Patterson-UTI Energy Reports Financial Results for Three and Twelve Months Ended December 31, 2012

  Patterson-UTI Energy Reports Financial Results for Three and Twelve Months
                           Ended December 31, 2012

7% of Shares Repurchased in 2012

PR Newswire

HOUSTON, Feb. 7, 2013

HOUSTON, Feb. 7, 2013 /PRNewswire/ -- PATTERSON-UTI ENERGY, INC. (NASDAQ:
PTEN) today reported financial results for the three and twelve months ended
December 31, 2012. The Company reported net income of $58.9 million, or $0.40
per share, for the fourth quarter of 2012, compared to net income of $87.6
million, or $0.56 per share, for the quarter ended December 31, 2011.
Revenues for the fourth quarter of 2012 were $653 million, compared to $725
million for the fourth quarter of 2011.

The Company reported net income of $299 million, or $1.96 per share, for the
twelve months ended December 31, 2012, compared to net income of $322 million,
or $2.06 per share, for the twelve months ended December 31, 2011. Revenues
for the twelve months ended December 31, 2012 were $2.7 billion, compared to
$2.6 billion for 2011.

During the quarter, the Company repurchased approximately 3.4 million shares
for approximately $60 million. In total, the Company repurchased
approximately 10.7 million shares for $170 million during 2012, which reduced
the outstanding shares by approximately 7%.

Andy Hendricks, Patterson-UTI's Chief Executive Officer, stated, "We are
pleased with our results for the fourth quarter in contract drilling, and
especially pleased with our results in pressure pumping.

"Our average number of rigs operating during the fourth quarter was 198 in the
United States, which was better than expected, and 7 rigs in Canada. This
compares to 211 in the United States and 5 rigs in Canada during the third
quarter."

Mr. Hendricks added, "Average revenue and direct operating cost per day
increased slightly in the fourth quarter, with an overall effect of average
margin per day declining by only $90 to $9,020. Both average revenue and
margin per day were also better than expected.

"Our average U.S. rig count during the fourth quarter included 12 rigs that
received standby rates compared to 10 during the third quarter. The Company
did not receive any lump-sum early termination payments in the fourth
quarter.

"As of December 31, 2012, we had term contracts for drilling rigs providing
for approximately $1.24 billion of dayrate drilling revenue. Based on
contracts currently in place with an initial duration of at least six months,
we expect to have an average of 97 rigs operating under term contracts during
2013, including an average of approximately 123 rigs in the first quarter.

"We completed 6 new APEX^® rigs during the fourth quarter, bringing our total
to 22 new APEX^® rigs completed in 2012. The capital budget for 2013 provides
for the construction of 13 new APEX^® rigs, of which 8 are rigs deferred from
2012. We demonstrated the flexibility of our APEX^® rig manufacturing program
during 2012 by deferring rigs as demand softened. This allows us to keep
components in inventory and scale our efforts based upon newbuild rig demand
in 2013.

"Far better than expected, our pressure pumping business achieved a 16%
sequential improvement in revenues during the fourth quarter to $212 million.
As a result, EBITDA increased 25% to $60.9 million for the fourth quarter.
Despite market conditions that became more challenging throughout the year,
our pressure pumping business EBITDA decreased by only 9% from the prior year
and generated EBITDA of $244 million during 2012.

"Our hydraulic fracturing activity increased during the fourth quarter as
customers performed well completions that had been delayed in previous
quarters. Additionally, a greater amount of 24-hour work and more work on
multi-well pads combined to positively impact our efficiency. Existing
customers, who increased their levels of hydraulic fracturing activity during
the quarter, awarded us additional work that is requiring the commissioning of
new equipment for which activation had previously been deferred. We also
purchased an extra 13,500 horsepower during the fourth quarter to support this
increased activity. By the end of the first quarter, we expect to have
activated all of the horsepower in our fleet," he concluded.

Mark S. Siegel, Chairman of Patterson-UTI, stated, "Our significantly better
than expected fourth quarter financial performance capped a year of
significant achievement for Patterson-UTI. Our strong results in 2012, and
especially in the fourth quarter, again proved the value of our
customer-centric approach, with its dedication to safety and efficiency. 

"In contract drilling, we efficiently moved rigs in 2012 from natural gas
directed drilling to oil and liquids-rich drilling, and we scaled our APEX^®
rig newbuild program to meet the changing market environment by adding 22 new
APEX^® rigs to our fleet. APEX^® rigs continue to be an industry leader in
both drilling and move-time efficiency. We continue to see strong demand for
our multi-directional, walking rigs for pad drilling, a technology we
introduced in 2006 and an area in which we have demonstrated multi-year
industry leadership. 

