9 million, or $0.58 per share, for the quarter ended
June 30, 2016. Revenues for the
second quarter of 2017 were $579
million, compared to $194
million for the second quarter of 2016. Seventy Seven
Energy contributed $190 million of
revenues during second quarter.
For the six months ended June 30,
2017, the Company reported a net loss of $156 million, or $0.86 per share, compared to a net loss of
$156 million, or $1.06 per share, for the six months ended
June 30, 2016. Revenues for the
six months ended June 30, 2017 were
$884 million, compared to
$463 million for the same period in
2016.
The financial results for the three months ended June 30, 2017 include pretax merger and
integration expenses and impairment charges totaling $80.2 million. Excluding these expenses and
charges, the net loss per diluted share during the second quarter
would have been $0.21. These
expenses and charges include $51.2
million of merger and integration expenses related to the
acquisition of Seventy Seven Energy and $29.0 million of non-cash impairment charges from
the write-down of drilling equipment related to the upgrade of
certain rigs to super-spec capability. The results for the
six months ended June 30, 2017
include the aforementioned charges for the second quarter, as well
as first quarter items including $5.2
million of merger and integration expenses and an
$11.2 million pretax gain related to
the sale of real estate.
Andy Hendricks, Patterson-UTI's
Chief Executive Officer, stated, "Demand for high-spec rigs
remained strong despite moderating prices for crude oil during the
second quarter. Our average rig count in the United States during the second quarter
was 145 rigs. On a standalone basis, Patterson-UTI averaged
100 rigs for the second quarter in the
United States, up 23% from 81 rigs during the first
quarter. In Canada, our
average rig count for the second quarter was one rig, down from two
rigs in the first quarter. For the month of July, we expect
our rig count to average 159 rigs in the
United States and three rigs in Canada. Our average
rig count for the United States in
July is expected to be one rig lower than June due to the
expiration of contracts for three rigs that were previously on
standby."
Mr. Hendricks added, "With the addition of Seventy Seven Energy
during the second quarter, there were many moving pieces that
affected financial results reported on a per day basis.
Improved rig pricing during the second quarter was offset by a
combination of a higher proportion of rigs on reduced standby rates
as a result of the merger and the re-pricing of some long-term
contracts, which resulted in a $930
per day decrease in average rig revenue per day to $20,270. This decrease was partially offset
by an $890 per day decrease in
average rig operating costs to $13,560, which resulted from the higher
proportion of rigs on standby and greater overhead absorption given
the larger number of active rigs following the merger. As a
result, average rig margin per day for the second quarter of
$6,710 was relatively unchanged from
the first quarter at $6,750 per day.
"In response to customer demand for super-spec rigs we are
upgrading seven of our 1,000 horsepower APEX 1000® rigs to APEX-XK®
rigs with super-spec capabilities including a 1,500 horsepower
drawworks and a mast with a hook load rating of 750,000
pounds. The first of these upgraded rigs was delivered in
July, with the remaining upgraded rigs expected to be delivered
during the remainder of 2017. We have contracts for five of
these rigs with terms ranging from 18 months to 24 months, and we
expect to shortly enter into contracts for the remaining two
rigs.
"As of June 30, 2017, we had term
contracts for drilling rigs providing for approximately
$535 million of future dayrate
drilling revenue. Based on contracts currently in place, we
expect an average of 94 rigs operating under term contracts during
the third quarter, and an average of 60 rigs operating under term
contracts during the 12 months ending June
30, 2018.
"In pressure pumping, revenues increased to $290 million from $141
million in the first quarter due to the acquisition of
Seventy Seven Energy, increased utilization and better than
expected pricing. As a result, our gross margins as a
percentage of pressure pumping revenues improved to 19.4% for the
second quarter from 15.7% in the first quarter.
"During the second quarter we reactivated two frac
spreads. With current demand for pressure pumping, we plan to
reactivate two frac spreads late in the third quarter and one frac
spread during the fourth quarter. With the addition of these
three spreads in the back half of 2017, we expect to exit 2017 with
23 active spreads," he concluded.
Mark S. Siegel, Chairman of
Patterson-UTI, stated, "The second quarter was a transformative
quarter for Patterson-UTI. The merger with Seventy Seven
Energy is the most significant transaction for our company since
the merger of Patterson and UTI in 2001.
"We are pleased that during the second quarter Seventy Seven
Energy exceeded our expectations. During the second quarter,
Seventy Seven Energy contributed $190
million of the $274 million
sequential increase in total revenues.
