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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 28, 1999
PATTERSON ENERGY, INC.
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
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)
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(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 28, 1999 the Registrant issued the following press release:
PATTERSON ENERGY, INC. ANNOUNCES THIRD QUARTER RESULTS FROM OPERATIONS
Snyder, Texas, October 28, 1999---Patterson Energy, Inc. (NASDAQ:PTEN) today
reported a net loss of $2.4 million, or $(0.07) per diluted share for the fiscal
quarter ended September 30, 1999 compared to a net loss of $529,000, or $(0.02)
per diluted share for the same three-month period in 1998. The Company generated
operating revenues of $39.8 million and $42.3 million for the quarter ended
September 30, 1999 and 1998, respectively. EBITDA for the three months ended
September 30, 1999 and 1998 was $4.8 million and $8.0 million, respectively,
with an average rig utilization of 50% for both comparative fiscal quarters.
For the nine months ended September 30, 1999, Patterson reported a net loss of
$9.4 million, or $(0.29) per diluted share on operating revenues of $97.1
million compared to net income of $5.7 million, or $0.18 per diluted share on
operating revenues of $154.2 million for the same nine months ended in 1998.
Average rig utilization for the nine-months ended September 30, 1999 and 1998
was 39% and 61%, respectively.
Cloyce A. Talbott, Chairman and CEO, stated, "We continue to be cautiously
optimistic about the sustained improvement in the underlying commodity prices
and the related increases in cash flow and operating revenues. We strive to be
increasingly competitive in the market place with a current rig utilization rate
of 61%."
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 119 drilling rigs (114
are currently operable) and with operations in Texas, New Mexico, Oklahoma,
Louisiana, Utah and Mississippi.
Statements made in this press release that state the Company's or management
intentions, beliefs, expectations or predictions for the future are
forward-looking statements. It is important to note that the Company's actual
results could differ materially from those projected in such forward-looking
statements. In addition to the factors set forth above, other important factors
that could cause actual results to differ materially include, but are not
limited to, the impact of declines in prices of oil and gas on the demand for
the Company's services and the risk of any further declines in oil and gas
prices that could adversely affect demand for the Company's services, and their
associated effect on day rates and rig utilization, industry conditions,
integration of acquisitions, demand for oil and gas, and ability to retain
management and field personnel. Additional information concerning factors that
could cause actual results to differ materially from those in the
forward-looking statements is contained from time to time in the Company's SEC
filings, including but not limited to the Company's report on Form 10-K for the
year ended December 31, 1998. Copies of this filing may be obtained by
contacting the Company or the SEC.
For further information, contact:
Patterson Energy, Inc.
Cloyce A. Talbott, Chairman and Chief Executive Officer
Jonathan (Jody) D. Nelson, Vice President-Finance and Chief Financial Officer
(915) 573-1104
[email protected]
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PATTERSON ENERGY, INC.
INCOME STATEMENT DATA (IN THOUSANDS):
Unaudited
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<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------------------
1998 1999 1998 1999
--------- --------- --------- ---------
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Operating revenues:
Drilling ................................................ $ 37,704 $ 34,579 $ 137,914 $ 83,754
Drilling fluids ......................................... 2,900 2,722 10,689 7,461
Oil and gas ............................................. 1,654 2,511 5,557 5,879
--------- --------- --------- ---------
42,258 39,812 154,160 97,094
--------- --------- --------- ---------
Costs and expenses:
Operating costs ......................................... 33,282 33,353 114,841 81,662
Depreciation, depletion and amortization ................ 7,441 7,295 20,060 21,421
Impairment of long-lived assets ......................... 300 -- 1,089 --
General and administrative .............................. 1,487 1,868 7,029 5,295
--------- --------- --------- ---------
42,510 42,516 143,019 108,378
--------- --------- --------- ---------
Operating income/(loss) .................................... (252) (2,704) 11,141 (11,284)
Net gain (loss) on sale of assets .......................... 267 54 639 (27)
Interest income ............................................ 200 132 646 348
Interest expense ........................................... (1,195) (968) (3,360) (2,994)
Other ...................................................... 59 2 152 42
--------- --------- --------- ---------
Net income (loss) before taxes ............................. (921) (3,484) 9,218 (13,915)
--------- --------- --------- ---------
Income tax (benefit)/expense ............................... (392) (1,128) 3,493 (4,554)
--------- --------- --------- ---------
Net income/(loss) .......................................... $ (529) $ (2,356) $ 5,725 $ (9,361)
--------- --------- --------- ---------
Net income/(loss) per common share:
Primary ................................................ $ (0.02) $ (0.07) $ 0.18 $ (0.29)
========= ========= ========= =========
Diluted ................................................ $ (0.02) $ (0.07) $ 0.18 $ (0.29)
========= ========= ========= =========
Weighted average number of common shares outstanding:
Primary ................................................. 31,671 32,527 31,636 32,452
========= ========= ========= =========
Diluted ................................................. 31,671 32,527 31,910 32,452
========= ========= ========= =========
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BALANCE SHEET DATA (IN THOUSANDS):
Unaudited
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<CAPTION>
DECEMBER 31, 1998 SEPTEMBER 30, 1999
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Current assets .............................. $ 53,483 $ 51,619
Property & equipment, net ................... 136,677 130,687
Total assets ................................ 236,605 226,323
Current liabilities ......................... 22,952 29,700
Notes payable, less current maturities ...... 47,143 40,714
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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: December 21, 1999 By: /s/ Jonathan Nelson
---------------------------------
Mr. Jonathan (Jody) Nelson
Vice-President-Finance
Chief Financial Officer
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