THE Todco

HOUSTON, March 1 /PRNewswire-FirstCall/ -- TODCO (the "Company") (NYSE:THE) today reported net income for the three months ended December 31, 2006, of $64.1 million, or $1.11 per diluted share, on revenues of $260.1 million compared to net income of $21.2 million, or $0.34 per share, on revenues of $150.4 million for the same quarter of 2005. The fourth quarter of 2006 included $10.1 million (or $0.11 per diluted share, after tax) of rig reactivation expense versus only $3.0 million (or $0.02 per diluted share, after tax) of rig reactivation expense during the fourth quarter of 2005. For the three months ended December 31, 2006, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $119.7 million compared to $67.8 million for the same quarter of 2005. The improvement in fourth quarter 2006 results over the same quarter last year was principally caused by improved utilizations and dayrates which will be discussed during TODCO's publicly accessible fourth quarter conference call. The conference call will be at 9:00 a.m. (CST), Thursday, March 1, 2007. The conference call can be heard live on the Company's web site at http://www.theoffshoredrillingcompany.com/ or by dialing (800) 374-0113 or (706) 758- 9607. A replay of the call will be available for approximately 30 days on the Company's web site or by dialing (800) 642-1687 or (706) 645-9291, reference code 7223910#. TODCO is a leading provider of contract oil and gas drilling services with the largest rig fleet in the shallow water of the U.S. Gulf of Mexico and along the U.S. Gulf Coast. TODCO's common stock is traded on the New York Stock Exchange under the symbol "THE." For more information about TODCO, please go to the Company's web site at http://www.theoffshoredrillingcompany.com/. TODCO AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except share data) December 31, December 31, 2006 2005 ASSETS Cash and cash equivalents $169.3 $163.0 Accounts receivable Trade 196.8 107.4 Other 32.5 19.7 Supplies 4.9 4.9 Deferred income taxes 11.0 8.4 Other current assets 12.8 17.9 Total current assets 427.3 321.3 Property and equipment 968.4 919.7 Less accumulated depreciation 517.1 436.7 Property and equipment, net 451.3 483.0 Other assets 10.6 20.7 Total assets $889.2 $825.0 LIABILITIES AND STOCKHOLDERS' EQUITY Trade accounts payable $66.1 $42.4 Accrued income taxes 21.8 10.9 Accrued income taxes - former parent 51.7 44.9 Debt due within one year - 0.4 Debt due within one year - related party - 2.9 Interest payable - related party - 0.1 Other current liabilities 58.9 63.0 Total current liabilities 198.5 164.6 Long-term debt 16.4 16.6 Deferred income taxes 110.2 144.8 Other long-term liabilities 0.2 3.5 Total long-term liabilities 126.8 164.9 Commitments and contingencies Preferred Stock, $0.01 par value, 50,000,000 shares authorized and no shares issued and outstanding - - Common stock, $0.01 par value, 500,000,000 shares authorized, 57,742,030 shares and 61,521,990 shares issued and outstanding at December 31, 2006 and 2005, respectively 0.6 0.6 Common stock, Class B, $0.01 par value, no shares authorized at December 31, 2006, and 260,000,000 shares authorized and no shares issued and outstanding at December 31, 2005 - - Additional paid-in capital 6,409.0 6,527.2 Retained deficit (5,845.7) (6,029.3) Unearned compensation - (3.0) Total stockholders' equity 563.9 495.5 Total liabilities and stockholders' equity $889.2 $825.0 Total shares, issued and outstanding 57,742,030 61,521,990 TODCO AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) Three Months Twelve Months Ended Ended December 31, December 31, 2006 2005 2006 2005 (Unaudited) Operating revenues $260.1 $150.4 $912.1 $534.2 Costs and