HOUSTON, July 23, 2015 /PRNewswire/
-- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today
reported financial results for the three and six months ended
June 30, 2015. The Company
reported a net loss of $19.0 million,
or $0.13 per share, for the second
quarter of 2015, compared to net income of $54.3 million, or $0.37 per share, for the quarter ended
June 30, 2014. Revenues for the
second quarter of 2015 were $473
million, compared to $757
million for the second quarter of 2014.
For the six months ended June 30,
2015 the Company reported a net loss of $9.9 million, or $0.07 per share, compared to net income of
$89.1 million, or $0.61 per share, for the six months ended
June 30, 2014. Revenues for the
six months ended June 30, 2015, were
$1.1 billion, compared to
$1.4 billion for the same period in
2014.
Andy Hendricks, Patterson-UTI's
Chief Executive Officer, stated, "Market conditions were difficult
during the second quarter as the rapid decline in the industry rig
count created many challenges. We managed through these
challenges with a focus on scaling our business and reducing our
cost structure. I am pleased with our ongoing cost cutting
efforts in contract drilling, and especially within our pressure
pumping segment where cost reductions resulted in better than
expected margins."
Mr. Hendricks added, "During the second quarter, our rig count
averaged 122 rigs in the United
States and two rigs in Canada, compared to the first quarter average
of 165 rigs in the United States
and eight in Canada. The rig count appears to be stabilizing
in the United States, and as such
we expect our average rig count in July will be consistent with our
second quarter exit rate of 110 rigs in the United States. In
Canada, we expect our average rig
count in July will increase to three rigs, which represents a
limited seasonal recovery.
"We recognized $15.6 million of
revenues related to early contract terminations in contract
drilling during the second quarter. These early termination
revenues positively impacted our total average rig revenue per day
of $25,720 by $1,390. Excluding early termination
revenue, total average rig revenue per day during the second
quarter would have been $24,330,
compared to $24,850 per day in the
first quarter.
"Total average rig operating costs per day during the second
quarter were essentially flat at $13,720 compared to the first quarter.
Excluding the positive impact from early termination revenues in
both the first and second quarters, total average rig margin per
day was $10,600 during the second
quarter, compared to $11,140 during
the first quarter.
"We completed seven new APEX® rigs during the second
quarter, bringing our APEX® rig fleet to 158 rigs at the
end of the quarter. We plan to complete three additional
APEX® rigs in the second half of 2015, all of which are
under contract.
"As of June 30, 2015, we had term
contracts for drilling rigs providing for approximately
$1.0 billion of future dayrate
drilling revenue. Based on contracts currently in place, we
expect an average of 85 rigs operating under term contracts during
the third quarter, and an average of 77 rigs operating under term
contracts during the second half of 2015.
"In pressure pumping, during the second quarter we realized the
benefit of our efforts to reduce input costs. Pressure
pumping EBITDA was $29.5 million
compared to $31.9 million in the
first quarter, but was better than expected as lower input costs
largely offset reduced pricing and utilization. As a
percentage of revenues, pressure pumping EBITDA margins increased
to 16.7% from 12.8% in the first quarter," he concluded.
Mark S. Siegel, Chairman of
Patterson-UTI, stated, "I am pleased with the promptness by which
we responded to the downturn in our industry, the effort put forth
to reduce our cost structure, and the degree by which we were able
to scale our business for the lower level of activity in both
drilling and pressure pumping.
"Although we have no visibility into a recovery at this time, we
believe that our rig count appears to be stabilizing. We will
remain vigilant in ensuring that our cost structure and business
are appropriately scaled. Financially, we believe our strong
balance sheet and expected cash flow position us to take advantage
of future opportunities," he concluded.
The financial results for the quarter ended June 30, 2015 include a pretax non-cash
impairment charge of $4.1 million
related to the impairment of certain oil and natural gas
properties. For the six months ended June 30, 2015, financial results include the
aforementioned charge plus a $3.4
million pretax non-cash charge in the first quarter related
to the impairment of certain oil and natural gas properties, and a
$12.3 million charge in the first
quarter, which is included in selling, general and administrative
expenses and is related to a previously disclosed legal
settlement.
The Company declared a quarterly dividend on its common stock of
$0.10 per share, to be paid on
September 24, 2015 to holders of
record as of September 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 June 30,
2015 is scheduled for today, July 23,
2015 at 9:00 a.m. Central
Time. The dial-in information for participants is
866-372-0638 (Domestic) and 678-509-7533 (International). The
Conference ID for both numbers is 44091420. 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 July 27,
2015 at 855-859-2056 (Domestic) and 404-537-3406
(International) with the Conference ID 44091420.