"Most importantly this merger has strengthened our position in
both contract drilling and pressure pumping and has uniquely
positioned us as a leader in both of these businesses in the United
States. In addition, the merger added a new business line for
us in oilfield rentals.
"Contract drilling and pressure pumping are critical to
producing oil and natural gas from unconventional resources.
Advancements in both of these services have increased efficiency,
improved well productivity, and had a profound impact on the
marginal cost of production in U.S. onshore plays such as the
Permian Basin. As a leader in both of these businesses, we
are well positioned for current market conditions that benefit
companies that are technologically focused on increasing
efficiency, delivering high-quality customer service, and operating
efficiently in economically advantaged plays."
Mr. Siegel added, "I am very pleased with the significant
progress we have made towards integrating Seventy Seven into
Patterson-UTI and optimizing the combined operations. We will
continue to focus the combined marketing, supply chain, logistical
and operational resources towards maximizing the value of the
combined entity," he concluded.
The Company declared a quarterly dividend on its common stock of
$0.02 per share, to be paid on
September 21, 2017, to holders of
record as of September 7, 2017.
All references to "per share" in this press release are diluted
earnings per common share as defined within Accounting Standards
Codification Topic 260.
The Company's quarterly conference call to discuss the operating
results for the quarter ended June 30,
2017, is scheduled for today, July
27, 2017, at 9:00 a.m. Central
Time. The dial-in information for participants is
844-498-0567 (Domestic) and 443-961-0820 (International). The
passcode for both numbers is 26426611. The call is also being
webcast and can be accessed through the Investor Relations section
at www.patenergy.com. A replay of the conference call will be
on the Company's website for two weeks.
About Patterson-UTI
Patterson-UTI is an oilfield services company that primarily
owns and operates in the United
States one of the largest fleets of land-based drilling rigs
and a large fleet of pressure pumping equipment. Our contract
drilling business operates in the continental United States and western Canada, and our pressure pumping and oilfield
rental tools businesses operate primarily in Texas and the Mid-Continent and Appalachian
regions. We also provide drilling rig pipe handling
technology to drilling contractors in North America and other select markets.
In addition, we own and invest as a non-operating working interest
owner in oil and natural gas assets that are primarily located in
Texas and New Mexico.
Location information about the Company's drilling rigs and their
individual inventories is available through the Company's website
at www.patenergy.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements which are
protected as forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are not limited to
historical facts, but reflect Patterson-UTI's current beliefs,
expectations or intentions regarding future events. Words
such as "anticipate," "believe," "budgeted," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "predict,"
"potential," "project," "pursue," "should," "strategy," "target,"
or "will," and similar expressions are intended to identify such
forward-looking statements. The statements in this press
release that are not historical statements, including statements
regarding Patterson-UTI's future expectations, beliefs, plans,
objectives, financial conditions, assumptions or future events or
performance that are not historical facts, are forward-looking
statements within the meaning of the federal securities laws.
These statements are subject to numerous risks and uncertainties,
many of which are beyond Patterson-UTI's control, which could cause
actual results to differ materially from the results expressed or
implied by the statements. These risks and uncertainties
include, but are not limited to: volatility in customer spending
and in oil and natural gas prices, which could adversely affect
demand for Patterson-UTI's services and their associated effect on
rates, utilization, margins and planned capital expenditures;
global economic conditions; excess availability of land drilling
rigs and pressure pumping equipment, including as a result of low
commodity prices, reactivation or construction; liabilities from
operations; weather; decline in, and ability to realize, backlog;
equipment specialization and new technologies; shortages, delays in
delivery and interruptions of supply of equipment and materials;
ability to hire and retain personnel; loss of, or reduction in
business with, key customers; difficulty with growth and in
integrating acquisitions; governmental regulation; product
liability; legal proceedings; political, economic and social
instability risk; ability to effectively identify and enter new
markets; cybersecurity risk; dependence on our subsidiaries to meet
our long-term debt obligations; variable rate indebtedness risk;
and anti-takeover measures in our charter documents.
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
Patterson-UTI's SEC filings. Patterson-UTI's filings may be
obtained by contacting Patterson-UTI or the SEC or through
Patterson-UTI's website at http://www.patenergy.com or through the
SEC's Electronic Data Gathering and Analysis Retrieval System
(EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no
obligation to publicly update or revise any forward-looking
statement.
