EPS Forecast
Revenue Forecast
Exhibit 99.1
Contact: Mike Drickamer
Vice President, Investor Relations
Patterson-UTI Energy, Inc.
(281) 765-7170
Patterson-UTI Energy Reports Financial Results for the Three Months and Year Ended December 31, 2019
HOUSTON, Texas – February 6, 2020 – PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the three months and year ended December 31, 2019. The Company reported a net loss of $85.9 million, or $0.44 per share, for the fourth quarter of 2019, compared to a net loss of $201 million, or $0.93 per share, for the fourth quarter of 2018. Revenues for the fourth quarter of 2019 were $492 million, compared to $796 million for the fourth quarter of 2018.
For the year ended December 31, 2019, the Company reported a net loss of $426 million, or $2.10 per share, compared to a net loss of $321 million, or $1.47 per share, for the year ended December 31, 2018. Revenues for the year ended December 31, 2019 were $2.5 billion, compared to $3.3 billion for the year ended December 31, 2018.
During 2019, the Company spent $250 million to repurchase 22.6 million shares pursuant to the Company’s share repurchase program. The Company also reduced its long-term debt by $150 million during 2019 and extended debt maturities. During the fourth quarter, the Company issued $350 million of senior, unsecured notes due 2029 in order to refinance $300 million of notes due 2022 and to reduce outstanding borrowings under a bank term loan. The early repayment of notes due 2022 resulted in a pre-tax charge of $15.8 million during the fourth quarter.
Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “We believe our rig count bottomed in the fourth quarter and will modestly increase in early-2020. Lower than expected rig activity and higher than expected operating costs in the fourth quarter were the result of changes in our geographic mix and gaps in rig activity between jobs. In the first quarter, increasing rig count in the Permian should more than offset lower activity in other markets.”
Mr. Hendricks continued, “In contract drilling, our rig count averaged 123 rigs in the fourth quarter, down from 142 rigs in the third quarter. The decrease in activity primarily occurred early in the fourth quarter with our December rig count showing the first increase in a year. For the first quarter, we expect activity will improve from December levels and result in an average rig count similar to the fourth quarter.
“During the fourth quarter, the fluctuation in activity resulted in increased revenues and expenses associated with stacking rigs in some basins, while reactivating rigs in the Permian. Additionally, gaps in the work schedule resulted in some rigs being stacked early in the quarter and being reactivated later in the quarter, which required us to carry extra labor while the rigs were not generating revenue or operating days. Therefore, average rig revenue per operating day and average rig direct operating cost per day of $23,980 and $15,540, respectively, were both higher than expected.
“As of December 31, 2019, we had term contracts for drilling rigs providing for approximately $605 million of future dayrate drilling revenue. Based on contracts currently in place, we expect an average of 77 rigs operating under term contracts during the first quarter and an average of 58 rigs operating under term contracts during 2020.
“In pressure pumping, our gross profit was $21.9 million for the fourth quarter, which included the benefit of a $10.8 million sales tax refund that reduced direct operating costs. We started the fourth quarter with 14 active spreads and stacked one spread in October and two spreads in November, as activity declined throughout the quarter. We expect to average 10 active spreads for the first quarter and will be negatively impacted by the sudden operational stoppage of a major oil company customer, however, due to the actions we have taken and continue to take, we believe that pressure pumping results should improve later in the year.
“In directional drilling, as we expected, a steep drop in fourth quarter activity resulted in revenues falling to $38.6 million in the fourth quarter from $47.0 million in the third quarter. Lower activity levels, combined with higher than expected expenses for repairs and maintenance, contributed to a lower than expected gross margin of $3.8 million for the fourth quarter.”
Mr. Hendricks concluded, “Based on our current outlook for 2020 activity, we expect to spend approximately $250 million of capex for the year, down from $348 million in 2019. Our capex budget is primarily focused on maintenance spending to preserve the service quality for our customers and the earnings power of our assets.”
Mark S. Siegel, Chairman of Patterson-UTI, stated, “In 2019, Patterson-UTI proactively responded to tough market conditions. We reduced capital spending by 46% and focused spending on maintaining the high quality of our equipment. We also made strategic investments in automation and performance technologies, a number of which will come to the market in 2020.
“In 2019, we generated strong cash flow and further strengthened our financial position. During the year, we spent $250 million to reduce our number of outstanding shares by more than 10%, and we reduced our long-term debt by $150 million” he concluded.
