PARKER DRILLING CO /DE/
10-Q, 1994-07-15
DRILLING OIL & GAS WELLS
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                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                             ---------------------
                                   FORM 10-Q
                             ---------------------
(Mark One)
    /X/           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MAY 31, 1994

                                      OR

    / /           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

    FOR THE TRANSITION PERIOD FROM                     TO                    
                                   -------------------    -------------------  
 

                        COMMISSION FILE NUMBER  1-7573 
                            ----------------------

                            PARKER DRILLING COMPANY
            (Exact name of registrant as specified in its charter)

        Delaware                                        73-0618660         
- - -------------------------------           ------------------------------------
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
incorporation or organization)

       Parker Building, Eight East Third Street, Tulsa, Oklahoma  74103
       -----------------------------------------------------------------
       (Address of principal executive offices)              (zip code)

       Registrant's telephone number, including area code (918) 585-8221
       ------------------------------------------------------------------

      Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.   Yes  X   No     

     As of June 30, 1994, 55,098,270 common shares were outstanding.

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<TABLE>

                            PARKER DRILLING COMPANY

                                     INDEX
<CAPTION>
<S>                                                                  <C>
Part I.  Financial Information                                        Page No.


      Consolidated Condensed Balance Sheets (Unaudited) -
        May 31, 1994 and August 31, 1993                                  2   

      Consolidated Condensed Statements of Operations (Unaudited) - 
        Three and Nine Months Ended May 31, 1994 and 
        May 31, 1993                                                      3   

      Consolidated Condensed Statements of Cash Flows (Unaudited) -
        Nine Months Ended May 31, 1994 and May 31, 1993                   4   

      Notes to Unaudited Consolidated Condensed
        Financial Statements                                              5   

      Report of Review by Independent Accountants                         6   

      Management's Discussion and Analysis of Financial 
        Condition and Results of Operations                            7 - 10 


Part II.  Other Information

      Item 6, Exhibits and Reports on Form 8-K                           11   

      Signatures                                                         12   

      Exhibit 10(a) Amendment dated as of May 2, 1994, to the
            Credit Agreement, dated as of September 24, 1992,
            between Morgan Guaranty Trust Company of New York,
            Internationale Nederlanden Bank N.V. and Parker
            Drilling Company.

      Exhibit 15, Letter Re Unaudited Interim 
        Financial Information                                                 
</TABLE> 

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<TABLE>
                        PART 1.  FINANCIAL INFORMATION

                   PARKER DRILLING COMPANY AND SUBSIDIARIES
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                            (Dollars in Thousands)
                                  (Unaudited)

<CAPTION>
                                                    May 31,       August 31, 
                                                     1994            1993   
                              ASSETS              ----------      ----------
                              ------
<S>                                                 <C>            <C>      
Current assets:
  Cash and cash equivalents                         $  8,403       $ 12,570 
  Other short-term investments                         4,977         31,419 
  Accounts and notes receivable                       35,893         23,353 
  Rig materials and supplies                          10,372         10,970 
  Other current assets                                 8,897          2,793 
                                                    --------       -------- 
      Total current assets                            68,542         81,105 

Property, plant and equipment less accumulated
 depreciation, depletion and amortization of
 $485,486 at May 31, 1994, and $472,466
 at August 31, 1993                                  155,043        139,326 

Other noncurrent assets                               15,740         15,911 
                                                    --------       --------  
      Total assets                                  $239,325       $236,342 
                                                    --------       -------- 
                                                    --------       -------- 

                     LIABILITIES AND STOCKHOLDERS' EQUITY
                     -------------------------------------

Current liabilities:
  Accounts payable                                  $ 11,427       $  5,915 
  Accrued liabilities                                  9,613          9,646 
  Accrued income taxes                                 4,088          5,291 
                                                    --------       -------- 
      Total current liabilities                       25,128         20,852 

Deferred income taxes                                  1,198          1,198 

Other long-term liabilities                            2,711          3,495 

Minority interest                                      3,267          3,118 

Common stock, $.16 2/3 par value                       9,182          9,164 
Capital in excess of par value                       202,271        201,784 
Retained earnings (Accumulated deficit)               (1,434)           499 
Other                                                 (2,998)        (3,768)
                                                    --------       -------- 
      Total liabilities and stockholders' equity    $239,325       $236,342 
                                                    --------       -------- 
                                                    --------       -------- 



