HOUSTON, Oct. 26, 2017 /PRNewswire/
-- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today
reported financial results for the three and nine months ended
September 30, 2017. The Company
reported a net loss of $33.8 million,
or $0.16 per share, for the third
quarter of 2017, compared to a net loss of $84.1 million, or $0.58 per share, for the quarter ended
September 30, 2016. Revenues
for the third quarter of 2017 were $685
million, compared to $206
million for the third quarter of 2016.
For the nine months ended September 30,
2017, the Company reported a net loss of $189 million, or $0.99 per share, compared to a net loss of
$241 million, or $1.65 per share, for the nine months ended
September 30, 2016. Revenues
for the nine months ended September 30,
2017 were $1.6 billion,
compared to $669 million for the same
period in 2016.
The financial results include pretax merger and integration
expenses of $9.4 million
($6.7 million after-tax or
$0.03 per share) for the third
quarter of 2017 and $65.8 million for
the nine months ended September 30,
2017. The financial results for the nine months ended
September 30, 2017 also include
non-cash impairment charges totaling $29.0
million from the write-down of drilling equipment and a
pretax gain of $11.2 million related
to the sale of real estate.
On October 11, 2017, the Company
completed the acquisition of MS Energy, a leading U.S. directional
drilling services company. As such, operating results will be
included in the fourth quarter of 2017, but did not impact the
third quarter.
Andy Hendricks, Patterson-UTI's
Chief Executive Officer, stated, "Our rig count was relatively
stable during the third quarter. We averaged 161 operating
rigs during the quarter compared to 146 during the second quarter,
where the second quarter rig count did not include the full-quarter
contribution from the rigs acquired as part of the acquisition of
Seventy Seven Energy."
Mr. Hendricks added, "Average rig margin per day for the third
quarter increased $1,010 sequentially
to $7,730 due primarily to a
$960 per day decrease in average rig
operating costs to $12,600. We
estimate that approximately half of the decrease in average rig
operating costs per day in the third quarter was related to the
relative stability in our rig count, which allowed us to both
reduce reactivation expenses and more efficiently manage our
headcount. The remainder of the decrease is believed to be
largely transitory in nature as lower than expected costs for rig
repairs and maintenance during the quarter is not expected to be
sustainable. Average rig revenue per day increased
$50 during the third quarter to
$20,320 from $20,270 during the second quarter.
"We continue to see growing demand for super-spec rigs.
Four of the previously announced seven APEX-XK® upgrades have been
delivered, and the remaining three rigs are under contract.
We also have contracts to upgrade two additional rigs to APEX-PK™
rigs, with a box-on-box substructure and integrated walking system
for enhanced performance on a multi-well pad, both of which are
expected to be delivered in the first half of 2018.
"As of September 30, 2017, we had
term contracts for drilling rigs providing for approximately
$470 million of future dayrate
drilling revenue. Based on contracts currently in place, we
expect an average of 87 rigs operating under term contracts during
the fourth quarter, and an average of 53 rigs operating under term
contracts during the 12 months ending September 30, 2018.
"In pressure pumping, revenues increased 25% sequentially to
$362 million for the third quarter
due to higher activity and pricing levels. Gross margin as a
percentage of revenues increased to 19.9% for the third quarter
from 19.4% for the second quarter. During the third quarter,
pressure pumping activity in Texas
was impacted by Hurricane Harvey. We estimate the reduced
activity negatively affected pressure pumping revenues by at least
$6 million and adjusted EBITDA by
approximately $3 million. The
adjusted EBITDA impact was a function of lost profits, lower cost
absorption and increased costs for items such as diesel, trucking,
and personnel transportation.
"During the third quarter we reactivated two frac spreads, and
we plan to reactivate one additional frac spread during the fourth
quarter, bringing our active frac fleet at the end of the year to
23 active spreads or approximately 1.25 million horsepower."
Mark S. Siegel, Chairman of
Patterson-UTI, stated, "We took another transformational step with
the acquisition of MS Energy Services. Over the past year, we
have significantly grown our company and improved our position in
the U.S. onshore drilling and completion markets by both broadening
our service offerings and deepening our position with market
leading positions in contract drilling, pressure pumping, and
directional drilling services.
