Patterson-UTI Energy Reports Financial Results for Three and Twelve Months Ended December 31, 2018
HOUSTON, Feb. 7, 2019 /PRNewswire/ -- PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the three and twelve months ended December 31, 2018. The Company reported a net loss of $201 million, or $0.93 per share, for the fourth quarter of 2018, compared to a net profit of $195.4 million, or $0.88 per share, for the quarter ended December 31, 2017, which included the positive impact of the 2017 tax law change. The Company recorded a non-cash goodwill impairment charge in the fourth quarter of 2018 of $211 million ($192 million after-tax or $0.89 per share). Excluding the goodwill impairment charge, the net loss for the fourth quarter of 2018 would have been $9.0 million, or $0.04 per share. Revenues for the fourth quarter of 2018 were $796 million, compared to $787 million for the fourth quarter of 2017.
For the year ended December 31, 2018, the Company reported a net loss of $321 million, or $1.47 per share, compared to a net profit of $5.9 million, or $0.03 per share, for the year ended December 31, 2017. Excluding non-cash impairment charges incurred during the third and fourth quarters of 2018, the net loss for 2018 would have been $74.7 million, or $0.34 per share. Revenues for the year ended December 31, 2018 were $3.3 billion, compared to $2.4 billion for the same period in 2017.
During the fourth quarter, the Company repurchased approximately 3.8 million of its outstanding shares for $50.0 million. During the year ended December 31, 2018, the Company repurchased 9.3 million shares on the open market, or 4.2% of its outstanding shares at the beginning of the year, for approximately $150 million. At December 31, 2018, the remaining amount under the Company's share repurchase authorization was approximately $150 million, and the Company's Board has authorized an increase to bring the current authorization up to $250 million.
Andy Hendricks, Patterson-UTI's Chief Executive Officer, stated, "In contract drilling, our rig count averaged 183 rigs during the fourth quarter, an increase of five rigs from the third quarter. The sharp drop in oil prices in December resulted in some of our customers notifying us of their intent to release rigs. Recently, with the sharp rebound in oil prices above $50, we have seen an improvement in operator sentiment. We expect our rig count will average 174 rigs during the first quarter of 2019."
Mr. Hendricks added, "We achieved an increase in average rig margin per day of $920 to $9,390. Dayrates for super-spec rigs were strong during the fourth quarter, leading to an increase in average rig revenue per day of $690 to $22,970. Average rig operating costs per day for the fourth quarter decreased $230 to $13,580. Average rig revenue, costs and margin on a per day basis were all better than expected during the fourth quarter.
"We completed 14 major upgrades throughout 2018 and one additional major upgrade in January 2019. We currently have only one additional major rig upgrade contracted for delivery in 2019. Given the significant capital investment for major upgrades, we require term contracts for a major upgrade. We have not delivered any major drilling rig upgrades without a term contract, nor do we intend to do so.
"As of December 31, 2018, we had term contracts for drilling rigs providing for approximately $770 million of future dayrate drilling revenue. Based on contracts currently in place, we expect an average of 122 rigs operating under term contracts during the first quarter, and an average of 78 rigs operating under term contracts during 2019.
"In pressure pumping, we generated a better than expected gross profit for the fourth quarter of $62.2 million on revenues of $320 million compared to gross profit of $79.1 million on revenues of $422 million for the third quarter. The sequential decrease in both revenues and gross profit was a function of lower activity levels, primarily as a result of year-end E&P budget exhaustion. We continue to make progress in improving our pressure pumping performance, where the fourth quarter showed increasing internal efficiencies with reduced non-productive time and an increase in average number of stages per pumping day. With the weakness in commodity prices late in the fourth quarter, operators have been delaying starting new completion projects in the first quarter, and pricing remains extremely competitive. As such, we have made the decision to idle spreads rather than work at unreasonably low prices. We ended the fourth quarter with 20 active spreads and idled three spreads early in the first quarter of 2019.
"In directional drilling, revenues for the fourth quarter increased to $56.4 million from $51.6 million in the third quarter due to higher activity levels, as well as progress made to improve pricing and reduce equipment rental expense. Adjusted EBITDA improved to $4.1 million from $3.3 million in the third quarter."
Mark S. Siegel, Chairman of Patterson-UTI, stated, "The magnitude and speed of the oil price decline during the fourth quarter was surprising, even for those who have witnessed many major fluctuations in oil prices. The timing of the sharp decline no doubt impacted plans for first quarter 2019 drilling and completion programs.
