Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
(Adjusted EBITDA)(1):
Net income (loss)
$
(225,978)
$
15,976
$(235,828)
$
105,081
Income tax expense (benefit)
(112,452)
7,556
(120,452)
50,403
Net interest expense
8,931
6,759
26,120
20,812
Depreciation, depletion, amortization and
impairment 332,151
237,825
689,457
538,573
Impairment
of
goodwill
124,561
-
124,561
-
Adjusted EBITDA
$
127,213
$
268,116
$
483,858
$
714,869
Total revenue
$
422,251
$
845,628
$1,552,711
$2,281,072
Adjusted EBITDA margin
30.1%
31.7%
31.2%
31.3%
Adjusted EBITDA by operating segment:
Contract drilling
$
123,500
$
202,804
$
431,523
$
557,674
Pressure pumping
11,791
62,795
73,211
157,913
Oil and natural gas
3,508
11,449
12,247
29,423
Corporate and other
(11,586)
(8,932)
(33,123)
(30,141)
Consolidated Adjusted EBITDA
$
127,213
$
268,116
$
483,858
$
714,869
(1)
The company makes use of financial measures that are not
calculated in accordance with U.S. generally accepted accounting principles (GAAP) to help in the assessment of ongoing operating performance. These non-GAAP financial measures are reconciled to their most directly
comparable GAAP measures in the tables above. We
define Adjusted EBITDA as net income plus net interest expense, income tax expense and depreciation, depletion, amortization and impairment expense. We present Adjusted EBITDA 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 is not defined by GAAP and, as such, should not be construed as an
alternative to net income (loss) or operating cash flow. We
define margin as revenues less direct operating costs. We present margin because we believe it to be the component of our earnings most impacted by the variability in our contract drilling and pressure pumping operations.
Margin is not defined by GAAP and, as such, should
not be construed as an alternative to net income (loss). PATTERSON-UTI
ENERGY, INC. Non-GAAP Financial Measures (Unaudited)
(dollars in thousands)
Non-GAAP Financial Measures
28 |