"I would like to welcome the highly talented group of people
from MS Energy to the Patterson-UTI family. The hard-working
people of MS Energy, combined with their strong technology
position, have grown MS Energy into a leader in U.S. onshore
directional drilling services. We are excited to have them
join Patterson-UTI."
Mr. Siegel added, "I would also like to take this opportunity to
welcome Andy Smith to the Company as
our Chief Financial Officer, and to thank John Vollmer for his significant contributions
to our company for 20 years and his support during this transition
period. John will leave behind big shoes to fill, and I am
confident that we have chosen the right person in Andy Smith to fill those shoes," he
concluded.
The Company declared a quarterly dividend on its common stock of
$0.02 per share, to be paid on
December 21, 2017, to holders of
record as of December 7, 2017.
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,
2017, is scheduled for today, October
26, 2017, at 9:00 a.m. Central
Time. The dial-in information for participants is
844-498-0567 (Domestic) and 443-961-0820 (International). The
passcode for both numbers is 92619620. 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.
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; 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,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
REVENUES
|
|
$
|
684,989
|
|
|
$
|
206,133
|
|
|
$
|
1,569,350
|
|
|
$
|
668,979
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs
|
|
|
493,154
|
|
|
|
153,584
|
|
|
|
1,150,876
|
|
|
|
459,384
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
196,642
|
|
|
|
163,464
|
|
|
|
572,187
|
|
|
|
511,209
|
|
Selling, general and
administrative
|
|
|
27,551
|
|
|
|
16,612
|
|
|
|
69,881
|
|
|
|
51,671
|
|
Merger and integration
expenses
|
|
|
9,449
|
|
|
|
—
|
|
|
|
65,798
|
|
|
|
—
|
|
Other operating
income, net
|
|
|
(3,791)
|
|
|
|
(4,118)
|
|
|
|
(18,501)
|
|
|
|
(10,285)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and
expenses
|
|
|
723,005
|
|
|
|
329,542
|
|
|
|
1,840,241
|
|
|
|
1,011,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
(38,016)
|
|
|
|
(123,409)
|
|
|
|
(270,891)
|
|
|
|
(343,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
101
|
|
|
|
63
|
|
|
|
1,149
|
|
|
|
273
|
|
Interest
expense
|
|
|
(9,584)
|
|
|
|
(10,244)
|
|
|
|
(26,929)
|
|
|
|
(31,722)
|
|
Other
|
|
|
78
|
|
|
|
19
|
|
|
|
226
|
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
expense
|
|
|
(9,405)
|
|
|
|
(10,162)
|
|
|
|
(25,554)
|
|
|
|
(31,397)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(47,421)
|
|
|
|
(133,571)
|
|
|
|
(296,445)
|
|
|
|
(374,397)
|
|
INCOME TAX
BENEFIT
|
|
|
(13,652)
|
|
|
|
(49,428)
|
|
|
|
(106,953)
|
|
|
|
(133,885)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(33,769)
|
|
|
$
|
(84,143)
|
|
|
$
|
(189,492)
|
|
|
$
|
(240,512)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.16)
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.99)
|
|
|
$
|
(1.65)
|
|
Diluted
|
|
$
|
(0.16)
|
|
|
$
|
(0.58)
|
|
|
$
|
(0.99)
|
|
|
$
|
(1.65)
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
211,875
|
|
|
|
146,326
|
|
|
|
191,237
|
|
|
|
146,014
|
|
Diluted
|
|
|
211,875
|
|
|
|
146,326
|
|
|
|
191,237
|
|
|
|
146,014
|
|
CASH DIVIDENDS PER
COMMON SHARE
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.06
|
|
|
$
|
0.14
|
|
PATTERSON-UTI
ENERGY, INC.