"With oil prices in the mid-$50's, operator sentiment has improved. However, we suspect some of our E&P customers will wait to see if these prices, or possibly even higher prices, remain in effect before solidifying their drilling and completion plans. If oil prices do move higher, we expect activity levels will improve. With this market backdrop, and based on near-term activity levels, we expect 2019 capital expenditures of $465 million, a 27% decrease from the $641 million spent in 2018."
Mr. Siegel continued, "We will continue to focus on the things that have made us a leader in our markets and served us well in prior periods of uncertainty: efficient and high-quality services, our operational flexibility, the strength of our balance sheet, and prudent capital allocation. In 2018 we used our cash flow to repurchase $150 million of our stock, or more than 4% of the stock that was outstanding at the beginning of the year. We will continue to evaluate opportunities to repurchase our shares, particularly when we feel our stock is significantly undervalued," he concluded.
The Company declared a quarterly dividend on its common stock of $0.04 per share, to be paid on March 21, 2019, to holders of record as of March 7, 2019.
Financial results for the fourth quarter include pre-tax, non-cash impairment charges totaling $211 million ($192 million after-tax or $0.89 per share) related to the impairment of all of the goodwill associated with the Company's pressure pumping and directional drilling businesses. For the year ended December 31, 2018, financial results also include pre-tax, non-cash impairment charges totaling $65.9 million related to the impairment of certain legacy drilling rigs and sand handling equipment during the third quarter of 2018. For the year ended December 31, 2017, financial results include a benefit of $219 million related to a non-cash revaluation of deferred tax items and $83.8 million of net pre-tax costs that include merger and integration expenses, non-cash impairment charges, and gains on the sale of certain real estate and oil and gas interests. Excluding these items, the net loss for 2017 would have been $158 million or $0.80 per share.
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, 2018, is scheduled for today, February 7, 2019, 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 3519209. The call is also being webcast and can be accessed through the Investor Relations section of the Company's website at http://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; 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; 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; and 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.
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2018 2017 2018 2017
REVENUES $
795,937 $
787,334 $
3,326,997 $
2,356,684
COSTS AND EXPENSES
Direct operating costs 557,685 567,930 2,402,487 1,717,540
Depreciation, depletion, amortization and impairment 212,390 211,154 916,318 783,341
Impairment of goodwill 211,129 211,129
Selling, general and administrative 32,771 34,700 134,071 105,847
Merger and integration expenses 8,653 2,738 74,451
Other operating income, net (7,248) (13,456) (17,569) (31,957)
Total costs and expenses 1,006,727 808,981 3,649,174 2,649,222
OPERATING LOSS (210,790) (21,647) (322,177) (292,538)
OTHER INCOME (EXPENSE)
Interest income 997 717 5,597 1,866
Interest expense, net of amount capitalized (12,910) (10,543) (51,578) (37,472)
Other 84 117 750 343
Total other expense (11,829) (9,709) (45,231) (35,263)
LOSS BEFORE INCOME TAXES (222,619) (31,356) (367,408) (327,801)
INCOME TAX BENEFIT (21,370) (226,758) (45,987) (333,711)
NET INCOME (LOSS) $
(201,249) $
195,402 $
(321,421) $
5,910
NET INCOME (LOSS) PER COMMON SHARE
Basic $
(0.93) $
0.88 $
(1.47) $
0.03
Diluted $
(0.93) $
0.88 $
(1.47) $
0.03
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic 215,700 219,843 218,643 198,447
Diluted 215,700 221,904 218,643 199,882
CASH DIVIDENDS PER COMMON SHARE $
0.04 $
0.02 $
0.14 $
0.08
PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)
Three Months Ended Twelve Months Ended
December 31,
