HOUSTON, Feb. 9, 2017 /PRNewswire/
-- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today
reported financial results for the three and twelve months ended
December 31, 2016. The Company
reported a net loss of $78.1 million,
or $0.53 per share, for the fourth
quarter of 2016, compared to a net loss of $58.7 million, or $0.40 per share, for the quarter ended
December 31, 2015. Revenues for
the fourth quarter of 2016 were $247
million, compared to $339
million for the fourth quarter of 2015.
For the twelve months ended December 31,
2016, the Company reported a net loss of $319 million, or $2.18 per share, compared to a net loss of
$294 million, or $2.00 per share, for the twelve months ended
December 31, 2015. Revenues for
the twelve months ended December 31,
2016, were $916 million,
compared to $1.9 billion for the same
period in 2015.
Andy Hendricks, Patterson-UTI's
Chief Executive Officer, stated, "Our rig count in the United States continues to improve.
For the fourth quarter, our average rig count in the United States increased to 66 rigs, up
from 60 rigs during the third quarter. Our average rig count
in Canada was two rigs during the
fourth quarter, unchanged from the prior quarter. For the
month of January, our average rig count was 76 rigs in the United States and two rigs in Canada."
Mr. Hendricks added, "Total average rig revenue per day for the
fourth quarter was $21,640 compared
to $21,870 during the third
quarter. As a result of a significant reduction in the
proportion of rigs on standby, total average rig operating costs
per day during the fourth quarter increased to $13,770 compared to $13,180 during the third quarter. Without
the decrease in the proportion of rigs on standby, total average
rig operating cost per day would have decreased as a result of
fixed costs being spread over more operating days. As a
result of these changes, total average rig margin per day decreased
to $7,870 during the fourth quarter,
from $8,690 during the third
quarter.
"In response to strong customer demand for super-spec rigs and
favorable economics we have signed contracts that provide for the
completion of two new APEX® rigs, including one APEX-XK
1500® and one with our new APEX-XC™ rig design.
The new, proprietary APEX-XC™ is the next step in the evolution of
our original APEX Walking® rig, and is complementary to
our fast-moving APEX-XK 1500®. The APEX-XC™ offers
a pad-optimal design with greater clearance for walking over and
around wellheads on a pad, larger drill pipe racking capacity for
longer laterals, and includes a higher-torque top drive from our
recently acquired technology company, Warrior. A substantial
amount of the spend related to the components for these rigs was
committed prior to the downturn in 2014.
"As of December 31, 2016, we had
term contracts for drilling rigs providing for approximately
$417 million of future dayrate
drilling revenue. Based on contracts currently in place, we
expect an average of 44 rigs operating under term contracts during
the first quarter, and an average of 37 rigs operating under term
contracts during 2017.
"In pressure pumping, revenues increased 35% sequentially to
$106 million in the fourth quarter
from $78.2 million due primarily to
higher activity levels. Despite reactivation costs, pressure
pumping gross margin as a percentage of revenues rebounded to 5.3%
during the fourth quarter from 1.2% during the third quarter.
During the fourth quarter, we began the process of hiring crews and
preparing two frac spreads that have now returned to work.
These two spreads were reactivated at a cost of approximately
$2 million per spread, including both
operating and capital expenditures, of which a total of
approximately $1.7 million was
included in operating expenses during the fourth quarter," he
concluded.
Mark S. Siegel, Chairman of
Patterson-UTI, stated, "The pace of the recovery in our industry
accelerated in the fourth quarter with increasing drilling and
pressure pumping activity. With the industry land rig count
approximately doubling from the trough, we are encouraged by the
recent uptick in activity and pricing and believe 2017 will be an
exciting year for Patterson-UTI.
"During 2017, we will introduce our new APEX-XC™ rig design to
the market. This enhanced design is based on our experience
as a leading high-spec drilling company and incorporates many of
the features sought by a broad customer base of E&P companies,
which are constantly seeking greater efficiency.