The Company declared a quarterly dividend on its common stock of $0.04 per share, payable on March 19, 2020, to holders of record as of March 5, 2020.
All references to "per share" in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260.
The Company's quarterly conference call to discuss the operating results for the quarter ended December 31, 2019, is scheduled for today, February 6, 2020, at 9:00 a.m. Central Time. The dial-in information for participants is (844) 704-2496 (Domestic) and (647) 253-8661 (International). The conference ID for both numbers is 1061035. The call is also being webcast and can be accessed through the Investor Relations section of the Company’s website at https://investor.patenergy.com. A replay of the conference call will be on the Company’s website for two weeks.
About Patterson-UTI
Patterson-UTI is a provider of oilfield services and products to oil and natural gas exploration and production companies in North America, including market leading positions in contract drilling, pressure pumping and directional drilling services. For more information, visit www.patenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI’s current beliefs, expectations or intentions regarding future events. Words such as “anticipate,” “believe,” “budgeted,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “potential,” “project,” “pursue,” “should,” “strategy,” “target,” or “will,” and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Patterson-UTI’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: volatility in customer spending and in oil and natural gas prices, which could adversely affect demand for Patterson-UTI’s services and their associated effect on rates, utilization, margins and planned capital expenditures; global economic conditions; excess availability of land drilling rigs and pressure pumping equipment, including as a result of low
commodity prices, reactivation, improvement or construction; liabilities from operations; weather; decline in, and ability to realize, backlog; equipment specialization and new technologies, including the ability to develop and obtain satisfactory returns from new technology; shortages, delays in delivery and interruptions of supply of equipment and materials; ability to hire and retain personnel; loss of, or reduction in business with, key customers; cybersecurity risk; difficulty with growth and in integrating acquisitions and new technology; governmental regulation; perception of sustainability practices; product liability; legal proceedings, including technology disputes, and actions by governmental or other regulatory agencies; political, economic and social instability risk; ability to effectively identify and enter new markets; dependence on our subsidiaries to meet our long-term debt obligations; variable rate indebtedness risk; ability to maintain credit rating and service debt; stock price volatility; anti-takeover measures in our charter documents; contingent tax liabilities; and ability to use net operating losses.
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 Patterson-UTI’s SEC filings. Patterson-UTI’s filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI’s website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
REVENUES |
|
$ |
492,297 |
|
|
$ |
795,937 |
|
|
$ |
2,470,685 |
|
|
$ |
3,326,997 |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating costs |
|
|
363,515 |
|
|
|
557,685 |
|
|
|
1,773,697 |
|
|
|
2,402,487 |
|
|
Depreciation, depletion, amortization and impairment |