PATTERSON-UTI
ENERGY, INC.
|
Condensed
Consolidated Statements of Operations
|
(unaudited, in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30
|
|
|
June
30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
REVENUES
|
|
$
|
579,186
|
|
|
$
|
193,907
|
|
|
$
|
884,361
|
|
|
$
|
462,846
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs
|
|
|
427,229
|
|
|
|
134,999
|
|
|
|
657,722
|
|
|
|
305,800
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
219,328
|
|
|
|
170,975
|
|
|
|
375,545
|
|
|
|
347,745
|
|
Selling, general and
administrative
|
|
|
23,478
|
|
|
|
17,087
|
|
|
|
42,330
|
|
|
|
35,059
|
|
Merger and integration
expenses
|
|
|
51,193
|
|
|
|
—
|
|
|
|
56,349
|
|
|
|
—
|
|
Other operating
income, net
|
|
|
(1,806)
|
|
|
|
(4,822)
|
|
|
|
(14,710)
|
|
|
|
(6,167)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and
expenses
|
|
|
719,422
|
|
|
|
318,239
|
|
|
|
1,117,236
|
|
|
|
682,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
(140,236)
|
|
|
|
(124,332)
|
|
|
|
(232,875)
|
|
|
|
(219,591)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
642
|
|
|
|
100
|
|
|
|
1,048
|
|
|
|
210
|
|
Interest
expense
|
|
|
(9,075)
|
|
|
|
(10,678)
|
|
|
|
(17,345)
|
|
|
|
(21,478)
|
|
Other
|
|
|
131
|
|
|
|
17
|
|
|
|
148
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
expense
|
|
|
(8,302)
|
|
|
|
(10,561)
|
|
|
|
(16,149)
|
|
|
|
(21,235)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(148,538)
|
|
|
|
(134,893)
|
|
|
|
(249,024)
|
|
|
|
(240,826)
|
|
INCOME TAX
BENEFIT
|
|
|
(56,354)
|
|
|
|
(49,027)
|
|
|
|
(93,301)
|
|
|
|
(84,457)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(92,184)
|
|
|
$
|
(85,866)
|
|
|
$
|
(155,723)
|
|
|
$
|
(156,369)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.46)
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.86)
|
|
|
$
|
(1.06)
|
|
Diluted
|
|
$
|
(0.46)
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.86)
|
|
|
$
|
(1.06)
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
201,204
|
|
|
|
145,944
|
|
|
|
180,747
|
|
|
|
145,857
|
|
Diluted
|
|
|
201,204
|
|
|
|
145,944
|
|
|
|
180,747
|
|
|
|
145,857
|
|
CASH DIVIDENDS PER
COMMON SHARE
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.12
|
|
PATTERSON-UTI
ENERGY, INC.
|
Additional Financial
and Operating Data
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Drilling:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
270,111
|
|
|
$
|
115,235
|
|
|
$
|
428,839
|
|
|
$
|
283,894
|
|
Direct operating
costs
|
|
$
|
180,658
|
|
|
$
|
63,803
|
|
|
$
|
288,879
|
|
|
$
|
144,701
|
|
Margin (1)
|
|
$
|
89,453
|
|
|
$
|
51,432
|
|
|
$
|
139,960
|
|
|
$
|
139,193
|
|
Selling, general and
administrative
|
|
$
|
1,401
|
|
|
$
|
1,479
|
|
|
$
|
3,055
|
|
|
$
|
3,237
|
|
Depreciation,
amortization and impairment
|
|
$
|
161,414
|
|
|
$
|
120,402
|
|
|
$
|
271,973
|
|
|
$
|
241,501
|
|
Operating
loss
|
|
$
|
(73,362)
|
|
|
$
|
(70,449)
|
|
|
$
|
(135,068)
|
|
|
$
|
