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EXHIBIT 99.1
Contact: John Vollmer Jack Leone
Chief Financial Officer Sitrick And Company
UTI Energy Corp. (310) 788-2850
(281) 873-4111
FOR IMMEDIATE RELEASE:
UTI ENERGY TO ACQUIRE SIX ADDITIONAL DRILLING RIGS;
WILL INCREASE UTI'S LAND RIG FLEET TO 150
HOUSTON -- JANUARY 5, 2001 -- UTI ENERGY CORP. (AMEX: UTI) today announced that
it has entered into three separate agreements to acquire a total of six
additional drilling rigs for a total purchase price of $13.6 million cash. The
six rigs have an average depth capacity of approximately 15,000 feet, and will
bring UTI's total rig count to 150 drilling rigs. The three transactions are
expected to close by the end of the month.
Four of the new rigs are currently in service -- three in Oklahoma, and one in
south Texas. The remaining two, including an "SCR" electric rig capable of
drilling to a depth greater than 20,000 feet, will be refurbished at a cost of
approximately $2.5 million, excluding drill pipe. It is expected that the SCR
rig will be marketed beginning in the second quarter of the year and the other
rig is expected to be marketed during the first quarter.
"AT UTI Energy, our strategy has been to grow the company through selective
acquisitions," said Mark S. Siegel, UTI's Chairman. "We are constantly seeking
those acquisition opportunities that we identify as providing exceptional value,
in terms of both the quality of the equipment and the purchase price."
Mr. Siegel continued, "Over the last three years we have added approximately 20
drilling rigs per year through the consistent implementation of this growth
strategy, and today's announcement represents a continuation of this commitment.
We believe that these six drilling rigs are particularly well suited to provide
UTI with flexibility and additional capacity to meet the growing demand in
today's marketplace."
UTI Energy Corp. is a leading provider of contract drilling and pressure pumping
services in North America. Upon closing of the acquisitions of the drilling rigs
described above, the company's subsidiaries will own 150 drilling rigs that
provide drilling services primarily in Texas, Oklahoma, New Mexico, and western
Canada. The company's pressure pumping subsidiary provides stimulation and
cementing services in the Northeast United States.
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Statements made in this press release which 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 actual results could
differ materially from those discussed in such forward-looking statements.
Important factors that could cause actual results to differ materially include,
but are not limited to, declines in oil and natural gas prices that could
adversely affect demand for the Company's services, and their associated effect
on day rates, rig utilization and planned capital expenditures, adverse industry
conditions, difficulty in integrating acquisitions, demand for oil and natural
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 and Forms
10-Q for fiscal 2000 reporting periods. Copies of these filings may be obtained
by contacting the Company or the SEC.
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