"Additionally, we continue to make progress towards closing our
pending merger with Seventy Seven Energy, which we expect to be
completed late in the first quarter or early in the second quarter
of 2017. This merger further solidifies our position as a
leading high-spec drilling company and will make us one of the
largest pressure pumping companies in the industry.
"In January, we received early termination of the
Hart-Scott-Rodino waiting period as well as filed our initial Form
S-4 registration statement with the U.S. Securities and Exchange
Commission. Recently, we completed an equity offering of
18.17 million shares of Patterson-UTI stock, including exercise of
the underwriters' overallotment option. We intend to use the
net proceeds from this offering of approximately $470 million to fund the repayment of Seventy
Seven's outstanding net indebtedness upon closing of the pending
merger," he concluded.
The Company declared a quarterly dividend on its common stock of
$0.02 per share, to be paid on
March 22, 2017, to holders of record
as of March 8, 2017.
The financial results for the twelve months ended December 31, 2015, include pretax charges
totaling $301 million, of which
$288 million was non-cash and related
to the impairment of all goodwill associated with the Company's
pressure pumping business, the write-down of equipment, and the
impairment of certain oil and natural gas properties.
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 December 31,
2016, is scheduled for today, February 9, 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 20803660. 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 an oilfield services company that primarily
owns and operates in the United
States one of the largest fleets of land-based drilling rigs
and a large fleet of pressure pumping equipment. Our contract
drilling business operates in the continental United States and western Canada, and our pressure pumping business
operates primarily in Texas and
the Appalachian region. We also provide drilling rig pipe
handling technology to drilling contractors in North America and other select markets.
In addition, we own and invest as a non-operating working interest
owner in oil and natural gas assets that are primarily located in
Texas and New Mexico.
Location information about the Company's drilling rigs and their
individual inventories is available through the Company's website
at www.patenergy.com.
Important Information for Investors and
Stockholders
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. The proposed acquisition by Patterson-UTI
Energy, Inc. ("Patterson-UTI") of Seventy Seven Energy Inc.
("Seventy Seven Energy") in an all-stock transaction (the "proposed
transaction") will be submitted to the stockholders of each of
Patterson-UTI and Seventy Seven Energy for their consideration.
Patterson-UTI has filed a Registration Statement on Form S-4 that
includes a prospectus and proxy statement jointly prepared by
Patterson-UTI and Seventy Seven Energy. Seventy Seven Energy
and Patterson-UTI may also file other documents with the Securities
and Exchange Commission (the "SEC") regarding the proposed
transaction. INVESTORS AND SECURITY HOLDERS OF Patterson-UTI ARE
URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT
DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR
ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and
security holders may obtain free copies of the proxy
statement/prospectus and other documents containing important
information about Seventy Seven Energy and Patterson-UTI once such
documents are filed with the SEC through the website maintained by
the SEC at www.sec.gov. Copies of the documents filed with the SEC
by Patterson-UTI will be available free of charge on
Patterson-UTI's website at www.patenergy.com under the tab
"Investors" and then through the link titled "SEC Filings" or by
contacting Patterson-UTI's Investor Relations Department by email
at investrelations@patenergy.com, or by phone at (281)
765-7100. Copies of the documents filed with the SEC by
Seventy Seven Energy will be available free of charge on Seventy
Seven Energy's website at www.77nrg.com under the tab "Investors"
and then through the link titled "SEC Filings" or by contacting
Seventy Seven Energy's Investor Relations Department by email at
IR@77nrg.com or by phone at (405) 608-7730.
Participants in the Solicitation
Patterson-UTI, Seventy Seven Energy and certain of their
respective directors and executive officers may be deemed to be
participants in the solicitation of proxies from the stockholders
of Patterson-UTI in connection with the proposed transaction.
Information about the directors and executive officers of
Patterson-UTI is set forth in the Proxy Statement on Schedule 14A
for Patterson-UTI's 2016 annual meeting of shareholders, which was
filed with the SEC on April 15, 2016.
Information about the directors and executive officers of Seventy
Seven Energy is set forth in the 2015 Annual Report on Form 10-K/A
for Seventy Seven Energy, which was filed with the SEC on
April 29, 2016. These documents
can be obtained free of charge from the sources indicated above.
Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the proxy statement/prospectus and other relevant materials to be
filed with the SEC when they become available.
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 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. 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
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
REVENUES
|
|
$
|
246,887
|
|
|
$
|
338,566
|
|
|
$
|
915,866
|
|
|
$
|
1,891,277
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
costs
|
|
|
189,392
|
|
|
|
226,819
|
|
|
|
648,776
|
|
|
|
1,232,369
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
157,225
|
|
|
|
175,302
|
|
|
|
668,434
|
|
|
|
864,759
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
124,561
|
|
Selling, general and
administrative
|
|
|
17,534
|
|
|
|
16,578
|
|
|
|
69,205
|
|
|
|
74,913
|
|
Other operating
(income) expense, net
|
|
|
(4,038)
|
|
|
|
(3,337)
|
|
|
|
(14,323)
|
|
|
|
1,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and
expenses
|
|
|
360,113
|
|
|
|
415,362
|
|
|
|
1,372,092
|
|
|
|
2,298,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
(113,226)
|
|
|
|
(76,796)
|
|
|
|
(456,226)
|
|
|
|
(406,972)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
54
|
|
|
|
40
|
|
|
|
327
|
|
|
|
964
|
|
Interest
expense
|
|
|
(8,644)
|
|
|
|
(9,431)
|
|
|
|
(40,366)
|
|
|
|
(36,475)
|
|
Other
|
|
|
17
|
|
|
|
18
|
|
|
|
69
|
|
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
expense
|
|
|
(8,573)
|
|
|
|
(9,373)
|
|
|
|
(39,970)
|
|
|
|
(35,477)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(121,799)
|
|
|
|
(86,169)
|
|
|
|
(496,196)
|
|
|
|
(442,449)
|
|
INCOME TAX
BENEFIT
|
|
|
(43,677)
|
|
|
|
(27,511)
|
|
|
|
(177,562)
|
|
|
|
(147,963)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(78,122)
|
|
|
$
|
(58,658)
|
|
|
$
|
(318,634)
|
|
|
$
|
(294,486)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.53)
|
|
|
$
|
(0.40)
|
|
|
$
|
(2.18)
|
|
|
$
|
(2.00)
|
|
Diluted
|
|
$
|
(0.53)
|
|
|
$
|
(0.40)
|
|
|
$
|
(2.18)
|
|
|
$
|
(2.00)
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
146,664
|
|
|
|
145,709
|
|
|
|
146,178
|
|
|
|
145,416
|
|
Diluted
|
|
|
146,664
|
|
|
|
145,709
|
|
|
|
146,178
|
|
|
|
145,416
|
|
CASH DIVIDENDS PER
COMMON SHARE
|
|
$
|
0.02
|
|
|
$
|
0.10
|
|
|
$
|
0.16
|
|
|
$
|
0.40
|
|
PATTERSON-UTI
ENERGY, INC.