December 31,
2018 2017 2018 2017
Contract Drilling:
Revenues $
387,487 $
309,580 $
1,430,492 $
1,040,033
Direct operating costs $
229,074 $
191,269 $
885,704 $
667,105
Margin (1) $
158,413 $
118,311 $
544,788 $
372,928
Selling, general and administrative $
1,697 $
1,428 $
6,296 $
5,934
Depreciation, amortization and
impairment $
129,773 $
133,315 $
571,607 $
538,891
Operating income (loss) $
26,943 $
(16,432) $
(33,115) $
(171,897)
Operating days - United States 16,732 14,638 63,971 49,751
Operating days - Canada 137 138 508 676
Operating days - Total 16,869 14,776 64,479 50,427
Average revenue per operating day -
United States $
23.00 $
20.95 $
22.22 $
20.63
Average direct operating costs per
operating day - United States $
13.58 $
12.89 $
13.71 $
13.18
Average margin per operating day -
United States (1) $
9.43 $
8.06 $
8.50 $
7.45
Average rigs operating - United
States 182 159 175 136
Average revenue per operating day -
Canada $
19.15 $
20.90 $
18.29 $
20.20
Average direct operating costs per
operating day - Canada $
14.10 $
18.57 $
16.85 $
16.71
Average margin per operating day -
Canada (1) $
5.04 $
2.33 $
1.45 $
3.50
Average rigs operating - Canada 1 2 1 2
Average revenue per operating day -
Total $
22.97 $
20.95 $
22.19 $
20.62
Average direct operating costs per
operating day - Total $
13.58 $
12.94 $
13.74 $
13.23
Average margin per operating day -
Total (1) $
9.39 $
8.01 $
8.45 $
7.40
Average rigs operating - Total 183 161 177 138
Capital expenditures $
94,958 $
131,999 $
394,595 $
354,425
Pressure Pumping:
Revenues $
319,703 $
406,652 $
1,573,396 $
1,200,311
Direct operating costs $
257,497 $
323,607 $
1,263,850 $
966,835
Margin (2) $
62,206 $
83,045 $
309,546 $
233,476
Selling, general and administrative $
3,989 $
3,926 $
15,420 $
14,442
Depreciation, amortization and
impairment $
58,640 $
56,677 $
250,010 $
198,006
Impairment of goodwill $
121,444
$ $
121,444
$
Operating income (loss) $
(121,867) $
22,442 $
(77,328) $
21,028
Fracturing jobs 181 180 812 622
Other jobs 250 300 1,081 1,262
Total jobs 431 480 1,893 1,884
Average revenue per fracturing job $
1,737.50 $
2,225.56 $
1,909.42 $
1,894.40
Average revenue per other job $
20.86 $
20.17 $
21.23 $
17.43
Average revenue per total job $
741.77 $
847.19 $
831.17 $
637.11
Average costs per total job $
597.44 $
674.18 $
667.64 $
513.18
Average margin per total job (2) $
144.33 $
173.01 $
163.52 $
123.93
Margin as a percentage of revenues 19.5 20.4 19.7 19.5
(2) % % % %
Capital expenditures $
47,870 $
86,013 $
173,848 $
171,436
Directional Drilling:
Revenues $
56,398 $
45,580 $
209,275 $
45,580
Direct operating costs $
49,715 $
32,172 $
175,829 $
32,172
Margin (3) $
6,683 $
13,408 $
33,446 $
13,408
Selling, general and administrative $
2,631 $
4,082 $
15,941 $
4,082
Depreciation and amortization $
10,278 $
9,347 $
45,317 $
9,347
Impairment of goodwill $
89,685
$ $
89,685
$
Operating loss $
(95,911) $
(21) $
(117,497) $
(21)
Margin as a percentage of revenues 11.8 29.4 16.0 29.4
(3) % % % %
Capital expenditures $
6,211 $
7,795 $
35,929 $
7,795
Other Operations:
Revenues $
32,349 $
25,522 $
113,834 $
70,760
Direct operating costs $
21,399 $
20,882 $
77,104 $
51,428
Margin (4) $
10,950 $
4,640 $
36,730 $
19,332
Selling, general and administrative $
3,620 $
2,847 $
13,439 $
10,743
Depreciation, depletion and
impairment $
11,824 $
9,576 $
41,512 $
29,402
Operating loss $
(4,494) $
(7,783) $
(18,221) $
(20,813)
Capital expenditures $
11,136 $
10,531 $
34,660 $
31,547
Corporate:
Selling, general and administrative $
20,834 $
22,417 $
82,975 $
70,646
Merger and integration expenses
$ $
8,653 $
2,738 $
74,451
Depreciation $
1,875 $
2,239 $
7,872 $
7,695
Other operating income, net $
(7,248) $
(13,456) $
(17,569) $
(31,957)
Capital expenditures $
715 $
898 $
2,426 $
1,884
Total capital expenditures $
160,890 $
237,236 $
641,458 $
567,087
(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, impairment of
goodwill 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 and
amortization, impairment of
goodwill 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 and
impairment and selling, general
and administrative expenses.