|
|
180,011 |
|
|
|
212,390 |
|
|
|
1,003,873 |
|
|
|
916,318 |
|
|
Impairment of goodwill |
|
|
— |
|
|
|
211,129 |
|
|
|
17,800 |
|
|
|
211,129 |
|
|
Selling, general and administrative |
|
|
31,833 |
|
|
|
32,771 |
|
|
|
133,513 |
|
|
|
134,071 |
|
|
Provision for bad debts |
|
|
2,089 |
|
|
|
— |
|
|
|
5,683 |
|
|
|
— |
|
|
Merger and integration expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,738 |
|
|
Other operating income, net |
|
|
(2,388 |
) |
|
|
(7,248 |
) |
|
|
(2,305 |
) |
|
|
(17,569 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
575,060 |
|
|
|
1,006,727 |
|
|
|
2,932,261 |
|
|
|
3,649,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING LOSS |
|
|
(82,763 |
) |
|
|
(210,790 |
) |
|
|
(461,576 |
) |
|
|
(322,177 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
1,532 |
|
|
|
997 |
|
|
|
6,013 |
|
|
|
5,597 |
|
|
Interest expense, net of amount capitalized |
|
|
(28,183 |
) |
|
|
(12,910 |
) |
|
|
(75,204 |
) |
|
|
(51,578 |
) |
|
Other |
|
|
61 |
|
|
|
84 |
|
|
|
389 |
|
|
|
750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense |
|
|
(26,590 |
) |
|
|
(11,829 |
) |
|
|
(68,802 |
) |
|
|
(45,231 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
|
(109,353 |
) |
|
|
(222,619 |
) |
|
|
(530,378 |
) |
|
|
(367,408 |
) |
|
INCOME TAX BENEFIT |
|
|
(23,430 |
) |
|
|
(21,370 |
) |
|
|
(104,675 |
) |
|
|
(45,987 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(85,923 |
) |
|
$ |
(201,249 |
) |
|
$ |
(425,703 |
) |
|
$ |
(321,421 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER COMMON SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.44 |
) |
|
$ |
(0.93 |
) |
|
$ |
(2.10 |
) |
|
$ |
(1.47 |
) |
|
Diluted |
|
$ |
(0.44 |
) |
|
$ |
(0.93 |
) |
|
$ |
(2.10 |
) |
|
$ |
(1.47 |
) |
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
193,687 |
|
|
|
215,700 |
|
|
|
203,039 |
|
|
|
218,643 |
|
|
Diluted |
|
|
193,687 |
|
|
|
215,700 |
|
|
|
203,039 |
|
|
|
218,643 |
|
|
CASH DIVIDENDS PER COMMON SHARE |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
$ |
0.16 |
|
|
$ |
0.14 |
|
|
PATTERSON-UTI ENERGY, INC. |
|
|||||||||||||||
|
Additional Financial and Operating Data |
|
|||||||||||||||
|
(unaudited, dollars in thousands) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Contract Drilling: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
270,785 |
|
|
$ |
387,487 |
|
|
$ |
1,308,350 |
|
|
$ |
1,430,492 |
|
|
Direct operating costs |
|
$ |
175,427 |
|
|
$ |
229,074 |
|
|
$ |
785,355 |
|
|
$ |
885,704 |
|
|
Margin (1) |
|
$ |
95,358 |
|
|
$ |
158,413 |
|
|
$ |
522,995 |
|
|
$ |
544,788 |
|
|
Selling, general and administrative |
|
$ |
1,701 |
|
|
$ |
1,697 |
|
|
$ |
6,317 |
|
|
$ |
6,296 |
|
|
Depreciation, amortization and impairment |
|
$ |
113,169 |
|
|
$ |
129,773 |
|
|
$ |
668,007 |
|
|
$ |
571,607 |
|
|
Operating (loss) income |
|
$ |
(19,512 |
) |
|
$ |
26,943 |
|
|
$ |
(151,329 |
) |
|
$ |
(33,115 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days – United States |
|
|
11,246 |
|
|
|
16,732 |
|
|
|
54,282 |
|
|
|
63,971 |
|
|
Operating days – Canada |
|
|
45 |
|
|
|
137 |
|
|
|
262 |
|
|
|
508 |
|
|
Operating days – Total |
|
|
11,291 |
|
|
|
16,869 |
|
|
|
54,544 |
|
|
|
64,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per operating day – United States |
|
$ |
24.01 |
|
|
$ |
23.00 |
|
|
$ |
24.02 |
|
|
$ |
22.22 |
|
|
Average direct operating costs per operating day – United States |
|
$ |
15.47 |
|
|
$ |
13.58 |
|
|
$ |
14.36 |
|
|
$ |
13.71 |
|
|
Average margin per operating day – United States (1) |
