HOUSTON, Oct. 25, 2018 /PRNewswire/
-- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today
reported financial results for the three months ended September 30, 2018. The Company reported a
net loss of $75.0 million, or
$0.34 per share, for the third
quarter of 2018, compared to a net loss of $33.8 million, or $0.16 per share, for the quarter ended
September 30, 2017. The Company
recorded $65.9 million of non-cash
impairment charges in the third quarter. Excluding the
impairment charges discussed in more detail below, the net loss for
the third quarter of 2018 would have been $21.1 million, or $0.10 per share. Revenues for the third
quarter of 2018 were $867 million,
compared to $685 million for the
third quarter of 2017.
For the nine months ended September 30,
2018, the Company reported a net loss of $120 million, or $0.55 per share, compared to a net loss of
$189 million, or $0.99 per share, for the nine months ended
September 30, 2017. Revenues
for the nine months ended September 30,
2018 were $2.5 billion,
compared to $1.6 billion for the same
period in 2017.
Financial results for the third quarter include pre-tax
impairment charges totaling $65.9
million ($54.0 million
after-tax) of which $48.4 million is
related to the retirement of 42 legacy non-APEX® rigs and related
equipment, and $17.4 million is for
pressure pumping equipment. Based on the strong customer
preference across the industry for super-spec drilling rigs, we
believe the 42 rigs being retired have limited commercial
opportunity. The pressure pumping equipment is primarily
obsolete sand handling equipment, which has been replaced with more
efficient sand solutions.
During the third quarter, the Company repurchased approximately
2.9 million of its outstanding shares for $50.0 million. During the nine months ended
September 30, 2018, the Company
repurchased approximately 5.5 million of its outstanding shares for
$100 million. At September 30, 2018, the remaining amount under
the Company's share repurchase authorization was approximately
$200 million.
Andy Hendricks, Patterson-UTI's
Chief Executive Officer, stated, "In contract drilling, our rig
count averaged 178 rigs during the third quarter, an increase of
two rigs from the second quarter. Demand for super-spec rigs
remains strong, and we expect our fourth quarter rig count will
average 182."
Mr. Hendricks added, "High utilization for super-spec rigs
contributed to a $410 per day
sequential increase in average rig revenue per day to $22,280. Average rig operating costs per
day for the third quarter were $13,810, resulting in an average rig margin per
day for the third quarter of $8,470 –
a sequential increase of $200.
"Since the beginning of 2018, we have completed 12 major rig
upgrades, including one thus far in the fourth quarter. Our
major upgrades primarily consist of turning lower-capacity rigs,
which were originally intended for shallower wells, such as those
in the Barnett Shale, into rigs with current super-spec
capabilities. Our major upgrades have similar components,
specifications, and expected useful lives as newbuild rigs, but
require a significantly lower capital investment. We
currently have customer contracts for two additional major upgrades
to be completed later in the fourth quarter, and two in
early-2019.
"As of September 30, 2018, we had
term contracts for drilling rigs providing for approximately
$825 million of future dayrate
drilling revenue, an increase of more than 20% from approximately
$680 million at June 30, 2018. Based on contracts currently
in place, we expect an average of 127 rigs operating under term
contracts during the fourth quarter, and an average of 81 rigs
operating under term contracts during the 12 months ending
September 30, 2019.
"In pressure pumping, despite deteriorating market conditions
during the third quarter, revenues and gross margin were both
better than we projected. Pressure pumping revenues for the
third quarter were $422 million,
compared to $425 million in the
second quarter, and gross profit for the third quarter was
$79.1 million, compared to
$82.4 million in the second
quarter. We responded to oversupplied market conditions by
reducing the number of marketed spreads and consolidating the work
among the remaining spreads to reduce white space in the
calendar. We ended the quarter with 21 marketed
spreads. We expect to be able to quickly reactivate these
spreads, but we have no intention of doing so until market
conditions improve.
"In directional drilling, revenues for the third quarter were
$51.6 million, compared to
$52.7 million for the second
quarter. Gross margin as a percentage of revenues was 13.2%,
compared to 17.1% for the second quarter. The gross margin
during the third quarter was negatively impacted by the
reclassification of certain items from SG&A to direct operating
costs. Additionally, operating expenses in the third quarter
were impacted by an increase in expenses for both personnel and
repairs and maintenance."