December 31, December 31,
Selected
Balance
Sheet
Data
(unaudited,
in
thousands): 2018 2017
---
Cash
and
cash
equivalents
$ 245,029
$ 42,828
Current
assets
$ 950,197
$ 746,855
Current
liabilities
$ 526,316
$ 546,250
Working
capital
$ 423,881
$ 200,605
Borrowings
under
revolving
credit
facility
$
$ 268,000
Other
long-
term
debt
$ 1,119,205
$ 598,783
PATTERSON-UTI ENERGY, INC.
Non-U.S. GAAP Financial Measures
(unaudited, dollars in thousands)
Three Months Ended Twelve Months Ended
December 31,
December 31,
2018 2017 2018 2017
Adjusted Earnings Before Interest,
Taxes, Depreciation
and
Amortization (Adjusted EBITDA)(1):
Net income (loss) $
(201,249) $
195,402 $
(321,421) $
5,910
Income tax benefit (21,370) (226,758) (45,987) (333,711)
Net interest expense 11,913 9,826 45,981 35,606
Depreciation, depletion,
amortization and impairment 212,390 211,154 916,318 783,341
Impairment of goodwill 211,129 211,129
Adjusted EBITDA $
212,813 $
189,624 $
806,020 $
491,146
Total revenues $
795,937 $
787,334 $
3,326,997 $
2,356,684
Adjusted EBITDA margin 26.7 24.1 24.2 20.8
% % % %
Adjusted EBITDA by operating
segment:
Contract drilling $
156,716 $
116,883 $
538,492 $
366,994
Pressure pumping 58,217 79,119 294,126 219,034
Directional drilling 4,052 9,326 17,505 9,326
Other operations 7,330 1,793 23,291 8,589
Corporate (13,502) (17,497) (67,394) (112,797)
Consolidated Adjusted EBITDA $
212,813 $
189,624 $
806,020 $
491,146
(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 expense
(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.
Pro Forma Net Loss Per Share
(unaudited, dollars in thousands)
Three Months Ended December 31, 2018
As Reported
Pro Forma
Total Per Share Total Per Share (1)
Net loss as reported $
(201,249) $
(0.93) $
(201,249) $
(0.93)
Reverse impairment charge:
Pretax non-cash impairment
charge:
Goodwill 211,129
Income tax 18,834
After tax non-cash impairment
charge 192,295 $
0.89
Net loss (201,249) (8,954)
Adjust for income attributed
to holders of
non-
vested restricted stock
-
Loss attributed to
common shareholders $
(201,249) $
(0.93) $
(8,954) $
(0.04)
Weighted average number of
common shares
outstanding, excluding non-
vested shares
of
restricted stock
215,700 215,700
Add dilutive effect of
potential common shares
Weighted average number of
diluted common
shares outstanding
215,700 215,700
Effective tax rate applicable
to non-cash
impairment charge
8.9
%
(1) We present pro forma net loss
per share in order to convey to
investors our performance on a
basis that, by excluding
certain items, is more
comparable to our earnings per
share information reported in
previous periods. Pro Forma
Net Loss per Share should not
be construed as an alternative
to U.S. GAAP earnings per
share.
PATTERSON-UTI ENERGY, INC.
Effective Tax Rate Computation
(unaudited, dollars in thousands)
Three Months Ended December 31, 2018
Applicable Excluding
to Non-Cash Non-Cash
Impairment Impairment
As Reported Charge Charge
Loss
before
income
taxes $
(222,619) $
(211,129) $
(11,490)
Income tax benefit (21,370) (18,834) (2,536)
Net loss $
(201,249) $
(192,295) $
(8,954)
Effective tax rate 9.6 8.9 22.1
% % %
PATTERSON-UTI ENERGY, INC.
Pro Forma Net Loss Per Share
(unaudited, dollars in thousands)
Twelve Months Ended December 31, 2018
As Reported
Pro Forma
Total Per Share Total Per Share (1)
Net loss as reported $
(321,421) $
(1.47) $
(321,421) $
(1.47)
Reverse impairment charges:
Pretax non-cash impairment
charges:
Goodwill 211,129
Drilling rigs and related
equipment 48,443
Pressure pumping equipment 17,431
277,003
Income tax 30,302
After tax non-cash impairment
charges 246,701 $
1.13
Net loss (321,421) (74,720)
Adjust for income attributed to
holders of
non-
vested restricted stock
-
Loss attributed to
common shareholders $
(321,421) $
(1.47) $
(74,720) $
(0.34)
Weighted average number of
common shares
outstanding, excluding non-
vested shares
of
restricted stock
218,643 218,643
Add dilutive effect of
potential common shares
Weighted average number of
diluted common
shares outstanding
218,643 218,643
Effective tax rate applicable
to non-cash
impairment charges
10.9
%
(1) We present pro forma net loss
per share in order to convey to
investors our performance on a
basis that, by excluding
certain items, is more
comparable to our earnings per
share information reported in
previous periods. Pro Forma
Net Loss per Share should not
be construed as an alternative
to U.S. GAAP earnings per
share.
