Pride Says 1Q07 Numbers Driven by Strong Operational Performance

Pride International, Inc. (NYSE:PDE) reported net income for the three months ended March 31, 2007 of $101.7 million, or $0.58 per diluted share, on revenues of $712.0 million. The results compare to net income of $70.5 million, or $0.41 per diluted share, on revenues of $566.9 million for the corresponding three months in 2006. Results for the corresponding quarter in 2006 included gains from the sale of assets totaling $26.7 million, or $0.10 per diluted share on an after-tax basis.

Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc. commented, "Our record results for the first quarter 2007 were attributable to excellent operational performance in our mobile offshore drilling fleet and strong results in the Latin America Land business segment. Our revenue backlog, totaling $5.6 billion at April 30, 2007, provides for solid revenue and cash flow growth for some time to come. We remain optimistic regarding the duration of the offshore business cycle and continue to evaluate multi-year contract opportunities for several of our floating rigs, which should provide greater earnings visibility through the end of the decade. In April, we announced one-year contracts for three of our mat-supported rigs for work in the Mexican waters of the Gulf of Mexico, including the Pride Mississippi, which is scheduled to leave the U.S. Gulf of Mexico in August 2007. Although activity in the U.S. Gulf of Mexico mat supported fleet remained soft through the first quarter of 2007, dayrates appear to be stabilizing and we could experience modest improvement in dayrates during late 2007 or early 2008 as additional rigs depart the region and our clients increase activity levels."

Consolidated Results

Higher average daily revenues and utilization in the Company's Offshore and Latin America Land business segments contributed significantly to the 6% improvement in consolidated revenues during the first quarter of 2007 compared to the fourth quarter of 2006. Revenues of $712.0 million were the highest in the Company's history, and we expect to continue to experience quarterly improvement as contracts commence for a number of the Company's mobile offshore drilling rigs with attractive dayrates that reflect the healthy industry environment.

Earnings from operations totaled $176.7 million during the first quarter of 2007, a 32% increase from the fourth quarter of 2006, due primarily to the improvement in revenues and a modest decline in operating costs from $422.3 million during the fourth quarter of 2006 to $419.2 million in the first quarter of 2007. The decline in operating costs was due substantially to the presence in the fourth quarter of 2006 of expenses associated with the early termination of our agency agreement and charter fees, both related to the Company's Brazilian operations. This was partially offset by higher activity and labor costs in both the Offshore and Latin America Land business segments.

During the first quarter of 2007, the Company completed shipyard programs for special periodic surveys and other maintenance on the jackup rigs Pride Tennessee, Pride Arkansas, Pride Hawaii and Pride Wisconsin and each rig has commenced new contracts at significantly improved dayrates.

Total debt at March 31, 2007 was $1.4 billion, down slightly from December 31, 2006, resulting in a debt to total capital ratio of 33%.

Offshore Segment Results

Revenues from the Company's Offshore business segment improved 7% in the first quarter of 2007 to $461.1 million, compared to $432.9 million during the fourth quarter of 2006. The improvement was driven by higher utilization and average daily revenues in both the deepwater and midwater fleets, partially offset by a decline in revenues and utilization in the U.S. Gulf of Mexico jackup rig fleet. Earnings from operations grew to $171.6 million in the first quarter of 2007, up 34% from $128.0 million during the fourth quarter of 2006. The increase was primarily attributable to the revenue improvement and lower operating costs resulting from the impact of the previously mentioned Brazilian joint venture acquisition and termination of our agency agreement in Brazil during the fourth quarter of 2006.

The Company's eight-rig deepwater fleet reported revenues of $138.1 million in the first quarter of 2007, improving 10% from $125.5 million in the fourth quarter of 2006. Earnings from operations grew to $53.0 million in the first quarter of 2007 compared to $27.5 million for the preceding quarter due to the positive impact of the Brazilian joint venture acquisition and improved operating performance on the semisubmersible rig Pride North America which was out-of-service for almost half of the fourth quarter of 2006. Utilization of the fleet increased to 98% in the first quarter of 2007 compared to 88% in the fourth quarter of 2006, with five of the eight rigs achieving 100% utilization during the first quarter. Average daily revenues were $195,400 during the first quarter of 2007 compared to $193,000 during the fourth quarter of 2006. In late-March 2007, the semisubmersible rig Pride South Pacific commenced an estimated 27-month contract offshore Angola at a record dayrate for the Company of $425,000, increasing from a previous dayrate of $140,000.

Revenues from the midwater fleet, comprising six semisubmersible rigs, were $80.2 million in the first quarter of 2007 compared to $64.9 million in the fourth quarter of 2006. The 24% improvement was due primarily to the commencement of new contracts for the Pride South Seas and Pride South America and improved utilization on the Pride South Atlantic following the completion of shipyard maintenance during the fourth quarter of 2006. Utilization improved to 99% in the first quarter of 2007 compared to 91% in the fourth quarter of 2006 while average daily revenues climbed to $150,000 from $129,800 over the same comparative period. The commencement of new contracts and improved utilization allowed earnings from operations to reach a record of $32.7 million in the first quarter of 2007 from $14.7 million during the fourth quarter of 2006.

Revenues from the Company's 28-rig jackup fleet totaled $182.6 million in the first quarter of 2007 compared to $185.6 million in the fourth of 2006. Fleet utilization was 80% in the first quarter of 2007, unchanged from the fourth quarter of 2006, as lower activity in the U.S. Gulf of Mexico was offset by the return of five rigs to active service following periods of out-of-service time during the fourth quarter of 2006. Average daily revenues improved slightly from $90,100 to $90,700 over the same comparative period, as higher dayrates associated with new contracts in Mexico for the Pride Tennessee, Pride Wisconsin and Pride Arkansas offset a 10% decline in average daily revenues from the U.S. Gulf of Mexico. Earnings from operations from the jackup fleet of $78.8 million declined 8% from the fourth quarter of 2006 due primarily to weakness in the U.S. Gulf of Mexico and rig out-of-service time pertaining to the Company's fleet maintenance and regulatory compliance efforts.

Latin America Land Segment

Revenues from the Latin America Land business segment, comprising 206 land drilling and workover rigs, were $172.8 million during the first quarter of 2007, up 8% from $159.6 million in the fourth quarter of 2006. The growth in revenues was due substantially to increased activity, especially in Colombia, where pricing also improved; Argentina, following the negative impact of a seven-day general labor strike during the fourth quarter of 2006, and Bolivia. Earnings from operations totaled $30.7 million, improving 6% from $29.0 million over the same comparative period. Average daily revenues for the land drilling rig fleet improved to approximately $16,500 during the first quarter of 2007 compared to $15,400 in the fourth quarter of 2006. Average daily revenue for the land workover rig fleet was approximately $7,000 compared to $6,900 over the same comparative period.

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