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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) November 15, 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.
On November 15, 2000 the Registrant issued the following press release:
PATTERSON ENERGY, INC. SIGNS LETTER OF INTENT TO ACQUIRE
TWENTY-ONE DRILLING RIGS
Snyder, Texas, November 15, 2000 --- PATTERSON ENERGY, INC. (NASDAQ: PTEN)
announced today that on November 13, 2000 Patterson Energy, Inc. ("Patterson")
and Jones Drilling Corporation, and its affiliates Henderson Welding, Inc.,
L.E.J. Truck and Crane, Inc. and LE Jones Drilling Company (collectively the
"Jones Entities"), executed an agreement in principle whereby Patterson would
acquire the Jones Entities or their assets. The assets consist primarily of 21
drilling rigs (of which 14 are currently operable, one is expected to be
operable by the end of the year and six will require additional capital
expenditure), fleet of rig moving trucks, drilling facilities, shops and
equipment yards in Duncan, Oklahoma and Bridgeport, Texas. The drilling rigs
range from 450 to 1,000 horsepower with drilling capacity ranging from 5,000 to
15,000 feet. The Jones Entities conduct operations primarily in southern
Oklahoma, the Permian Basin of West Texas and Eastern New Mexico and the Barnett
Shale area of North central Texas. The purchase price of $36.2 million will
consist of 810,070 shares of Patterson's common stock and $14.5 million cash.
Consummation of the acquisition is subject to, among other matters, the
execution of a mutually agreeable definitive agreement expected to be executed
in early to mid-December 2000 and expiration of the waiting period under the
Hart-Scott-Rodino antitrust improvements act of 1976.
The six non-operable drilling rigs require certain capital expenditures,
including drill pipe for each of the rigs. Patterson estimates these
expenditures will approximate $4 million to $6 million. Refurbishment of the six
rigs is expected to be completed at various times during fiscal 2001.
LaWayne Jones, founder of Jones Drilling, stated: "Joining forces with Patterson
represents a great opportunity for our company and our employees that will carry
forward our commitment to providing service to our customers. We are proud of
what we have accomplished in our markets over the past 45 years, and we look
forward to the benefits of joining with a market leader of the caliber of
Patterson. We are particularly pleased that Patterson intends to continue to
supervise drilling operations in Oklahoma from our offices in Duncan." Jones
Drilling is represented in the transaction by the Dallas office of the
investment banking firm Dain Rauscher Wessels.
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 131 drilling rigs (123
of which are currently operable) with contract drilling operations in Texas, New
Mexico, Utah, Oklahoma 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
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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, Chief Financial Officer
(915) 573-1104
[email protected]
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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: November 15, 2000 By: /s/ CLOYCE A. TALBOTT
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Cloyce A. Talbott
Chairman and Chief Executive Officer
