HOUSTON, July 26, 2018 /PRNewswire/
-- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today
reported financial results for the three months ended June 30, 2018. The Company reported a net
loss of $10.7 million, or
$0.05 per share, for the second
quarter of 2018, compared to a net loss of $92.2 million, or $0.46 per share, for the quarter ended
June 30, 2017. Revenues for the
second quarter of 2018 were $854
million, compared to $579
million for the second quarter of 2017.
For the six months ended June 30,
2018, the Company reported a net loss of $45.1 million, or $0.21 per share, compared to a net loss of
$156 million, or $0.86 per share, for the six months ended
June 30, 2017. Revenues for the
six months ended June 30, 2018 were
$1.7 billion, compared to
$884 million for the same period in
2017.
During the quarter, the Company repurchased approximately 1.7
million of its outstanding shares for $33.6
million. During the six months ended June 30, 2018, the Company repurchased
approximately 2.6 million of its outstanding shares for
$50.5 million under its share
repurchase authorization. Subsequent to the quarter-end, the
Company's Board of Directors approved an increase of its share
repurchase authorization to allow for $250
million of future share repurchases.
Andy Hendricks, Patterson-UTI's
Chief Executive Officer, stated, "In contract drilling, our average
rig count increased by seven to 176 rigs during the second
quarter. With strong demand for super-spec rigs, we expect
our rig count will continue to increase and average 180 rigs during
the third quarter."
Mr. Hendricks added, "Average rig margin per day increased by a
better than expected $700 to
$8,270 for the second quarter.
The $330 per day sequential increase
in average rig revenue per day and the decrease in average rig
operating costs per day were both better than expected. For
the second quarter, average rig revenue per day was $21,870 and average rig operating costs per day
were $13,610.
"We recently signed customer contracts to deliver four
additional rigs with major upgrades to super-spec for the Permian
Basin. The favorable dayrates and four-year term durations of
these contracts provide compelling economics, and are expected to
pay back the capital investment within the terms of the
contracts. Since the beginning of 2018, we have delivered
nine rigs with major upgrades, and we have customer contracts to
deliver an additional seven rigs with major upgrades through early
2019.
"As of June 30, 2018, we had term
contracts for drilling rigs providing for approximately
$680 million of future dayrate
drilling revenue, an increase from approximately $600 million at March 31,
2018. Since June 30,
2018, we have signed contracts providing for more than
$200 million of additional future
dayrate drilling revenue. Based on contracts currently in
place, we expect an average of 119 rigs operating under term
contracts during the third quarter, and an average of 81 rigs
operating under term contracts during the 12 months ending
June 30, 2019.
"While the industry market for super-spec drilling rigs is
tight, the completions market showed signs of oversupply towards
the end of the second quarter. In pressure pumping, our
revenues for the second quarter were $425
million compared to $407
million for the first quarter. Gross profit for the
second quarter was $82.4 million
compared to $85.8 million for the
first quarter. Both revenues and gross profit in pressure
pumping were lower than we expected due to operational delays late
in the quarter at multiple well sites, unrelated to our pressure
pumping operations. The softening market conditions made it
difficult to backfill the unexpectedly high amount of idle time.
"During the second quarter, we activated two frac spreads, the
first of which was created early in the second quarter from already
active equipment. The second frac spread was activated late
in the second quarter, and therefore did not significantly
contribute to second quarter revenues. Based on current
market conditions, we do not plan to reactivate additional frac
spreads at this time.
"In directional drilling, revenues for the second quarter were
$52.7 million compared to
$48.6 million for the first
quarter. Gross margin as a percentage of revenues was 17.1%
compared to 22.5% during the first quarter. Activity improved
in the second quarter, but margins continue to be negatively
impacted by third party rental expense resulting from ongoing
delays in the delivery of various components."
Mark S. Siegel, Chairman of
Patterson-UTI, stated, "With relatively high oil prices, industry
demand for super-spec rigs remains strong. In contract
drilling, which generated approximately two-thirds of our
consolidated EBITDA in the second quarter, we expect further
improvement in both dayrates and activity. In pressure
pumping, we are seeing industry softness due to oversupply, and
because some E&P companies' activity and capital spend are
ahead of budget. We believe the pressure pumping issues are
short-term in nature, and we remain positive on the long-term
outlook for the business.
