Oklahoma's Bronco Drilling Releases 2Q Financial Results



Bronco Drilling Company has announced its financial and operational results for the three months and six months ended June 30, 2009.

Consolidated Results

Revenues for the second quarter of 2009 were $27.5 million compared to $50.6 million for the previous quarter and $69.8 million for the second quarter of 2008. Net loss for the second quarter of 2009 was $7.2 million compared to a net loss of $1.7 million for the previous quarter and net income of $4.3 million for the second quarter of 2008. The Company generated EBITDA of $2.6 million for the second quarter of 2009 compared to $13.1 million for the previous quarter and $20.6 million for the second quarter of 2008. The Company’s fully diluted earnings per share for the quarter ended June 30, 2009, were a loss of $0.27 based on 26.7 million shares.

Land Drilling

Average operating land rigs for the second quarter of 2009 were 45 compared to 45 for the previous quarter and 45 for the second quarter of 2008. Revenue days for the quarter decreased to 1,311 from 2,362 for the previous quarter and from 3,355 for the second quarter of 2008. Utilization for the second quarter of 2009 was 32% compared to 58% for the previous quarter and 82% for the second quarter of 2008. Average daily cash margins for our land drilling fleet for the quarter ended June 30, 2009, were $6,304 compared to $7,613 for the previous quarter and $7,088 for the second quarter of 2008.

Well Servicing

Average operating workover rigs for the second quarter of 2009 were 52 compared to 52 for the previous quarter and 53 for the second quarter of 2008. Revenue hours for the quarter decreased to 3,374 from 8,012 for the previous quarter and from 25,533 for the second quarter of 2008. Utilization for the second quarter of 2009 was 10% compared to 24% for the previous quarter and 75% for the second quarter of 2008. Average hourly cash margins for our well servicing fleet for the quarter ended June 30, 2009, were ($70) compared to $58 for the previous quarter and $127 for the second quarter of 2008. The company announced in June the temporary suspension of this business segment in anticipation of more favorable market conditions.

Recent Events

Subsequent to the end of the second quarter, the company has entered into two definitive contracts to provide drilling services in the Chicontepec Basin in Mexico. The duration of the contracts is two years and will require six drilling rigs. The company expects the first rigs to begin work in early September and expects all six rigs to be operating by the middle of October.

 


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