Bronco Drilling Releases 2008 Financial Results

Bronco Drilling has announced today financial and operational results for the three months and twelve months ended December 31, 2008.

Consolidated Results

Revenues for the fourth quarter of 2008 were $76.0 million compared to $73.0 million for the third quarter of 2008 and $69.0 million for the fourth quarter of 2007. Net loss for the fourth quarter of 2008 was $19.8 million compared to a net loss of $0.9 million for the previous quarter and net income of $6.4 million for the fourth quarter of 2007. The Company’s fully diluted earnings per share for the quarter ended December 31, 2008, were a loss of $0.75 based on 26.3 million shares.

Due to the downturn in the industry and in accordance with the Company’s impairment testwork performed at year-end, a charge of $24.3 million was recognized during the fourth quarter of 2008 as all of the Company’s goodwill was determined to be impaired. The Company also wrote down its investment in Challenger Limited by $15.3 million during the fourth quarter of 2008. Without these items, fully diluted earnings per share for the quarter would be $0.17 and EBITDA was $21.4 million.

Revenues for the year ended December 31, 2008 were $281.1 million compared to $299.0 million for the year ended 2007. Net loss for 2008 was $8.2 million compared to $37.6 million in net income for 2007. The Company generated EBITDA of $80.8 million in 2008 compared to $109.7 million for the previous year. The Company’s fully diluted earnings per share for the year ended December 31, 2008, were a loss of $0.31 compared to income of $1.44 for 2007.

Land Drilling

Average operating land rigs for the fourth quarter of 2008 was 43 compared to 42 for the previous quarter and 48 for the fourth quarter of 2007. Revenue days for the quarter increased to 3,300 from 3,208 for the previous quarter and 3,250 for the fourth quarter of 2007. Utilization for the fourth quarter of 2008 was 83% compared to 84% for the previous quarter and 73% for the fourth quarter of 2007.

Average daily cash margins for our land drilling fleet for the quarter ended December 31, 2008, was $9,087 compared to $7,582 for the previous quarter and $8,747 for the fourth quarter of 2007.

Average operating land rigs for the year ended December 31, 2008 was 44 compared to 51 for 2007. Revenue days for 2008 decreased to 12,712 from 14,245 for the previous year. Utilization for 2008 was 79% compared to 76% for 2007. Average daily cash margins for our land drilling fleet for the year ended December 31, 2008, was $7,785 compared to $8,585 for 2007.

Well Servicing

Average operating workover rigs for the fourth quarter of 2008 was 53 compared to 54 for the previous quarter and 42 for the fourth quarter of 2007. Revenue hours for the quarter decreased to 16,793 from 25,401 for the previous quarter and decreased from 20,089 for the fourth quarter of 2007. Utilization for the fourth quarter of 2008 was 49% compared to 73% for the previous quarter and 75% for the fourth quarter of 2007. Average hourly cash margins for our well servicing fleet for the quarter ended December 31, 2008, was $60 compared to $50 for the previous quarter and $137 for the fourth quarter of 2007.

Average operating workover rigs for the year ended December 31, 2008 was 52 compared to 33 for 2007. Revenue hours for 2008 increased to 91,591 from 63,746 for the previous year. Utilization for 2008 was 68% compared to 78% for 2007. Average hourly cash margins for our well servicing fleet for the year ended December 31, 2008, were $96 compared to $134 for 2007.
 

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