"Our 2018 capex budget remains unchanged at $675 million. With compelling economics for
super-spec rigs, we are allocating additional capital to contract
drilling. At the same time, in pressure pumping, improvements
in our fleet maintenance operations have allowed us to reduce our
capex."
Mr. Siegel continued, "Patterson-UTI is the only company in the
U.S. unconventional market with significant scale in the
critical-path businesses of super-spec rigs, pressure pumping, and
directional drilling. We continue to see great value in our
company – our equipment, people, and operations. Accordingly,
we capitalized on opportunities during the first half of the year
to repurchase $50.5 million worth of
outstanding shares including $33.6
million in the second quarter. We will continue to
balance capex opportunities with returning capital to shareholders
in order to seek the best long-term returns for our shareholders,"
he concluded.
The financial results for the second quarter of 2018 include a
$3.5 million pre-tax gain
($2.0 million after-tax, or
$0.01 per share) related to the
collection of a note receivable.
The Company declared a quarterly dividend on its common stock of
$0.04 per share, to be paid on
September 20, 2018, to holders of
record as of September 6, 2018.
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,
2018, is scheduled for today, July
26, 2018, at 9:00 a.m. Central
Time. The dial-in information for participants is (844)
704-2496 (Domestic) and (647) 253-8661 (International). The
conference ID for both numbers is 6948609. The call is also
being webcast and can be accessed through the Investor Relations
section at investor.patenergy.com. A replay of the conference
call will be on the Company's website for two weeks.
About Patterson-UTI
Patterson-UTI is a provider of oilfield services and products to
oil and natural gas exploration and production companies in
North America, including market
leading positions in contract drilling, pressure pumping and
directional drilling services. For more information, visit
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 and actions by governmental or other
regulatory agencies; 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,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
REVENUES
|
|
$
|
854,418
|
|
|
$
|
579,186
|
|
|
$
|
1,663,582
|
|
|
$
|
884,361
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs
|
|
|
621,757
|
|
|
|
427,229
|
|
|
|
1,210,744
|
|
|
|
657,722
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
212,384
|
|
|
|
219,328
|
|
|
|
422,276
|
|
|
|
375,545
|
|
Selling, general and
administrative
|
|
|
35,663
|
|
|
|
23,478
|
|
|
|
68,480
|
|
|
|
42,330
|
|
Merger and integration
expenses
|
|
|
747
|
|
|
|
51,193
|
|
|
|
2,738
|
|
|
|
56,349
|
|
Other operating
income, net
|
|
|
(7,129)
|
|
|
|
(1,806)
|
|
|
|
(9,550)
|
|
|
|
(14,710)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and
expenses
|
|
|
863,422
|
|
|
|
719,422
|
|
|
|
1,694,688
|
|
|
|
1,117,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
(9,004)
|
|
|
|
(140,236)
|
|
|
|
(31,106)
|
|
|
|
(232,875)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,360
|
|
|
|
642
|
|
|
|
3,783
|
|
|
|
1,048
|
|
Interest
expense
|
|
|
(12,667)
|
|
|
|
(9,075)
|
|
|
|
(26,292)
|
|
|
|
(17,345)
|
|
Other
|
|
|
216
|
|
|
|
131
|
|
|
|
385
|
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
expense
|
|
|
(10,091)
|
|
|
|
(8,302)
|
|
|
|
(22,124)
|
|
|
|
(16,149)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(19,095)
|
|
|
|
(148,538)
|
|
|
|
(53,230)
|
|
|
|
(249,024)
|
|
INCOME TAX
BENEFIT
|
|
|
(8,382)
|
|
|
|
(56,354)
|
|
|
|
(8,100)
|
|
|
|
(93,301)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(10,713)
|
|
|
$
|
(92,184)
|
|
|
$
|
(45,130)
|
|
|
$
|
(155,723)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.05)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.86)
|
|
Diluted
|
|
$
|
(0.05)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.86)
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
220,093
|
|
|
|
201,204
|
|
|
|
220,436
|
|
|
|
180,747
|
|
Diluted
|
|
|
220,093
|
|
|
|
201,204
|
|
|
|
220,436
|
|
|
|
180,747
|
|
CASH DIVIDENDS PER
COMMON SHARE
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.06
|
|
|
$
|
0.04
|
|
PATTERSON-UTI
ENERGY, INC.
