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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) October 29, 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 October 29, 1998 the Registrant issued the following press release:
PATTERSON ENERGY, INC. ANNOUNCES THIRD QUARTER 1998
RESULTS FROM OPERATIONS
SNYDER, TEXAS, October 29, 1998---PATTERSON ENERGY, INC. (NASDAQ:PTEN) today
announced a net loss of $529,000, or $0.02 per diluted share, on 31,901,259
shares for the quarter ended September 30, 1998 as compared to net income of
$7.9 million, or $0.25 per diluted share, on 31,283,558 shares for the same
three-month period in 1997. Patterson generated operating revenues of $42.3
million and EBITDA of $8.0 million for the third quarter ended September 30,
1998. Comparatively, operating revenues for the third quarter ended 1997 were
$58.2 million and EBITDA was approximately $18.0 million.
For the nine months ended September 30, 1998, Patterson reported net income of
$5.7 million, or $0.18 per diluted share, on 31,910,042 shares with operating
revenues of $154.2 million. For the same period ended in 1997, Patterson had net
income of $13.8 million, or $0.47 per diluted share, on 29,192,626 shares with
operating revenues of $129.5 million. EBITDA for the nine months ended September
30, 1998 was $33.7 million compared to EBITDA of $35.4 million in 1997.
Since September 1997, the Company has acquired 24 drilling rigs increasing its
contract drilling fleet to 114 rigs. Despite the Company's growth through
acquisition, the Company's profitability continues to be negatively impacted by
the decline in the price of crude oil. A 33% decline in the price of crude since
September 30, 1997 has resulted in downward pressure on the Company's rig
utilization rates. For the quarter ended September 30, 1998, the Company's rigs
were 50% utilized as compared to a 91.5% utilization for the same three-month
period in 1997 and 61% utilized for the nine months ended September 30, 1998
compared to 90% in 1997.
The effects of the reduced commodity price continue to negatively impact the
Company's rig utilization during the first month of the fourth fiscal quarter.
Such weakened utilization rates are expected to continue until a sustained
recovery in the underlying commodity price occurs.
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
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PATTERSON ENERGY, INC.
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
INCOME STATEMENT DATA (IN THOUSANDS):
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Operating revenues:
Drilling $ 37,704 $ 55,051 $ 137,914 $ 120,207
Drilling fluids 2,900 -- 10,689 --
Oil and gas 1,654 3,107 5,557 9,284
42,258 58,158 154,160 129,491
Costs and expenses:
Operating costs 33,263 39,555 114,841 91,921
Depreciation, depletion
and amortization 7,460 4,988 20,060 12,188
Impairment of long-lived assets 300 300 1,089 750
General and administrative 1,487 1,828 7,029 4,459
42,510 46,671 143,019 109,318
Operating income/(loss) (252) 11,487 11,141 20,173
Net gain on sale of assets 267 1,036 639 1,354
Interest income 200 159 646 799
Interest expense (1,195) (186) (3,360) (695)
Other 59 29 152 169
(921) 12,525 9,218 21,800
Income tax benefit/(expense) 392 (4,646) (3,493) (8,003)
Net income/(loss) $ (529) $ 7,879 $ 5,725 $ 13,797
Net income/(loss) per common share:
Basic $ (0.02) $ 0.27 $ 0.18 $ 0.49
Diluted $ (0.02) $ 0.25 $ 0.18 $ 0.47
Weighted average number of common shares outstanding:
Basic 31,671 29,538 31,636 27,901
Diluted 31,901 31,284 31,910 29,193
</TABLE>
BALANCE SHEET DATA (IN THOUSANDS):
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1998 1997
<S> <C> <C>
Current assets $ 65,113 $ 77,014
Property & equipment, net 141,410 100,405
Total assets 252,011 203,200
Current liabilities 34,738 30,530
Notes payable, less current maturities 51,071 21,783
</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: October 30, 1998 By: /s/ James C. Brown
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James C. Brown
Vice-President-Finance
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