Mark S. Siegel, Chairman of
Patterson-UTI, stated, "Fundamentals remain strong for U.S. onshore
drilling and completion activity despite the near-term slowdown in
pressure pumping. Global economic growth continues to drive
increasing demand for oil, while geopolitical issues and a
sustained period of underinvestment in oil and gas projects
constrain supply growth. Additionally, as we see it, the
availability of spare oil production capacity, which may be needed
to offset supply disruptions, is both dwindling and
unproven."
Mr. Siegel continued, "Near-term challenges related to E&P
budget exhaustion and pipeline constraints are expected to be
temporary. Notably, 2018 capex budgets were set with oil
prices significantly below current prices.
"Our position as a leading provider of super-spec drilling rigs
gives us visibility into both near-term drilling activity and
longer-term completion demand. Customer appetite for term
contracts on drilling rigs in a rising dayrate environment confirms
that super-spec drilling activity should remain strong and continue
to drive the number of wells being drilled. The current
slowdown in completion activity is leading to an increase in the
backlog of wells waiting to be completed, which bodes wells for
increasing demand for pressure pumping in the not too distant
future," he concluded.
The Company declared a quarterly dividend on its common stock of
$0.04 per share, to be paid on
December 20, 2018, to holders of
record as of December 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 September 30,
2018, is scheduled for today, October
25, 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 2493799. The call is also
being webcast and can be accessed through the Investor Relations
section of the Company's website at http://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
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
REVENUES
|
|
$
|
867,478
|
|
|
$
|
684,989
|
|
|
$
|
2,531,060
|
|
|
$
|
1,569,350
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs
|
|
|
634,058
|
|
|
|
491,888
|
|
|
|
1,844,802
|
|
|
|
1,149,610
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
281,652
|
|
|
|
196,642
|
|
|
|
703,928
|
|
|
|
572,187
|
|
Selling, general and
administrative
|
|
|
32,820
|
|
|
|
28,817
|
|
|
|
101,300
|
|
|
|
71,147
|
|
Merger and integration
expenses
|
|
|
—
|
|
|
|
9,449
|
|
|
|
2,738
|
|
|
|
65,798
|
|
Other operating
income, net
|
|
|
(771)
|
|
|
|
(3,791)
|
|
|
|
(10,321)
|
|
|
|
(18,501)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and
expenses
|
|
|
947,759
|
|
|
|
723,005
|
|
|
|
2,642,447
|
|
|
|
1,840,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
(80,281)
|
|
|
|
(38,016)
|
|
|
|
(111,387)
|
|
|
|
(270,891)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
817
|
|
|
|
101
|
|
|
|
4,600
|
|
|
|
1,149
|
|
Interest
expense
|
|
|
(12,376)
|
|
|
|
(9,584)
|
|
|
|
(38,668)
|
|
|
|
(26,929)
|
|
Other
|
|
|
281
|
|
|
|
78
|
|
|
|
666
|
|
|
|
226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
expense
|
|
|
(11,278)
|
|
|
|
(9,405)
|
|
|
|
(33,402)
|
|
|
|
(25,554)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(91,559)
|
|
|
|
(47,421)
|
|
|
|
(144,789)
|
|
|
|
(296,445)
|
|
INCOME TAX
BENEFIT
|
|
|
(16,517)
|
|
|
|
(13,652)
|
|
|
|
(24,617)
|
|
|
|
(106,953)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(75,042)
|
|
|
$
|
(33,769)
|
|
|
$
|
(120,172)
|
|
|
$
|
(189,492)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.34)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.55)
|
|
|
$
|
(0.99)
|
|
Diluted
|
|
$
|
(0.34)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.55)
|
|
|
$
|
(0.99)
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
218,059
|
|
|
|
211,875
|
|
|
|
219,635
|
|
|
|
191,237
|
|
Diluted
|
|
|
218,059
|
|
|
|
211,875
|
|
|
|
219,635
|
|
|
|
191,237
|
|
CASH DIVIDENDS PER
COMMON SHARE
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.10
|
|
|
$
|
0.06
|
|
PATTERSON-UTI
ENERGY, INC.
