|
|
|
|
|
|
|
|
|
|
|
|
|
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 30, 1996
PATTERSON ENERGY, INC.
------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-22664 75-2504748
--------------------------- ------------ ------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
4510 Lamesa Highway, Snyder, Texas 79549
----------------------------------------------------- -----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (915) 573-1104
--------------
No Change
------------------------------------------------------------
(Former name or former address, if changed since last report.)
<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
b. Pro forma financial information.
The required pro forma financial information is incorporated by
reference from the Registrant's Prospectus/Joint Proxy Statement dated June 20,
1996.
Unaudited pro forma combined financial statements as of and for the
periods ended June 30, 1996 are provided below. The unaudited pro forma
combined financial statements reflect adjustments necessary to give effect to
the merger of Patterson Energy, Inc. ("Patterson") and Tucker Drilling Company,
Inc. ("Tucker") using the pooling of interests method of accounting. The
unaudited pro forma combined balance sheet at June 30, 1996, assumes the merger
was consummated as of June 30, 1996 and the unaudited pro forma combined
statements of income assume the merger was consummated on January 1, 1996. The
unaudited pro forma combined statements of income are not necessarily
indicative of operating results that would have occurred had the merger been
consummated on January 1, 1996, nor are they indicative of future operating
results of the combined companies.
PATTERSON ENERGY, INC.
PRO FORMA COMBINED BALANCE SHEET
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
PATTERSON TUCKER DRILLING --------------------------------------------
ENERGY, INC. COMPANY, INC. ADJUSTMENTS CONSOLIDATED
--------------- ---------------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 4,251,304 $ 7,319,250 $ -- $ 11,570,554
Marketable securities -- 524,323 524,323
Accounts receivable:
Trade:
Billed 11,724,314 1,421,945 13,146,259
Unbilled 862,050 -- 117,019 (a) 979,069
Oil and gas sales 473,937 243,697 717,634
Costs of uncompleted contracts in
excess of related billings 218,447 104,721 (104,721) (a) 218,447
Equipment inventory 462,464 8,628 471,092
Deferred income taxes 614,567 -- 614,567
Undeveloped oil and gas properties
held for resale 2,544,206 -- 2,544,206
Other current assets 231,212 86,442 317,654
--------------- --------------- --------------- --------------
Total current assets 21,382,501 9,709,006 12,298 31,103,805
--------------- --------------- --------------- --------------
Property and equipment, at cost, net 27,988,302 7,402,324 132,704 (b) 35,523,330
Deferred income taxes 1,470,957 908,223 (45,119) (b) 2,334,061
Deposits on workers' compensation
insurance policy 343,760 -- 343,760
Other assets 94,274 596,510 690,784
--------------- --------------- --------------- --------------
Total assets $ 51,279,794 $ 18,616,063 $ 99,883 $ 69,995,740
=============== =============== =============== ==============
</TABLE>
See accompanying notes to unaudited pro forma combined financial statements.
(continued)
2
<PAGE> 3
PATTERSON ENERGY, INC.
PRO FORMA COMBINED BALANCE SHEET-CONTINUED
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
PATTERSON TUCKER DRILLING -----------------------------------
ENERGY, INC. COMPANY, INC. ADJUSTMENTS CONSOLIDATED
--------------- --------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
Current liabilities:
Current maturities of notes payable $ 3,388,149 $ -- $ -- $ 3,388,149
Accounts payable:
Trade 8,425,213 661,405 9,086,618
Revenue distribution 2,133,531 10,172 2,143,703
Other 514,150 46,798 560,948
Accrued Expenses 1,761,199 442,355 2,203,554
Billings on uncompleted drilling
contracts in excess of related costs -- 9,138 (9,138) (a) --
--------------- --------------- ---------- ---------------
Total current liabilities 16,222,242 1,169,868 (9,138) 17,382,972
--------------- --------------- ---------- ---------------
Deferred liabilities -- 387,996 387,996
Notes payable, less current maturities 12,544,908 -- 12,544,908
--------------- --------------- ---------- ---------------
12,544,908 387,996 12,932,904
--------------- --------------- ---------- ---------------
Commitments and contingencies -- -- --
Stockholders' equity:
Preferred stock -- -- --
Common stock 31,950 21,041 (5,471) (d) 47,520
Additional paid-in capital 14,095,200 4,986,743 5,471 (d) 19,087,414
Retained earnings 8,385,494 12,050,415 109,021 (a)(b) 20,544,930
--------------- --------------- ---------- ---------------
Total stockholders' equity 22,512,644 17,058,199 109,021 39,679,864
--------------- --------------- ---------- ---------------
Total liabilities and
stockholders' equity $ 51,279,794 $ 18,616,063 $ 99,883 $ 69,995,740
=============== =============== ========== ===============
</TABLE>
See accompanying notes to unaudited pro forma combined financial statements.
3
<PAGE> 4
PATTERSON ENERGY, INC.