|
|
Additional Financial
and Operating Data
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Drilling:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
349,922
|
|
|
$
|
270,111
|
|
|
$
|
677,725
|
|
|
$
|
428,839
|
|
Direct operating
costs
|
|
$
|
217,674
|
|
|
$
|
180,658
|
|
|
$
|
430,257
|
|
|
$
|
288,879
|
|
Margin (1)
|
|
$
|
132,248
|
|
|
$
|
89,453
|
|
|
$
|
247,468
|
|
|
$
|
139,960
|
|
Selling, general and
administrative
|
|
$
|
1,561
|
|
|
$
|
1,401
|
|
|
$
|
2,967
|
|
|
$
|
3,055
|
|
Depreciation,
amortization and impairment
|
|
$
|
130,938
|
|
|
$
|
161,414
|
|
|
$
|
261,855
|
|
|
$
|
271,973
|
|
Operating
loss
|
|
$
|
(251)
|
|
|
$
|
(73,362)
|
|
|
$
|
(17,354)
|
|
|
$
|
(135,068)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days –
United States
|
|
|
15,943
|
|
|
|
13,201
|
|
|
|
30,927
|
|
|
|
20,510
|
|
Operating days –
Canada
|
|
|
55
|
|
|
|
122
|
|
|
|
289
|
|
|
|
300
|
|
Operating days –
Total
|
|
|
15,998
|
|
|
|
13,323
|
|
|
|
31,216
|
|
|
|
20,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – United States
|
|
$
|
21.90
|
|
|
$
|
20.28
|
|
|
$
|
21.75
|
|
|
$
|
20.60
|
|
Average direct
operating costs per operating day – United States
|
|
$
|
13.59
|
|
|
$
|
13.51
|
|
|
$
|
13.75
|
|
|
$
|
13.83
|
|
Average margin per
operating day – United States (1)
|
|
$
|
8.31
|
|
|
$
|
6.76
|
|
|
$
|
8.00
|
|
|
$
|
6.77
|
|
Average rigs operating
– United States
|
|
|
175
|
|
|
|
145
|
|
|
|
171
|
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Canada
|
|
$
|
14.35
|
|
|
$
|
20.02
|
|
|
$
|
17.71
|
|
|
$
|
21.30
|
|
Average direct
operating costs per operating day – Canada
|
|
$
|
18.78
|
|
|
$
|
18.76
|
|
|
$
|
17.57
|
|
|
$
|
17.28
|
|
Average margin per
operating day – Canada (1)
|
|
$
|
(4.44)
|
|
|
$
|
1.25
|
|
|
$
|
0.13
|
|
|
$
|
4.02
|
|
Average rigs operating
– Canada
|
|
|
1
|
|
|
|
1
|
|
|
|
2
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Total
|
|
$
|
21.87
|
|
|
$
|
20.27
|
|
|
$
|
21.71
|
|
|
$
|
20.61
|
|
Average direct
operating costs per operating day – Total
|
|
$
|
13.61
|
|
|
$
|
13.56
|
|
|
$
|
13.78
|
|
|
$
|
13.88
|
|
Average margin per
operating day – Total (1)
|
|
$
|
8.27
|
|
|
$
|
6.71
|
|
|
$
|
7.93
|
|
|
$
|
6.73
|
|
Average rigs operating
– Total
|
|
|
176
|
|
|
|
146
|
|
|
|
172
|
|
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
121,095
|
|
|
$
|
71,326
|
|
|
$
|
196,342
|
|
|
$
|
115,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure
Pumping:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
425,303
|
|
|
$
|
290,044
|
|
|
$
|
832,087
|
|
|
$
|
431,218
|
|
Direct operating
costs
|
|
$
|
342,885
|
|
|
$
|
233,900
|
|
|
$
|
663,855
|
|
|
$
|
352,913
|
|
Margin (2)
|
|
$
|
82,418
|
|
|
$
|
56,144
|
|
|
$
|
168,232
|
|
|
$
|
78,305
|
|
Selling, general and
administrative
|
|
$
|
3,919
|
|
|
$
|
3,703
|
|
|
$
|
7,822
|
|
|
$
|
6,505
|
|
Depreciation,
amortization and impairment
|
|
$
|
57,862
|
|
|
$
|
47,805
|
|
|
$
|
114,384
|
|
|
$
|
90,055
|
|
Operating income
(loss)
|
|
$
|
20,637
|
|
|
$
|
4,636
|
|
|
$
|
46,026
|
|
|
$
|
(18,255)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fracturing
jobs
|
|
|
217
|
|
|
|
173
|
|
|
|
421
|
