Patterson-UTI Energy, Inc., reported a net loss and a loss in revenue during the second quarter of 2016 compared to the same time period in 2015.
Patterson reported a net loss of $85.9 million, or 58 cents per share, for the second quarter of 2016, compared to a net loss of $19 million, or 13 cents per share, in 2015. Revenues for the 2016 second quarter were $194 million, compared to $473 million in 2016.
For the six months that ended June 30, Patterson reported a net loss of $156 million, or $1.06 per share, compared to a net loss of $9.9 million, or seven cents per share, over the first six months of 2015. Revenues over the first six months of 2016 were $463 million down from $1.1 billion for the same period in 2015.
“We recognized $5.4 million of revenues related to early contract terminations in our drilling business during the second quarter,” said Andy Hendricks, Patterson’s chief executive officer. “These early termination revenues positively impacted our total average rig revenue per day of $23,070 by $1,080. Excluding early termination revenue from both the first and second quarters, total average rig revenue per day during the second quarter would have been $21,980 compared to $22,820 in the first quarter.
Hendricks said the average rig count should begin to increase with July’s total.
“In contract drilling, our rig count during the second quarter averaged 55 rigs in the United States and less than one rig in Canada, compared to the first quarter average of 71 rigs in the United States and three rigs in Canada,” he said. “Since reaching a bottom in late-April of 52 rigs, our rig count in the United States has improved to 58 rigs. For the month of July, we expect our average rig count will be 56 rigs in the United States and two rigs in Canada.”
Patterson Chairman Mark S. Siegel said the company’s focus has shifted during the latest downturn in oil prices.
“During a recovery, our operational focus shifts as we scale the company to higher activity levels, but our priorities remain the same — operational execution, maximizing margins and maintaining financial flexibility,” he said. “We are well positioned for a cyclical recovery with both high quality drilling rigs and pressure pumping equipment that are ready to be reactivated, as well as the financial position necessary to cover reactivation costs and increases in working capital.”
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