|
|
Additional Financial
and Operating Data
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Drilling:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
365,280
|
|
|
$
|
301,614
|
|
|
$
|
1,043,005
|
|
|
$
|
730,453
|
|
Direct operating
costs
|
|
$
|
226,373
|
|
|
$
|
186,957
|
|
|
$
|
656,630
|
|
|
$
|
475,836
|
|
Margin (1)
|
|
$
|
138,907
|
|
|
$
|
114,657
|
|
|
$
|
386,375
|
|
|
$
|
254,617
|
|
Selling, general and
administrative
|
|
$
|
1,632
|
|
|
$
|
1,451
|
|
|
$
|
4,599
|
|
|
$
|
4,506
|
|
Depreciation,
amortization and impairment
|
|
$
|
179,979
|
|
|
$
|
133,603
|
|
|
$
|
441,834
|
|
|
$
|
405,576
|
|
Operating
loss
|
|
$
|
(42,704)
|
|
|
$
|
(20,397)
|
|
|
$
|
(60,058)
|
|
|
$
|
(155,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days –
United States
|
|
|
16,312
|
|
|
|
14,603
|
|
|
|
47,239
|
|
|
|
35,113
|
|
Operating days –
Canada
|
|
|
82
|
|
|
|
238
|
|
|
|
371
|
|
|
|
538
|
|
Operating days –
Total
|
|
|
16,394
|
|
|
|
14,841
|
|
|
|
47,610
|
|
|
|
35,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – United States
|
|
$
|
22.30
|
|
|
$
|
20.35
|
|
|
$
|
21.94
|
|
|
$
|
20.50
|
|
Average direct
operating costs per operating day – United States
|
|
$
|
13.78
|
|
|
$
|
12.56
|
|
|
$
|
13.76
|
|
|
$
|
13.30
|
|
Average margin per
operating day – United States (1)
|
|
$
|
8.52
|
|
|
$
|
7.79
|
|
|
$
|
8.18
|
|
|
$
|
7.19
|
|
Average rigs operating
– United States
|
|
|
177
|
|
|
|
159
|
|
|
|
173
|
|
|
|
129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Canada
|
|
$
|
18.93
|
|
|
$
|
18.42
|
|
|
$
|
17.98
|
|
|
$
|
20.03
|
|
Average direct
operating costs per operating day – Canada
|
|
$
|
18.87
|
|
|
$
|
14.91
|
|
|
$
|
17.86
|
|
|
$
|
16.23
|
|
Average margin per
operating day – Canada (1)
|
|
$
|
0.06
|
|
|
$
|
3.51
|
|
|
$
|
0.12
|
|
|
$
|
3.79
|
|
Average rigs operating
– Canada
|
|
|
1
|
|
|
|
3
|
|
|
|
1
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Total
|
|
$
|
22.28
|
|
|
$
|
20.32
|
|
|
$
|
21.91
|
|
|
$
|
20.49
|
|
Average direct
operating costs per operating day – Total
|
|
$
|
13.81
|
|
|
$
|
12.60
|
|
|
$
|
13.79
|
|
|
$
|
13.35
|
|
Average margin per
operating day – Total (1)
|
|
$
|
8.47
|
|
|
$
|
7.73
|
|
|
$
|
8.12
|
|
|
$
|
7.14
|
|
Average rigs operating
– Total
|
|
|
178
|
|
|
|
161
|
|
|
|
174
|
|
|
|
131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
103,295
|
|
|
$
|
106,879
|
|
|
$
|
299,637
|
|
|
$
|
222,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure
Pumping:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
421,606
|
|
|
$
|
362,441
|
|
|
$
|
1,253,693
|
|
|
$
|
793,659
|
|
Direct operating
costs
|
|
$
|
342,498
|
|
|
$
|
290,315
|
|
|
$
|
1,006,353
|
|
|
$
|
643,228
|
|
Margin (2)
|
|
$
|
79,108
|
|
|
$
|
72,126
|
|
|
$
|
247,340
|
|
|
$
|
150,431
|
|
Selling, general and
administrative
|
|
$
|
3,609
|
|
|
$
|
4,011
|
|
|
$
|
11,431
|
|
|
$
|
10,516
|
|
Depreciation,
amortization and impairment