    See accompanying notes to consolidated condensed financial statements.
                                     - 2 -
</TABLE>
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<TABLE>
                   PARKER DRILLING COMPANY AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                (Dollars in Thousands Except Per Share Amounts)
                                  (Unaudited)
<CAPTION>
                                 Three Months Ended      Nine Months Ended  
                                       May 31,                 May 31,      
                                -------------------     ------------------- 
                                  1994       1993         1994       1993   
                                -------    --------     -------     ------- 
<S>                             <C>         <C>         <C>         <C>     
Revenue:
 Drilling contracts             $35,631     $24,190    $114,721     $70,748 
 Other                            1,048         843       2,733       3,518  
                                -------     -------    --------     ------- 
    Gross operating revenue      36,679      25,033     117,454      74,266 
                                -------     -------    --------     ------- 
Operating expense:
 Drilling                        26,584      15,195      81,123      44,760 
 Other                            1,031         769       2,838       3,045 
 Depreciation, depletion and 
   amortization                   5,698       4,941      15,687      15,328 
 General and administrative       6,302       6,177      19,911      19,768  
                                -------     -------    --------     ------- 
                                 39,615      27,082     119,559      82,901 
                                -------     -------    --------     ------- 
Operating income (loss)          (2,936)     (2,049)     (2,105)     (8,635)
                                -------     -------    --------     ------- 
Other income and (expense):
 Interest expense                    (2)        (14)         (9)        (53)
 Interest income                    251         487         806       1,292 
 Other income (expense) - net        70         (12)        502        (540)
                                -------     -------    --------     ------- 
                                    319         461       1,299         699 
                                -------     -------    --------     ------- 
Income (loss) before
 income taxes                    (2,617)     (1,588)       (806)     (7,936)
                                -------     -------    --------     ------- 
Income tax expense                  174         525       1,127       1,675 
                                -------     -------    --------     ------- 
Net income (loss)                (2,791)     (2,113)     (1,933)     (9,611)
                                -------     -------    --------     ------- 
Dividends on preferred stock        -           -           -             6 
                                -------     -------    --------     ------- 
Income (loss) applicable 
  to common stock               $(2,791)    $(2,113)   $ (1,933)    $(9,617)
                                -------     -------    --------     ------- 
                                -------     -------    --------     ------- 
Earnings (loss) per share,
 primary and fully diluted      $  (.05)    $  (.04)   $   (.04)    $  (.18)
                                -------     -------    --------     ------- 
Number of common shares         -------     -------    --------     ------- 
 used in computing earnings 
 (loss) per share:                      

   Primary                    54,325,100  53,772,534  54,209,089  53,007,108
                              ----------  ----------  ----------  ----------
                              ----------  ----------  ----------  ----------
   Fully diluted              54,325,100  53,772,534  54,209,089  53,007,108
                              ----------  ----------  ----------  ----------
                              ----------  ----------  ----------  ----------
    See accompanying notes to consolidated condensed financial statements.
                                     - 3 -
/TABLE
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<TABLE>
                   PARKER DRILLING COMPANY AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
               Increase (Decrease) in Cash and Cash Equivalents
                            (Dollars in Thousands)
                                  (Unaudited)
<CAPTION>
                                                        Nine Months Ended   
                                                              May 31,       
                                                       -------------------- 
                                                          1994        1993  
                                                        -------     ------- 
<S>                                                     <C>         <C>     
Cash flows from operating activities:
  Net income (loss)                                     $(1,933)    $(9,611)
  Adjustments to reconcile net income (loss)
    to net cash provided by operating activities:
      Depreciation, depletion and amortization           15,687      15,328 
      Expenses not requiring cash                         2,259       3,698 
      Change in operating assets and liabilities        (14,989)      5,813 
      Other-net                                            (705)       (958)
                                                        -------     ------- 
    Net cash provided by operating activities               319      14,270 
                                                        -------     ------- 
Cash flows from investing activities:
  Capital expenditures                                  (31,841)     (6,529)
  Proceeds from the sale of equipment                     1,247       6,053 
  Decrease (increase) in short-term investments          26,442     (17,627)
  Proceeds from disposition of a subsidiary                 -         2,325 
  Other-net                                                 (30)       (127)
                                                        -------     ------- 
    Net cash provided (used) by investing 
      activities                                         (4,182)    (15,905)
                                                        -------     ------- 
Cash flows from financing activities:
  Principal payments under debt obligations                 -          (777)
  Proceeds from exercise of a stock warrant                 -         4,320 
  Other-net                                                (304)     (1,043)
                                                        -------     ------- 
    Net cash provided (used) by financing 
      activities                                           (304)      2,500 
                                                        -------     ------- 

Net increase (decrease) in cash and cash equivalents     (4,167)        865 

Cash and cash equivalents at 
  beginning of period                                    12,570      13,288 
                                                        -------     ------- 
Cash and cash equivalents at 
  end of period                                         $ 8,403     $14,153 
                                                        -------     ------- 
                                                        -------     ------- 
Supplemental disclosure:
  Interest paid                                         $     9     $    47 
  Taxes paid                                            $ 2,330     $ 1,953 