PATTERSON-UTI ENERGY, INC.
Effective Tax Rate Computation
(unaudited, dollars in thousands)
Twelve Months Ended December 31, 2018
Applicable Excluding
to Non-Cash Non-Cash
Impairment Impairment
As Reported Charges Charges
Loss
before
income
taxes $
(367,408) $
(277,003) $
(90,405)
Income tax benefit (45,987) (30,302) (15,685)
Net loss $
(321,421) $
(246,701) $
(74,720)
Effective tax rate 12.5 10.9 17.4
% % %
PATTERSON-UTI ENERGY, INC.
Pro Forma Net Loss Per Share
(unaudited, dollars in thousands)
Twelve Months Ended December 31, 2017
As Reported
Pro Forma
Total Per Share Total Per Share (1)
Net income as
reported $
5,910 $
0.03 $
5,910 $
0.03
Non-cash revaluation of
deferred tax items from
tax reform
(218,651) $
(1.10)
Reverse certain items:
Pretax amounts:
Merger and integration expenses 74,451
Non-cash impairment charges 28,979
Gains on sale of certain real
estate and oil
and
gas interests
(19,627)
83,803
Income tax 29,415
After-tax amount 54,388 $
0.27
Net income (loss) 5,910 (158,353)
Adjust for income attributed to
holders of
non-
vested restricted stock
(170) -
Income (loss)
attributed to common
shareholders $
5,740 $
0.03 $
(158,353) $
(0.80)
Weighted average number of
common shares
outstanding, excluding non-
vested shares
of
restricted stock
198,447 198,447
Add dilutive effect of potential
common shares 1,435
Weighted average number of
diluted common
shares outstanding
199,882 198,447
Normalized effective tax rate 35.1
%
(1) We present pro forma net loss
per share in order to convey to
investors our performance on a
basis that, by excluding
certain items, is more
comparable to our earnings per
share information reported in
previous periods. Pro Forma
Net Loss per Share should not
be construed as an alternative
to U.S. GAAP earnings per
share.
PATTERSON-UTI ENERGY, INC.
Effective Tax Rate Computation
(unaudited, dollars in thousands)
Twelve Months
Ended
December 31,
2017
Loss before
income taxes
as reported $
(327,801)
Income tax
benefit as
reported $
(333,711)
Less: non-cash
revaluation of deferred
tax items from tax
reform 218,651
Normalized
income tax
benefit $
(115,060)
Normalized effective tax 35.1
rate %
PATTERSON-UTI ENERGY, INC.
Contract Drilling Per Day Successive Quarters
(unaudited, dollars in thousands)
2018 2018
Fourth Third
Quarter Quarter
Contract drilling revenues $
387,487 $
365,280
Operating days -Total 16,869 16,394
Average rigs operating -
Total 183 178
Average revenue per
operating day -Total $
22.97 $
22.28
Direct operating costs -
Total $
229,074 $
226,373
Average direct operating
costs per operating day -
Total $
13.58 $
13.81
Average margin per
operating day -Total $
9.39 $
8.47
PATTERSON-UTI ENERGY, INC.
Pressure Pumping Margin
(unaudited, in thousands)
2018 2018
Fourth Third
Quarter Quarter
Pressure pumping revenues $
319,703 $
421,606
Direct operating costs 257,497 342,498
Margin $
62,206 $
79,108
PATTERSON-UTI ENERGY, INC.
Directional Drilling Margin and Adjusted EBITDA
(unaudited, dollars in thousands)
2018 2018
Fourth Third
Quarter Quarter
Directional drilling
revenues $
56,398 $
51,556
Direct operating costs 49,715 44,740
Margin 6,683 6,816
Selling, general and
administrative 2,631 3,548
Adjusted EBITDA $
4,052 $
3,268
View original content:http://www.prnewswire.com/news-releases/patterson-uti-energy-reports-financial-results-for-three-and-twelve-months-ended-december-31-2018-300791352.html
SOURCE PATTERSON-UTI ENERGY, INC.