|
|
$
|
76,986
|
|
|
$
|
51,274
|
|
|
$
|
191,370
|
|
|
$
|
141,329
|
|
Operating income
(loss)
|
|
$
|
(1,487)
|
|
|
$
|
16,841
|
|
|
$
|
44,539
|
|
|
$
|
(1,414)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fracturing
jobs
|
|
|
210
|
|
|
|
174
|
|
|
|
631
|
|
|
|
442
|
|
Other jobs
|
|
|
287
|
|
|
|
342
|
|
|
|
831
|
|
|
|
962
|
|
Total jobs
|
|
|
497
|
|
|
|
516
|
|
|
|
1,462
|
|
|
|
1,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
fracturing job
|
|
$
|
1,978.49
|
|
|
$
|
2,043.61
|
|
|
$
|
1,958.74
|
|
|
$
|
1,759.53
|
|
Average revenue per
other job
|
|
$
|
21.34
|
|
|
$
|
20.04
|
|
|
$
|
21.34
|
|
|
$
|
16.57
|
|
Average revenue per
total job
|
|
$
|
848.30
|
|
|
$
|
702.41
|
|
|
$
|
857.52
|
|
|
$
|
565.28
|
|
Average direct
operating costs per total job
|
|
$
|
689.13
|
|
|
$
|
562.63
|
|
|
$
|
688.34
|
|
|
$
|
458.14
|
|
Average margin per
total job (2)
|
|
$
|
159.17
|
|
|
$
|
139.78
|
|
|
$
|
169.18
|
|
|
$
|
107.14
|
|
Margin as a percentage
of revenues (2)
|
|
|
18.8
|
%
|
|
|
19.9
|
%
|
|
|
19.7
|
%
|
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
44,860
|
|
|
$
|
27,230
|
|
|
$
|
125,978
|
|
|
$
|
85,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directional
Drilling:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
51,556
|
|
|
$
|
—
|
|
|
$
|
152,877
|
|
|
$
|
—
|
|
Direct operating
costs
|
|
$
|
44,740
|
|
|
$
|
—
|
|
|
$
|
126,114
|
|
|
$
|
—
|
|
Margin (3)
|
|
$
|
6,816
|
|
|
$
|
—
|
|
|
$
|
26,763
|
|
|
$
|
—
|
|
Selling, general and
administrative
|
|
$
|
3,548
|
|
|
$
|
—
|
|
|
$
|
13,310
|
|
|
$
|
—
|
|
Depreciation and
amortization
|
|
$
|
12,263
|
|
|
$
|
—
|
|
|
$
|
35,039
|
|
|
$
|
—
|
|
Operating
loss
|
|
$
|
(8,995)
|
|
|
$
|
—
|
|
|
$
|
(21,586)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin as a percentage
of revenues (3)
|
|
|
13.2
|
%
|
|
|
—
|
|
|
|
17.5
|
%
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
6,855
|
|
|
$
|
—
|
|
|
$
|
29,718
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
29,036
|
|
|
$
|
20,934
|
|
|
$
|
81,485
|
|
|
$
|
45,238
|
|
Direct operating
costs
|
|
$
|
20,447
|
|
|
$
|
14,616
|
|
|
$
|
55,705
|
|
|
$
|
30,546
|
|
Margin (4)
|
|
$
|
8,589
|
|
|
$
|
6,318
|
|
|
$
|
25,780
|
|
|
$
|
14,692
|
|
Selling, general and
administrative
|
|
$
|
2,905
|
|
|
$
|
3,300
|
|
|
$
|
9,819
|
|
|
$
|
7,896
|
|
Depreciation,
depletion and impairment
|
|
$
|
10,545
|
|
|
$
|
9,534
|
|
|
$
|
29,688
|
|
|
$
|
19,826
|
|
Operating
loss
|
|
$
|
(4,861)
|
|
|
$
|
(6,516)
|
|
|
$
|
(13,727)
|
|
|
$
|
(13,030)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
6,817
|
|
|
$
|
8,647
|
|
|
$
|
23,524
|
|
|
$
|
21,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
$
|
21,126
|
|
|
$
|
20,055
|
|
|
$
|
62,141
|
|
|
$
|
48,229
|
|
Merger and integration
expenses
|
|
$
|
—
|
|
|
$
|
9,449
|
|
|
$
|
2,738
|
|
|
$
|
65,798
|
|
Depreciation
|
|
$
|
1,879
|
|
|
$
|
2,231
|
|
|
$
|
5,997
|
|
|
$
|
5,456
|
|