expenses Operating and maintenance 133.1 90.0 510.2 323.2 Depreciation 21.1 24.0 86.2 96.0 General and administrative 10.1 9.5 41.3 37.7 Impairment loss on long-lived assets - - 0.4 - 164.3 123.5 638.1 456.9 Operating income 95.8 26.9 274.0 77.3 Other income (expense), net Interest income 2.4 1.3 9.8 3.5 Interest expense (2.5) (0.9) (4.7) (3.6) Interest expense-related party - - - (0.2) Gain on disposal of assets, net 2.6 16.8 11.6 25.1 Other, net 0.2 0.1 0.8 1.8 2.7 17.3 17.5 26.6 Income before income taxes and cumulative effect of a change in accounting principle 98.5 44.2 291.5 103.9 Income tax expense 34.4 23.0 108.0 44.5 Income before cumulative effect of a change in accounting principle 64.1 21.2 183.5 59.4 Cumulative effect of a change in accounting principle, net of tax - - 0.1 - Net income $64.1 $21.2 $183.6 $59.4 Net income per common share: Basic: Income before cumulative effect of a change in accounting principle $1.12 $0.35 $3.06 $0.98 Cumulative effect of a change in accounting principle, net of income tax - - - - Net income per common share $1.12 $0.35 $3.06 $0.98 Diluted: Income before cumulative effect of a change in accounting principle $1.11 $0.34 $3.04 $0.97 Cumulative effect of a change in accounting principle, net of income tax - - - - Net income per common share $1.11 $0.34 $3.04 $0.97 Weighted average common shares outstanding: Basic 57.5 61.3 60.1 60.7 Diluted 57.9 61.9 60.5 61.4 Cash dividend per common share: $ - $ - $ - $1.00 TODCO AND SUBSIDIARIES SELECTED SEGMENT AND OPERATING DATA (In millions, except daily amounts) (Unaudited) Three Months Ended December 31, September 30, December 31, 2006 2006 2005 U.S. Gulf of Mexico Segment Operating days 1,261 1,083 983 Available days 1,932 1,932 1,947 Utilization 65% 56% 51% Average rig revenue per day $97,100 $104,100 $60,800 Operating revenues $122.5 $112.7 $59.8 Operating and maintenance expenses 52.2 62.5 33.4 Depreciation 8.6 8.4 12.4 Operating income $61.7 $41.8 $14.0 U.S. Inland Barge Segment Operating days 1,501 1,543 1,373 Available days 2,484 2,484 2,484 Utilization 60% 62% 55% Average rig revenue per day $44,800 $42,900 $30,800 Operating revenues $67.2 $66.2 $42.3 Operating and maintenance expenses 35.0 30.1 25.8 Depreciation 6.1 6.1 6.0 Operating income $26.1 $30.0 $10.5 International and Other Segment Operating days 1,099 1,033 922 Available days 1,472 1,472 1,457 Utilization 75% 70% 63% Average rig revenue per day $44,100 $42,100 $37,100 Operating revenues $48.5 $43.5 $34.2 Operating and maintenance expenses 36.3 28.6 24.6 Depreciation 5.4 5.4 4.4 Operating income $6.8 $9.5 $5.2 Delta Towing Segment Operating revenues $21.9 $19.9 $14.1 Operating and maintenance expenses 9.6 8.0 6.2 Depreciation 1.0 1.0 1.2 General and administrative expenses 1.1 1.3 1.1 Operating income $10.2 $9.6 $5.6 Total Company Rig operating days 3,861 3,659 3,278 Rig available days 5,888 5,888 5,888 Rig utilization 66% 62% 56% Operating revenues $260.1 $242.3 $150.4 Operating and maintenance expenses 133.1 129.2 90.0 Depreciation 21.1 20.9 24.0 General and administrative expenses 10.1 10.8 9.5 Operating income $95.8 $81.4 $26.9 TODCO AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (In millions) (Unaudited) For the Three Months Ended December 31, September 30, December 31, 2006 2006 2005 Net income to EBITDA Net income $64.1 $55.5 $21.2 Adjustments: Depreciation 21.1 20.9 24.0 Income tax expense 34.4 35.1 23.0 Interest income (2.4) (2.6) (1.3) Interest expense 2.5 0.8 0.9 EBITDA $119.7 $109.7 $67.8 DATASOURCE: TODCO CONTACT: Dale Wilhelm, Vice President & CFO of TODCO, +1-713-278-6014 Web site: http://www.theoffshoredrillingcompany.com/

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