Patterson-UTI Energy Announces Record Year
Patterson-UTI Energy, the second-largest operator of land-based oil and natural gas drilling rigs in North America, announced financial results for the fourth quarter and year ended December 31, 2001.
Consolidated net income for the quarter totaled $18.7 million, or $0.24 per share, versus net income of $21.2 million, or $0.27 per share for the three months ended December 31, 2000. Revenue for the quarter was $174.7 million, compared to $197.2 million for the three months ended December 31, 2000. EBITDA for the fourth quarter was $54.1 million, versus EBITDA of $52.2 million for the fourth quarter of 2000.
Revenue for the year ended December 31, 2001 totaled $990 million and consolidated net income was $164.2 million, or $2.17 per share, compared to revenue of $582.3 million and consolidated net income of $37.2 million, or $0.50 per share for the twelve months ended December 31, 2000. EBITDA for the year was $366.5 million, versus EBITDA of $130.0 million for 2000.
The merger of Patterson Energy, Inc. and UTI Energy Corp. was treated as a pooling-of-interests for accounting purposes. The historical results shown above have been restated to reflect the combined results of the companies. The Company incurred $13.1 million in charges in the second quarter of 2001 in connection with the merger, and this amount is excluded from the year ended December 31, 2001 results presented above.
Cloyce A. Talbott, Patterson-UTI's Chief Executive Officer, commented, "The decline in drilling activity that began in August continued throughout the quarter, as commodity prices, especially the price for natural gas, remained at low levels. We have taken advantage of this downturn to service our equipment and maintain our rigs in good working order so that we can respond quickly and efficiently to the anticipated improvement in the market. We have been through these cycles in the past, and have always found that the most prudent course of action is to retain our most experienced people. While this practice has the short-term effect of increasing our average drilling costs, we are convinced that it is the best course of action in the long-run.
"Our average margin per operating day was $3,880, compared to $5,673 for the previous quarter, and we had an average 140 rigs operating during the fourth quarter, compared to an average 225 rigs operating during the previous quarter. In January we averaged approximately 125 rigs operating, including 11 rigs in Canada.
"We are very pleased with the record-setting results achieved by our pressure pumping division in 2001 as well as the continued strong performance of the drilling and completion fluids business," Mr. Talbott added.
Mark S. Siegel, Chairman of Patterson-UTI Energy, stated, "The record results achieved in 2001 have begun to demonstrate the financial and operational benefits that we sought to achieve through the merger. The predecessor companies have seamlessly come together, building upon each other's core strengths to create a solid management team and an operational platform to support future growth and expansion.
Mr. Siegel added, "We ended the year with a strong balance sheet that includes $33.6 million in available cash, no debt, and we have a $100 million undrawn line of credit. "We achieved a milestone in November, when, in recognition of our industry position, financial stature and growth our stock was added to the S&P MidCap 400 Index.
"During the quarter we also completed the acquisition of 17 land-based drilling rigs from Cleere Drilling Company, providing us with 319 land-based rigs. The acquisition also included 28 rig-moving trucks as well as other equipment and inventory.
"Looking ahead, we believe that Patterson-UTI Energy is well positioned, regardless of the direction of commodity prices. When energy markets are strong, as they were during the first half of 2001, the Company demonstrated enormous potential for profitability and cash flow. When these markets are weak, the Company has the financial resources, as well as the ability to identify and consummate value-added transactions," Mr. Siegel concluded.