Other operating
income, net
|
|
$
|
(771)
|
|
|
$
|
(3,791)
|
|
|
$
|
(10,321)
|
|
|
$
|
(18,501)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
958
|
|
|
$
|
305
|
|
|
$
|
1,711
|
|
|
$
|
986
|
|
Total capital
expenditures
|
|
$
|
162,785
|
|
|
$
|
143,061
|
|
|
$
|
480,568
|
|
|
$
|
329,851
|
|
|
|
(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.
|
|
|
September
30,
|
|
|
December
31,
|
|
Selected Balance
Sheet Data (unaudited, in thousands):
|
|
2018
|
|
|
2017
|
|
Cash and cash
equivalents
|
|
$
|
|
214,032
|
|
|
$
|
|
42,828
|
|
Current
assets
|
|
$
|
|
1,006,819
|
|
|
$
|
|
746,855
|
|
Current
liabilities
|
|
$
|
|
607,696
|
|
|
$
|
|
546,250
|
|
Working
capital
|
|
$
|
|
399,123
|
|
|
$
|
|
200,605
|
|
Borrowings under
revolving credit facility
|
|
$
|
|
-
|
|
|
$
|
|
268,000
|
|
Other long-term
debt
|
|
$
|
|
1,119,002
|
|
|
$
|
|
598,783
|
|
PATTERSON-UTI
ENERGY, INC.
|
Non-U.S. GAAP
Financial Measures
|
(unaudited, dollars
in thousands)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Adjusted Earnings
Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(75,042)
|
|
|
$
|
(33,769)
|
|
|
$
|
(120,172)
|
|
|
$
|
(189,492)
|
|
Income tax
benefit
|
|
|
(16,517)
|
|
|
|
(13,652)
|
|
|
|
(24,617)
|
|
|
|
(106,953)
|
|
Net interest
expense
|
|
|
11,559
|
|
|
|
9,483
|
|
|
|
34,068
|
|
|
|
25,780
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
281,652
|
|
|
|
196,642
|
|
|
|
703,928
|
|
|
|
572,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
201,652
|
|
|
$
|
158,704
|
|
|
$
|
593,207
|
|
|
$
|
301,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
867,478
|
|
|
$
|
684,989
|
|
|
$
|
2,531,060
|
|
|
$
|
1,569,350
|
|
Adjusted EBITDA
margin
|
|
|
23.2
|
%
|
|
|
23.2
|
%
|
|
|
23.4
|
%
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling
|
|
$
|
137,275
|
|
|
$
|
113,206
|
|
|
$
|
381,776
|
|
|
$
|
250,111
|
|
Pressure
pumping
|
|
|
75,499
|
|
|
|
68,115
|
|
|
|
235,909
|
|
|
|
139,915
|
|
Directional
drilling
|
|
|
3,268
|
|
|
|
—
|
|
|
|
13,453
|
|
|
|
—
|
|
Other
operations
|
|
|
5,684
|
|
|
|
3,018
|
|
|
|
15,961
|
|
|
|
6,796
|
|
Corporate
|
|
|
(20,074)
|
|
|
|
(25,635)
|
|
|
|
(53,892)
|
|
|
|
(95,300)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA
|
|
$
|
201,652
|
|
|
$
|
158,704
|
|
|
$
|
593,207
|
|
|
$
|
301,522
|
|
|
|
(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
|
|
|
|
Third
|
|
|
Second
|
|
|
|
Quarter
|
|
|
Quarter
|
|
Contract drilling
revenues
|
|
$
|
365,280
|
|
|
$
|
349,922
|
|
Operating days -
Total
|
|
|
16,394
|
|
|
|
15,998
|
|
Average rigs
operating - Total
|
|
|
178
|
|
|
|
176
|
|
Average revenue per
operating day - Total
|
|
$
|
22.28
|
|
|
$
|
21.87
|
|
Direct operating
costs - Total
|
|
$
|
226,373
|
|
|
$
|
217,674
|
|
Average direct
operating costs per operating day - Total
|
|
$
|
13.81
|
|
|
$
|
13.61
|
|
Average margin per
operating day - Total
|
|
$
|
8.47
|
|
|
$
|
8.27
|
|
PATTERSON-UTI
ENERGY, INC.
