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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) April 30, 1999
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 April 30, 1999 the Registrant issued the following press release:
PATTERSON ENERGY, INC. REPORTS FIRST QUARTER 1999
RESULTS FROM OPERATIONS
Snyder, Texas, April 30, 1999 --- PATTERSON ENERGY, INC. (NASDAQ: PTEN) today
announced the results of its first quarter ended March 31, 1999. The Company
generated a Net loss of $3.9 million, or $(0.12) per diluted share which
compares to Net income of $4.5 million, or $0.14 per diluted share for the first
quarter ended March 31, 1998. Operating revenues for the first three months of
1999 were $26.7 million as compared to $60.8 million for the comparative
three-month period in 1998. The decrease is reflective of the significantly
reduced commodity prices, particularly that of crude oil, received by the
Company during the first quarter of 1999 and the direct impact of such prices on
the Company's rig utilization. The Company's rig utilization for the 1999
quarter was 32% as compared to 70% in 1998. Earnings before interest expense,
income taxes, depreciation, depletion and amortization (EBITDA) was $2.4 million
for the three months ended March 31, 1999 as compared to $14.7 million for the
same period in 1998.
Cloyce A. Talbott, Patterson's Chairman and Chief Executive Officer commented,
"...the previous three fiscal quarters have proven to be some of the most
economically challenging ever faced by the Company. The depressed economic
conditions have had a detrimental impact on the Company's earnings and related
cash flows. We are confident however, that with a sustained value recovery in
the underlying commodity prices the Company will again be able to capitalize on
its quality equipment and efficient operation strategies to further enhance the
Company's profitability and its return to stockholders. Until such recovery is
realized within the industry, the Company will endeavor to implement strategies
to preserve its operating cash and control its overhead costs."
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's
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 these filings 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
James C. Brown, Vice-President-Finance and Chief Financial Officer
(915) 573-1104
[email protected]
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PATTERSON ENERGY, INC.
<TABLE>
<CAPTION>
INCOME STATEMENT DATA (IN THOUSANDS):
THREE MONTHS ENDED MARCH 31,
1998 1999
<S> <C> <C>
Operating revenues:
Drilling $ 54,297 $ 22,457
Drilling fluids 4,269 2,933
Oil and gas 2,185 1,348
60,751 26,738
Costs and expenses:
Operating costs 43,758 22,886
Depreciation, depletion
and amortization 6,471 7,086
General and administrative 2,661 1,637
52,890 31,609
Operating income/(loss) 7,861 (4,871)
Net gain on sale of assets 159 58
Interest income 165 100
Interest expense (899) (1,053)
Other 25 17
Net income (loss) before taxes 7,311 (5,749)
Income tax (benefit) / expense 2,778 (1,886)
Net income/(loss) $ 4,533 $ (3,863)
Net income/(loss) per common share:
Primary $ 0.14 $ (0.12)
Diluted $ 0.14 $ (0.12)
Weighted average number of common shares outstanding:
Primary 31,566 32,240
Diluted 31,835 32,240
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET DATA (IN THOUSANDS) :
DECEMBER 31, 1998 MARCH 31, 1999
<S> <C> <C>
Current assets $ 53,483 $ 50,187
Property & equipment, net 136,677 136,669
Total assets 236,605 232,385
Current liabilities 22,952 22,672
Notes payable, less current maturities 47,143 45,000
</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: May 3, 1999 By: /s/ James C. Brown
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James C. Brown
Vice-President-Finance
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