Patterson Uti Energy Inc (PTEN) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

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, 2018

Share Repurchases of $150 Million in 2018; Share Repurchase Authorization Increased to $250 Million

HOUSTON, Texas – February 7, 2019 – PATTERSON-UTI ENERGY, INC.

For the year ended December 31, 2018, the Company reported a net loss of $321 million, or $1.47 per share, compared to a net profit of $5.9 million, or $0.03 per share, for the year ended December 31, 2017.  Excluding non-cash impairment charges incurred during the third and fourth quarters of 2018, the net loss for 2018 would have been $74.7 million, or $0.34 per share.  Revenues for the year ended December 31, 2018 were $3.3 billion, compared to $2.4 billion for the same period in 2017.

During the fourth quarter, the Company repurchased approximately 3.8 million of its outstanding shares for $50.0 million.  During the year ended December 31, 2018, the Company repurchased 9.3 million shares on the open market, or 4.2% of its outstanding shares at the beginning of the year, for approximately $150 million.  At December 31, 2018, the remaining amount under the Company’s share repurchase authorization was approximately $150 million, and the Company’s Board has authorized an increase to bring the current authorization up to $250 million.

Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “In contract drilling, our rig count averaged 183 rigs during the fourth quarter, an increase of five rigs from the third quarter.  The sharp drop in oil prices in December resulted in some of our customers notifying us of their intent to release rigs.  Recently, with the sharp rebound in oil prices above $50, we have seen an improvement in operator sentiment.  We expect our rig count will average 174 rigs during the first quarter of 2019.”

Mr. Hendricks added, “We achieved an increase in average rig margin per day of $920 to $9,390.  Dayrates for super-spec rigs were strong during the fourth quarter, leading to an increase in average rig revenue per day of $690 to $22,970.  Average rig operating costs per day for the fourth quarter decreased $230 to $13,580.  Average rig revenue, costs and margin on a per day basis were all better than expected during the fourth quarter.      

“We completed 14 major upgrades throughout 2018 and one additional major upgrade in January 2019.  We currently have only one additional major rig upgrade contracted for delivery in 2019.  Given the significant capital investment for major upgrades, we require term contracts for a major upgrade.  We have not delivered any major drilling rig upgrades without a term contract, nor do we intend to do so.

“As of December 31, 2018, we had term contracts for drilling rigs providing for approximately $770 million of future dayrate drilling revenue.  Based on contracts currently in place, we expect an average of 122 rigs operating under term contracts during the first quarter, and an average of 78 rigs operating under term contracts during 2019.