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 data)
|
|
|
Three Months
Ended
June
30,
|
Six
Months Ended
June
30,
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
REVENUES
|
$ 472,761
|
$ 757,276
|
$ 1,130,460
|
$ 1,435,444
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
Direct operating
costs
|
299,383
|
500,167
|
727,716
|
954,308
|
|
Depreciation,
depletion, amortization and impairment
|
181,924
|
153,426
|
357,306
|
300,748
|
|
Selling, general and
administrative
|
19,216
|
19,548
|
52,013
|
39,221
|
|
Net gain on asset
disposals
|
(2,998)
|
(3,091)
|
(5,914)
|
(4,835)
|
|
Total costs and
expenses
|
497,525
|
670,050
|
1,131,121
|
1,289,442
|
|
|
|
|
|
|
OPERATING
INCOME
|
(24,764)
|
87,226
|
(661)
|
146,002
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
Interest
income
|
318
|
208
|
601
|
384
|
|
Interest
expense
|
(9,249)
|
(7,249)
|
(17,790)
|
(14,437)
|
|
Other
|
—
|
3
|
—
|
3
|
|
Total other
expense
|
(8,931)
|
(7,038)
|
(17,189)
|
(14,050)
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
(33,695)
|
80,188
|
(17,850)
|
131,952
|
|
INCOME TAX EXPENSE
(BENEFIT)
|
(14,720)
|
25,905
|
(8,000)
|
42,847
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
(18,975)
|
$
54,283
|
$
(9,850)
|
$
89,105
|
|
|
|
|
|
|
NET INCOME (LOSS) PER
COMMON SHARE
|
|
|
|
|
|
Basic
|
$
(0.13)
|
$
0.37
|
$
(0.07)
|
$
0.62
|
|
Diluted
|
$
(0.13)
|
$
0.37
|
$
(0.07)
|
$
0.61
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
Basic
|
145,300
|
143,622
|
145,142
|
143,259
|
|
Diluted
|
145,984
|
146,029
|
145,712
|
145,586
|
|
|
|
|
|
|
CASH DIVIDENDS PER
COMMON SHARE
|
$
0.10
|
$
0.10
|
$
0.20
|
$
0.20
|
|
PATTERSON-UTI
ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
Contract
Drilling:
|
|
|
|
|
|
Revenues
|
$ 288,321
|
$ 438,583
|
$ 689,799
|
$ 864,486
|
|
Direct operating
costs
|
$ 153,848
|
$ 255,318
|
$ 366,658
|
$ 506,377
|
|
Margin (1)
|
$ 134,473
|
$ 183,265
|
$ 323,141
|
$ 358,109
|
|
Selling, general and
administrative
|
$ 1,420
|
$ 1,591
|
$ 15,118
|
$ 3,239
|
|
Depreciation,
amortization and impairment
|
$ 123,627
|
$ 112,057
|
$ 242,459
|
$ 218,176
|
|
Operating
income
|
$ 9,426
|
$ 69,617
|
$ 65,564
|
$ 136,694
|
|
|
|
|
|
|
Operating days –
United States
|
11,064
|
18,296
|
25,891
|
35,621
|
|
Operating days –
Canada
|
147
|
267
|
840
|
1,156
|
|
Operating days –
Total
|
11,211
|
18,563
|
26,731
|
36,777
|
|
|
|
|
|
|
Average revenue per
operating day – United States
|
$ 25.78
|
$ 23.49
|
$ 25.84
|
$ 23.25
|
|
Average direct
operating costs per operating day – United States
|
$ 13.48
|
$ 13.59
|
$ 13.50
|
$ 13.53
|
|
Average margin per
operating day – United States (1)
|
$ 12.30
|
$
9.90
|
$ 12.34
|
$
9.72
|
|
Average rigs
operating – United States
|
122
|
201
|
143
|
197
|
|
|
|
|
|
|
Average revenue per
operating day – Canada
|
$ 20.72
|
$ 32.87
|
$ 24.88
|
$ 31.31
|
|
Average direct
operating costs per operating day – Canada
|
$ 31.69
|
$ 25.05
|
$ 20.54
|
$ 21.15
|
|
Average margin per
operating day – Canada (1)
|
$ (10.97)
|
$
7.82
|
$