    See accompanying notes to consolidated condensed financial statements.
                                     - 4 -
/TABLE
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                   PARKER DRILLING COMPANY AND SUBSIDIARIES

        NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


1.  In the opinion of the Company, the accompanying unaudited consolidated
    condensed financial statements reflect all adjustments (of a normally
    recurring nature) which are necessary for a fair presentation of (1) the
    financial position as of May 31, 1994 and August 31, 1993, (2) the results
    of operations for the three and nine months ended May 31, 1994 and May 31,
    1993, and (3) cash flows for the nine months ended May 31, 1994 and May
    31, 1993.  Results for the three and nine months ended May 31, 1994, are
    not necessarily indicative of the results which will be realized for the
    year ending August 31, 1994.  The year-end consolidated condensed balance
    sheet data was derived from audited financial statements, but does not
    include all disclosures required by generally accepted accounting
    principles.  The financial statements should be read in conjunction with
    the Company's Form 10-K for the year ended August 31, 1993.

2.  Earnings per common share is based on the weighted average number of
    common shares and common share equivalents outstanding during the period. 
    Common shares granted under the 1969 Key Employee Stock Grant Plan, 1980
    Incentive Career Stock Plan and the 1991 Stock Grant Plan are issued and
    outstanding but are not considered in the computation of weighted average
    shares outstanding until the restrictions lapse.  However, they are
    considered common stock equivalents.  

3.  A former employee ("Plaintiff") was injured while working for the Company
    on a rig owned and operated by another firm ("Defendant").  The Plaintiff
    was granted an award totaling $6.75 million from the Defendant.  Although,
    the Company provided a defense for the Defendant pursuant to the indemnity
    provision in the contract between the parties, the Company is currently in
    litigation to determine the liability of the Company to indemnify the
    Defendant due to the findings by the jury as to the conduct of the
    Defendant's agents that caused the injury to the Plaintiff.  Pending
    resolution of the liability issue, the Company and the Defendant entered
    into a non-binding funding arrangement whereby in March 1994 each party
    funded $3.375 million of the award without prejudice to their respective
    legal positions.  Management believes that the Company is not legally
    obligated to fund the award.  However, if the Company is liable,
    management believes it has adequate insurance to recover the majority of
    any loss.  

4.  During the third quarter fiscal 1994 the Company entered into an amendment
    to its Credit Agreement.  The amendment extends $7.5 million of the $15
    million revolving credit facility from September 1994, through March 1996. 
    



                                     - 5 -

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                       Report of Independent Accountants




To the Board of Directors and Shareholders
Parker Drilling Company

   We have reviewed the consolidated condensed balance sheet of Parker
Drilling Company and subsidiaries as of May 31, 1994, and the related
consolidated condensed statements of operations for the three and nine month
periods ended May 31, 1994 and 1993 and consolidated condensed statements of
cash flows for the nine month periods ended May 31, 1994 and 1993.  These
financial statements are the responsibility of the Company's management.  

   We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters.  It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole.  Accordingly, we do not express such an opinion. 

   Based on our review, we are not aware of any material modifications that
should be made to the condensed consolidated financial statements referred to
above for them to be in conformity with generally accepted accounting
principles.  

   We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of August 31, 1993, and the
related consolidated statements of operations, redeemable preferred stock and
stockholders' equity and cash flows for the year then ended (not presented
herein); and in our report, dated October 14, 1993, we expressed an
unqualified opinion on those consolidated financial statements.  In our
opinion, the information set forth in the accompanying condensed consolidated
balance sheet as of August 31, 1993, is fairly stated in all material respects
in relation to the consolidated balance sheet from which it has been derived. 




                                          COOPERS & LYBRAND



Tulsa, Oklahoma
July 13, 1994

                                     - 6 -
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                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS
- - ---------------------

Third Quarter of Fiscal 1994 Compared with Third Quarter of Fiscal 1993

   The Company experienced a net loss of $2.8 million for the third quarter
of fiscal 1994, compared to a net loss of $2.1 million for the same period in
fiscal 1993.  The primary reason for the increase in net loss was an increase
in depreciation expense of $.8 million.  In addition, drilling margins of $9.0
million did not improve over the third quarter of fiscal 1993 even though
drilling revenue increased $11.4 million.

   Drilling revenue in the third quarter of fiscal 1994 increased to $35.6
million from $24.2 million in the third quarter of fiscal 1993.  International
utilization in the third quarter of fiscal 1994 was 53 percent compared to 38
percent for the same period of fiscal 1993, and overall utilization increased
to 31 percent from 24 percent.

