Patterson Uti Energy Inc (PTEN) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

Exhibit 99.1

Contact: Mike Drickamer

Vice President, Investor Relations

Patterson-UTI Energy, Inc.

(281) 765-7170

Patterson-UTI Energy Reports Financial Results for Three and Twelve Months Ended December 31, 2017

HOUSTON, Texas – February 8, 2018 – PATTERSON-UTI ENERGY, INC.

For the year ended December 31, 2017, the Company reported net income of $5.9 million, or $0.03 per share, compared to a net loss of $319 million, or $2.18 per share, for the year ended December 31, 2016.  Revenues for the year ended December 31, 2017 were $2.4 billion, compared to $916 million for 2016.

The financial results for the fourth quarter of 2017 include net after-tax items of $218 million, or $0.98 per share.  These items include a benefit of $219 million, or $0.99 per share, related to a non-cash revaluation of deferred tax items arising from lower corporate tax rates as part of recent tax legislation, $8.7 million of pre-tax merger and integration expenses ($6.4 million after-tax, or $0.03 per share), and an $8.4 million pre-tax gain ($6.2 million after-tax, or $0.03 per share) related to the sale of certain oil and gas properties.  Excluding these items, the net loss per share for the quarter would have been $0.10.  Financial results for the year ended December 31, 2017 include the aforementioned adjustment to the deferred tax items, as well as merger and integration expenses totaling $74.4 million pre-tax, a non-cash impairment charge totaling $29.0 million and gains from the sale of certain real estate and oil and gas interests totaling $19.6 million.  Excluding these items, the net loss per share for the year ended December 31, 2017 would have been $0.80.

Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “Before reviewing the financial results, I want to express again that all of us at Patterson-UTI are mourning those who lost their lives in the tragic accident in Oklahoma.  There is nothing more important to us than the safety of our employees and others we partner with in the field.”

Mr. Hendricks added, “Turning to the fourth quarter, despite widespread concerns for lower industry drilling activity, our rig count rebounded through the quarter.  Even with the typical holiday slowdown in Canada, our rig count at the end of the year was near the highest level of 2017.  Our average rig count for the fourth quarter was unchanged relative to the third quarter at 161 rigs.  For the month of January 2018 our average rig count was 165.    

“Average rig margin per day for the fourth quarter increased $280 sequentially to $8,010, as a $630 increase in average rig revenue per day offset a $350 increase in average rig operating costs per day.  Average rig revenue per day of $20,950 was better than expected, as the market for super-spec rigs remains tight.  Average rig operating costs per day increased, as expected, to $12,940 from an unusually low level in the third quarter.

“We completed all seven of the previously announced rig upgrades to APEX-XK®, and continue to see strong demand for super-spec rigs.  As such, we now have customer contracts to support the upgrade of five additional APEX® rigs - two to become APEX-XK® rigs and three to become APEX-PK™ rigs.  These five upgraded rigs are expected to be delivered in the first half of 2018.