4.33
|
$ 10.16
|
|
Average rigs
operating – Canada
|
2
|
3
|
5
|
6
|
|
|
|
|
|
|
Average revenue per
operating day – Total
|
$ 25.72
|
$ 23.63
|
$ 25.81
|
$ 23.51
|
|
Average direct
operating costs per operating day – Total
|
$ 13.72
|
$ 13.75
|
$ 13.72
|
$ 13.77
|
|
Average margin per
operating day – Total (1)
|
$ 11.99
|
$
9.87
|
$ 12.09
|
$
9.74
|
|
Average rigs
operating – Total
|
123
|
204
|
148
|
203
|
|
|
|
|
|
|
Capital
expenditures
|
$ 153,940
|
$ 211,917
|
$ 311,362
|
$ 336,840
|
|
|
|
|
|
|
Pressure
Pumping:
|
|
|
|
|
|
Revenues
|
$ 176,624
|
$ 306,577
|
$ 426,345
|
$ 546,838
|
|
Direct operating
costs
|
$ 142,756
|
$ 241,977
|
$ 355,481
|
$ 441,785
|
|
Margin (2)
|
$ 33,868
|
$ 64,600
|
$ 70,864
|
$ 105,053
|
|
Selling, general and
administrative
|
$ 4,351
|
$ 5,067
|
$ 9,444
|
$ 9,935
|
|
Depreciation,
amortization and impairment
|
$ 48,261
|
$ 34,623
|
$ 95,180
|
$ 68,665
|
|
Operating income
(loss)
|
$ (18,744)
|
$ 24,910
|
$ (33,760)
|
$ 26,453
|
|
|
|
|
|
|
Fracturing
jobs
|
148
|
271
|
364
|
514
|
|
Other jobs
|
535
|
1,058
|
1,153
|
1,938
|
|
Total jobs
|
683
|
1,329
|
1,517
|
2,452
|
|
|
|
|
|
|
Average revenue per
fracturing job
|
$ 1,148.39
|
$ 1,063.28
|
$ 1,118.41
|
$ 993.05
|
|
Average revenue per
other job
|
$ 12.45
|
$ 17.42
|
$ 16.69
|
$ 18.79
|
|
Total average revenue
per job
|
$ 258.60
|
$ 230.68
|
$ 281.04
|
$ 223.02
|
|
Total average costs
per job
|
$ 209.01
|
$ 182.07
|
$ 234.33
|
$ 180.17
|
|
Total average margin
per job (2)
|
$ 49.59
|
$ 48.61
|
$ 46.71
|
$ 42.84
|
|
Margin as a
percentage of revenues (2)
|
19.2%
|
21.1%
|
16.6%
|
19.2%
|
|
|
|
|
|
|
Capital expenditures
and acquisitions
|
$ 64,009
|
$ 96,186
|
$ 139,819
|
$ 132,483
|
|
|
|
|
|
|
Oil and Natural Gas
Production and Exploration:
|
|
|
|
|
|
Revenues –
Oil
|
$ 7,091
|
$ 10,747
|
$ 12,955
|
$ 21,078
|
|
Revenues – Natural
gas and liquids
|
$
725
|
$ 1,369
|
$ 1,361
|
$ 3,042
|
|
Revenues –
Total
|
$ 7,816
|
$ 12,116
|
$ 14,316
|
$ 24,120
|
|
Direct operating
costs
|
$ 2,779
|
$ 2,872
|
$ 5,577
|
$ 6,146
|
|
Margin (3)
|
$ 5,037
|
$ 9,244
|
$ 8,739
|
$ 17,974
|
|
Depletion
|
$ 4,607
|
$ 4,814
|
$ 9,507
|
$ 9,808
|
|
Impairment of oil and
natural gas properties
|
$ 4,061
|
$
798
|
$ 7,425
|
$ 1,831
|
|
Operating income
(loss)
|
$
(3,631)
|
$ 3,632
|
$
(8,193)
|
$ 6,335
|
|
|
|
|
|
|
Capital
expenditures
|
$ 3,612
|
$ 8,742
|
$ 11,204
|
$ 17,426
|
|
|
|
|
|
|
Corporate and
Other:
|
|
|
|
|
|
Selling, general and
administrative
|
$ 13,445
|
$ 12,890
|
$ 27,451
|
$ 26,047
|
|
Depreciation
|
$ 1,368
|
$ 1,134
|
$ 2,735
|
$ 2,268
|
|
Net gain on asset
disposals
|
$
(2,998)
|
$
(3,091)
|
$
(5,914)
|
$
(4,835)
|
|
|
|
|
|
|
Capital
expenditures
|
$
606
|
$
821
|
$ 1,248
|
$ 1,289
|
|
|
|
|
|
|
Total capital
expenditures and acquisitions
|
$ 222,167
|
$ 317,666
|
$ 463,633
|
$ 488,038
|
|
|
|
(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 Oil and Natural
Gas Production and Exploration, margin is defined as revenues less
direct operating costs and excludes depletion and
impairment.
