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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 27, 2000
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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.
PATTERSON ENERGY, INC. REPORTS
SECOND QUARTER RESULTS FROM OPERATIONS
Snyder, Texas, July 27, 2000 --- PATTERSON ENERGY, INC. (NASDAQ: PTEN) today
announced a 120% increase in operating revenue and a 379% increase in its
earnings before interest, income taxes and depreciation, depletion and
amortization (EBITDA) for the three months ended June 30, 2000 over the same
three-month period in 1999. Patterson reported net income of $3.8 million, or
$0.11 per diluted share for its second quarter ended June 30, 2000 which
compares to a net loss of $3.1 million, or $(0.10) per diluted share for the
quarter ended June 30, 1999. EBITDA for the quarter ended June 30, 2000 was
$15.8 million versus $3.3 million for the same fiscal quarter in 1999.
Furthermore, Patterson's earnings and related EBITDA for the second quarter
ended June 30, 2000 improved 318% and 53%, respectively, over its first fiscal
quarter ended March 31, 2000. Mr. Cloyce A. Talbott, Patterson's Chairman and
CEO, stated, "the commodity prices being experienced by the industry contributed
directly to the apparent increased demand for the Company's contract drilling
services. Our average rig utilization of 72% for the quarter evidences this
increased demand as utilization has steadily improved over the past five
consecutive quarters."
For the six months ended June 30, 2000, Patterson generated net income of $4.7
million, or $0.14 per diluted share on operating revenues of $125.7 million
which compares to a net loss of $7.0 million, or $(0.22) per diluted share on
operating revenues of $57.3 million for the six months ended June 30, 1999.
EBITDA for the six months ended June 30, 2000 and 1999 was $26.1 million and
$5.7 million, respectively, an increase of 358%.
Mr. Talbott commented, "with a fleet of 119 operable drilling rigs (with an
average depth capacity in excess of 12,000 feet) strategically deployed across
the crude oil and natural gas regions of Texas, Louisiana, New Mexico, Oklahoma
and Utah, management believes that should these commodity prices continue, the
Company is sufficiently equipped to accommodate further increased demand for its
contract drilling services."
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 the second largest U.S.
land-based contract drilling fleet with 131 drilling rigs (119 of which, are
currently operable) and focuses its operations in Texas, New Mexico, Oklahoma,
Utah and Louisiana.
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, 1999. 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 D. (Jody) Nelson, Vice-President-Finance and Chief Financial Officer
(915) 573-1104
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PATTERSON ENERGY, INC.
Income Statement Data (in thousands):
Unaudited
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Operating revenues:
Drilling $ 58,379 $ 26,718 $ 109,536 $ 49,175
Drilling fluids 5,109 1,806 9,474 4,739
Oil and gas 3,651 2,020 6,695 3,368
---------- ---------- ---------- ----------
67,139 30,544 125,705 57,282
Costs and expenses:
Operating costs 49,326 25,423 95,508 48,309
Depreciation, depletion
and amortization 8,447 7,040 16,164 14,126
General and administrative 2,151 1,790 4,347 3,427
---------- ---------- ---------- ----------
59,924 34,253 116,019 65,862
Operating income/(loss) 7,215 (3,709) 9,686 (8,580)
Net gain (loss) on sale of
assets 7 (139) 50 (81)
Interest income 124 116 237 216
Interest expense (1,532) (973) (2,725) (2,026)
Other 17 23 (3) 40
---------- ---------- ---------- ----------
Net income (loss) before
income taxes 5,831 (4,682) 7,245 (10,431)
Income tax (benefit)/
expense 2,023 (1,540) 2,526 (3,426)
---------- ---------- ---------- ----------
Net income/(loss) $ 3,808 $ (3,142) $ 4,719 $ (7,005)
Net income/(loss) per common share:
Basic $ 0.12 $ (0.10) $ 0.14 $ (0.22)
Diluted $ 0.11 $ (0.10) $ 0.14 $ (0.22)
Weighted average number of common
shares outstanding:
Basic 32,880 32,488 33,186 32,365
Diluted 34,237 32,488 34,577 32,365
</TABLE>
Balance Sheet Data (in thousands):
Unaudited
<TABLE>
<CAPTION>
June 30, 2000 December 31, 1999
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<S> <C> <C>
Current assets $ 71,753 $ 58,764
Property & equipment, net 178,819 133,824
Total assets 293,062 236,257
Current liabilities 48,973 31,716
Note payable, less current
maturities 54,825 50,000
</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: August 21, 2000 By: /s/ JONATHAN D. NELSON
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Jonathan D. (Jody) Nelson
Vice President-Finance
