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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) March 3, 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 March 3, 1998 the Registrant issued the following press release:
PATTERSON ENERGY, INC. REPORTS RECORD RESULTS FROM OPERATIONS
IN FOURTH QUARTER 1997
Snyder, Texas, March 3, 1998 Patterson Energy, Inc. (Nasdaq/NM: PTEN) today
announced record levels of operating revenues and net income for its fiscal year
and related quarter ended December 31, 1997. For the year ended 1997, net
income was $22.2 million, or $0.75 per diluted share, as compared to 1996 net
income of $4.3 million, or $0.21 per diluted share. Earnings per share
information reflects 2-for-1 stock splits effect in July 1997 and January 1998.
Operating revenues in 1997 totaled $191 million, an increase of 127% over 1996
operating revenues of $84 million. The increase in operating revenues and net
income was largely attributable to the addition of 35 fully-operable rigs to
Patterson's contract drilling fleet through the successful consummation of five
separate acquisitions during 1997.
Patterson attained an average rig utilization rate of 89% during 1997 resulting
in contract drilling revenues of $178 million, an increase of 141% over 1996
drilling revenues of $74 million. Direct drilling costs were 72% of related
drilling revenues as compared to 81% in 1996. Earnings before interest
expense, taxes, depreciation, depletion and amortization (EBITDA) was $54
million in 1997 as compared to $14 million in 1996, an increase of 286%.
For the quarter ended December 31, 1997, Patterson had operating revenues of $61
million with net income of $8.4 million, or $0.27 per diluted share, as compared
to net income of $2.1 million, or $0.10 per diluted share, on operating revenues
of $28.7 million for the same period ended in 1996. EBITDA for the fourth
quarter of 1997 increased 265% to $18.6 million as compared to EBITDA of $5.1
million for the fourth quarter of 1996.
Contract drilling revenues increased 125% to $58 million for the three months
ended December 31, 1997 over the same period ended in 1996. Direct drilling
costs were 68% of related drilling revenues in the fourth quarter of 1997,
compared to 80% experienced in the year earlier period.
Cloyce Talbott, Chairman and Chief Executive Officer of the Company, said that
management is very pleased with the 1997 operating results, considering that
most of the acquisitions in 1997 were in the second half of the year.
Additionally, he pointed out the improved financial strength of the Company
with working capital of $46.4 million in 1997 compared to $17.6 million in
1996. However, Mr. Talbott stated that the Company is seeing a weakness in
the land drilling rig market during the first quarter of 1998. Lower commodity
prices, in particular oil prices, are causing a weakness in demand for land
rigs, which have affected utilization rates and created downward pressure on
the Company's drilling rates. The weakness began in December and Mr. Talbott
stated he does not expect that the situation will improve without an
improvement in the commodity prices.
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 natural gas companies and, to a lesser extent, is engaged in the
development, exploration, acquisition and production of oil and natural gas.
Patterson currently owns 114 drilling rigs (108 of which are currently
operable) and focuses its operations primarily in Texas and southeast New
Mexico.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended Twelve months ended
December 31, December 31,
1996 1997 1996 1997
Revenues
<S> <C> <C> <C> <C>
Drilling $ 25,866 $ 58,125 $ 73,590 $ 178,332
Other 2,787 3,161 10,117 12,445
Total Revenues 28,653 61,286 83,707 190,777
Operating income 2,796 13,148 4,754 33,321
Net income $ 2,141 $ 8,443 $ 4,271 $ 22,240
Net income per share:
Basic $ 0.11 $ 0.28 $ 0.22 $ 0.78
Fully diluted $ 0.10 $ 0.27 $ 0.21 $ 0.75
Average shares outstanding 19,477 30,230 19,167 28,492
Fully diluted shares outstanding 20,396 31,730 20,086 29,558
</TABLE>
CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
December 31, 1996 December 31, 1997
<S> <C> <C>
Current assets $ 35,481 $ 75,545
Property & equipment 51,308 99,824
Total assets 87,913 201,731
Current liabilities 17,889 29,168
Notes payable, less current maturities 25,732 21,783
Total stockholders' equity 43,482 148,768
Total liabilities and stockholders' equity $ 87,913 $ 201,731
</TABLE>
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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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: March 3, 1998 By: /s/ JAMES C. BROWN
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James C. Brown
Vice-President-Finance
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