|
Additional Financial
and Operating Data
|
(unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Drilling:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
136,085
|
|
|
$
|
202,276
|
|
|
$
|
543,663
|
|
|
$
|
1,153,892
|
|
Direct operating
costs
|
|
$
|
86,586
|
|
|
$
|
105,472
|
|
|
$
|
305,804
|
|
|
$
|
608,848
|
|
Margin (1)
|
|
$
|
49,499
|
|
|
$
|
96,804
|
|
|
$
|
237,859
|
|
|
$
|
545,044
|
|
Selling, general and
administrative
|
|
$
|
1,205
|
|
|
$
|
1,123
|
|
|
$
|
5,743
|
|
|
$
|
5,580
|
|
Depreciation,
amortization and impairment
|
|
$
|
110,821
|
|
|
$
|
121,219
|
|
|
$
|
467,974
|
|
|
$
|
618,434
|
|
Operating
loss
|
|
$
|
(62,527)
|
|
|
$
|
(25,538)
|
|
|
$
|
(235,858)
|
|
|
$
|
(78,970)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days –
United States
|
|
|
6,113
|
|
|
|
8,092
|
|
|
|
22,975
|
|
|
|
43,685
|
|
Operating days –
Canada
|
|
|
175
|
|
|
|
252
|
|
|
|
621
|
|
|
|
1,457
|
|
Operating days –
Total
|
|
|
6,288
|
|
|
|
8,344
|
|
|
|
23,596
|
|
|
|
45,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – United States
|
|
$
|
21.66
|
|
|
$
|
24.14
|
|
|
$
|
22.98
|
|
|
$
|
25.55
|
|
Average direct
operating costs per operating day – United States
|
|
$
|
13.75
|
|
|
$
|
12.42
|
|
|
$
|
12.78
|
|
|
$
|
13.27
|
|
Average margin per
operating day – United States (1)
|
|
$
|
7.91
|
|
|
$
|
11.72
|
|
|
$
|
10.21
|
|
|
$
|
12.28
|
|
Average rigs operating
– United States
|
|
|
66
|
|
|
|
88
|
|
|
|
63
|
|
|
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Canada
|
|
$
|
21.11
|
|
|
$
|
27.45
|
|
|
$
|
25.15
|
|
|
$
|
25.75
|
|
Average direct
operating costs per operating day – Canada
|
|
$
|
14.49
|
|
|
$
|
19.75
|
|
|
$
|
19.70
|
|
|
$
|
19.98
|
|
Average margin per
operating day – Canada (1)
|
|
$
|
6.63
|
|
|
$
|
7.70
|
|
|
$
|
5.45
|
|
|
$
|
5.77
|
|
Average rigs operating
– Canada
|
|
|
2
|
|
|
|
3
|
|
|
|
2
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
operating day – Total
|
|
$
|
21.64
|
|
|
$
|
24.24
|
|
|
$
|
23.04
|
|
|
$
|
25.56
|
|
Average direct
operating costs per operating day – Total
|
|
$
|
13.77
|
|
|
$
|
12.64
|
|
|
$
|
12.96
|
|
|
$
|
13.49
|
|
Average margin per
operating day – Total (1)
|
|
$
|
7.87
|
|
|
$
|
11.60
|
|
|
$
|
10.08
|
|
|
$
|
12.07
|
|
Average rigs operating
– Total
|
|
|
68
|
|
|
|
91
|
|
|
|
64
|
|
|
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
26,507
|
|
|
$
|
104,178
|
|
|
$
|
72,508
|
|
|
$
|
527,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure
Pumping:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
105,642
|
|
|
$
|
131,702
|
|
|
$
|
354,070
|
|
|
$
|
712,454
|
|
Direct operating
costs
|
|
$
|
100,008
|
|
|
$
|
117,943
|
|
|
$
|
334,588
|
|
|
$
|
612,021
|
|
Margin (2)
|
|
$
|
5,634
|
|
|
$
|
13,759
|
|
|
$
|
19,482
|
|
|
$
|
100,433
|
|
Selling, general and
administrative
|
|
$
|
2,394
|
|
|
$
|
2,855
|
|
|
$
|
11,238
|
|
|
$
|
16,318
|
|
Depreciation,
amortization and impairment
|
|
$
|
43,315
|
|
|
$
|
48,678
|
|
|
$
|
184,872
|
|