   Drilling revenue from operations in Africa, the Middle East and
Commonwealth of Independent States ("CIS") declined a combined $.2 million
when comparing the third quarter of fiscal 1994 with the third quarter of
fiscal 1993.  The Company entered a new market in the fourth quarter of fiscal
1993 when it obtained a labor contract with a major customer in the country of
Kazakhstan.  This increase in revenue was offset by a decease in revenue from
the country of Chad which had two rigs operating beginning in the third
quarter of fiscal 1993 through the first quarter of fiscal 1994.  These two
rigs began operations again in Chad during the fourth quarter of fiscal 1994.

   International drilling revenue from operations in Asia and the Pacific
during the third quarter of fiscal 1994 increased $5.2 million compared to the
same quarter of fiscal 1993.  The primary reasons for the increase were the
start-up of operations in the Philippines, another new market for the Company,
and the resumption of operations in Pakistan, both during the first quarter of
fiscal 1994.  Also contributing to the increase was higher utilization in
Papua New Guinea in the third quarter of fiscal 1994 versus the third quarter
of fiscal 1993. 
   
   Western Hemisphere international drilling revenue increased $7.3 million
from the third quarter of fiscal 1993.  The primary reason for the increase
was revenue from operations in the country of Argentina.  The Company
reentered the Argentina drilling market during the fourth quarter of fiscal
1993.  In addition revenue from operations in Colombia increased in the third
quarter of fiscal 1994 compared to the third quarter of fiscal 1993 due to an
increase in utilization.  

   Domestic drilling revenue declined $.9 million due primarily to the
release at the end of the third quarter of fiscal 1994 of the Company's
specialized arctic rig.  Management forecasts this rig will begin operations
again in the second quarter of fiscal 1995.


                                     - 7 -
<PAGE>
<PAGE>
RESULTS OF OPERATIONS (continued)
- - ---------------------

   Although drilling revenue increased $11.4 million versus last year's third
quarter, the Company's drilling margin (drilling revenue less drilling
expense) remained nearly the same.  Drilling margins in Colombia declined due
to increased operating expenses and costs associated with the startup of two
rigs.  In Argentina, the initial startup costs of entering a new market and
putting ten newly acquired rigs to work (four in the third quarter) continued
to negatively impact drilling margins.  Additionally, during this transition
period the Company encountered drilling problems which resulted in slower-
than-expected drilling progress on some of the footage rate contracts. 
Management is taking steps to resolve the drilling problems and reduce
operating expenses in these two countries.  

   Depreciation expense in the third quarter of fiscal 1994 increased $.8
million over the same quarter of fiscal 1993.  The increase in depreciation
expense was the result of the increased level of capital expenditures during
the current fiscal year.  The Company was able to hold general and
administrative expense at the same level as the third quarter of the prior
year even as overall utilization increased.  Income tax expense, consisting
primarily of foreign income taxes, decreased $.4 million due primarily to the
reversal of an accrual in a country where the Company received a favorable tax
treatment of earnings from prior years' operations.


First Nine Months of Fiscal 1994 Compared with First Nine Months of Fiscal
1993

   The Company's net loss of $1.9 million for the first nine months of fiscal
1994 represented a $7.7 million improvement over the same period of fiscal
1993.  The improvement was primarily attributable to increased drilling
revenue and drilling margin for the first nine months of fiscal 1994.

   Drilling revenue of $114.7 million for the first nine months of fiscal
1994 was up $44.0 million from the first nine months of fiscal 1993 as overall
utilization increased to 35 percent from 24 percent.  International
utilization for the first nine months of fiscal 1994 was 57 percent compared
to 37 percent for the same period of fiscal 1993.

   International drilling revenue from operations in Africa, the Middle East
and CIS increased $11.5 million over the first nine months of fiscal 1993. 
Revenue increased from the operation of two work-over rigs in the Russian
Republic and a one-rig contract in Congo, both areas that had no operations
during the first nine months of fiscal 1993.  These three rigs were released
during the second quarter of fiscal 1994.  Also during the fourth quarter of
fiscal 1993 the Company began operating in the country of Kazahkstan under a
labor contract for a major customer.  

   International drilling revenue from operations in Asia and the Pacific
during the first nine months of fiscal 1994 increased $17.1 million compared
to the same period of fiscal 1993.  The increase was primarily the result of
the operation of two geothermal rigs in the Philippines, the resumption of
operations in Pakistan during the first quarter of fiscal 1994 and increased
utilization in Papua New Guinea.



                                     - 8 -
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<PAGE>
RESULTS OF OPERATIONS (continued)
- - ---------------------

   Western Hemisphere international drilling revenue increased $13.4 million
as operations in Argentina and increased utilization in Ecuador and Peru more
than offset a decline in revenue in Colombia resulting from a decrease in
utilization in that country.  Domestic drilling revenue increased $2.2 million
as utilization in the continental United States improved to 15 percent for the
first nine months of fiscal 1994 versus 11 percent for the first nine months
of 1993.