|
|
|
268
|
|
Other jobs
|
|
|
264
|
|
|
|
338
|
|
|
|
544
|
|
|
|
620
|
|
Total jobs
|
|
|
481
|
|
|
|
511
|
|
|
|
965
|
|
|
|
888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
fracturing job
|
|
$
|
1,932.62
|
|
|
$
|
1,643.06
|
|
|
$
|
1,948.88
|
|
|
$
|
1,575.09
|
|
Average revenue per
other job
|
|
$
|
22.44
|
|
|
$
|
17.14
|
|
|
$
|
21.34
|
|
|
$
|
14.67
|
|
Average revenue per
total job
|
|
$
|
884.21
|
|
|
$
|
567.60
|
|
|
$
|
862.27
|
|
|
$
|
485.61
|
|
Average direct
operating costs per total job
|
|
$
|
712.86
|
|
|
$
|
457.73
|
|
|
$
|
687.93
|
|
|
$
|
397.42
|
|
Average margin per
total job (2)
|
|
$
|
171.35
|
|
|
$
|
109.87
|
|
|
$
|
174.33
|
|
|
$
|
88.18
|
|
Margin as a percentage
of revenues (2)
|
|
|
19.4
|
%
|
|
|
19.4
|
%
|
|
|
20.2
|
%
|
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
56,195
|
|
|
$
|
38,780
|
|
|
$
|
81,118
|
|
|
$
|
58,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directional
Drilling:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
52,705
|
|
|
$
|
—
|
|
|
$
|
101,321
|
|
|
$
|
—
|
|
Direct operating
costs
|
|
$
|
43,685
|
|
|
$
|
—
|
|
|
$
|
81,374
|
|
|
$
|
—
|
|
Margin (3)
|
|
$
|
9,020
|
|
|
$
|
—
|
|
|
$
|
19,947
|
|
|
$
|
—
|
|
Selling, general and
administrative
|
|
$
|
4,824
|
|
|
$
|
—
|
|
|
$
|
9,762
|
|
|
$
|
—
|
|
Depreciation and
amortization
|
|
$
|
11,874
|
|
|
$
|
—
|
|
|
$
|
22,776
|
|
|
$
|
—
|
|
Operating
loss
|
|
$
|
(7,678)
|
|
|
$
|
—
|
|
|
$
|
(12,591)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin as a percentage
of revenues (3)
|
|
|
17.1
|
%
|
|
|
—
|
|
|
|
19.7
|
%
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
10,034
|
|
|
$
|
—
|
|
|
$
|
22,863
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
26,488
|
|
|
$
|
19,031
|
|
|
$
|
52,449
|
|
|
$
|
24,304
|
|
Direct operating
costs
|
|
$
|
17,513
|
|
|
$
|
12,671
|
|
|
$
|
35,258
|
|
|
$
|
15,930
|
|
Margin (4)
|
|
$
|
8,975
|
|
|
$
|
6,360
|
|
|
$
|
17,191
|
|
|
$
|
8,374
|
|
Selling, general and
administrative
|
|
$
|
3,923
|
|
|
$
|
2,803
|
|
|
$
|
6,914
|
|
|
$
|
4,596
|
|
Depreciation,
depletion and impairment
|
|
$
|
9,829
|
|
|
$
|
8,120
|
|
|
$
|
19,143
|
|
|
$
|
10,292
|
|
Operating
loss
|
|
$
|
(4,777)
|
|
|
$
|
(4,563)
|
|
|
$
|
(8,866)
|
|
|
$
|
(6,514)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
7,311
|
|
|
$
|
8,017
|
|
|
$
|
16,707
|
|
|
$
|
12,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
$
|
21,436
|
|
|
$
|
15,571
|
|
|
$
|
41,015
|
|
|
$
|
28,174
|
|
Merger and integration
expenses
|
|
$
|
747
|
|
|
$
|
51,193
|
|
|
$
|
2,738
|
|
|
$
|
56,349
|
|
Depreciation
|
|
$
|
1,881
|
|
|
$
|
1,989
|
|
|
$
|
4,118
|
|
|
$
|
3,225
|
|
Other operating
income, net
|
|
$
|
(7,129)
|
|
|
$
|
(1,806)
|
|
|
$
|
(9,550)
|
|
|
$
|
(14,710)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
227
|
|
|
$
|
227
|
|
|
$
|
753
|
|
|
$
|
681
|
|
Total capital
expenditures
|
|
$
|
194,862
|
|
|
$
|
118,350
|
|
|
$
|
317,783
|
|
|
$
|
186,790
|
|
|
|
(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. Average margin per total job
is defined as margin divided by total jobs. Margin as a percentage
of revenues is defined as margin divided by revenues.
|
|
|