|
|
Additional Financial
and Operating Data
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Drilling:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
301,614
|
|
|
$
|
123,684
|
|
|
$
|
730,453
|
|
|
$
|
407,578
|
|
Direct operating
costs
|
|
$
|
186,957
|
|
|
$
|
74,517
|
|
|
$
|
475,836
|
|
|
$
|
219,218
|
|
Margin (1)
|
|
$
|
114,657
|
|
|
$
|
49,167
|
|
|
$
|
254,617
|
|
|
$
|
188,360
|
|
Selling, general and
administrative
|
|
$
|
1,451
|
|
|
$
|
1,301
|
|
|
$
|
4,506
|
|
|
$
|
4,538
|
|
Depreciation,
amortization and impairment
|
|
$
|
133,603
|
|
|
$
|
115,652
|
|
|
$
|
405,576
|
|
|
$
|
357,153
|
|
Operating
loss
|
|
$
|
(20,397)
|
|
|
$
|
(67,786)
|
|
|
$
|
(155,465)
|
|
|
$
|
(173,331)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days –
United States
|
|
|
14,603
|
|
|
|
5,477
|
|
|
|
35,113
|
|
|
|
16,862
|
|
Operating days –
Canada
|
|
|
238
|
|
|
|
178
|
|
|
|
538
|
|
|
|
446
|
|
Operating days –
Total
|
|
|
14,841
|
|
|
|
5,655
|
|
|
|
35,651
|
|
|
|
17,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – United States
|
|
$
|
20.35
|
|
|
$
|
21.75
|
|
|
$
|
20.50
|
|
|
$
|
23.46
|
|
Average direct
operating costs per operating day – United States
|
|
$
|
12.56
|
|
|
$
|
13.10
|
|
|
$
|
13.30
|
|
|
$
|
12.43
|
|
Average margin per
operating day – United States (1)
|
|
$
|
7.79
|
|
|
$
|
8.65
|
|
|
$
|
7.19
|
|
|
$
|
11.04
|
|
Average rigs operating
– United States
|
|
|
159
|
|
|
|
60
|
|
|
|
129
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Canada
|
|
$
|
18.42
|
|
|
$
|
25.74
|
|
|
$
|
20.03
|
|
|
$
|
26.73
|
|
Average direct
operating costs per operating day – Canada
|
|
$
|
14.91
|
|
|
$
|
15.57
|
|
|
$
|
16.23
|
|
|
$
|
21.74
|
|
Average margin per
operating day – Canada (1)
|
|
$
|
3.51
|
|
|
$
|
10.17
|
|
|
$
|
3.79
|
|
|
$
|
4.99
|
|
Average rigs operating
– Canada
|
|
|
3
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Total
|
|
$
|
20.32
|
|
|
$
|
21.87
|
|
|
$
|
20.49
|
|
|
$
|
23.55
|
|
Average direct
operating costs per operating day – Total
|
|
$
|
12.60
|
|
|
$
|
13.18
|
|
|
$
|
13.35
|
|
|
$
|
12.67
|
|
Average margin per
operating day – Total (1)
|
|
$
|
7.73
|
|
|
$
|
8.69
|
|
|
$
|
7.14
|
|
|
$
|
10.88
|
|
Average rigs operating
– Total
|
|
|
161
|
|
|
|
61
|
|
|
|
131
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
106,879
|
|
|
$
|
17,551
|
|
|
$
|
222,426
|
|
|
$
|
46,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure
Pumping:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
362,441
|
|
|
$
|
78,165
|
|
|
$
|
793,659
|
|
|
$
|
248,428
|
|
Direct operating
costs
|
|
$
|
290,315
|
|
|
$
|
77,221
|
|
|
$
|
643,228
|
|
|
$
|
234,580
|
|
Margin (2)
|
|
$
|
72,126
|
|
|
$
|
944
|
|
|
$
|
150,431
|
|
|
$
|
13,848
|
|
Selling, general and
administrative
|
|
$
|
4,011
|
|
|
$
|
2,926
|
|
|
$
|
10,516
|
|
|
$
|
8,844
|
|
Depreciation,
amortization and impairment
|
|
$
|
51,274
|
|
|
$
|
44,587
|
|
|
$
|
141,329
|
|
|
$
|
141,557
|
|
Operating income
(loss)
|
|
$
|