   Drilling margins did not improve in proportion to the increase in drilling
revenue for reasons previously discussed in the third quarter comparison. 
Depreciation expense increased $.4 million as a result of increased capital
spending during fiscal 1994.  Other income (expense) increased $1.0 million
due primarily to a $.9 million adjustment of a prior years workers'
compensation liability recorded in the first quarter of fiscal 1993.  Income
tax expense declined $.5 million for the reason previously discussed in the
comparison of third quarter operations.


                        LIQUIDITY AND CAPITAL RESOURCES

   During the first nine months of fiscal 1994, cash and other short-term
investments declined $30.6 million.  The decline was caused by the Company
financing capital expenditures of $31.8 million primarily with existing cash
and short-term investments.

   Capital expenditures for the first nine months of fiscal 1994 included
expenditures for the acquisition and modification of twelve drilling rigs. 
Eleven of the rigs are in Argentina with ten having been under contract during
the third quarter of fiscal 1994.  Another rig is currently operating in
Colombia for a major customer.  Management currently forecasts total capital
expenditures for fiscal 1994 to be approximately $37.0 million.  In the event
the Company obtains contracts in addition to those currently anticipated that
would require the construction or purchase of new or specialized rigs or
significant modifications to existing rigs, capital expenditures could be
greater than this forecasted amount.  Any significant increase in capital
expenditures would be subject to restrictions imposed on the Company as
specified below. 
     

                                     - 9 -
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<PAGE>


LIQUIDITY AND CAPITAL RESOURCES (continued)
- - -------------------------------

   The Company has a credit agreement ("Agreement") with two banks which
provides for a $15.0 million revolving credit facility through September 1994. 
The Agreement was amended in the third quarter of fiscal 1994 to extend $7.5
million of the revolving credit facility through March 1996.  All of the
credit facility was available for drawdown as of May 31, 1994.  It contains
restrictions on annual capital expenditures and certain senior and
subordinated indebtedness which can be incurred by Parker Drilling Company and
certain subsidiaries designated in the Agreement.  These designated
subsidiaries comprise the operating subsidiaries through which the Company
performs the majority of its drilling operations.  The credit facility also
limits payment of dividends on the Company's common stock to the lesser of 40
percent of consolidated net income for the preceding fiscal year, or $2.6
million.  The remaining subsidiaries of the Company are not a party to the
credit facility and are able to make capital expenditures and obtain
independent financing from lenders that have no recourse to Parker Drilling
Company and the designated subsidiaries, subject only to an overall limitation
of indebtedness.

   The restrictions in the Agreement are not anticipated to restrict growth
or investment opportunities in the foreseeable future.

    Management believes that the current level of cash and short-term
investments, together with cash generated from operations, should be
sufficient to meet the Company's immediate capital needs.  However, in the
event the Company obtains additional contracts requiring further significant
capital expenditures, management believes the Company would likely meet both
short-term and long-term capital needs through a combination of cash generated
from operations, borrowings under the bank credit agreement and either equity
or long-term debt financing.


OTHER MATTERS
- - -------------

   The Company is currently involved in litigation as discussed in Note 3 of
Notes to Unaudited Consolidated Condensed Financial Statements.  


                                    - 10 -
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<PAGE>

                          PART II.  OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

(a)Exhibits:                                                                   

   Exhibit 10(a) Amendment dated as of May 2, 1994, to the Credit Agreement, 
         dated as of September 24, 1992, between Morgan Guaranty Trust        
         Company of New York, Internationale Nederlanden Bank N.V. and Parker 
         Drilling Company

   Exhibit 15 Letter re Unaudited Interim Financial Information        
 
(b)Reports on Form 8-K - There were no reports on Form 8-K filed
   during the nine months ended May 31, 1994.






























                                    - 11 -
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                                  SIGNATURES


   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.



                                                       Parker Drilling Company
                                                       -----------------------
                                                              Registrant


Date:  July 12, 1994


                                           By:  /s/James J. Davis              
                                                -----------------------------
                                                   James J. Davis      
                                                   Vice President, Finance and
                                                   Chief Financial Officer





                                           By:  /s/Randy Ellis                
                                                -----------------------------  
                                                   Randy Ellis
                                                   Controller and 
                                                   Chief Accounting Officer




















                                    - 12 -
<PAGE>


<PAGE>
                                                           Exhibit 10(a)


                         AMENDMENT TO CREDIT AGREEMENT


      AMENDMENT TO CREDIT AGREEMENT dated as of May 2nd, 1994, among Parker
Drilling Company, a Delaware corporation (the "Borrower"), Morgan Guaranty
Trust Company of New York ("Morgan") and International Nederlanden (U.S.)
Capital Corporation ("INCC"), as assignor of the interest of Internationale
Nederlanden Bank, N.V. ("ING") (individually referred to herein as a "Bank"
and collectively referred to as "Banks").


