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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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) July 24, 1997
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.)
P.O. BOX 1416, 4510 LAMESA HIGHWAY, SNYDER, TEXAS 79549
(Address of principal executive offices) (Zip Code)
(915) 573-1104
(Registrant's telephone number, including area code)
No Change
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On July 24, 1997 the Registrant issued the following press release:
PATTERSON ENERGY REPORTS RECORD NET INCOME,
EARNINGS PER SHARE AND CASH FLOW IN SECOND QUARTER
SNYDER, TEXAS, JULY 24, 1997-PATTERSON ENERGY, INC. (NASDAQ/NM:PTEN) today
reported net income for the second quarter ended June 30, 1997 of $4,278,000 or
$0.58 per share (fully diluted) on revenues of $40,692,000, compared with net
income of $255,000 or $0.04 per share (fully diluted) on revenues of
$18,547,000 during the second quarter of 1996. Results are reported prior to
the effect of a 2-for-1 stock split announced on July 1, 1997. Earnings before
interest expense, taxes, depreciation, depletion and amortization (EBITDA) rose
241% in the second quarter of 1997 to a record of $10,611,000 from $3,111,000
in the second quarter of 1996. Results for the second quarter of 1996 were
restated to reflect the July 1996 merger of the Company with Tucker Drilling
Company, Inc. under the pooling of interests accounting method.
For the six months ended June 30, 1997, Patterson reported net income of
$5,918,000 or $0.84 per share (fully diluted) on revenues of $71,333,000 versus
net income of $2,742,000 or $0.56 per share (fully diluted) on revenues of
$34,793,000 during the first six months ended June 30, 1996. Results in 1996
included a deferred income tax benefit of $2,402,000 or $0.48 per fully diluted
share. EBITDA for the period ending June 30, 1997 rose 189% to $16,984,000 from
$5,880,000 in 1996.
There were 7,428,000 fully diluted shares outstanding during the second quarter
of 1997 compared to 5,480,000 fully diluted shares outstanding a year ago. This
36% increase in outstanding shares reflects primarily the successful completion
of a public offering of 2,063,000 shares of Patterson common stock in January
1997. In addition, Patterson issued 283,000 shares of common stock in June 1997
as partial consideration in the acquisition of the drilling assets of Wes-Tex
Drilling Company. On July 1, 1997, the Company declared a 2-for-1 stock split
for holders of record on July 11, 1997, to be distributed July 25, 1997.
Contract drilling revenues rose 133% during the second quarter of 1997 to
$37,592,000 from $16,112,000 in 1996, reflecting the increase in the Company's
contract drilling rig fleet and increases in the dayrate charged on drilling
contracts. In April 1997, Patterson acquired five additional rigs and, in June
1997, Patterson acquired the drilling assets of Wes-Tex Drilling Company, which
increased the rig fleet by an additional 21 drilling rigs, bringing the total
number of rigs in the fleet to 87, 81 of which are currently operable. Rig
utilization in the second quarter of 1997 was 90% compared to 71% in the year
earlier period. Direct operating costs were 75% of contract drilling revenues
in the second quarter of 1997 as compared to 83% in 1996. Second quarter income
from contract drilling operations was approximately $6.0 million versus $0.4
million in the second quarter of 1996.
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Oil and Gas sales rose 38% during the second quarter of 1997 to $2,702,000 from
$1,954,000 in 1996. Oil production increased 77%, while natural gas production
deceased 9%. Oil prices decreased to $19.75 per barrel in this year's quarter
from $20.22 per barrel a year ago, while natural gas prices decreased to $1.96
per thousand cubic feet from $2.07 per thousand cubic feet in the second
quarter of 1996. Income from the oil and gas segment was $303,000 in the second
quarter of 1997 compared to $54,000 in the same period of 1996.
Patterson Energy, Inc., a Snyder, Texas based energy company, is one of the
leading providers of domestic land drilling services to major independent oil
and gas companies and, to a lesser extent, is engaged in the development,
exploration, acquisition and production of oil and natural gas. Patterson now
has 87 land-based drilling rigs (81 of which are currently operable) and
focuses its operations primarily in Texas and southeast New Mexico.
For further information, contact:
Patterson Energy, Inc.
Cloyce A. Talbott, Chairman and Chief Executive Officer
James C. Brown, Vice President-Finance and Chief Financial Officer
915-573-1104
Shimmerlik Corporate Communications, Inc.
Warren M. Shimmerlik
212-247-5200
(financial tables follow)
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PATTERSON ENERGY, INC.
Condensed Consolidated Statements Of Operations
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Revenues
Drilling $ 37,592 $ 16,112 $ 65,156 $ 30,208
Oil and Gas Sales 2,702 1,954 5,335 3,644
Other 398 481 842 941
Total Revenues 40,692 18,547 71,333 34,793
Operating Income 6,046 127 8,686 372
Net Income $ 4,278 $ 255 $ 5,918 $ 2,742
Net Income per Share:
Primary $ 0.58 $ 0.04 $ 0.84 $ 0.56
Full Diluted $ 0.58 $ 0.04 $ 0.84 $ 0.56
Average Shares Outstanding:
Primary 7,364 5,480 6,971 4,933
Fully Diluted 7,428 5,480 7,061 4,957
</TABLE>
<TABLE>
<CAPTION>
Condensed Consolidated Balance Sheets
(in thousands)
June 30, 1997 December 31, 1996
<S> <C> <C>
Current Assets $ 51,161 $ 35,481
Property & Equipment 81,663 51,308
Total Assets 153,480 87,913
Current Liabilities 25,584 17,889
Notes Payable, less Current Maturities 5,677 25,732
Total Stockholders' Equity 120,623 43,482
Total Liabilities and Stockholders' Equity $ 153,480 $ 87,913
</TABLE>
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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 hereunto duly authorized.
PATTERSON ENERGY, INC.
Date: August 20, 1997 By: /s/ James C. Brown
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James C. Brown
Vice President-Finance