(105,545)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days –
United States
|
|
|
13,201
|
|
|
|
4,960
|
|
|
|
20,510
|
|
|
|
11,385
|
|
Operating days –
Canada
|
|
|
122
|
|
|
|
36
|
|
|
|
300
|
|
|
|
268
|
|
Operating days –
Total
|
|
|
13,323
|
|
|
|
4,996
|
|
|
|
20,810
|
|
|
|
11,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – United States
|
|
$
|
20.28
|
|
|
$
|
23.02
|
|
|
$
|
20.60
|
|
|
$
|
24.29
|
|
Average direct
operating costs per operating day – United States
|
|
$
|
13.51
|
|
|
$
|
12.43
|
|
|
$
|
13.83
|
|
|
$
|
12.10
|
|
Average margin per
operating day – United States (1)
|
|
$
|
6.76
|
|
|
$
|
10.59
|
|
|
$
|
6.77
|
|
|
$
|
12.19
|
|
Average rigs operating
– United States
|
|
|
145
|
|
|
|
55
|
|
|
|
113
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Canada
|
|
$
|
20.02
|
|
|
$
|
28.92
|
|
|
$
|
21.30
|
|
|
$
|
27.39
|
|
Average direct
operating costs per operating day – Canada
|
|
$
|
18.76
|
|
|
$
|
59.44
|
|
|
$
|
17.28
|
|
|
$
|
25.84
|
|
Average margin per
operating day – Canada (1)
|
|
$
|
1.25
|
|
|
$
|
(30.53)
|
|
|
$
|
4.02
|
|
|
$
|
1.55
|
|
Average rigs operating
– Canada
|
|
|
1
|
|
|
|
0
|
|
|
|
2
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Total
|
|
$
|
20.27
|
|
|
$
|
23.07
|
|
|
$
|
20.61
|
|
|
$
|
24.36
|
|
Average direct
operating costs per operating day – Total
|
|
$
|
13.56
|
|
|
$
|
12.77
|
|
|
$
|
13.88
|
|
|
$
|
12.42
|
|
Average margin per
operating day – Total (1)
|
|
$
|
6.71
|
|
|
$
|
10.29
|
|
|
$
|
6.73
|
|
|
$
|
11.94
|
|
Average rigs operating
– Total
|
|
|
146
|
|
|
|
55
|
|
|
|
115
|
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
71,326
|
|
|
$
|
16,570
|
|
|
$
|
115,547
|
|
|
$
|
28,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure
Pumping:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
290,044
|
|
|
$
|
73,950
|
|
|
$
|
431,218
|
|
|
$
|
170,263
|
|
Direct operating
costs
|
|
$
|
233,900
|
|
|
$
|
69,546
|
|
|
$
|
352,913
|
|
|
$
|
157,359
|
|
Margin (2)
|
|
$
|
56,144
|
|
|
$
|
4,404
|
|
|
$
|
78,305
|
|
|
$
|
12,904
|
|
Selling, general and
administrative
|
|
$
|
3,703
|
|
|
$
|
3,029
|
|
|
$
|
6,505
|
|
|
$
|
5,918
|
|
Depreciation,
amortization and impairment
|
|
$
|
47,805
|
|
|
$
|
47,400
|
|
|
$
|
90,055
|
|
|
$
|
96,970
|
|
Operating income
(loss)
|
|
$
|
4,636
|
|
|
$
|
(46,025)
|
|
|
$
|
(18,255)
|
|
|
$
|
(89,984)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fracturing
jobs
|
|
|
173
|
|
|
|
74
|
|
|
|
268
|
|
|
|
157
|
|
Other jobs
|
|
|
338
|
|
|
|
172
|
|
|
|
620
|
|
|
|
330
|
|
Total jobs
|
|
|
511
|
|
|
|
246
|
|
|
|
888
|
|
|
|
487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
fracturing job
|
|
$
|
1,643.06
|
|
|
$
|
976.30
|
|
|
$
|
1,575.09
|
|
|
$
|
1,058.99
|
|
Average revenue per
other job
|
|
$
|
17.14
|
|
|
$
|
9.91
|
|
|
$
|
14.67
|
|
|
$
|
12.13
|
|
Average revenue per
total job
|
|
$
|
567.60
|
|
|
$
|
300.61
|
|
|
$
|
485.61
|
|
|
$
|
349.62
|
|
Average costs per
total job
|
|
$
|
457.73
|
|
|
$
|
282.71
|
|
|
