AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
Original Source: FD (FAIR DISCLOSURE) WIRE
. Jeff Lloyd, Patterson-UTI Energy, Inc., IR . Mark Siegel, Patterson-UTI Energy, Inc., Chairman . Arun Jayaram, Credit Suisse First Boston, Analyst . John Vollmer, Patterson-UTI Energy, Inc., CFO . Cloyce Talbott, Patterson-UTI Energy, Inc., CEO . James Wicklund, Banc of America Securities, Analyst . Ian Macpherson, Simmons & Company, Analyst . Jim Rollyson, Raymond James & Associates, Analyst . Mike Drickamer, Morgan Keegan, Analyst . Pierre Conner, Hibernia Southcoast Capital, Analyst . Judd Bailey, Jefferies & Co., Analyst . Todd Garman, Peters & Co., Analyst
PTEN reported 4Q05 net income of $134m or $0.77 per share and revenues of $531m. Net income for the 12 months ended 12/31/2005 was $373m or $2.15 per share. Revenues for the 12 months period ending 12/31/2005 were $1.7b.
A. Key Data From Call 1. Revenues for the 12 months period ending 12/31/2005 = $1.7b. 2. 4Q05 revenues = $531m. 3. Net income for the 12 months ended 12/31/2005 = $373m or $2.15 per share. 4. 4Q05 net income = $134m or $0.77 per share.
S1. Operational Highlights (M.S.) 1. Operational Results: 1. Total revenues, net income, and net income for common share, all set new records in 4Q05 and for the full year. 2. Net income for 4Q05 nearly quadrupled to $134m or $0.77 per share from $34m or $0.20 per share for 4Q04. 3. Revenues for 4Q05 were up by 84% to $531m vs. $288m for 4Q04. 4. Net income for the 12 months ended 12/31/2005 nearly quadrupled to $373m or $2.15 per share from $94m or $0.56 per share for the year-ended 12/31/2004.
5. Revenues for the 12 months were up by 74% to $1.7b vs. $1b for
the previous 12 months period. 6. The results for the three months and 12 months ended 12/31/2005 included expenses of approx. $8m and $20m respectively related previously announced embezzlement by the Co.'s former CFO. 1. Absent these expenses, EPS for 4Q05 and year-ended 12/31/2005 would have been $0.80 and $2.22 respectively. 7. The results for the year also continued to demonstrate the earnings leverage as a 74% increase in revenue generated
nearly a 300% increase in net income. 2. Exceptional Performance:
1. Exceptional performance from universal service, Ambar drilling
fluids, and Patterson petroleum. 2. The aforementioned record results reflect strong performances from all of the Co.'s operating segments, including pressure pumping operations, drilling and completion fluid segment, and oil and natural gas exploration activities. 1. All achieved record performances for calendar year 2005. 3. Drilling: 1. PTEN's land drilling segment, which generated 85% of its revenue, had an outstanding year. 2. From an operational standpoint, the Co. achieved its twelfth consecutive qtr. of increases in avg. revenue per operating day and avg. margin per operating day, reflecting the continuing demand for its services along with the ongoing scarcity of land-based rigs. 3. Compared to 3Q05, the Co.'s avg. revenue per operating day for 4Q05 increased by $1,720 to $17,130 and avg. margin per operating day increased by $1,410 to $9,020. 4. During 4Q05, PTEN had a an avg. of 292 rigs operating including 275 in the US and 17 in Canada vs. an avg. of 283 rigs operating including 269 in the US and 14 in Canada for 3Q05. 5. PTEN estimate that its rig count will increase to an avg. of 300 rigs operating in 1Q06, including 282 in the US and 18 in Canada.
1. The Co. expects that avg. revenue per day will increase by
approx. $1,000 per day. 4. Buyback: 1. PTEN also announced on 03/30/2005 that the Board has approved an increase in the Co.'s stock buyback program authorizing the purchase of up to $200m of the Co.'s common stock. 2. The increase in the stock buyback program demonstrates continued confidence in the Co.'s strong cash flow and its continuing commitment to deploy excess capital in a manner beneficial to shareholders. 3. As noted, the Co. did buyback $12m in stock during 4Q05 before it learned of the embezzlement and were precluded from purchasing additional stock. 4. The Co. believes that excess capital should be deployed in the most favorable manner for its shareholders and believes that it is among the first companies in the oil and services group to institute a dividend in more than a decade and sees the increased buyback as further demonstrating this strong