|
$ |
8.54 |
|
|
$ |
9.43 |
|
|
$ |
9.66 |
|
|
$ |
8.50 |
|
|
Average rigs operating – United States |
|
|
122 |
|
|
|
182 |
|
|
|
149 |
|
|
|
175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per operating day – Canada |
|
$ |
16.78 |
|
|
$ |
19.15 |
|
|
$ |
17.92 |
|
|
$ |
18.29 |
|
|
Average direct operating costs per operating day – Canada |
|
$ |
32.47 |
|
|
$ |
14.10 |
|
|
$ |
22.68 |
|
|
$ |
16.85 |
|
|
Average margin per operating day – Canada (1) |
|
$ |
(15.69 |
) |
|
$ |
5.04 |
|
|
$ |
(4.76 |
) |
|
$ |
1.45 |
|
|
Average rigs operating – Canada |
|
|
0 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per operating day – Total |
|
$ |
23.98 |
|
|
$ |
22.97 |
|
|
$ |
23.99 |
|
|
$ |
22.19 |
|
|
Average direct operating costs per operating day – Total |
|
$ |
15.54 |
|
|
$ |
13.58 |
|
|
$ |
14.40 |
|
|
$ |
13.74 |
|
|
Average margin per operating day – Total (1) |
|
$ |
8.45 |
|
|
$ |
9.39 |
|
|
$ |
9.59 |
|
|
$ |
8.45 |
|
|
Average rigs operating – Total |
|
|
123 |
|
|
|
183 |
|
|
|
149 |
|
|
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
36,275 |
|
|
$ |
94,958 |
|
|
$ |
194,416 |
|
|
$ |
394,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure Pumping: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
161,448 |
|
|
$ |
319,703 |
|
|
$ |
868,694 |
|
|
$ |
1,573,396 |
|
|
Direct operating costs |
|
$ |
139,597 |
|
|
$ |
257,497 |
|
|
$ |
724,788 |
|
|
$ |
1,263,850 |
|
|
Margin (2) |
|
$ |
21,851 |
|
|
$ |
62,206 |
|
|
$ |
143,906 |
|
|
$ |
309,546 |
|
|
Selling, general and administrative |
|
$ |
2,921 |
|
|
$ |
3,989 |
|
|
$ |
12,655 |
|
|
$ |
15,420 |
|
|
Depreciation, amortization and impairment |
|
$ |
45,493 |
|
|
$ |
58,640 |
|
|
$ |
233,952 |
|
|
$ |
250,010 |
|
|
Impairment of goodwill |
|
$ |
— |
|
|
$ |
121,444 |
|
|
$ |
— |
|
|
$ |
121,444 |
|
|
Operating loss |
|
$ |
(26,563 |
) |
|
$ |
(121,867 |
) |
|
$ |
(102,701 |
) |
|
$ |
(77,328 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fracturing jobs |
|
|
93 |
|
|
|
181 |
|
|
|
505 |
|
|
|
812 |
|
|
Other jobs |
|
|
215 |
|
|
|
250 |
|
|
|
844 |
|
|
|
1,081 |
|
|
Total jobs |
|
|
308 |
|
|
|
431 |
|
|
|
1,349 |
|
|
|
1,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per fracturing job |
|
$ |
1,613.67 |
|
|
$ |
1,737.50 |
|
|
$ |
1,673.81 |
|
|
$ |
1,909.42 |
|
|
Average revenue per other job |
|
$ |
52.92 |
|
|
$ |
20.86 |
|
|
$ |
27.75 |
|
|
$ |
21.23 |
|
|
Average revenue per total job |
|
$ |
524.18 |
|
|
$ |
741.77 |
|
|
$ |
643.95 |
|
|
$ |
831.17 |
|
|
Average costs per total job |
|
$ |
453.24 |
|
|
$ |
597.44 |
|
|
$ |
537.28 |
|
|
$ |
667.64 |
|
|
Average margin per total job (2) |
|
$ |
70.94 |
|
|
$ |
144.33 |
|
|
$ |
106.68 |
|
|
$ |
163.52 |
|
|
Margin as a percentage of revenues (2) |
|
|
13.5 |
% |
|
|
19.5 |
% |
|
|
16.6 |
% |
|
|
19.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
15,775 |
|
|
$ |
47,870 |
|
|
$ |
105,803 |
|
|
$ |
173,848 |
|
|
PATTERSON-UTI ENERGY, INC. |
|
|||||||||||||||
|
Additional Financial and Operating Data |
|
|||||||||||||||
|
(unaudited, dollars in thousands) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Directional Drilling: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
38,572 |
|
|
$ |
56,398 |
|
|
$ |
188,786 |
|
|
$ |
209,275 |
|
|
Direct operating costs |
|
$ |
34,726 |
|
|
$ |
49,715 |
|
|
$ |
178,645 |
|
|
$ |
175,829 |
|
|
Margin (3) |
|
$ |
3,846 |
|
|
$ |
6,683 |
|
|
$ |
10,141 |
|
|
$ |
33,446 |
|
|
Selling, general and administrative |
|
$ |
2,644 |
|
|
$ |
2,631 |
|
