Patterson-UTI Reports Financial Results for 2Q 2007
Patterson-UTI Energy (Nasdaq: PTEN) reported financial results for the three and six months ended June 30, 2007. Net income for the three-month period totaled $140 million, or $0.88 per share, compared to $172 million, or $1.00 per share for the three months ended June 30, 2006. Revenues for the just completed quarter were $523 million, compared to $637 million for the second quarter of 2006.
Net income for the six months ended June 30, 2007 totaled $255 million, or $1.62 per share, compared to net income of $331 million, or $1.91 per share for the first six months of 2006. Revenues for the six-month period were $1.1 billion, compared to $1.2 billion for the first six months of 2006.
Net income for the three months ended June 30, 2007 includes the recognition of a pretax net recovery of $41.9 million ($27.2 million after tax, or $0.17 per share) from the Receiver who was appointed to seize assets under the control of Jonathan D. Nelson. Net income for this period also includes a pretax net gain of $16.5 million ($10.7 million after tax, or $0.07 per share) from the sale of certain oil and natural gas properties and the disposal of certain other assets. Excluding these items, net income for the second quarter ended June 30, 2007 totaled $102 million, or $0.64 per share.
The Company also announced that its Board of Directors has approved a stock buyback program, authorizing purchases of up to $250 million of the Company's common stock in open market or privately negotiated transactions.
The Company also declared a quarterly cash dividend on its Common Stock of $0.12 per share, to be paid on September 28, 2007 to holders of record as of September 12, 2007.
Cloyce A. Talbott, Patterson-UTI's Chief Executive Officer, stated, "Average revenues per operating day during the second quarter were $19,410, compared to $20,350 in the first quarter of 2007. Average direct costs per operating day decreased to $10,570, compared to $10,720 for the first quarter of 2007."
Mr. Talbott added, "For the quarter ended June 30, 2007, the Company had an average of 237 drilling rigs operating, including 235 rigs in the U.S. and 2 rigs in Canada. This compares to 255 rigs operating, including 243 in the U.S. and 12 in Canada, for the first quarter of 2007."
"We estimate that our July rig count increased to 248 average rigs operating, including 239 in the U.S. and 9 in Canada," Mr. Talbott added.
Mark S. Siegel, Chairman of Patterson-UTI, stated, "Following the buyback of $450 million of our common shares in 2006, the decision to authorize a new stock buyback program of an additional $250 million demonstrates continued confidence in the Company's strong cash flow and our continuing commitment to deploy capital in a manner beneficial to shareholders. We have also invested heavily in our rig fleet and remain committed to meet our customers' demands for increasingly complex wells."
"While mild weather conditions have contributed to a recent decline in natural gas prices, we continue to believe that a substantial increase in natural gas wells in North America will be needed to meet increasing demand and offset steep decline rates. We also believe our strong balance sheet and strategy of investing in our rig fleet and returning excess capital to shareholders will continue to serve our company well in the future," Mr. Siegel added.
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