(3)
|
For Directional
Drilling, margin is defined as revenues less direct operating costs
and excludes depreciation and amortization and selling, general and
administrative expenses. Margin as a percentage of revenues is
defined as margin divided by revenues.
|
|
|
(4)
|
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, in thousands):
|
|
2018
|
|
|
2017
|
|
Cash and cash
equivalents
|
|
$
|
241,908
|
|
|
$
|
42,828
|
|
Current
assets
|
|
$
|
1,007,958
|
|
|
$
|
746,855
|
|
Current
liabilities
|
|
$
|
601,369
|
|
|
$
|
546,250
|
|
Working
capital
|
|
$
|
406,589
|
|
|
$
|
200,605
|
|
Borrowings under
revolving credit facility
|
|
$
|
—
|
|
|
$
|
268,000
|
|
Other long-term
debt
|
|
$
|
1,118,918
|
|
|
$
|
598,783
|
|
PATTERSON-UTI
ENERGY, INC.
Non-U.S. GAAP
Financial Measures
(unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Adjusted Earnings
Before Interest, Taxes, Depreciation
and
Amortization (Adjusted EBITDA)(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(10,713)
|
|
|
$
|
(92,184)
|
|
|
$
|
(45,130)
|
|
|
$
|
(155,723)
|
|
Income tax
benefit
|
|
|
(8,382)
|
|
|
|
(56,354)
|
|
|
|
(8,100)
|
|
|
|
(93,301)
|
|
Net interest
expense
|
|
|
10,307
|
|
|
|
8,433
|
|
|
|
22,509
|
|
|
|
16,297
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
212,384
|
|
|
|
219,328
|
|
|
|
422,276
|
|
|
|
375,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
203,596
|
|
|
$
|
79,223
|
|
|
$
|
391,555
|
|
|
$
|
142,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
854,418
|
|
|
$
|
579,186
|
|
|
$
|
1,663,582
|
|
|
$
|
884,361
|
|
Adjusted EBITDA
margin
|
|
|
23.8
|
%
|
|
|
13.7
|
%
|
|
|
23.5
|
%
|
|
|
16.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling
|
|
$
|
130,687
|
|
|
$
|
88,052
|
|
|
$
|
244,501
|
|
|
$
|
136,905
|
|
Pressure
pumping
|
|
|
78,499
|
|
|
|
52,441
|
|
|
|
160,410
|
|
|
|
71,800
|
|
Directional
drilling
|
|
|
4,196
|
|
|
|
—
|
|
|
|
10,185
|
|
|
|
—
|
|
Other
operations
|
|
|
5,052
|
|
|
|
3,557
|
|
|
|
10,277
|
|
|
|
3,778
|
|
Corporate
|
|
|
(14,838)
|
|
|
|
(64,827)
|
|
|
|
(33,818)
|
|
|
|
(69,665)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA
|
|
$
|
203,596
|
|
|
$
|
79,223
|
|
|
$
|
391,555
|
|
|
$
|
142,818
|
|
|
|
(1)
|
Adjusted earnings
before interest, taxes, depreciation and amortization ("Adjusted
EBITDA") is not defined by accounting principles generally accepted
in the United States of America ("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 the performance of our fundamental business
activities and a comparison of the results of our operations from
period to period and against our peers without regard to our
financing methods or capital structure. We exclude the items
listed above from net income (loss) in arriving at Adjusted EBITDA
because these amounts can vary substantially from company to
company within our industry depending upon accounting methods and
book values of assets, capital structures and the method by which
the assets were acquired. Adjusted EBITDA should not be
construed as an alternative to the U.S. GAAP measure of net income
(loss). Our computations of Adjusted EBITDA may not be the
same as similarly titled measures of other companies.