$
|
397.42
|
|
|
$
|
323.12
|
|
Average margin per
total job (2)
|
|
$
|
109.87
|
|
|
$
|
17.90
|
|
|
$
|
88.18
|
|
|
$
|
26.50
|
|
Margin as a percentage
of revenues (2)
|
|
|
19.4
|
%
|
|
|
6.0
|
%
|
|
|
18.2
|
%
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
38,780
|
|
|
$
|
11,780
|
|
|
$
|
58,193
|
|
|
$
|
19,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
19,031
|
|
|
$
|
4,722
|
|
|
$
|
24,304
|
|
|
$
|
8,689
|
|
Direct operating
costs
|
|
$
|
12,671
|
|
|
$
|
1,650
|
|
|
$
|
15,930
|
|
|
$
|
3,740
|
|
Margin (3)
|
|
$
|
6,360
|
|
|
$
|
3,072
|
|
|
$
|
8,374
|
|
|
$
|
4,949
|
|
Selling, general and
administrative
|
|
$
|
2,803
|
|
|
$
|
527
|
|
|
$
|
4,596
|
|
|
$
|
903
|
|
Depreciation,
depletion and impairment
|
|
$
|
8,120
|
|
|
$
|
1,805
|
|
|
$
|
10,292
|
|
|
$
|
6,537
|
|
Operating income
(loss)
|
|
$
|
(4,563)
|
|
|
$
|
740
|
|
|
$
|
(6,514)
|
|
|
$
|
(2,491)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
8,017
|
|
|
$
|
1,692
|
|
|
$
|
12,369
|
|
|
$
|
3,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
$
|
15,571
|
|
|
$
|
12,052
|
|
|
$
|
28,174
|
|
|
$
|
25,001
|
|
Merger and integration
expenses
|
|
$
|
51,193
|
|
|
$
|
—
|
|
|
$
|
56,349
|
|
|
$
|
—
|
|
Depreciation
|
|
$
|
1,989
|
|
|
$
|
1,368
|
|
|
$
|
3,225
|
|
|
$
|
2,737
|
|
Other operating
income, net
|
|
$
|
(1,806)
|
|
|
$
|
(4,822)
|
|
|
$
|
(14,710)
|
|
|
$
|
(6,167)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
227
|
|
|
$
|
491
|
|
|
$
|
681
|
|
|
$
|
832
|
|
Total capital
expenditures
|
|
$
|
118,350
|
|
|
$
|
30,533
|
|
|
$
|
186,790
|
|
|
$
|
51,834
|
|
|
|
(1)
|
For Contract
Drilling, margin is defined as revenues less direct operating costs
and excludes depreciation, amortization and impairment and selling,
general and administrative expenses. Average margin per operating
day is defined as margin divided by operating days.
|
|
|
(2)
|
For Pressure Pumping,
margin is defined as revenues less direct operating costs and
excludes depreciation, amortization and impairment and selling,
general and administrative expenses. Total average margin per job
is defined as margin divided by total jobs. Margin as a percentage
of revenues is defined as margin divided by revenues.
|
|
|
(3)
|
For Other Operations,
margin is defined as revenues less direct operating costs and
excludes depreciation, depletion and impairment and selling,
general and administrative expenses.
|
|
|
June
30,
|
|
|
December
31,
|
|
Selected Balance
Sheet Data (unaudited, dollars in thousands):
|
|
2017
|
|
|
2016
|
|
Cash and cash
equivalents
|
|
$
|
40,132
|
|
|
$
|
35,152
|
|
Current
assets
|
|
$
|
571,749
|
|
|
$
|
246,882
|
|
Current
liabilities
|
|
$
|
472,848
|
|
|
$
|
264,815
|
|
Working
capital
|
|
$
|
98,901
|
|
|
$
|
(17,933)
|
|
Current portion of
long-term debt
|
|
$
|
—
|
|
|
$
|
—
|
|
Borrowings under
revolving credit facility
|
|
$
|
115,000
|
|
|
$
|
—
|
|
Other long-term
debt
|
|
$
|
598,610
|
|
|
$
|
598,437
|
|
PATTERSON-UTI
ENERGY, INC.
