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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 1, 1999
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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 1, 1999 the Registrant issued the following press release:
PATTERSON ENERGY, INC. REPORTS FOURTH QUARTER RESULTS
RESULTS IMPACTED BY WRITEDOWN OF OIL AND GAS PROPERTIES
Snyder, Texas, March 1, 1999 --- PATTERSON ENERGY, INC. (NASDAQ: PTEN) today
reported a net loss of $6.05 million, or $0.19 per diluted share for the quarter
ended December 31, 1998 compared to net income of $8.4 million, or $0.27 per
diluted share for the comparable period in 1997. Earnings before interest
expense, taxes, depreciation, depletion and amortization (EBITDA) were $2.4
million for the fourth quarter 1998 compared to $18.6 million for the fourth
quarter 1997. Included in this fourth quarter net loss was a $2.7 million ($.06
per diluted share tax affected at 34%) writedown of the Company's oil and
natural gas properties. This writedown was caused by the low commodity prices
that were received for the majority of 1998. Operating revenues for the fourth
quarter of 1998 were $32.4 million, a decrease of 47% from the comparative
period of 1997. Rig utilization was 33% for the quarter as compared to 87% rig
utilization for the fourth quarter of 1997.
For the year ended December 31, 1998 the Company reported a net loss of $325,000
or $0.01 per diluted share ($.08 per diluted share tax effected at 34%
attributable to a $3.8 million impairment to the oil and gas properties) as
compared to net income of $22.2 million, or $0.75 per diluted share for year
ending December 31, 1997. EBITDA was $36.1 million for 1998 versus $54 million
in 1997. Average rig utilization for 1998 was 54% compared to average rig
utilization of 89% for 1997. Low commodity prices received by the industry for
1998 negatively impacted all of the Company's operations for 1998. In addition
to the $3.8 million impairment of oil and gas properties, the Company recorded
approximately $1.5 million of additional depletion expense in 1998 compared to
1997 on an equivalent unit of production basis.
Commenting on the results, PTEN's Chairman Cloyce A. Talbott stated that, "Times
are difficult, but we have experienced severe down cycles before and, each time,
Patterson's management team has successfully led the Company out of the
difficulties. We believe the knowledge and expertise gained during the hard
times of the 80's will help us weather this current storm."
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, 1997 and Form 10-Q for the quarters ended March 31,
1998, June 30, 1998 and September 30, 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
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PATTERSON ENERGY, INC.
INCOME STATEMENT DATA (IN THOUSANDS):
<TABLE>
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
1997 1998 1997 1998
<S> <C> <C> <C> <C>
Operating revenues:
Drilling $ 58,125 $ 28,083 $ 178,332 $ 165,997
Drilling fluids -- 2,708 -- 13,397
Oil and gas 3,161 1,613 12,445 7,170
61,286 32,404 190,777 186,564
Costs and expenses:
Operating costs 40,897 27,878 132,818 142,719
Depreciation, depletion
and amortization 4,914 8,031 17,497 28,091
Impairment of long-lived assets -- 2,727 355 3,816
General and administrative 2,327 2,284 6,786 9,313
48,138 40,920 157,456 183,939
Operating income/(loss) 13,148 (8,516) 33,321 2,625
Net gain (loss) on sale of assets 145 (3) 1,499 636
Interest income 257 121 1,056 767
Interest expense (350) (1,111) (1,045) (4,471)
Other 108 59 277 211
Net income (loss) before taxes 13,308 (9,450) 35,108 (232)
Income tax (benefit) / expense 4,863 (3,400) 12,866 93
Net income/(loss) $ 8,445 $ (6,050) $ 22,242 $ (325)
Net income/(loss) per common share:
Primary $ 0.28 $ (0.19) $ 0.78 $ (0.01)
Diluted $ 0.27 $ (0.19) $ 0.75 $ (0.01)
Weighted average number of common shares outstanding:
Primary 30,230 31,671 28,492 31,645
Diluted 31,730 31,671 29,505 31,645
</TABLE>
BALANCE SHEET DATA (IN THOUSANDS):
<TABLE>
<CAPTION>
DECEMBER 31,
1997 1998
<S> <C> <C>
Current assets $ 77,014 $ 52,295
Property & equipment, net 100,405 136,677
Total assets 203,200 237,986
Current liabilities 30,530 23,333
Notes payable, less current maturities 21,783 47,143
</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