16,841
|
|
|
$
|
(46,569)
|
|
|
$
|
(1,414)
|
|
|
$
|
(136,553)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fracturing
jobs
|
|
|
174
|
|
|
|
84
|
|
|
|
442
|
|
|
|
241
|
|
Other jobs
|
|
|
342
|
|
|
|
226
|
|
|
|
962
|
|
|
|
556
|
|
Total jobs
|
|
|
516
|
|
|
|
310
|
|
|
|
1,404
|
|
|
|
797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
fracturing job
|
|
$
|
2,043.61
|
|
|
$
|
906.42
|
|
|
$
|
1,759.53
|
|
|
$
|
1,005.81
|
|
Average revenue per
other job
|
|
$
|
20.04
|
|
|
$
|
8.96
|
|
|
$
|
16.57
|
|
|
$
|
10.84
|
|
Average revenue per
total job
|
|
$
|
702.41
|
|
|
$
|
252.15
|
|
|
$
|
565.28
|
|
|
$
|
311.70
|
|
Average costs per
total job
|
|
$
|
562.63
|
|
|
$
|
249.10
|
|
|
$
|
458.14
|
|
|
$
|
294.33
|
|
Average margin per
total job (2)
|
|
$
|
139.78
|
|
|
$
|
3.05
|
|
|
$
|
107.14
|
|
|
$
|
17.38
|
|
Margin as a percentage
of revenues (2)
|
|
|
19.9
|
%
|
|
|
1.2
|
%
|
|
|
19.0
|
%
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
27,230
|
|
|
$
|
8,330
|
|
|
$
|
85,423
|
|
|
$
|
27,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
20,934
|
|
|
$
|
4,284
|
|
|
$
|
45,238
|
|
|
$
|
12,973
|
|
Direct operating
costs
|
|
$
|
14,616
|
|
|
$
|
1,846
|
|
|
$
|
30,546
|
|
|
$
|
5,586
|
|
Margin (3)
|
|
$
|
6,318
|
|
|
$
|
2,438
|
|
|
$
|
14,692
|
|
|
$
|
7,387
|
|
Selling, general and
administrative
|
|
$
|
3,300
|
|
|
$
|
354
|
|
|
$
|
7,896
|
|
|
$
|
1,257
|
|
Depreciation,
depletion and impairment
|
|
$
|
9,534
|
|
|
$
|
1,856
|
|
|
$
|
19,826
|
|
|
$
|
8,393
|
|
Operating income
(loss)
|
|
$
|
(6,516)
|
|
|
$
|
228
|
|
|
$
|
(13,030)
|
|
|
$
|
(2,263)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
8,647
|
|
|
$
|
2,401
|
|
|
$
|
21,016
|
|
|
$
|
5,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
$
|
18,789
|
|
|
$
|
12,031
|
|
|
$
|
46,963
|
|
|
$
|
37,032
|
|
Operating
expense
|
|
$
|
1,266
|
|
|
$
|
—
|
|
|
$
|
1,266
|
|
|
$
|
—
|
|
Merger and integration
expenses
|
|
$
|
9,449
|
|
|
$
|
—
|
|
|
$
|
65,798
|
|
|
$
|
—
|
|
Depreciation
|
|
$
|
2,231
|
|
|
$
|
1,369
|
|
|
$
|
5,456
|
|
|
$
|
4,106
|
|
Other operating
income, net
|
|
$
|
(3,791)
|
|
|
$
|
(4,118)
|
|
|
$
|
(18,501)
|
|
|
$
|
(10,285)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
305
|
|
|
$
|
395
|
|
|
$
|
986
|
|
|
$
|
1,227
|
|
Total capital
expenditures
|
|
$
|
143,061
|
|
|
$
|
28,677
|
|
|
$
|
329,851
|
|
|
$
|
80,511
|
|
|
|
(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 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, dollars in thousands):
|
|
2017
|
|
|
2016
|
|
Cash and cash
equivalents
|
|
$
|
37,839
|
|
|
$
|
35,152
|
|
Current
assets
|
|
$
|
678,297
|
|
|
$
|
246,882
|
|
Current
liabilities
|
|
$
|
549,348
|
|
|
$
|
264,815
|
|
Working
capital
|
|
$
|
128,949
|
|
|
$
|
(17,933)
|
|
Current portion of
long-term debt
|
|
$
|
—
|
|
|
$
|
—
|
|
Borrowings under
revolving credit facility
|
|
$
|
144,000
|
|
|
$
|
—
|
|
Other long-term
debt
|
|
$
|
598,697
|
|
|
$
|
598,437
|
|
PATTERSON-UTI
ENERGY, INC.
