PTEN Patterson UTI Energy Inc

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Patterson-UTI Energy, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On April 23, 2015, Patterson-UTI Energy, Inc. (the "Company") announced financial results for the three months ended March 31, 2015. The press release, dated April 23, 2015, is furnished as Exhibit 99.1 to this report and incorporated by reference herein.

The information furnished pursuant to Item 2.02, including Exhibit 99.1 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, shall not otherwise be subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) The following exhibit is furnished herewith:

99.1 Press Release dated April 23, 2015 announcing financial results for the three months ended March 31, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit Index

Exhibit 99.1

Contact: Mike Drickamer
Director, Investor Relations
Patterson-UTI Energy, Inc.
(281) 765-7170

Patterson-UTI Energy Reports Financial Results
for Three Months Ended March 31, 2015

HOUSTON, Texas – April 23, 2015 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the three months ended March 31, 2015. The Company reported net income of $9.1 million, or $0.06 per share, for the first quarter of 2015, compared to net income of $34.8 million, or $0.24 per share, for the quarter ended March 31, 2014. Revenues for the first quarter of 2015 were $658 million, compared to $678 million for the first quarter of 2014.

Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “In the first quarter, during what has been a sharp decrease in drilling activity across our industry and in our rig count, we have nonetheless gained market share in our contract drilling business. We attribute this growth in our market share to our term contract coverage, and ultimately to the quality of our rigs and operations. Our rig count in the first quarter averaged 165 rigs in the United States and eight rigs in Canada. Our rig count and pressure pumping activity continue to be negatively impacted by the reduction in spending by exploration and production companies, caused primarily by the lower price for crude oil. For the month of April, we expect our rig count to average 130 rigs in the United States and two rigs in Canada.

Mr. Hendricks added, “In contract drilling, we recognized $15.8 million of revenues related to early contract terminations. These early termination revenues positively impacted our total average rig revenue per day of $25,870 by $1,020. Excluding this early termination revenue, our total average rig revenue per day during the first quarter would have been $24,850, an increase of $410 per day from the fourth quarter.

“In addition to the increase in total average rig revenue per day, total average rig operating costs per day decreased $300 sequentially to $13,710 in the first quarter. Accordingly, excluding the positive impact from the early termination revenues in the first quarter, total average rig margin per day increased $710 to $11,140.

“We completed six new APEX^® rigs during the first quarter, bringing our APEX^® rig fleet to 151 rigs at the end of the quarter. We plan to complete 10 additional APEX^® rigs this year, all of which are under contract. Included among these remaining new APEX^® rigs is our first APEX^® rig that will be delivered to work in Canada. We are excited about this new opportunity for APEX^® rigs as the Canadian market continues a transition to more multi-well pad drilling.

“As of March 31, 2015, we had term contracts for drilling rigs providing for approximately $1.24 billion of future dayrate drilling revenue. Based on contracts currently in place, we expect an average of 101 rigs operating under term contracts during the second quarter, and an average of 83 rigs operating under term contracts during the remaining three quarters of 2015. We also expect approximately $19 million of early termination revenues during the second quarter.

“In pressure pumping, our activity levels slowed dramatically in the latter-half of the quarter as customers reduced their activity, and we were unwilling to pursue work at what we consider extremely low margins. Our gross profit margin of 14.8% was generally in line with our expectation, while revenues decreased more than expected sequentially to $250 million. With the decrease in revenues, pressure pumping EBITDA decreased during the first quarter to $31.9 million,” he concluded.

Mark S. Siegel, Chairman of Patterson-UTI, stated, “Market conditions were challenging during the first quarter given the steep decrease in the industry rig count and well completion activity. Nonetheless, we efficiently and effectively executed upon our plan during the quarter to weather this downturn and to be well-positioned for a recovery.

“Operationally, we promptly scaled our cost structure and capital expenditures to the lower levels of activity. Financially, we completed two debt financings during the first quarter that increased our liquidity and enhanced our ability to take advantage of future opportunities this downturn may create,” he concluded.

The financial results for the three months ended March 31, 2015 include a pretax non-cash charge of $3.4 million related to the impairment of certain oil and natural gas properties, and a $12.3 million charge, which is included in selling, general and administrative expenses, and is related to our settlement with the EEOC. Collectively, these charges negatively impacted diluted earnings per share by $0.06 for the three months ended March 31, 2015. We also had $15.8 million of revenues from the early termination of drilling contracts that increased diluted earnings per share by $0.06 for the three months ended March 31, 2015. Taken together, the charges and early termination revenues reduced net income by less than $100,000, and diluted earnings per share remains $0.06 for the three months ended March 31, 2015 when all of these items are excluded from the calculation.

The Company declared a quarterly dividend on its common stock of $0.10 per share, to be paid on June 24, 2015 to holders of record as of June 10, 2015.

All references to “net income 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 March 31, 2015 is scheduled for today, April 23, 2015 at 9:00 a.m. Central Time. The dial-in information for participants is 877-546-5018 (Domestic) and 857-244-7550 (International). The access code for both numbers is 67191816. 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. A telephonic replay will be available through April 27, 2015 at 888-286-8010 (Domestic) and 617-801-6888 (International) with the access code 88170007.

About Patterson-UTI

Patterson-UTI Energy, Inc. subsidiaries provide onshore contract drilling and pressure pumping services to exploration and production companies in North America. Patterson-UTI Drilling Company LLC and its subsidiaries operate land-based drilling rigs in oil and natural gas producing regions of the continental United States and western Canada. Universal Pressure Pumping, Inc. and Universal Well Services, Inc. provide pressure pumping services primarily in Texas and the Appalachian region.

Location information about the Company’s drilling rigs and their individual inventories is available through the Company’s website at www.patenergy.com.

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, volatility in customer spending and in oil and natural gas prices, which could adversely affect demand for our 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 reactivation or construction; equipment specialization and new technologies; adverse industry conditions; adverse credit and equity market conditions; difficulty in building and deploying new equipment; difficulty in integrating acquisitions; shortages, delays in delivery and interruptions of supply of equipment, supplies and materials; weather; loss of, or reduction in business with, key customers; liabilities from operations; ability to effectively identify and enter new markets; governmental regulation; ability to realize backlog; 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, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company’s web site at http://www.patenergy.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement.

PATTERSON-UTI ENERGY, INC.
Consolidated Condensed Statements of Operations
(unaudited, in thousands, except per share amounts)

PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)

PATTERSON-UTI ENERGY, INC.
Non-U.S. GAAP Financial Measures
(unaudited, dollars in thousands)

PATTERSON-UTI ENERGY, INC.
Impact of Adjustments
Three Months Ended March 31, 2015
(unaudited, dollars in thousands, except per share amount)

Patterson UTI Energy (NASDAQ:PTEN)
Historical Stock Chart
From Mar 2024 to Apr 2024

Patterson UTI Energy (NASDAQ:PTEN)
Historical Stock Chart
From Apr 2023 to Apr 2024