                                  WITNESSETH:
                                  -----------

      WHEREAS, the Borrower and the Banks are parties to the Credit Agreement
dated as of September 24, 1992, (as heretofore amended by amendment dated as
of December 12, 1993, the "Agreement"); and

      WHEREAS, ING assigned to INCC all of ING's rights, interests and
obligations under the Agreement pursuant to a certain Assignment and
Assumption dated September 8, 1993; and

      WHEREAS, the Borrower has requested INCC, and INCC has agreed, to extend
the Loan Commitment Period with regard to INCC's Loan Commitment by amending
the Termination Date to March 1, 1996, and the Borrower has requested the
Banks, and the Banks have agreed, to amend certain covenants; and 

      WHEREAS, the parties hereto have agreed to such Amendment subject to the
terms contained herein;

      NOW, THEREFORE, in consideration of the premises and the mutual
agreement herein contained, the Borrower and the Banks agree as follows:

      1.    AMENDMENT TO DEFINITION OF ING AND BANKS.  All references to "ING"
in the Agreement are amended to read "INCC" and the definition of "INCC" is
added as follows:

      "INCC" means International Nederlanden (U.S.) Capital Corporation
      and any successors thereto or assignees thereof.  

The definition of "Banks" is amended to read as follows:

      "shall mean Morgan and INCC and any successors thereto or
      assignees thereof; provided, however, that from and after the
      later of September 1, 1994, or the date on which all amounts owing
      to Morgan shall have been paid in full, "Banks" and "Bank" shall
      be deemed to refer solely to INCC;"

      2.    AMENDMENT TO BASE RATE AND EURODOLLAR RATE.  The definition of
"Base Rate" is hereby amended by deleting the phrase, "provided that if ING
shall cease to announce a prime commercial lending rate, then 'Base Rate'
shall mean," and inserting in lieu thereof, provided that with respect to INCC
'Base Rate' shall mean".  The definition of "Eurodollar Base Rate" is hereby 

<PAGE>
<PAGE>

amended by deleting the phrase, "provided that if ING shall cease to make such
offers, 'Eurodollar Base Rate' shall mean, "and inserting in place thereof,
"provided that with respect to INCC 'Eurodollar Base Rate' shall mean".

      3.    AMENDMENT OF TERMINATION DATE.  The definition of Termination Date
shall be amended to read as follows:

      "Termination Date" shall mean with regard to the Loan Commitment
      of INCC the date of March 1, 1996, but shall mean September 1,
      1994, with regard to the Loan Commitment of Morgan;"

      4.    NOTE OF INCC.  Company shall execute and deliver to INCC a Note
dated as of the date of this Amendment otherwise in the form of Exhibit A to
the Agreement, with appropriate insertions as to date and principal amount,
payable to the order of INCC, which Note shall be stated to mature on the
Termination Date with respect to the Loan Commitment of INCC.  Such Note shall
represent the obligation of the Company to pay INCC the aggregate principal
amount of all Loans made by INCC.  All references in the Agreement to "Note"
shall refer to such Note.  The Company's obligation to execute and deliver
said Note shall be contingent upon receipt by Company of any and all notes in
favor of ING by the Company duly stamped "Canceled".  

      5.    AMENDMENT TO ARTICLE 2.  Article 2 is hereby amended by adding the
following additional Subsection 2.19:

      "2.19 TERMINATION DATE OF MORGAN.  Notwithstanding the provisions
      of Subsection 2.17 and 2.18, on the Termination Date with respect
      to the Loan Commitment of Morgan, provided no Default or event of
      Default shall have occurred which is continuing, the Company shall
      pay to Morgan the outstanding principal of and interest on the
      Loans made by Morgan to the Company under this Agreement.  From
      and after such payment of the outstanding principal of and
      interest on the Loans made by Morgan to the Company, the
      provisions of Subsection 2.17 and 2.18 shall no longer apply and
      other than as provided in the next sentence, all references to
      "Bank" or "Banks" in the Agreement shall refer only to INCC.  The
      provisions of Subsection 8.5 of the Agreement shall continue to
      inure to the benefit of Morgan from and after the Termination Date
      with respect to the Loan Commitment of Morgan with respect to any
      liabilities, losses, damages, costs and expenses arising or
      relating circumstances occurring, prior to the Termination Date
      with respect to the Loan Commitment of Morgan."

      6.    AMENDMENT TO SUBSECTION 6.8.  Subsection 6.8 is hereby amended by
deleting subpart (i) and inserting in lieu thereof:  

      "(i) cash expenditures not exceeding, in the aggregate for the
      Company and the Restricted Subsidiaries, $50,000,000 for the
      fiscal year ending August 31, 1994, and $30,000,000 for any fiscal
      year thereafter on a non cumulative basis."

