Bronco Drilling Says Has Record Third Quarter

Bronco Drilling has financial results for the three and nine months ended September 30, 2005.

Revenues for the third quarter were a record $18.6 million compared to $11.7 million for the previous quarter and $5.4 million for the third quarter of 2004. Average operating rigs for the third quarter of 2005 grew to 15 from 12 for the previous quarter. The growth in rigs is due to the refurbishment and deployment of two of the Company's inventoried rigs during the third quarter of 2005 as well as the acquisition of two operating rigs. Revenue days for the quarter increased to 1,284 from 1,027 for the previous quarter and from 786 for the third quarter of the previous year. Average daily cash margins(1) for the quarter ended September 30, 2005 were $5,945 compared to $4,648 for the previous quarter and $1,266 for the third quarter of the previous year.

The Company's fully diluted earnings per share for the third quarter of 2005 was a loss of $0.31. This number includes non-recurring charges related to the Company's initial public offering and conversion from an LLC to a C Corporation during the quarter that reduced earnings per share by $0.46. Excluding these items, reported earnings per share would have been $0.15. Weighted average shares outstanding on a fully diluted basis were 16.3 million shares for the quarter.

Frank Harrison, Bronco Drilling's Chief Executive Officer, said "It's been an exciting quarter, our first as a public company. Demand for our rigs is strong and dayrates continue to trend upward. Our refurbishment program is on schedule and we are excited about being able to expand our refurbishment capacity to 10 rigs annually as a result of our recent Thomas Drilling acquisition. The expansion into the Barnett Shale with our recent acquisitions as well as the deployment of two of our rigs to the Rocky Mountains contributes to the geographic expansion we are seeking. We believe that our expansion to these areas as well as the overall demand for our rigs will translate into improving margins and strong results."

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

Three Months Ended Nine Months Ended

September 30, September 30,

2005 2004 2005 2004

(Unaudited) (Unaudited)

REVENUES

Contract drilling revenues $18,640 $5,363 $38,875 $13,198

EXPENSES

Contract drilling 11,007 4,368 23,880 11,272

Depreciation and amortization 2,003 1,040 4,854 2,593

General and administrative 5,647 395 6,767 1,124

18,657 5,803 35,501 14,989

Income (loss) from

operations (17) (440) 3,374 (1,791)

OTHER INCOME (EXPENSE)

Interest expense (344) (82) (652) (126)

Loss from early extinguishment

of debt (993) - (993) -

Interest income 192 1 203 6

Other 7 6 41 10

(1,138) (74) (1,401) (109)

Income (loss) before

income taxes (1,155) (514) 1,973 (1,900)

Deferred tax expense (benefit) 3,919 (79) 3,688 (164)

NET LOSS $(5,074) $(435) $(1,715) $(1,736)

Loss per common share-Basic $(0.31) $(0.12)

Loss per common share-Diluted $(0.31) $(0.12)

Weighted average number of

shares outstanding-Basic 16,239 14,330

Weighted average number of

shares outstanding-Diluted 16,285 14,346

PRO FORMA INFORMATION (unaudited):

Historical loss from operations

before income taxes$ (1,155) $(514) $1,973 $(1,900)

Pro forma provision (benefit)

for income taxes (435) (194) 744 (716)

Pro forma income (loss) from

operations $(720) $(320) $1,229 $(1,184)

Pro forma income (loss) per

common share-Basic $(0.04) $(0.02) $0.09 $(0.09)

Pro forma income (loss) per

common share-Diluted $(0.04) $(0.02) $0.09 $(0.09)

Weighted average number of

shares outstanding-Basic 16,239 13,360 14,330 13,360

Weighted average number of

shares outstanding-Diluted 16,285 13,360 14,346 13,360

Three Months Ended Three Months Ended

September 30, June 30,

2005 2004 2005

(Unaudited) (Unaudited)

Reconciliation of average daily

cash margin to net income:

Net income $(5,074) $(435) $2,529

Deferred tax expense (benefit) 3,919 (79) (116)

Other income (expense) 1,138 74 200

General and administrative 5,647 395 654

Depreciation and amortization 2,003 1,040 1,507

Drilling margin 7,633 995 4,774

Revenue days 1,284 786 1,027

Daily cash margin $5,945 $1,266 $4,648
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