Patterson-UTI Energy, Inc., reported a net loss for the third quarter and revenues were down by more than $200 million.
The company, which announced its third quarter financial information today, reported a net loss of $84.1 million, or 58 cents per share, for the third quarter compared to a net loss of $226 million, or $1.54 per share, for the third quarter of 2015.
Third quarter revenues in 2016 were $206 million, compared to $422 million in 2015.
Year-to-date, Patterson reported a net loss of $241 million, or $1.65 per share, compared to a net loss of $236 million, or $1.61 per share, for the same period in 2015.
Nine-month revenues for 2016 were $669 million, compared to $1.6 billion for the same period in 2015, according to company officials.
“Our rig count in the United States has steadily improved on a monthly basis since May. For the third quarter, our average rig count improved to 60 rigs in the United States and two rigs in Canada, up from the second quarter average of 55 rigs in the United States and less than one rig in Canada,” said Andy Hendricks, Patterson-UTI’s Chief Executive Officer. “For the month of October 2016, we expect our average rig count will be 63 rigs in the United States and two rigs in Canada.”
Hendricks said the total average rig operating costs per day during the third quarter increased to $13,180 from $12,770 in the second quarter “due to a decrease in the proportion of rigs on standby.”
“As of Sept. 30, 2016, we had term contracts for drilling rigs providing for approximately $464 million of future dayrate drilling revenue,” Hendricks said. “Based on contracts currently in place, we expect an average of 43 rigs operating under term contracts during the fourth quarter, and an average of 32 rigs operating under term contracts during 2017.”
Patterson-UTI Chairman Mark S. Siegel said the recovery process is beginning for the oil industry.
“We believe our industry has begun the initial stages of the recovery process, which began with smaller operators picking up rigs to drill less service intensive wells,” he said. “We believe the market has transitioned in favor of higher-spec rigs and we are encouraged by the recent increase in demand that is increasing utilization for this class of rig, especially in markets such as the Permian Basin. Overall, we believe the market for higher-spec rigs has appreciably tightened.”
The company declared a quarterly dividend on its common stock of 2 cents per share, to be paid on Dec. 22, to holders of record as of Dec. 8.
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