"In pressure pumping – with our strong customer alignment and sharp focus on
well-site execution, we were able to earn incremental business from our
customers and achieve strong margins relative to our peers despite challenging
market conditions. In the fourth quarter, the increases in utilization and
efficiency enabled us to demonstrate some of the continued upside potential
that we see in our pressure pumping business.

"Our 2012 operational achievements were complemented by financial
achievements, which included the sale of our flowback operations, the issuance
of $300 million of aggregate principal amount 4.27% fixed rate 10-year senior
unsecured notes, and the refinancing of our credit agreement, which includes a
5-year, $500 million revolving line of credit and a $100 million term loan.

"Our financial strength allowed us to return more than $200 million to
shareholders through share repurchases and dividends during 2012. Even after
returning more than $200 million to shareholders and investing almost $1
billion in capital expenditures, we ended 2012 in a strong financial
position. At the end of the year we had almost $571 million of liquidity,
including $111 million of cash and $460 million of availability under our
revolving line of credit. Furthermore, as of the end of 2012, our net debt to
total capitalization remained low at 18%.

"As we progress into 2013, we continue to be well-positioned. We will remain
disciplined with our capital, as we consider opportunities to maximize
shareholder returns through company growth and return of capital. None of our
achievements in 2012 would be possible without the dedicated hard work of the
men and women of our company; we salute and thank them," he concluded.

The Company declared a quarterly cash dividend on its common stock of $0.05
per share, to be paid on March 29, 2013 to holders of record as of March 15,
2013.

The financial results for the twelve months ended December 31, 2012 include
pretax charges of $13.5 million ($8.4 million after-tax) from the retirement
of drilling rigs and pressure pumping equipment, as well as the refinancing of
the Company's revolving credit facility. The financial results for the twelve
month period ended December 31, 2012 also include a pretax gain on the sale of
assets of $27.2 million ($17.2 million after-tax) related to the sale of the
Company's flowback operations and the auction sale of certain excess drilling
assets. The financial results for the twelve months ended December 31, 2011
include pretax impairment charges of $15.7 million ($10.0 million after-tax)
from the retirement of drilling rigs during 2011, including $11.3 million
($7.1 million after-tax) for the fourth quarter.

All references to "net income per share" in this press release are diluted
earnings per common share as defined within Accounting Standards Codification
Topic 260.

The Company's quarterly conference call to discuss the operating results for
the quarter ended December 31, 2012 is scheduled for February 7, 2013 at 9:00
a.m. Central Time. The dial-in information for participants is 866-362-4666
(Domestic) and 617-597-5313 (International). The Passcode for both numbers is
48970041. The call is also being webcast and can be accessed through the
Investor Relations section at www.patenergy.com. Webcast participants should
log on 10-15 minutes prior to the scheduled start time. Replay of the
conference call will be available at www.patenergy.com through February 21,
2013 and at 888-286-8010 (Domestic) and 617-801-6888 (International) through
February 12, 2013. The Passcode for both telephone numbers is 43844178.

About Patterson-UTI

Patterson-UTI Energy, Inc. subsidiaries provide onshore contract drilling and
pressure pumping services to exploration and production companies in North
America. Patterson-UTI Drilling Company LLC and its subsidiaries have more
than 300 marketable land-based drilling rigs and operates primarily in oil and
natural gas producing regions in the continental United States, Alaska, and
western and northern Canada. Universal Pressure Pumping, Inc. and Universal
Well Services, Inc. provide pressure pumping services primarily in Texas and
the Appalachian region.

Location information about the Company's drilling rigs and their individual
inventories is available through the Company's website at www.patenergy.com.

Statements made in this press release which state the Company's or
management's intentions, beliefs, expectations or predictions for the future
are forward-looking statements. It is important to note that actual results
could differ materially from those discussed in such forward-looking
statements. Important factors that could cause actual results to differ
materially include, but are not limited to, deterioration of global economic
conditions, declines in customer spending and in oil and natural gas prices
that could adversely affect demand for the Company's services, and their
associated effect on rates, utilization, margins and planned capital
expenditures, excess availability of land drilling rigs and pressure pumping
equipment, including as a result of reactivation or construction, adverse
industry conditions, adverse credit and equity market conditions, difficulty
in integrating acquisitions, shortages of labor, equipment, supplies and
materials, supplier issues, weather, loss of key customers, liabilities from
operations, changes in technology and efficiencies, governmental regulation
and ability to retain management and field personnel. Additional information
concerning factors that could cause actual results to differ materially from
those in the forward-looking statements is contained from time to time in the
Company's SEC filings, which may be obtained by contacting the Company or the
SEC. These filings are also available through the Company's web site at
http://www.patenergy.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System (EDGAR) at http://www.sec.gov. We undertake no
obligation to publicly update or revise any forward-looking statement.





PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Income (Unaudited)
(in thousands, except per share amounts)
                                Three Months   Twelve Months Ended
                               Ended
                                                   December 31,
                               December 31,
                               2012      2011      2012          2011
REVENUES                       $       $       $ 2,723,414  $ 2,565,943
                               652,750   724,647
COSTS AND EXPENSES
Direct operating costs
(excluding depreciation,       404,697   438,496   1,667,672     1,543,791
depletion, amortization and
impairment)
Depreciation, depletion,       132,791   127,602   526,614       437,279
amortization and impairment
Selling, general and           16,664    15,590    64,473        64,271
administrative
Net gain on asset disposals    (1,111)   (941)     (33,806)      (4,999)
Provision for bad debts        (500)     —         1,100         —
Total costs and expenses       552,541   580,747   2,226,053     2,040,342
OPERATING INCOME               100,209   143,900   497,361       525,601
OTHER INCOME (EXPENSE)
Interest income                172       52        554           187
Interest expense               (5,910)   (4,414)   (22,750)      (15,652)
Other                          (27)      10        508           582
Total other expense            (5,765)   (4,352)   (21,688)      (14,883)
INCOME FROM CONTINUING         94,444    139,548   475,673       510,718
OPERATIONS BEFORE INCOME TAXES
INCOME TAX EXPENSE             35,585    51,953    176,196       187,938
INCOME FROM CONTINUING         58,859    87,595    299,477       322,780
OPERATIONS
LOSS FROM DISCONTINUED
OPERATIONS, NET OF INCOME      —         —         —             (367)
TAXES
NET INCOME                     $      $      $   299,477 $   322,413
                               58,859    87,595
BASIC INCOME (LOSS) PER COMMON
SHARE:
INCOME FROM CONTINUING         $     $     $         $    
OPERATIONS                     0.40     0.56     1.96         2.08
LOSS FROM DISCONTINUED         $     $     $         $    
OPERATIONS, NET OF INCOME      0.00     0.00     0.00         0.00
TAXES
NET INCOME                     $     $     $         $    
                               0.40     0.56     1.96         2.08
DILUTED INCOME (LOSS) PER
COMMON SHARE:
INCOME FROM CONTINUING         $     $     $         $    
OPERATIONS                     0.40     0.56     1.96         2.06
LOSS FROM DISCONTINUED         $     $     $         $    
OPERATIONS, NET OF INCOME      0.00     0.00     0.00         0.00
TAXES
NET INCOME                     $     $     $         $    
                               0.40     0.56     1.96         2.06
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING:
Basic                          146,895   154,493   151,144       153,871
Diluted                        147,515   155,268   151,699       155,304
CASH DIVIDENDS PER COMMON      $     $     $         $    
SHARE                          0.05     0.05     0.20         0.20







PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data (Unaudited)
(dollars in thousands)
                         Three Months Ended Year Ended