|
|
Non-U.S. GAAP
Financial Measures
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Adjusted Earnings
Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(33,769)
|
|
|
$
|
(84,143)
|
|
|
$
|
(189,492)
|
|
|
$
|
(240,512)
|
|
Income tax
benefit
|
|
|
(13,652)
|
|
|
|
(49,428)
|
|
|
|
(106,953)
|
|
|
|
(133,885)
|
|
Net interest
expense
|
|
|
9,483
|
|
|
|
10,181
|
|
|
|
25,780
|
|
|
|
31,449
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
196,642
|
|
|
|
163,464
|
|
|
|
572,187
|
|
|
|
511,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
158,704
|
|
|
$
|
40,074
|
|
|
$
|
301,522
|
|
|
$
|
168,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
684,989
|
|
|
$
|
206,133
|
|
|
$
|
1,569,350
|
|
|
$
|
668,979
|
|
Adjusted EBITDA
margin
|
|
|
23.2
|
%
|
|
|
19.4
|
%
|
|
|
19.2
|
%
|
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling
|
|
$
|
113,206
|
|
|
$
|
47,866
|
|
|
$
|
250,111
|
|
|
$
|
183,822
|
|
Pressure
pumping
|
|
|
68,115
|
|
|
|
(1,982)
|
|
|
|
139,915
|
|
|
|
5,004
|
|
Other
|
|
|
3,018
|
|
|
|
2,084
|
|
|
|
6,796
|
|
|
|
6,130
|
|
Corporate
|
|
|
(25,635)
|
|
|
|
(7,894)
|
|
|
|
(95,300)
|
|
|
|
(26,695)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA
|
|
$
|
158,704
|
|
|
$
|
40,074
|
|
|
$
|
301,522
|
|
|
$
|
168,261
|
|
|
|
(1)
|
Adjusted EBITDA is a
supplemental financial measure not defined by United States
generally accepted accounting principles, or 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 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 measure of net income
(loss).
|
PATTERSON-UTI
ENERGY, INC.
|
|
Selected Costs and
Expenses
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
2017
|
|
|
Third
|
|
|
Quarter
|
|
|
|
|
|
Pretax merger and
integration expenses
|
$
|
9,449
|
|
Effective tax
rate
|
|
28.8
|
%
|
After-tax merger and
integration expenses
|
|
6,729
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
211,875
|
|
After-tax merger and
integration expenses per share - diluted
|
$
|
0.03
|
|
PATTERSON-UTI
ENERGY, INC.
|
|
Contract Drilling Per
Day Successive Quarters
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
2017
|
|
|
2017
|
|
|
|
Third
|
|
|
Second
|
|
|
|
Quarter
|
|
|
Quarter
|
|
Contract drilling
revenues
|
|
$
|
301,614
|
|
|
$
|
270,111
|
|
Operating days -
Total
|
|
|
14,841
|
|
|
|
13,323
|
|
Average revenue per
operating day - Total
|
|
$
|
20.32
|
|
|
$
|
20.27
|
|
Direct operating
costs - Total
|
|
$
|
186,957
|
|
|
$
|
180,658
|
|
Average direct
operating costs per operating day - Total
|
|
$
|
12.60
|
|
|
$
|
13.56
|
|
Average margin per
operating day - Total
|
|
$
|
7.73
|
|
|
$
|
6.71
|
|
PATTERSON-UTI
ENERGY, INC.
|
|
Pressure Pumping
Margin and Adjusted EBITDA
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
2017
|
|
|
2017
|
|
|
|
Third
|
|
|
Second
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Pressure pumping
revenues
|
|
$
|
362,441
|
|
|
$
|
290,044
|
|
Direct operating
costs
|
|
|
290,315
|
|
|
|
233,900
|
|
Margin
|
|
|
72,126
|
|
|
|
56,144
|
|
Selling, general and
administrative
|
|
|
4,011
|
|
|
|
3,703
|
|
Adjusted
EBITDA
|
|
$
|
68,115
|
|
|
$
|
52,441
|
|
|
|
|
|
|
|
|
|
|
Margin as a
percentage of revenues
|
|
|
19.9
|
%
|
|
|
19.4
|
%
|
PATTERSON-UTI
ENERGY, INC.
|
|
Adjusted
EBITDA
|
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
158,704
|
|
|
$
|
40,074
|
|
|
|
296
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
|
|
|
|
|
2017
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
158,704
|
|
|
$
|
79,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and
integration expenses
|
|
|
9,449
|
|
|
|
51,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
excluding merger and integration expenses
|
|
$
|
168,153
|
|
|
$
|
130,416
|
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-three-and-nine-months-ended-september-30-2017-300543712.html
SOURCE PATTERSON-UTI ENERGY, INC.