|
$ |
10,642 |
|
|
$ |
15,941 |
|
|
Depreciation, amortization and impairment |
|
$ |
10,468 |
|
|
$ |
10,278 |
|
|
$ |
52,223 |
|
|
$ |
45,317 |
|
|
Impairment of goodwill |
|
$ |
— |
|
|
$ |
89,685 |
|
|
$ |
— |
|
|
$ |
89,685 |
|
|
Operating loss |
|
$ |
(9,266 |
) |
|
$ |
(95,911 |
) |
|
$ |
(52,724 |
) |
|
$ |
(117,497 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin as a percentage of revenues (3) |
|
|
10.0 |
% |
|
|
11.8 |
% |
|
|
5.4 |
% |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
4,428 |
|
|
$ |
6,211 |
|
|
$ |
15,549 |
|
|
$ |
35,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
21,492 |
|
|
$ |
32,349 |
|
|
$ |
104,855 |
|
|
$ |
113,834 |
|
|
Direct operating costs |
|
$ |
13,765 |
|
|
$ |
21,399 |
|
|
$ |
84,909 |
|
|
$ |
77,104 |
|
|
Margin (4) |
|
$ |
7,727 |
|
|
$ |
10,950 |
|
|
$ |
19,946 |
|
|
$ |
36,730 |
|
|
Selling, general and administrative |
|
$ |
1,408 |
|
|
$ |
3,620 |
|
|
$ |
14,068 |
|
|
$ |
13,439 |
|
|
Depreciation, depletion, amortization and impairment |
|
$ |
9,331 |
|
|
$ |
11,824 |
|
|
$ |
42,803 |
|
|
$ |
41,512 |
|
|
Impairment of goodwill |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
17,800 |
|
|
$ |
— |
|
|
Operating loss |
|
$ |
(3,012 |
) |
|
$ |
(4,494 |
) |
|
$ |
(54,725 |
) |
|
$ |
(18,221 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
5,938 |
|
|
$ |
11,136 |
|
|
$ |
27,132 |
|
|
$ |
34,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
$ |
23,159 |
|
|
$ |
20,834 |
|
|
$ |
89,831 |
|
|
$ |
82,975 |
|
|
Merger and integration expenses |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,738 |
|
|
Depreciation |
|
$ |
1,550 |
|
|
$ |
1,875 |
|
|
$ |
6,888 |
|
|
$ |
7,872 |
|
|
Other operating income, net |
|
$ |
(2,388 |
) |
|
$ |
(7,248 |
) |
|
$ |
(2,305 |
) |
|
$ |
(17,569 |
) |
|
Provision for bad debts |
|
$ |
2,089 |
|
|
$ |
— |
|
|
$ |
5,683 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
1,808 |
|
|
$ |
715 |
|
|
$ |
4,612 |
|
|
$ |
2,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures |
|
$ |
64,224 |
|
|
$ |
160,890 |
|
|
$ |
347,512 |
|
|
$ |
641,458 |
|
|
|
(1) |
For Contract Drilling, margin is defined as revenues less direct operating costs and excludes depreciation, amortization and impairment and selling, general and administrative expenses. Average margin per operating day is defined as margin divided by operating days. |
|
|
|
(2) |
For Pressure Pumping, margin is defined as revenues less direct operating costs and excludes depreciation, amortization and impairment and selling, general and administrative expenses. Average margin per total job is defined as margin divided by total jobs. Margin as a percentage of revenues is defined as margin divided by revenues. |
|
|
|
(3) |
For Directional Drilling, margin is defined as revenues less direct operating costs and excludes depreciation, amortization and impairment and selling, general and administrative expenses. Margin as a percentage of revenues is defined as margin divided by revenues. |
|
|
|
(4) |
For Other Operations, margin is defined as revenues less direct operating costs and excludes depreciation, depletion, amortization and impairment, impairment of goodwill, and selling, general and administrative expenses. |
|
|
|
|
December 31, |
|
|
December 31, |
|
||||
|
Selected Balance Sheet Data (unaudited, in thousands): |
|
2019 |
|
|
2018 |
|
||||
|
Cash and cash equivalents |
|
$ |
|
174,185 |
|
|
$ |
|
245,029 |
|
|
Current assets |
|
$ |
|
631,815 |
|
|
$ |
|
950,197 |
|
|
Current liabilities |
|
$ |
