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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 29, 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 July 29, 1998 the Registrant issued the following press release:
PATTERSON ENERGY, INC. REPORTS SECOND QUARTER RESULTS FROM
OPERATIONS
Snyder, Texas, July 29, 1999---Patterson Energy, Inc. (NASDAQ:PTEN) today
reported a net loss of $3.1 million, or $(0.10) per diluted share for the fiscal
quarter ended June 30, 1999 compared to net income of $1.7 million, or $0.05 per
diluted share for the same three-month period in 1998. The Company generated
operating revenues of $30.5 million and $51.2 million for the comparative
quarters ended June 30, 1999 and 1998, respectively. EBITDA for the three months
ended June 30, 1999 was $3.3 million with a rig utilization rate of 36% versus
EBITDA of $11.0 million and rig utilization of 64% for the three months ended
June 30, 1998.
For the six months ended June 30, 1999, Patterson reported a net loss of $7.0
million, or $(0.22) per diluted share on operating revenues of $57.3 million
compared to net income of $6.3 million, or $0.20 per diluted share on operating
revenues of $111.9 million for the same six months ended in 1998. Average rig
utilization for the six-month periods ended June 30, 1999 and 1998 was 34% and
67%, respectively.
Cloyce A. Talbott, Chairman and Chief Executive Officer, commented that the
Company experienced marginally improved cash flows from its previous 1999
quarter as EBITDA increased from $2.4 million at March 31, 1999 to $3.3 million
for the three months ended June 30, 1999 and rig utilization for the month of
July has increased to 41%. Mr. Talbott further explained that..."although the
Company is optimistic about the recent increases in commodity prices, it remains
cautious and continues to implement operational strategies designed to reduce
costs and further enhance market share."
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
of which are currently operable) and focuses its operations in Texas and
southeast New Mexico.
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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 recent 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) Nelson, Vice President-Finance and Chief Financial Officer
(915) 573-1104
[email protected]
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PATTERSON ENERGY, INC.
UNAUDITED INCOME STATEMENT DATA (IN THOUSANDS):
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<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------------- ---------------------------------
1998 1999 1998 1999
-------------- -------------- -------------- --------------
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Operating revenues:
Drilling $ 45,913 $ 26,718 $ 100,210 $ 49,175
Drilling fluids 3,520 1,806 7,789 4,739
Oil and gas 1,717 2,020 3,903 3,368
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51,150 30,544 111,902 57,282
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Costs and expenses:
Operating costs 37,821 25,423 81,578 48,309
Depreciation, depletion
and amortization 6,428 7,040 12,599 14,126
Impairment of long-lived assets 489 -- 790 --
General and administrative 2,881 1,790 5,542 3,427
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47,619 34,253 100,509 65,862
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Operating income/(loss) 3,531 (3,709) 11,393 (8,580)
Net gain (loss) on sale of assets 213 (139) 372 (81)
Interest income 282 116 446 216
Interest expense (1,266) (973) (2,165) (2,026)
Other 68 23 93 40
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Net income (loss) before taxes 2,828 (4,682) 10,139 (10,431)
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Income tax (benefit) / expense 1,107 (1,540) 3,885 (3,426)
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Net income/(loss) $ 1,721 $ (3,142) $ 6,254 $ (7,005)
============== ============== ============== ==============
Net income/(loss) per common share:
Primary $ 0.05 $ (0.10) $ 0.20 $ (0.22)
============== ============== ============== ==============
Diluted $ 0.05 $ (0.10) $ 0.20 $ (0.22)
============== ============== ============== ==============
Weighted average number of common
shares outstanding:
Primary 31,669 32,488 31,618 32,365
============== ============== ============== ==============
Diluted 31,989 32,488 31,888 32,365
============== ============== ============== ==============
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UNAUDITED BALANCE SHEET DATA (IN THOUSANDS) :
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<CAPTION>
DECEMBER 31, 1998 JUNE 30, 1999
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Current assets $ 53,483 $ 49,989
Property & equipment, net 136,677 132,304
Total assets 236,605 227,015
--
Current liabilities 22,952 23,904
Notes payable, less current maturities 47,143 42,857
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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: July 29, 1999 By: /s/ Jody Nelson
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Mr. Jody Nelson
Vice-President-Finance
Chief Financial Officer
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