PRO FORMA COMBINED STATEMENT OF INCOME
FOR THE QUARTER ENDED JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
PATTERSON TUCKER DRILLING ----------------------------------------
ENERGY, INC. COMPANY, INC. ADJUSTMENTS CONSOLIDATED
----------------- ------------------ ----------- ---------------
<S> <C> <C> <C> <C> <C>
Operating revenue:
Drilling $ 12,349,151 $ 3,721,705 $ 41,426 (a) $ 16,112,282
Oil and gas sales 1,565,290 388,367 1,953,657
Well operation fees 343,520 -- 39,820 (c) 383,340
Other 95,754 -- 95,754
----------------- ------------------ ----------- ---------------
14,353,715 4,110,072 81,246 18,545,033
----------------- ------------------ ----------- ---------------
Operating costs and expenses:
Direct drilling costs 10,115,011 3,173,131 29,374 (a) 13,317,516
Lease operating and production 419,638 95,189 514,827
Exploration costs 116,787 -- 116,787
Dry holes and abandonments 167,591 34,774 202,365
Depreciation, depletion and
amortization 1,952,867 527,132 14,016 (a)(b) 2,494,015
General and administrative 1,140,042 592,343 39,820 (c) 1,772,205
----------------- ------------------ ----------- ---------------
13,911,936 4,422,569 83,210 18,417,715
----------------- ------------------ ----------- ---------------
Operating income (loss) 441,779 (312,497) (1,964) 127,318
----------------- ------------------ ----------- ---------------
Other income (expense):
Net gain on sale of assets 339,438 10,000 349,438
Interest income 41,998 85,594 127,592
Interest expense (314,931) (763) (315,694)
Other 24,061 (7,481) 16,580
----------------- ------------------ ----------- ---------------
90,566 87,350 177,916
----------------- ------------------ ----------- ---------------
Income (loss) before income taxes 532,345 (225,147) (1,964) 305,234
----------------- ------------------ ----------- ---------------
Income taxes:
Current 30,025 -- 30,025
Deferred income tax expense 138,935 (67,800) (3,032) (b) 68,103
----------------- ------------------ ----------- ---------------
Income tax expense 168,960 (67,800) (3,032) 98,128
----------------- ------------------ ----------- ---------------
Net income (loss) $ 363,385 $ (157,347) $ 1,068 $ 207,106
================= ================== =========== ================
Net income (loss) per common
share:
Primary $ 0.11 $ (0.08) $ 0.04
================= ================== ================
Assuming full dilution $ 0.11 N/A $ 0.04
================= ================== ================
Weighted average number of common
shares outstanding:
Primary 3,378,032 2,094,179 4,927,724
================= ================== ================
Assuming full dilution 3,378,032 N/A 4,927,724
================= ================== ================
</TABLE>
See accompanying notes to unaudited pro forma combined financial statements.
4
<PAGE> 5
PATTERSON ENERGY, INC.
PRO FORMA COMBINED STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
PATTERSON TUCKER DRILLING -----------------------------------------
ENERGY, INC. COMPANY, INC. ADJUSTMENTS CONSOLIDATED
------------------ -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
Operating revenue:
Drilling $ 22,882,288 $ 7,148,184 $ 177,546 (a) $ 30,208,018
Oil and gas sales 2,889,433 754,182 3,643,615
Well operation fees 688,347 -- 82,929 (c) 771,276
Other 169,769 -- 169,769
------------------ -------------- ------------- --------------
26,629,837 7,902,366 260,475 34,792,678
------------------ -------------- ------------- --------------
Operating costs and expenses:
Direct drilling costs 18,861,191 5,737,120 142,552 (a) 24,740,863
Lease operating and production 807,184 189,016 996,200
Writedown due to impairment of
long-lived assets -- 159,403 159,403
Exploration costs 232,716 -- 232,716
Dry holes and abandonments 235,512 118,550 354,062
Depreciation, depletion and
amortization 3,686,249 1,065,158 35,834 (a)(b) 4,787,241
General and administrative 1,948,134 1,119,533 82,929 (c) 3,150,596
------------------ -------------- ------------- --------------
25,770,986 8,388,780 261,315 34,421,081
------------------ -------------- ------------- --------------
Operating income (loss) 858,851 (486,414) (840) 371,597
------------------ -------------- ------------- --------------
Other income (expense):
Net gain on sale of assets 366,051 34,281 (970) (b) 399,362
Interest income 76,638 171,787 248,425
Interest expense (644,385) (763) (645,148)
Other 64,838 13,031 77,869
------------------ -------------- ------------- --------------
(136,858) 218,336 (970) 80,508
------------------ -------------- ------------- --------------
Income (loss) before income taxes 721,993 (268,078) (1,810) 452,105
------------------ -------------- ------------- --------------
Income taxes:
Current 53,464 38,926 92,390
Deferred income tax benefit (1,470,957) (908,223) (6,461) (b) (2,385,641)
------------------ -------------- ------------- --------------
Income tax benefit, net (1,417,493) (869,297) (6,461) (2,293,251)
------------------ -------------- ------------- --------------
Net income $ 2,139,486 $ 601,219 $4,651 $ 2,745,356
================== ============== ============= ==============
Net income per common share:
Primary $ 0.64 $ 0.29 $ 0.56
================== ============== ==============
Assuming full dilution $ 0.63 N/A $ 0.56
================== ============== ==============
Weighted average number of common
shares outstanding:
Primary 3,357,971 2,094,179 4,907,663
================== ============== ==============
Assuming full dilution 3,375,945 N/A 4,925,637
================== ============== ==============
</TABLE>
See accompanying notes to unaudited pro forma combined financial statements.