<PAGE>
<PAGE>

      7.  AMENDMENT TO SUBSECTION 6.12.  Subsection 6.12 is hereby amended to
read as follows:  

"Minimum Consolidated Operating Cash Flow.  As of the end of each fiscal
quarter of the Company, the Company and Restricted Subsidiaries shall not
permit Consolidated Operating Cash Flow for the period of four consecutive
fiscal quarters ending on the date of determination thereof to be less than
$500,000; provided, however, if on the date of determination the Company has
any outstanding Indebtedness to the Bank pursuant to this Agreement or other
additional senior indebtedness allowable under this Agreement (specifically
excluding purchase money indebtedness), the Company shall not permit the
average quarterly Consolidated Operating Cash Flow for the previous four
consecutive fiscal quarters ending on the date of determination thereof to be
less than an amount equal to one-seventh (1/7) of the average outstanding
Adjusted Indebtedness of the Company during the fiscal quarter ending on the
date of determination thereof.  (For the purposes of this Agreement, Adjusted
Indebtedness shall be calculated as the sum of the following:  (i)
indebtedness to the Bank pursuant to this Agreement, as amended, and (ii)
other additional senior indebtedness excluding purchase money and undrawn
letters of credit.  For the purposes of this subsection 6.12, Consolidated
Operating Cash Flow for any period shall mean the sum of (i) consolidated Net
Income of the Company and the Restricted Subsidiaries for such period and (ii)
any non-cash charges, including, but not limited to, deductions for
depreciation expense and amortization of intangible assets, for such period.)"

      8.    EFFECTIVENESS.  This Amendment shall be effective as of the date
first written above when all of the following shall have occurred:  

      (a) "This amendment shall have been executed and delivered by the
      Company and the Bank;

      (b) The Bank shall have received a legal opinion of legal counsel
      to the Company, in form and substance satisfactory to the Bank;
      and

      (c) The Bank shall have received, in form and substance
      satisfactory to the Bank, a certificate dated as of the date of
      this Amendment signed by a duly authorized officer of the Company
      certifying as true and correct the Articles of Incorporation and
      Bylaws of the Company previously delivered to the Bank (or such
      amendments thereof as shall accompany such certificate) and
      Resolutions of the Board of Directors of the Company approving the
      execution, delivery and performance of this Amendment.

      9.    REPRESENTATIONS AND WARRANTIES.  The Company, without limiting the
representations and warranties provided in the Agreement, hereby represents 
<PAGE>
<PAGE>

and warrants, with respect to and as they shall apply to this Amendment, that
the representations and warranties contained in the Agreement are true and
correct as of the effective date of this Amendment and after giving effect to
the transactions contemplated hereby.  Any factual information heretofore or
contemporaneously furnished by or on behalf of the Company and relied upon by
the Bank for the purposes of or in connection with this Amendment does not
contain any untrue statement of material fact or omit to state any material
fact necessary to make the statements contained herein or in said information
not misleading.  

      10.   EXPENSES.  The Company agrees to pay on demand all reasonable
costs and expenses necessarily incurred in connection with the preparation,
negotiation, execution and delivery of this Amendment, including reasonable
fees and expenses of counsel for the Bank.  

      11.   DEFINITIONS.  The terms defined in the Agreement shall have their
defined meanings when used herein.  

      12.   EFFECT OF AGREEMENT.  Except as amended and modified by this
Amendment, the Agreement shall continue to be, and shall remain, in full force
and effect in accordance with its terms.  

      13.   MULTIPLE COUNTERPARTS.  This Amendment may be executed in separate
counterparts by the Company and the Banks, all of which taken together shall
constitute one and the same Agreement.  

      14.   GOVERNING LAW.  This Amendment shall be governed by, and construed
and interpreted in accordance with, the law of the State of New York.

      IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed and delivered by their respective duly authorized officers as of the
date first written above.

                                          PARKER DRILLING COMPANY

                                          By: /s/I. E. Hendrix
                                              --------------------------
                                          Its:  Vice President and Treasurer



                                          MORGAN GUARANTY TRUST COMPANY
                                          OF NEW YORK

                                          By: /s/Bill Jenks
                                              --------------------------
                                          Its:  Vice President



                                          INTERNATIONAL NEDERLANDEN
                                          (U.S.) CAPITAL CORPORATION

                                          By: /s/John T. Catchpole
                                              --------------------------
                                          Its:  Vice President

  <PAGE>
<PAGE>

                             CONSENT AND AGREEMENT
                             ---------------------

      Each of the undersigned Guarantors hereby consents to the provisions of
this Amendment and the transactions contemplated herein and hereby ratifies
and confirms the guaranty dated as of September 24, 1992, made by it for the
benefit of the Bank, and agrees that its obligations and covenants thereunder
are unimpaired hereby and shall remain in full force and effect.  


