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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: (Date of earliest event reported):
February 9, 1999 (February 8, 1999)
GREY WOLF, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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TEXAS 1-8226 74-2144774
(STATE OF INCORPORATION) (COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NO.)
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10370 RICHMOND AVENUE, SUITE 600
HOUSTON, TEXAS 77042-4136
(ADDRESS OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
(713) 435-6100
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
(NOT APPLICABLE)
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS
On February 8, 1999, Grey Wolf, Inc. (the "Company") issued a press
release announcing that it will recognize a pretax, non-cash charge of
approximately $93.0 million in the fourth quarter of 1998 as a result of a
Statement of Financial Accounting Standard No. 121 (SFAS No. 121) asset
impairment. SFAS No. 121 requires that long-lived assets and certain
identifiable intangibles held and used by the Company be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. The impairment is recorded based on certain
estimates and projections and is subject to audit by the Company's independent
auditors in conjunction with their normal year-end audit.
The press release is filed as an exhibit hereto.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
(c) EXHIBITS
Exhibit 99.1 Grey Wolf, Inc. Press Release, dated February 8, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: February 9, 1999
GREY WOLF, INC.
/s/ David W. Wehlmann
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David W. Wehlmann,
Senior Vice President, Chief
Financial Officer and Secretary
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INDEX OF EXHIBITS
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Exhibit Number Description
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Exhibit 99.1 Grey Wolf, Inc. Press Release, dated February 8, 1999.
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EXHIBIT 99.1
[GREY WOLF LOGO]
PRESS RELEASE
Contact: David W. Wehlmann
Senior Vice President & Chief
Financial Officer
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AMEX SYMBOL: GW
FOR IMMEDIATE RELEASE: HOUSTON, TEXAS - FEBRUARY 8, 1999, GREY WOLF, INC.
ANNOUNCES PRETAX, NON-CASH IMPAIRMENT CHARGE OF APPROXIMATELY $93 MILLION
HOUSTON, Texas, February 8, 1999--Grey Wolf, Inc. ("Grey Wolf" or the
"Company")(AMEX-GW), announced today that it will recognize a pretax, non-cash
charge of approximately $93 million in the fourth quarter of 1998 as a result of
a Statement of Financial Accounting Standards No. 121 (SFAS No. 121) asset
impairment. SFAS No. 121 requires that long-lived assets and certain
identifiable intangibles held and used by the Company be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. The impairment is recorded based on certain
estimates and projections and is subject to audit by the Company's independent
auditors in conjunction with their normal year-end audit.
The Company's customers, which range from small independent to major oil and gas
exploration and production companies, have been negatively impacted by the
current low commodity price environment and as such, have cut and in some cases
completely curtailed their drilling programs. As a result, the number of rigs
drilling for oil and gas in the United States as reported by Baker Hughes, Inc.
has dropped to the lowest level since 1944, the first year records were kept. As
such, demand for the Company's services and the day rates received for those
services have declined significantly.
Implicit in the application of SFAS 121 are certain estimates and projections.
These estimates and projections are forwarding-looking statements within the
meaning of the Securities Act of 1933 and Securities Exchange Act of 1934. The
specific forward-looking statements cover rig supply and demand, rig attrition,
new construction costs, anticipated capital expenditures, expected utilization,
expected day rates, spending by customers, demand for the Company's services and
the future prices for oil and gas. These forward-looking statements are subject
to a number of risks and uncertainties and actual results may differ materially.
Please refer to our exchange offer prospectus dated July 6, 1998 for additional
information concerning risk factors that could cause actual results to differ
from these forward-looking statements.
Grey Wolf, Inc., headquartered in Houston, Texas, is a leading provider of
contract oil and gas land drilling services in the United States and Venezuela
with a total drilling rig fleet of 125.
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GREY WOLF, INC.
10370 Richmond Avenue * Suite 600 * Houston, Texas 77042-4136
(713) 435-6100
(713) 435-6170 Fax
