Patterson-UTI Energy, Inc., reported a net loss of $294 million during 2015, according to information released today.
In 2014, Patterson reported a net gain of $163 million. Revenues for 2015, were $1.9 billion, compared to $3.2 billion in 2014.
During the fourth quarter of 2015, Patterson reported a net loss of $58.7 million. During the same quarter in 2014, the company had a net income of $57.6 million.
Revenues for the fourth quarter of 2015 were $339 million, compared to $901 million in 2014.
Andy Hendricks, Patterson’s chief executive officer, said the company’s average rig count in the fourth quarter was down compared to the third quarter.
“We recognized $9.2 million of revenues related to early contract terminations in contract drilling during the fourth quarter. These early termination revenues positively impacted our total average rig revenue per day of $24,240 by $1,100,” Hendricks said. “Excluding early termination revenue from both the third and fourth quarters, total average rig revenue per day during the fourth quarter would have been unchanged from the third quarter at $23,140.”
Hendrick said pressure pumping decreased over the last three months of 2015, but was not as bad as officials expected.
“Pressure pumping revenue during the fourth quarter was $132 million compared to $154 million in the third quarter,” he said.
Patterson Chairman Mark S. Siegel said “2015 was a challenging year for the energy sector.”
“Geopolitics, combined with the resilience of U.S. crude oil production, weighed heavily on oil prices,” he said. “Low oil prices, combined with low natural gas prices, resulted in the U.S. land drilling rig count decreasing more than 60 percent during 2015, and it is now almost 70 percent lower than the peak in 2014. In this market environment, we remain focused on operational execution and preserving the strength of our balance sheet.”
Siegel said the company has been adjusting during the downtown.
“During the downturn, we have consistently scaled our business to activity levels while maintaining high-quality operations. Financially, our cash balance increased to $113 million as of Dec. 31, 2015, and our $500 million revolving line of credit remains fully available,” he said. “While there is no visibility currently into a recovery, we remain confident in the long-term outlook for our company. We are financially strong, and with 161 APEX rigs and more than 1 million horsepower of pressure pumping equipment, we have the kind of high-quality equipment that we expect to be in greatest demand during a recovery.”
The company declared a quarterly dividend on its common stock of 10 cents per share, which will be paid on March 24 to shareholders of record as of March 10.
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