|
$
|
214,552
|
|
Impairment of
goodwill
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
124,561
|
|
Operating
loss
|
|
$
|
(40,075)
|
|
|
$
|
(37,774)
|
|
|
$
|
(176,628)
|
|
|
$
|
(254,998)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fracturing
jobs
|
|
|
111
|
|
|
|
109
|
|
|
|
352
|
|
|
|
610
|
|
Other jobs
|
|
|
243
|
|
|
|
410
|
|
|
|
799
|
|
|
|
2,080
|
|
Total jobs
|
|
|
354
|
|
|
|
519
|
|
|
|
1,151
|
|
|
|
2,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
fracturing job
|
|
$
|
932.07
|
|
|
$
|
1,162.70
|
|
|
$
|
982.56
|
|
|
$
|
1,117.95
|
|
Average revenue per
other job
|
|
$
|
8.98
|
|
|
$
|
12.12
|
|
|
$
|
10.28
|
|
|
$
|
14.66
|
|
Average revenue per
total job
|
|
$
|
298.42
|
|
|
$
|
253.76
|
|
|
$
|
307.62
|
|
|
$
|
264.85
|
|
Average costs per
total job
|
|
$
|
282.51
|
|
|
$
|
227.25
|
|
|
$
|
290.69
|
|
|
$
|
227.52
|
|
Average margin per
total job (2)
|
|
$
|
15.92
|
|
|
$
|
26.51
|
|
|
$
|
16.93
|
|
|
$
|
37.34
|
|
Margin as a percentage
of revenues (2)
|
|
|
5.3
|
%
|
|
|
10.4
|
%
|
|
|
5.5
|
%
|
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
11,922
|
|
|
$
|
28,349
|
|
|
$
|
39,584
|
|
|
$
|
197,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
5,160
|
|
|
$
|
4,588
|
|
|
$
|
18,133
|
|
|
$
|
24,931
|
|
Direct operating
costs
|
|
$
|
2,798
|
|
|
$
|
3,404
|
|
|
$
|
8,384
|
|
|
$
|
11,500
|
|
Margin (3)
|
|
$
|
2,362
|
|
|
$
|
1,184
|
|
|
$
|
9,749
|
|
|
$
|
13,431
|
|
Selling, general and
administrative
|
|
$
|
1,769
|
|
|
$
|
341
|
|
|
$
|
3,026
|
|
|
$
|
1,399
|
|
Depreciation,
depletion and impairment
|
|
$
|
1,721
|
|
|
$
|
4,037
|
|
|
$
|
10,114
|
|
|
$
|
26,301
|
|
Operating income
(loss)
|
|
$
|
(1,128)
|
|
|
$
|
(3,194)
|
|
|
$
|
(3,391)
|
|
|
$
|
(14,269)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
495
|
|
|
$
|
2,531
|
|
|
$
|
6,116
|
|
|
$
|
16,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
$
|
12,166
|
|
|
$
|
12,259
|
|
|
$
|
49,198
|
|
|
$
|
51,616
|
|
Depreciation
|
|
$
|
1,368
|
|
|
$
|
1,368
|
|
|
$
|
5,474
|
|
|
$
|
5,472
|
|
Other operating
(income) expense, net
|
|
$
|
(4,038)
|
|
|
$
|
(3,337)
|
|
|
$
|
(14,323)
|
|
|
$
|
1,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
364
|
|
|
$
|
498
|
|
|
$
|
1,591
|
|
|
$
|
2,520
|
|
Total capital
expenditures
|
|
$
|
39,288
|
|
|
$
|
135,556
|
|
|
$
|
119,799
|
|
|
$
|
743,776
|
|
|
|
(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.
|
|
|
December
31,
|
|
|
December
31,
|
|
Selected Balance
Sheet Data (unaudited, dollars in thousands):
|
|
2016
|
|
|
2015
|
|
Cash and cash
equivalents
|
|
$
|
35,152
|
|
|
$
|
113,346
|
|
Current
assets
|
|
$
|
283,321
|
|
|
$
|
486,536
|
|
Current
liabilities
|
|
$
|
264,815
|
|
|
$
|
307,649
|
|
Working
capital
|
|
$
|
18,506
|
|
|
$
|
178,887
|
|
Current portion of
long-term debt
|
|
$
|
—
|
|
|
$
|
63,267
|
|
Borrowings under
revolving credit facility
|
|
$
|
—
|
|
|
$
|
—
|
|
Other long-term
debt
|
|
$
|
598,437
|
|
|
$
|
787,900
|
|
PATTERSON-UTI
ENERGY, INC.
