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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 30, 1998
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)
(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 30, 1998 the Registrant issued the following press release:
PATTERSON ENERGY, INC. REPORTS SECOND QUARTER RESULTS
FROM OPERATIONS
SNYDER, TEXAS, July 30, 1998---PATTERSON ENERGY, INC. (NASDAQ:PTEN) today
reported net income for its second quarter ended June 30, 1998 of $1.7 million,
or $0.05 per diluted share, on operating revenues of $51.2 million compared to
net income of $4.3 million, or $0.14 per diluted share, on operating revenues of
$40.1 million for the same three-month period in 1997. EBITDA was approximately
$11.0 million for the three months ended June 30, 1998 and 1997. Average rig
utilization for the fiscal quarter ended June 30, 1998 was 64% as compared to
90% for the same period in 1997.
For the six months ended June 30, 1998, Patterson reported net income of $6.3
million, or $0.20 per diluted share, on operating revenues of $112.0 million
compared to net income of $5.9 million, or $0.21 per diluted share, on operating
revenues of $71.3 million. EBITDA for the six-month period ending June 30, 1998
was $25.7 million as compared to EBITDA of $17.4 million for the same period
ended June 30, 1997. Average rig utilization for the six months ended June 30,
1998 was 67% as compared to 88% for the same period in 1997.
Since June 1997, the Company has acquired 48 drilling rigs increasing its
contract drilling fleet to 114 drilling rigs. Drilling revenues for the three
and six month periods ended June 30, 1998, rose 22% to $45.9 million and 54% to
$100.2 million, respectively, when compared to the same periods in 1997. Direct
drilling costs for the six months ended June 30, 1998 were 74% of related
drilling revenues as compared to 77% in 1997.
During the past twelve months, the oil industry has experienced a dramatic
fluctuation in the market price of crude oil. Patterson received $13.12 per
barrel and $19.75 per barrel during the quarter ended June 30, 1998 and 1997,
respectively and $13.51 per barrel and $20.33 per barrel for the six months
ended June 30, 1998 and 1997, respectively. The effects of the reduced commodity
price continue to apply downward pressure on the pricing of related contract
services provided to the industry. Cloyce Talbott, Chairman and CEO, reiterated
statements previously reported explaining that weakened utilization rates (55%
to 60% in May, June and July 1998) and associated declines in pricing will
probably continue until a sustained recovery in the price of oil occurs.
Patterson Energy, Inc., a Snyder, Texas based energy company, is one of the
leading providers of domestic land based drilling services to major independent
oil and natural gas companies. Patterson currently owns 114 drilling rigs (108
of which are currently operable) and focuses its operations 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
New York, NY
(212) 247-5200
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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,
----------------------- ----------------------
1998 1997 1998 1997
----------------------- ----------------------
<S> <C> <C> <C> <C>
Revenues
Drilling $ 45,913 $ 37,592 $100,210 $ 65,156
Other 5,237 3,100 11,692 6,177
Total operating revenues 51,150 40,692 111,902 71,333
Operating income 3,531 6,046 11,393 8,686
Net income 1,721 4,278 6,254 5,918
Net income per share:
Basic $ 0.05 $ 0.15 $ 0.20 $ 0.22
======== ======== ======== ========
Diluted $ 0.05 $ 0.14 $ 0.20 $ 0.21
======== ======== ======== ========
Average shares outstanding 31,669 28,536 31,618 27,069
======== ======== ======== ========
Diluted shares outstanding 31,989 29,520 31,888 28,052
======== ======== ======== ========
</TABLE>
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
June 30,
--------------------------
1998 1997
--------------------------
<S> <C> <C>
Current assets $ 68,899 $ 51,161
Property & equipment, net 138,224 81,663
Total assets 251,703 153,480
Current liabilities 31,487 25,584
Notes payable, less current maturities 53,398 5,677
Total stockholders' equity 163,431 120,623
Total liabilities and stockholders' equity $ 251,703 $ 153,480
</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: September 9, 1998 By: /s/ James C. Brown
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James C. Brown
Vice-President-Finance
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