|
Pressure Pumping
Margin
|
(unaudited, in
thousands)
|
|
|
|
2018
|
|
|
2018
|
|
|
|
Third
|
|
|
Second
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Pressure pumping
revenues
|
|
$
|
421,606
|
|
|
$
|
425,303
|
|
Direct operating
costs
|
|
|
342,498
|
|
|
|
342,885
|
|
Margin
|
|
$
|
79,108
|
|
|
$
|
82,418
|
|
PATTERSON-UTI
ENERGY, INC.
|
Directional Drilling
Margin
|
(unaudited, dollars
in thousands)
|
|
|
|
2018
|
|
|
2018
|
|
|
|
Third
|
|
|
Second
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Directional drilling
revenues
|
|
$
|
51,556
|
|
|
$
|
52,705
|
|
Direct operating
costs
|
|
|
44,740
|
|
|
|
43,685
|
|
Margin
|
|
$
|
6,816
|
|
|
$
|
9,020
|
|
|
|
|
|
|
|
|
|
|
Margin as a
percentage of revenues
|
|
|
13.2
|
%
|
|
|
17.1
|
%
|
PATTERSON-UTI
ENERGY, INC.
|
Pro Forma Net Loss
Per Share
|
(unaudited, dollars
in thousands)
|
|
|
Three Months Ended
September 30, 2018
|
|
|
As
Reported
|
|
|
Pro Forma
|
|
|
Total
|
|
|
Per
Share
|
|
|
Total
|
|
|
Per
Share (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(75,042)
|
|
|
$
|
(0.34)
|
|
|
$
|
(75,042)
|
|
|
$
|
(0.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reverse impairment
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax non-cash
impairment charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling rigs and
related equipment
|
|
|
|
|
|
|
|
|
|
48,443
|
|
|
|
|
|
Pressure pumping
equipment
|
|
|
|
|
|
|
|
|
|
17,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65,874
|
|
|
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
11,883
|
|
|
|
|
|
After tax non-cash
impairment charges
|
|
|
|
|
|
|
|
|
|
53,991
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(75,042)
|
|
|
|
|
|
|
|
(21,051)
|
|
|
|
|
|
Adjust for income
attributed to holders of non-vested restricted stock
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Loss attributed to
common shareholders
|
$
|
(75,042)
|
|
|
$
|
(0.34)
|
|
|
$
|
(21,051)
|
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding, excluding non-vested shares of
restricted stock
|
|
218,059
|
|
|
|
|
|
|
|
218,059
|
|
|
|
|
|
Add dilutive effect
of potential common shares
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Weighted average
number of diluted common shares outstanding
|
|
218,059
|
|
|
|
|
|
|
|
218,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
|
|
18.0
|
%
|
|
|
|
|
|
|
(1)
|
We present pro forma
net loss per share in order to convey to investors our performance
on a basis that, by excluding certain items, is more comparable to
our earnings per share information reported in previous
periods. Pro Forma Net Loss per Share should not be construed
as an alternative to GAAP earnings per share.
|
View original
content:http://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-three-and-nine-months-ended-september-30-2018-300737541.html
SOURCE PATTERSON-UTI ENERGY, INC.