                        December 31,            December 31,
                        2012         2011        2012            2011
Contract Drilling:
Revenues                $          $         $ 1,821,713    $ 1,669,581
                        425,247      468,917
Direct operating costs  $          $  
(excluding depreciation 254,580      270,907     $ 1,075,491    $   972,778
and impairment)
Selling, general and    $        $       $           $    
administrative          1,685        1,575       6,513          6,408
Depreciation and        $         $         $   390,316   $   344,312
impairment              99,863       101,714
Operating income        $         $        $   349,393   $   346,083
                        69,119       94,721
Operating days – United 18,247       20,250      78,420          74,868
States
Operating days – Canada 683          1,086       2,413           3,890
Total operating days    18,930       21,336      80,833          78,758
Average revenue per     $        $                       $    
operating day – United  21.99        21.56       $    22.22  20.88
States
Average direct
operating costs per     $        $       $    13.03  $    
operating day – United  13.11        12.34                       12.05
States
Average rigs operating  198          220         214             205
– United States
Average revenue per     $        $       $    32.92  $    
operating day – Canada  35.03        29.83                       27.38
Average direct          $        $                       $    
operating costs per     22.58        19.36       $    22.29  18.22
operating day – Canada
Average rigs operating  7            12          7               11
– Canada
Average revenue per     $         $       $    22.54  $    
operating day – Total   22.46       21.98                       21.20
Average direct          $         $                       $    
operating costs per     13.45       12.70       $    13.31  12.35
operating day – Total
Average rigs operating  206          232         221             216
– Total
Capital expenditures    $          $         $   744,949   $   784,686
                        179,597      228,423
Pressure Pumping:
Revenues                $          $         $   841,771   $   845,803
                        211,913      240,849
Direct operating costs  $          $  
(excl deprec, amort &  146,831      164,380     $   580,878   $   561,398
impairment)
Selling, general and    $        $       $    17,036  $   
administrative          4,226        4,436                       17,686
Depreciation,           $         $                        $   
amortization and        26,703       20,737      $   111,062   73,279
impairment
Operating income        $         $        $   132,795   $   193,440
                        34,153       51,296
Fracturing jobs         277          381         1,229           1,531
Other jobs              1,198        1,939       5,659           7,010
Total jobs              1,475        2,320       6,888           8,541
Average revenue per     $          $        $   590.70   $   
fracturing job          675.44      535.94                      467.85
Average revenue per     $         $       $    20.46  $    
other job               20.71       18.91                       18.48
Total average revenue   $          $        $   122.21   $    
per job                 143.67      103.81                      99.03
Total average costs per $         $       $    84.33  $    
job                     99.55       70.85                       65.73
Capital expenditures    $         $        $   194,117   $   198,061
                        41,585       62,619
Oil and Natural Gas
Production and
Exploration:
Revenues – Oil          $         $        $    55,335  $   
                        14,456       13,327                      44,495
Revenues – Natural gas  $        $       $     4,595 $    
and liquids             1,134        1,554                       6,064
Revenues – Total        $         $        $    59,930  $   
                        15,590       14,881                      50,559
Direct operating costs  $        $                       $    
(excluding depletion    3,286        3,209       $    11,303  9,615
and impairment)
Depletion               $        $       $    19,551  $   
                        5,019        4,259                       13,986
Impairment of oil and   $       $      $     1,866 $    
natural gas properties  252         132                        2,976
Operating income        $        $       $    27,210  $   
                        7,033        7,281                       23,982
Capital expenditures    $        $       $    29,888  $   
                        7,264        7,671                       22,884
Corporate and Other:
Selling, general and    $         $       $    40,924  $   
administrative          10,753       9,579                       40,177
Depreciation            $       $      $     3,819 $    
                        954         760                        2,726
Net gain on asset       $         $      $   (33,806) $   
disposals               (1,111)     (941)                       (4,999)
Provision for bad debts $       $      $     1,100 $      
                        (500)          —                        —
Capital expenditures    $        $       $     5,034 $    
                        1,194        1,429                       5,947
Total capital           $          $         $   973,988   $ 1,011,578
expenditures            229,640      300,142
                                                 December 31,    December 31,
Selected Balance Sheet                           2012            2011
Data (Unaudited):
Cash and cash                                    $            $    
equivalents                                      110,723        23,946
Current assets                                   $            $   
                                                 699,991        764,950
Current liabilities                              $            $   
                                                 359,863        418,712
Working capital                                  $            $   
                                                 340,128        346,238
Current portion of                               $          $    
long-term debt                                   6,250          10,000
Borrowings outstanding                           $        $   
under revolving credit                             —           110,000
facility
Other long-term debt                             $            $   
                                                 692,500        382,500







PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures (Unaudited)
(dollars in thousands)
                        Three Months     Year Ended
                       Ended
                                                December 31,
                       December 31,
                       2012         2011        2012            2011
Earnings Before
Interest, Taxes,
Depreciation and
Amortization
(EBITDA)(1):
Net income             $         $        $   299,477   $   322,413
                       58,859       87,595
Income tax expense     35,585       51,953      176,196         187,938
Net interest expense   5,738        4,362       22,196          15,465
Depreciation,
depletion,             132,791      127,602     526,614         437,279
amortization and
impairment
Results of
discontinued
operations:
Income tax benefit     —            —           —               (209)
EBITDA                 $          $         $ 1,024,483    $   962,886
                       232,973      271,512
Total revenue          $          $         $ 2,723,414    $ 2,565,943
                       652,750      724,647
EBITDA margin          35.7%        37.5%       37.6%           37.5%
EBITDA by operating
segment:
Contract drilling      $          $         $   739,709   $   690,395
                       168,982      196,435
Pressure pumping       60,856       72,033      243,857         266,719
Oil and natural gas    12,304       11,672      48,627          40,944
Corporate and other    (9,169)      (8,628)     (7,710)         (35,172)
Consolidated EBITDA    $          $         $ 1,024,483    $   962,886
                       232,973      271,512


(1) EBITDA is not defined by generally accepted accounting principles
("GAAP"). We present EBITDA (a non-GAAP measure) because we believe it
provides additional information with respect to both the performance of our
fundamental business activities and our ability to meet our capital
expenditures and working capital requirements. EBITDA should not be construed
as an alternative to the GAAP measures of net income or operating cash flow.

SOURCE PATTERSON-UTI ENERGY, INC.

Website: http://www.patenergy.com
Contact: Mike Drickamer, Director, Investor Relations, Patterson-UTI Energy,
Inc., +1-281-765-7170