|
Non-U.S. GAAP
Financial Measures
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30
|
|
|
June
30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Adjusted Earnings
Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(92,184)
|
|
|
$
|
(85,866)
|
|
|
$
|
(155,723)
|
|
|
$
|
(156,369)
|
|
Income tax
benefit
|
|
|
(56,354)
|
|
|
|
(49,027)
|
|
|
|
(93,301)
|
|
|
|
(84,457)
|
|
Net interest
expense
|
|
|
8,433
|
|
|
|
10,578
|
|
|
|
16,297
|
|
|
|
21,268
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
219,328
|
|
|
|
170,975
|
|
|
|
375,545
|
|
|
|
347,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
79,223
|
|
|
$
|
46,660
|
|
|
$
|
142,818
|
|
|
$
|
128,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
579,186
|
|
|
$
|
193,907
|
|
|
$
|
884,361
|
|
|
$
|
462,846
|
|
Adjusted EBITDA
margin
|
|
|
13.7
|
%
|
|
|
24.1
|
%
|
|
|
16.1
|
%
|
|
|
27.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling
|
|
$
|
88,052
|
|
|
$
|
49,953
|
|
|
$
|
136,905
|
|
|
$
|
135,956
|
|
Pressure
pumping
|
|
|
52,441
|
|
|
|
1,375
|
|
|
|
71,800
|
|
|
|
6,986
|
|
Other
|
|
|
3,557
|
|
|
|
2,545
|
|
|
|
3,778
|
|
|
|
4,046
|
|
Corporate
|
|
|
(64,827)
|
|
|
|
(7,213)
|
|
|
|
(69,665)
|
|
|
|
(18,801)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA
|
|
$
|
79,223
|
|
|
$
|
46,660
|
|
|
$
|
142,818
|
|
|
$
|
128,187
|
|
|
|
(1)
|
Adjusted EBITDA is a
supplemental financial measure not defined by United States
generally accepted accounting principles, or U.S. GAAP. We
define Adjusted EBITDA as net income (loss) plus net interest
expense, income tax expense (benefit) and depreciation, depletion,
amortization and impairment expense (including impairment of
goodwill). We present Adjusted EBITDA because we believe it
provides to both management and investors additional information
with respect to both the performance of our fundamental business
activities and our ability to meet our capital expenditures and
working capital requirements. Adjusted EBITDA should not be
construed as an alternative to the U.S. GAAP measure of net income
(loss).
|
PATTERSON-UTI
ENERGY, INC.
|
Selected Costs and
Expenses
|
(unaudited, dollars
in thousands)
|
|
|
2017
|
|
|
Second
|
|
|
Quarter
|
|
|
|
|
|
Net loss as
reported
|
$
|
(92,184)
|
|
Charges
|
|
|
|
Merger and integration
expenses
|
|
51,193
|
|
Non-cash impairment
charge
|
|
28,979
|
|
Pretax
charges
|
|
80,172
|
|
Effective tax
rate
|
|
37.9
|
%
|
After-tax
charges
|
|
49,755
|
|
Net loss without
charge
|
$
|
(42,429)
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
201,204
|
|
Pro-forma net loss
without charge per share - diluted
|
$
|
(0.21)
|
|
PATTERSON-UTI
ENERGY, INC.
|
Contract Drilling Per
Day Successive Quarters
|
(unaudited, dollars
in thousands)
|
|
|
|
2017
|
|
|
2017
|
|
|
|
Second
|
|
|
First
|
|
|
|
Quarter
|
|
|
Quarter
|
|
Contract drilling
revenues
|
|
$
|
270,111
|
|
|
$
|
158,728
|
|
Operating days -
Total
|
|
|
13,323
|
|
|
|
7,487
|
|
Average revenue per
operating day - Total
|
|
$
|
20.27
|
|
|
$
|
21.20
|
|
Direct operating
costs - Total
|
|
$
|
180,658
|
|
|
$
|
108,221
|
|
Average direct
operating costs per operating day - Total
|
|
$
|
13.56
|
|
|
$
|
14.45
|
|
Average margin per
operating day - Total
|
|
$
|
6.71
|
|
|
$
|
6.75
|
|
PATTERSON-UTI
ENERGY, INC.
|
Pressure Pumping
Margin and Adjusted EBITDA
|
(unaudited, dollars
in thousands)
|
|
|
|
2017
|
|
|
2017
|
|
|
|
Second
|
|
|
First
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Pressure pumping
revenues
|
|
$
|
290,044
|
|
|
$
|
141,174
|
|
Direct operating
costs
|
|
|
233,900
|
|
|
|
119,013
|
|
Margin
|
|
|
56,144
|
|
|
|
22,161
|
|
Selling, general and
administrative
|
|
|
3,703
|
|
|
|
2,802
|
|
Adjusted
EBITDA
|
|
$
|
52,441
|
|
|
$
|
19,359
|
|
|
|
|
|
|
|
|
|
|
Margin as a
percentage of revenues
|
|
|
19.4
|
%
|
|
|
15.7
|
%
|
View original
content:http://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-three-and-six-months-ended-june-30-2017-300495058.html
SOURCE PATTERSON-UTI ENERGY, INC.