|
PATTERSON-UTI
ENERGY, INC.
Contract Drilling Per
Day Successive Quarters
(unaudited, dollars
in thousands)
|
|
|
|
2018
|
|
|
2018
|
|
|
|
Second
|
|
|
First
|
|
|
|
Quarter
|
|
|
Quarter
|
|
Contract drilling
revenues
|
|
$
|
349,922
|
|
|
$
|
327,803
|
|
Operating days -
Total
|
|
|
15,998
|
|
|
|
15,218
|
|
Average rigs
operating - Total
|
|
|
176
|
|
|
|
169
|
|
Average revenue per
operating day - Total
|
|
$
|
21.87
|
|
|
$
|
21.54
|
|
Direct operating
costs - Total
|
|
$
|
217,674
|
|
|
$
|
212,583
|
|
Average direct
operating costs per operating day - Total
|
|
$
|
13.61
|
|
|
$
|
13.97
|
|
Average margin per
operating day - Total
|
|
$
|
8.27
|
|
|
$
|
7.57
|
|
PATTERSON-UTI
ENERGY, INC.
Pressure Pumping
Margin
(unaudited, in
thousands)
|
|
|
|
2018
|
|
|
2018
|
|
|
|
Second
|
|
|
First
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Pressure pumping
revenues
|
|
$
|
425,303
|
|
|
$
|
406,784
|
|
Direct operating
costs
|
|
|
342,885
|
|
|
|
320,970
|
|
Margin
|
|
$
|
82,418
|
|
|
$
|
85,814
|
|
PATTERSON-UTI
ENERGY, INC.
Directional Drilling
Margin
(unaudited, dollars
in thousands)
|
|
|
|
2018
|
|
|
2018
|
|
|
|
Second
|
|
|
First
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Directional drilling
revenues
|
|
$
|
52,705
|
|
|
$
|
48,616
|
|
Direct operating
costs
|
|
|
43,685
|
|
|
|
37,689
|
|
Margin
|
|
$
|
9,020
|
|
|
$
|
10,927
|
|
|
|
|
|
|
|
|
|
|
Margin as a
percentage of revenues
|
|
|
17.1
|
%
|
|
|
22.5
|
%
|
PATTERSON-UTI
ENERGY, INC.
Selected
Gain
(unaudited, in
thousands, except per share data)
|
|
|
|
2018
|
|
|
|
Second
|
|
|
|
Quarter
|
|
|
|
|
|
|
Pre-tax gain on
collection of a note receivable
|
|
$
|
3,510
|
|
Effective tax
rate
|
|
|
43.9
|
%
|
After-tax gain on
collection of note receivable
|
|
$
|
1,969
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
220,093
|
|
After-tax gain on
collection of note receivable per share - diluted
|
|
$
|
0.01
|
|
View original
content:http://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-three-and-six-months-ended-june-30-2018-300686826.html
SOURCE PATTERSON-UTI ENERGY, INC.