|
400,602 |
|
|
$ |
|
526,316 |
|
|
Working capital |
|
$ |
|
231,213 |
|
|
$ |
|
423,881 |
|
|
Long-term debt |
|
$ |
|
966,540 |
|
|
$ |
|
1,119,205 |
|
Non-U.S. GAAP Financial Measures
(unaudited, dollars in thousands)
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(85,923 |
) |
|
$ |
(201,249 |
) |
|
$ |
(425,703 |
) |
|
$ |
(321,421 |
) |
|
Income tax benefit |
|
|
(23,430 |
) |
|
|
(21,370 |
) |
|
|
(104,675 |
) |
|
|
(45,987 |
) |
|
Net interest expense |
|
|
26,651 |
|
|
|
11,913 |
|
|
|
69,191 |
|
|
|
45,981 |
|
|
Depreciation, depletion, amortization and impairment |
|
|
180,011 |
|
|
|
212,390 |
|
|
|
1,003,873 |
|
|
|
916,318 |
|
|
Impairment of goodwill |
|
|
— |
|
|
|
211,129 |
|
|
|
17,800 |
|
|
|
211,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
97,309 |
|
|
$ |
212,813 |
|
|
$ |
560,486 |
|
|
$ |
806,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
492,297 |
|
|
$ |
795,937 |
|
|
$ |
2,470,685 |
|
|
$ |
3,326,997 |
|
|
Adjusted EBITDA margin |
|
|
19.8 |
% |
|
|
26.7 |
% |
|
|
22.7 |
% |
|
|
24.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by operating segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling |
|
$ |
93,657 |
|
|
$ |
156,716 |
|
|
$ |
516,678 |
|
|
$ |
538,492 |
|
|
Pressure pumping |
|
|
18,930 |
|
|
|
58,217 |
|
|
|
131,251 |
|
|
|
294,126 |
|
|
Directional drilling |
|
|
1,202 |
|
|
|
4,052 |
|
|
|
(501 |
) |
|
|
17,505 |
|
|
Other operations |
|
|
6,319 |
|
|
|
7,330 |
|
|
|
5,878 |
|
|
|
23,291 |
|
|
Corporate |
|
|
(22,799 |
) |
|
|
(13,502 |
) |
|
|
(92,820 |
) |
|
|
(67,394 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted EBITDA |
|
$ |
97,309 |
|
|
$ |
212,813 |
|
|
$ |
560,486 |
|
|
$ |
806,020 |
|
|
|
(1) |
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by accounting principles generally accepted in the United States of America (“U.S. GAAP”). We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax benefit and depreciation, depletion, amortization and impairment expense (including impairment of goodwill). We present Adjusted EBITDA because we believe it provides to both management and investors additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the U.S. GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies. |
|
PATTERSON-UTI ENERGY, INC.
Contract Drilling Per Day Successive Quarters
(unaudited, dollars in thousands)
|
|
|
2019 |
|
|
2019 |
|
|
|
|
|
||
|
|
|
Fourth |
|
|
Third |
|
|
|
|
|
||
|
|
|
Quarter |
|
|
Quarter |
|
|
Change |
|
|||
|
Contract drilling revenues |
|
$ |
270,785 |
|
|
$ |
317,035 |
|
|
$ |
(46,250 |
) |
|
Operating days - Total |
|
|
11,291 |
|
|
|
13,081 |
|
|
|
(1,790 |
) |
|
Average rigs operating - Total |
|
|
123 |
|
|
|
142 |
|
|
|
(19 |
) |
|
Average revenue per operating day - Total |
|
$ |
23.98 |
|
|
$ |
24.24 |
|
|
$ |
(0.26 |
) |
|
Direct operating costs - Total |
|
$ |
175,427 |
|
|
$ |
188,934 |
|
|
$ |
(13,507 |
) |
|
Average direct operating costs per operating day - Total |
|
$ |
15.54 |
|
|
$ |
14.44 |
|
|
$ |
1.10 |
|
|
Average margin per operating day - Total |
|
$ |
8.45 |
|
|
$ |
9.79 |
|
|
$ |
(1.34 |
) |
PATTERSON-UTI ENERGY, INC.
Directional Drilling Margin
(unaudited, in thousands)
|
|
|
2019 |
|
|
2019 |
|
|
|
|
|
||
|
|
|
Fourth |
|
|
Third |
|
|
|
|
|
||
|
|
|
Quarter |
|
|
Quarter |
|
|
Change |
|
|||
|
Directional drilling revenues |
|
$ |
38,572 |
|
|
$ |
47,037 |
|
|
$ |
(8,465 |
) |
|
Direct operating costs |
|
|
34,726 |
|
|
|
56,215 |
|
|
|
(21,489 |
) |
|
Margin |
|
$ |
3,846 |
|
|
$ |
(9,178 |
) |
|
$ |
13,024 |
|