|
|
|
|
June 30,
|
December
31,
|
|
Selected Balance Sheet
Data (unaudited, dollars in thousands):
|
|
|
2015
|
2014
|
|
Cash and cash
equivalents
|
|
|
$
76,506
|
$
43,012
|
|
Current
assets
|
|
|
$
515,794
|
$
909,092
|
|
Current
liabilities
|
|
|
$
448,107
|
$
568,404
|
|
Working
capital
|
|
|
$
67,687
|
$
340,688
|
|
Current portion of
long-term debt
|
|
|
$
42,500
|
$
12,500
|
|
Borrowings under
revolving credit facility
|
|
|
$
—
|
$
303,000
|
|
Other long-term
debt
|
|
|
$
830,000
|
$
670,000
|
|
|
|
|
|
|
PATTERSON-UTI
ENERGY, INC.
Non-U.S. GAAP Financial Measures
(unaudited, dollars in thousands)
|
|
|
Three Months
Ended
June
30,
|
Six Months Ended
June
30,
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
Adjusted Earnings
Before Interest, Taxes, Depreciation and Amortization (Adjusted
EBITDA)(1):
|
|
|
|
|
|
Net income
(loss)
|
$ (18,975)
|
$ 54,283
|
$
(9,850)
|
$ 89,105
|
|
Income tax expense
(benefit)
|
(14,720)
|
25,905
|
(8,000)
|
42,847
|
|
Net interest
expense
|
8,931
|
7,041
|
17,189
|
14,053
|
|
Depreciation,
depletion, amortization and impairment
|
181,924
|
153,426
|
357,306
|
300,748
|
|
Adjusted
EBITDA
|
$
157,160
|
$
240,655
|
$
356,645
|
$
446,753
|
|
|
|
|
|
|
Total
revenue
|
$ 472,761
|
$ 757,276
|
$ 1,130,460
|
$ 1,435,444
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
33.2%
|
31.8%
|
31.5%
|
31.1%
|
|
|
|
|
|
|
Adjusted EBITDA by
operating segment:
|
|
|
|
|
|
Contract
drilling
|
$ 133,053
|
$ 181,674
|
$ 308,023
|
$ 354,870
|
|
Pressure
pumping
|
29,517
|
59,533
|
61,420
|
95,118
|
|
Oil and natural
gas
|
5,037
|
9,244
|
8,739
|
17,974
|
|
Corporate and
other
|
(10,447)
|
(9,796)
|
(21,537)
|
(21,209)
|
|
Consolidated Adjusted
EBITDA
|
$
157,160
|
$
240,655
|
$
356,645
|
$
446,753
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDA is
not defined by accounting principles generally accepted in the
United States of America ("U.S. GAAP"). We present Adjusted
EBITDA (a non-U.S. GAAP measure) because we believe it provides
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
measures of net income (loss) or operating cash flow.
|
|
PATTERSON-UTI
ENERGY, INC.
Impact of Early
Termination Revenues
(unaudited, dollars
in thousands)
|
|
|
|
2015
|
|
Second
|
First
|
|
Quarter
|
Quarter
|
|
|
|
|
Contract drilling
revenues
|
$
288,321
|
$
401,478
|
|
Operating days –
Total
|
11,211
|
15,520
|
|
Average revenue per
operating day – Total
|
$
25.72
|
$
25.87
|
|
Early termination
revenues – Total
|
$
15,591
|
$
15,794
|
|
Early termination
revenues per operating day - Total
|
$
1.39
|
$
1.02
|
|
Average revenue per
operating day excluding early termination revenues –
Total
|
$
24.33
|
$
24.85
|
|
Direct operating costs-
Total
|
$
153,848
|
$
212,810
|
|
Average direct
operating costs per operating day – Total
|
$
13.72
|
$
13.71
|
|
Average margin per
operating day excluding early termination revenues -
Total
|
$
10.60
|
$
11.14
|
|
|
|
|
PATTERSON-UTI
ENERGY, INC.
Pressure Pumping
Adjusted EBITDA and Adjusted EBITDA Margin
(unaudited, dollars
in thousands)
|
|
|
|
2015
|
|
Second
|
First
|
|
Quarter
|
Quarter
|
|
|
|
|
Pressure
Pumping:
|
|
|
|
Revenues
|
$
176,624
|
$
249,721
|
|
Direct operating
costs
|
142,756
|
212,725
|
|
Selling, general and
administrative
|
4,351
|
5,093
|
|
Adjusted
EBITDA
|
$
29,517
|
$
31,903
|
|
Adjusted EBITDA as a
percentage of revenues
|
16.7%
|
12.8%
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-three-and-six-months-ended-june-30-2015-300117464.html
SOURCE PATTERSON-UTI ENERGY, INC.