|
Non-U.S. GAAP
Financial Measures
|
(unaudited, dollars
in thousands)
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Adjusted Earnings
Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(78,122)
|
|
|
$
|
(58,658)
|
|
|
$
|
(318,634)
|
|
|
$
|
(294,486)
|
|
Income tax
benefit
|
|
|
(43,677)
|
|
|
|
(27,511)
|
|
|
|
(177,562)
|
|
|
|
(147,963)
|
|
Net interest
expense
|
|
|
8,590
|
|
|
|
9,391
|
|
|
|
40,039
|
|
|
|
35,511
|
|
Depreciation,
depletion, amortization and impairment
|
|
|
157,225
|
|
|
|
175,302
|
|
|
|
668,434
|
|
|
|
864,759
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
124,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
44,016
|
|
|
$
|
98,524
|
|
|
$
|
212,277
|
|
|
$
|
582,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
246,887
|
|
|
$
|
338,566
|
|
|
$
|
915,866
|
|
|
$
|
1,891,277
|
|
Adjusted EBITDA
margin
|
|
|
17.8
|
%
|
|
|
29.1
|
%
|
|
|
23.2
|
%
|
|
|
30.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling
|
|
$
|
48,294
|
|
|
$
|
95,681
|
|
|
$
|
232,116
|
|
|
$
|
539,464
|
|
Pressure
pumping
|
|
|
3,240
|
|
|
|
10,904
|
|
|
|
8,244
|
|
|
|
84,115
|
|
Other
|
|
|
593
|
|
|
|
843
|
|
|
|
6,723
|
|
|
|
12,032
|
|
Corporate
|
|
|
(8,111)
|
|
|
|
(8,904)
|
|
|
|
(34,806)
|
|
|
|
(53,229)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA
|
|
$
|
44,016
|
|
|
$
|
98,524
|
|
|
$
|
212,277
|
|
|
$
|
582,382
|
|
|
|
(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 present
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 (a non-U.S. GAAP
measure) 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.
|
Impact of Early
Termination Revenues
|
(unaudited, dollars
in thousands)
|
|
|
|
2016
|
|
|
|
Fourth
|
|
|
Third
|
|
|
|
Quarter
|
|
|
Quarter
|
|
Contract drilling
revenues
|
|
$
|
136,085
|
|
|
$
|
123,684
|
|
Operating days -
Total
|
|
|
6,288
|
|
|
|
5,655
|
|
Average revenue per
operating day - Total
|
|
$
|
21.64
|
|
|
$
|
21.87
|
|
Early termination
revenues - Total
|
|
$
|
1,219
|
|
|
$
|
1,139
|
|
Early termination
revenues per operating day - Total
|
|
$
|
0.19
|
|
|
$
|
0.20
|
|
Average revenue per
operating day excluding early termination revenues -
Total
|
|
$
|
21.45
|
|
|
$
|
21.67
|
|
Direct operating
costs - Total
|
|
$
|
86,586
|
|
|
$
|
74,517
|
|
Average direct
operating costs per operating day - Total
|
|
$
|
13.77
|
|
|
$
|
13.18
|
|
Average margin per
operating day excluding early termination revenues -
Total
|
|
$
|
7.68
|
|
|
$
|
8.49
|
|
PATTERSON-UTI
ENERGY, INC.
|
Pressure Pumping
Margin and Adjusted EBITDA
|
(unaudited, dollars
in thousands)
|
|
|
|
2016
|
|
|
|
Fourth
|
|
|
Third
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
|
|
|
|
|
|
|
|
Pressure pumping
revenues
|
|
$
|
105,642
|
|
|
$
|
78,165
|
|
Direct operating
costs
|
|
|
100,008
|
|
|
|
77,221
|
|
Margin
|
|
|
5,634
|
|
|
|
944
|
|
Selling, general and
administrative
|
|
|
2,394
|
|
|
|
2,926
|
|
Adjusted
EBITDA
|
|
$
|
3,240
|
|
|
$
|
(1,982)
|
|
|
|
|
|
|
|
|
|
|
Margin as a
percentage of revenues
|
|
|
5.3
|
%
|
|
|
1.2
|
%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-three-and-twelve-months-ended-december-31-2016-300404690.html
SOURCE PATTERSON-UTI ENERGY, INC.