Anachoreta, Inc.                         Mining Investments and Services
                                          Establishment

By: /s/Thomas L. Wingerter                By: /s/Ronnie McKenzie
    ---------------------------               ---------------------------
    Title:  Vice President                    Title:  Director


Canadian Rig Leasing, Inc.                OIME Export Corporation

By: /s/Jack Williams                      By: /s/I. E. Hendrix  
    ---------------------------               ---------------------------
    Title:  President                         Title:  Treasurer


Choctaw International Rig Corp.           OIME, Inc.

By: /s/Thomas L. Wingerter                By: /s/William Pritchard
    ---------------------------               ---------------------------
    Title:  Vice President                    Title:  Vice President


Creek International Rig Corp.             OIME International Division, Inc.

By: /s/Thomas L. Wingerter                By: /s/I. E. Hendrix  
    ---------------------------               ---------------------------
    Title:  Vice President                    Title:  Treasurer


DGH, Inc.                                 OIME International, Inc.

By: /s/William Pritchard                  By: /s/I. E. Hendrix
    ---------------------------               ---------------------------
    Title:  Vice President                    Title:  Treasurer


Equipment Leasing Establishment           Parco, Inc.

By: /s/Ronnie McKenzie                    By: /s/Thomas L. Wingerter
    ---------------------------               ---------------------------
    Title:  Director                          Title:  Vice President


<PAGE>
<PAGE>


Parco Mast & Substructures, Inc.          Parker Drilling Company of
                                          Kuwait, Ltd.

By: /s/I. E. Hendrix                      By: /s/Ronnie McKenzie
    ---------------------------               ---------------------------
    Title:  Treasurer                         Title:  President


Pardril, Inc.                             Parker Drilling Company of New 
                                          Guinea, Inc.

By: /s/William Pritchard                  By: /s/Ronnie McKenzie
    ---------------------------               ---------------------------
    Title:  Vice President                    Title:  President


Parker Aviation Inc.                      Parker Drilling Company of New
                                          Zealand, Ltd.

By: /s/I. E. Hendrix                      By: /s/Ronnie McKenzie
    ---------------------------               ---------------------------
    Title:  Treasurer                         Title:  Director


Parker Drilling Company                   Parker Drilling Company of
International Limited                     Oklahoma, Incorporated

By: /s/Ronnie McKenzie                    By: /s/I. E. Hendrix  
    ---------------------------               ---------------------------
    Title:  President                         Title:  Treasurer


Parker Drilling Company of                Parker Drilling Company of
Bolivia, Inc.                             Singapore, Ltd.

By: /s/Ronnie McKenzie                    By: /s/Ronnie McKenzie
    ---------------------------               ---------------------------
    Title:  President                         Title:  President


Parker Drilling Company of 
Eastern Hemisphere, Ltd.

By: /s/Ronnie McKenzie
    ---------------------------
    Title:  President

Parker Drilling Company of 
Indonesia, Inc.

By: /s/Ronnie McKenzie
    ---------------------------
    Title:  President

<PAGE>
<PAGE>

Parker Drilling Company of                Vance Systems Engineering Inc.
South American, Inc.

By: /s/Ronnie McKenzie                    By: /s/I. E. Hendrix  
    ---------------------------               ---------------------------
    Title:  President                         Title:  Treasurer


Parker Drilling International 
of New Zealand, Ltd.

By: /s/Ronnie McKenzie  
    ---------------------------
    Title:  Director


Parker Drilling U.S.A. Ltd.

By: /s/William Pritchard
    ---------------------------
    Title:  Vice President


Parker Kinetic Designs, Inc.

By: /s/Clif Drummond
    ---------------------------
    Title:  President


Parker Technology, Inc.

By: /s/Joe Brown
    ---------------------------
    Title:  President


Parker Valve Company

By: /s/William Pritchard
    ---------------------------
    Title:  Vice President


Total Coverage Services

By: /s/William Pritchard
    ---------------------------
    Title:  Vice President


<PAGE>

<PAGE>
                                                                   Exhibit 15






                                          July 13, 1994




Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

                                          Re:  Parker Drilling Company
                                          Registration on Form S-8 and S-3

We are aware that our report dated July 13, 1994, on our review of the interim
financial information of Parker Drilling Company for the period ended May 31,
1994, and included in this Form 10-Q is incorporated by reference in the
Company's registration statements on Form S-8 (File No. 2-87944,  33-24155 and
33-56698) and Form S-3 (File No. 33-61662).  Pursuant to Rule 436(c) under the
Securities Act of 1933, this report should not be considered a part of the
registration statement prepared or certified by us within the meaning of
Section 7 and 11 of that Act.




                                          COOPERS & LYBRAND
 <PAGE>


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