Patterson-UTI Energy, Inc., reported a net loss of $78.1 million during the fourth quarter of 2016.
One year ago, the company reported a net loss of $58.7 million. Revenues for 2016’s fourth quarter were $247 million, compared to $339 million for the fourth quarter of 2015.
For the year, Patterson reported a net loss of $319 million, compared to a net loss of $294 million in 2015. Revenues in 2016 were $916 million, compared to $1.9 billion in 2015.
“Total average rig revenue per day for the fourth quarter was $21,640 compared to $21,870 during the third quarter. As a result of a significant reduction in the proportion of rigs on standby, total average rig operating costs per day during the fourth quarter increased to $13,770 compared to $13,180 during the third quarter,” said Andy Hendricks, Patterson-UTI’s chief executive officer. “Without the decrease in the proportion of rigs on standby, total average rig operating cost per day would have decreased as a result of fixed costs being spread over more operating days. As a result of these changes, total average rig margin per day decreased to $7,870 during the fourth quarter, from $8,690 during the third quarter.
Patterson-UTI Chairman Mark S. Siegel said the industry is recovering after oil prices dropped to under $40 per barrel last year.
“The pace of the recovery in our industry accelerated in the fourth quarter with increasing drilling and pressure pumping activity. With the industry land rig count approximately doubling from the trough, we are encouraged by the recent uptick in activity and pricing and believe 2017 will be an exciting year for Patterson-UTI,” he said. “We continue to make progress towards closing our pending merger with Seventy Seven Energy, which we expect to be completed late in the first quarter or early in the second quarter of 2017. This merger further solidifies our position as a leading high-spec drilling company and will make us one of the largest pressure pumping companies in the industry.”
Patterson declared a quarterly dividend on its common stock of two cents per share, to be paid on March 22 to holders of record as of March 8.