5
<PAGE> 6
PATTERSON ENERGY, INC.
NOTES TO UNAUDITED PRO FORMA
COMBINED FINANCIAL STATEMENTS
1. PRO FORMA FINANCIAL STATEMENTS
The basis of the unaudited pro forma combined balance sheet reflects
the conversion of each outstanding share of Tucker common stock into 0.74 of a
share of Patterson common stock ("Exchange Ratio"). This conversion results in
a reallocation of approximately $5,471 between common stock and additional
paid-in capital. The unaudited pro forma combined statements of income reflect
the conversion of the number of shares of Tucker common stock outstanding used
in computing earnings per share into Patterson common stock using the Exchange
Ratio.
2. PERIODS PRESENTED
The unaudited pro forma combined statement of income for the three
months ended June 30, 1996 was prepared using the unaudited consolidated
statement of income for the period ended June 30, 1996 of Patterson as reported
under Form 10-Q and Tucker's unaudited statement of income for the period ended
June 30, 1996. The unaudited pro forma combined statement of income for the
six months ended June 30, 1996 was prepared using Patterson's unaudited
consolidated statement of income for the six months ended June 30, 1996, and
Tucker's unaudited statement of income for the three months ended June 30, 1996
plus the three months ended March 31, 1996.
3. PRO FORMA ADJUSTMENTS
Differences exist between certain methods of accounting for various
oil and gas producing and contract drilling activities. The following pro
forma adjustments to Tucker's financial statements are necessary to apply
consistent methods of accounting treatment and presentation among the
activities of both Patterson and Tucker.
a. Accounts receivable trade-unbilled has been increased for the
adjustment required to convert Tucker's methodology of accounting for wells in
progress from the completed contract method for day work and footage drilling
arrangements to the percentage-of-completion method. Furthermore, this
adjustment requires that drilling revenues and direct drilling and certain
depreciation costs be recognized to the extent incurred for each period. As
such, drilling revenues and direct drilling and depreciation costs have been
increased.
b. Property and equipment has been increased for the adjustment
necessary to convert Tucker's method of evaluating impairment of its oil and
gas properties (i.e., ceiling test) from the use of discounted future cash
flows to undiscounted future cash flows. Property and equipment has been
increased to its original historical cost basis for the adjustment necessary.
Depreciation, depletion and
(continued)
6
<PAGE> 7
NOTES TO UNAUDITED PRO FORMA
COMBINED FINANCIAL STATEMENTS - CONTINUED
amortization expense has been increased ($8,916 and $19,004 for the three months
ended June 30, 1996 and the six months ended June 30, 1996, respectively) and
any gain realized on the sale of such assets has been reduced ($970 for the six
months ended June 30, 1996) as a result of Tucker's increased basis in its oil
and gas properties. In addition, provision for income taxes has been adjusted
by $3,032 for the quarter ended June 30, 1996 and $6,461 for the six months
ended June 30, 1996 for the effect on deferred tax amounts relating to these
adjustments.
c. Well operation fees and general administrative expenses have been
increased by the same amount to reflect the adjustment necessary to separately
present such activities of Tucker. Tucker netted well operation activities
against general and administrative expenses.
d. Tucker common stock has been decreased and additional paid-in
capital has been increased to adjust for the number of shares of Patterson
common stock issued to consummate the merger pursuant to the Exchange Ratio of
0.74.
4. MERGER COSTS
The unaudited pro forma combined financial statements included
approximately $505,000 of expenses resulting in the merger. Management
estimates that costs to be incurred in the future periods relative to the
merger will not exceed $1,625,000. These expenses, which consist primarily of
financial advisory fees, outside legal, accounting and professional fees and
one-time costs of consolidating certain operational and administrative
functions of the companies, in the approximate amount of $1,880,000 will be
expensed during the year ended December 31, 1996. The remaining approximately
$250,000 is expected to be expensed after the year ended December 31, 1996.
The estimated merger expenses include severance payments to certain Tucker
employees that will result from the consolidation of certain operational and
administrative functions. These expenses are estimated to be approximately
$825,000. The level of severance is dependent upon organizational and
employment decisions that will not be finalized until after the merger.
Certain of the employees that are expected to be terminated are covered by the
severance agreements. The unaudited pro forma combined financial statements do
not include any cost savings expected to occur as a result of the merger.
7
<PAGE> 8
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.
PATTERSON ENERGY, INC.
Date: August 15, 1996 /s/ JAMES C. BROWN
---------------------------
James C. Brown
Vice President-Finance
8
|
|